Brazil's poultry industry: building partnerships around the worldpartnerships around the world

Ricardo SantinMarket Relations Director

Brazilian Poultry Association - UBABEF

The Brazilian Poultry Association UBABEF

• 123member companies

• Products: Poultry Meat (Chicken, Turkey, Duck and others), Eggs and Egg Products, Genetics

• Meat packers, genetic companies, state-level associations, representative

organizations, laboratories, equipments and feed producers.

UBABEF Members

Chicken Meat Prodution(1.000 MT)

20

25

30

35

0

5

10

15

20

2010 2011 2012

USA China Brazil EU-27 Others

Brazilian chicken meat production, domestic consumption and

exports

10,000

12,000

14,000

Exports (1,000 MT) Domestic Market (1,000 MT)

12,645Production (1,000 MT)

Per capita consumption: 45 kg/year (2012)

Source: SECEX

916

3,9185,061

8,727

0

2,000

4,000

6,000

8,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

5,977

Brazilian Poultry Exports (2012)

Product Volume (ton) Revenue (US$)

Chicken Meat 3.917.581 7.702.997

Genetics 1.060 43.848

Eggs 26.853 42.616

Fertile Eggs 10.073 60.916

Other birds 3.063 11.208

Turkey 178.975 500.409

Total 4.137.605 8.361.996

Brazilian chicken meat exports – Main destinations (2012)

Saudi Arabia16%

EU-2711%

Japan

Others29%

Source: SECEX

Japan10%

Hong Kong8%

United Arab Emirates

6%

China6%

South Africa5%

Egypt3%

Kuwait3%

Iraq3%

Whole36%

Processed5%

Salted4%

Brazilian Chicken Meat Exportsby products (2012)

36%

Cuts55%

Brazilian chicken egg production, domestic consumption and exports

1,500.0

2,000.0

2,500.0

Exports (1,000 MT) Domestic Market (1,000 MT)

1,906

Production (1,000 MT)

Per capita consumption: 162 eggs/year (2012)

4.0 26.9

5,061

1,880

0.0

500.0

1,000.0

1,500.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

1,197

Source: SECEX

Brazilian Egg Exports - Products

Shell egg94% Whole egg

Dried egg white

2%

94% Dried yolk0%

Liquid yolk0%

Dried whole egg0%

Whole egg (frozen or

chilled)4%

Fuente: SECEX/UBABEF

Continuous investments in order to meet specific market requirements

The Brazilian Poultry Meat is consumed in more than 150

countries

High standards for sanitarycontrol, animal health and

animal welfare.

Continuous investments in order to meet specific market requirements

Cultural and Religiousrequirements, Brazil in

recognized for its excelencein Halal slaughter.

Continuous investments in order to meet specific market requirements

Specific products and cutsdeveloped exclusively for

different markets.

Chicken leg

Chicken kneecartilage

Chicken legboneless skin-on

Brazil and Paquistan: a strategic partnership on poultry meat

• During the las decade, brazil has helped emerging economiesmeet the growing demand for poultry meat

• Asian countries have been benefiting also by having accessto new technologies and new products, generating

complementarities between asian and brazilian producers. Example: HONG KONG

Our main objective is to help give the population more access to a healthy a good quality source of protein!

Example: HONG KONG

• Our policy is to never threat local producers, but rather to cooperate with them, creating synergies in terms of products and helping to fulfill unattended demands! Example: JAPAN

Brazil and Paquistan: can work together for mutual benefits

• The processing industry can be benefited from thebrazilian poultry meat as raw material, developing new

products and technologies and creating jobs in Asia. Example: PHILLIPINES and MALAYSIA (negotiation

under way)

• Food Service companies has benefited from affordable

Consumers have benefited from all these aspects having access to new, top quality, affordable products!

• Food Service companies has benefited from affordable high quality products enabling the sector to meet a

growing demand. Example: CHINA

• Thousands of jobs have been created in the distributionchain (importers, transport services, wholesalers)

Example: SINGAPORE

Brazil and Paquistan: huge business opportunities in poultry!

• The paquistani market is still officially closed to poultry imports from Brazil

• Brazil is the largest exporter of HALAL chicken in theworld (1,8 million tons in 2012)

• Paquistan has a large Muslim population (96% of the• Paquistan has a large Muslim population (96% of the190 million people)

• Consumption per capita in Paquistan is very low.

• If each paquistani eat 22kg/year there could be anadditinal demand of 3.5 million tons of chickenmeat, worth US$ 6 billion per year on business.

Brazil and Paquistan : huge business opportunities in poultry!

• Both local producers in Paquistan and importerscan benefit from this unattended demand.

• The Brazilian Ministry of Agriculture has alreadysent proposals of Sanitary Certificates for chicken

We count on the support from processors, importers and other players in the private sector to negotiate

the market opening with the Paquistaniauthorities, without harming local producers!

meat to its counterpart in Paquistan

The future of the world demand for poultry meat

• The population will grow more in developing countries

• GDP growth will be higher in developing countries.

• Urbanisation rates in developing countries will increase, as well as the middle class.

• Middle class expansion will increase proteinconsumption, specially the cheaper ones.

Examples of complementary – EU-27

6000

7000

8000

900010000

Production: + 16%Imports: + 22%Imports from Brazil: + 2%Exports: + 55%

0

1000

2000

3000

4000

5000

2005 2006 2007 2008 2009 2010 2011

Production Imports Imports from Brazil Exports

Examples of complementary – Chile

300

400

500

600

Production: + 23%Exports: + 53%

0

100

200

300

2005 2006 2007 2008 2009 2010 2011 2012

Production Imports Imports from Brazil Exports

Examples of complementary – China

8000

10000

12000

14000

Production: + 34%Exports: + 20%

0

2000

4000

6000

2005 2006 2007 2008 2009 2010 2011

Production Imports Imports from Brazil Exports

Examples of complementary – Japan

800

1000

1200

1400Production: + 11%Imports: + 14%Imports from Brazil: - 5%Exports: + 900%

0

200

400

600

800

2005 2006 2007 2008 2009 2010 2011

Production Imports Imports from Brazil Exports

The Resources

• Biomass Production Potential• Water Availability• Grains Availability• Arable Land Availability

Favorable weather

conditions

IntegratedProduction

System

skilled labor

Brazilian Poultry

conditions

Natural Resource

Grain Availability

Sanitary Status

Poultry health situation worldwideBrazil is free from Avian Influenza

Highly Pathogenic Avian Influenza ( Jan 2007 – Feb 2013 )

Source: WAHID OIE (2013)

Poultry health situation worldwideBrazil is free from Newcastle disease

Newcastle disease ( Jan 2007 – Feb 2013 )

Source: WAHID OIE (2013)

Brazil - Disease last reported 11/2006 (in non commercial poultry)

Food Safety from Farm to Table

• National Control Programs involving Government + Industries

• National Poultry Program for Sanitary Control/PNSA –Control of the origin and Animal Health

• National Program for control of Residues and Contaminants – PNCRCContaminants – PNCRC

• Pathogen Reduction Program PRP - Salmonella.

• Other programs for microbiological and physicochemicalanalyses.

• Industries food safety/quality assurance programs: (GMP, SSOP, HACCP, etc)

• Programs for Prevention and Control of Water Injection in Products (PPCAAP)

Sustainability in the Brazilian poultry production

• The Brazilian poultry meat production structure is far from the Amazon biome, and is based mainly on

integrated, family owned farms.

Sustainability in the Brazilian poultry production

• No subsidies involved• System linking small family agriculture to

the global agribusiness• Poultry production is close to the soy

and corn• Less use of electricity - Less need of

artificial heatingartificial heating

• Best ressource allocation: win-win partnershipwith the importing countries

• Assuring food safety by complementing local production

• Continuous investments to fulfill market andclients requirements around the world

• Helping to keep the world food pricesaffordable

BrandingBrazilian Chicken

• To present the Brazilian Chicken as guarantee of quality

• Reinforce the perception of global trademarks that sell Brazilian Chicken

• Strong visual connection with the country and product

• Colors that mean food (red and yellow), natural (green) and healthy (blue)

27 to 29 August, 2013The official event of the Brazilian poultry Sector

Exhibition Map

Thank you!Thank you!UBABEF

Brazilian Poultry AssociationPhone: +55 11 3031-4115

Email: ubabef@ubabef.com.br