Agriculture Minister Mission to Indonesia

Agribusiness Seminar
The Brazilian Poultry Sector – Industry and
Exports
Jakarta, Indonesia March 15, 2007
Christian Lohbauer
International Relations Manager
Brazilian Chicken Producers and Exporters Association
ABEF
 ABEF

9 The Brazilian Chicken Producers and Exporters

Association – ABEF, represents 20 companies
responsible for 92% of Brazilian poultry exports.
ABEF’s mission is to work for poultry export
development, access new markets, and guarantee the
highest quality of the world’s most exported
chicken.
BRAZIL AND THE WORLD
Tempered climate and good infra-
structure in the Southern Region
contribute for excellent conditions
to produce food. Around 75% of
broiler production is in the southern
region.

Southern and Center-West

regions have an average rain
precipitation higher than the
U.S. or Argentina (USDA)
 Territory to be explored
The Centre-West Region is the new agriculture frontier for
agribusiness development. It represents the largest available
agriculture area to be explored in the world

Estimated Million Hectares

Amazon Forest 350

Natural Grasslands 220
Legal Natural Reserve 55
Annual Plantations 47
Permanent Cultures 14
Urban Areas, lakes, Roads, Swamps 20
Reforestation 5
SUBTOTAL 711
Others 50
Still Available agriculture Area 90
TOTAL 851
 Brazilian Aviculture History
9 From the end of the 50’s to the 60’s the production initiated its
professional and industrial phase - the Integrative Model was
brought from the USA
9During the 70’s the Integrative Model was improved and
adapted to Brazilian conditions – the exports started in 1973. The
domestic market expanded and gave scale to production. In 1975
Brazil became one of the 10 main world exporters
9With the economic crisis of the 80’s, governmental incentives
were reduced and the integrated companies from the southern
region became more efficient than the traditional companies in
the southern region
9In the 90’s, the aviculture companies started to move to the
Center-West following the low cost production of Soya and Corn
9In the new century Brazil duplicated its exports and expanded
them to more than 140 countries in 5 continents
Brazilian Production Structure
Pure Lines - Genetics Development

GGP – Great Grand Parents .

GP – Grand Parents …………

Parent Stocks – Breeders ……

Hatchers – Broiler …………..

Industry/Slaughters ………….

Exporters ……………………..
 Production Chain
Integrative Model
• Raw material
• Feed Mill
• Farmers
• Industry
• Supermarket
• Consumer
 Brazilian Aviculture Production
Systems Classification

Independent
Producer is responsible for the production from Breeders to day old
chicken
Integrated
System based on coordination between producers and industry since
Grand Parents. In the integration producers supply labor and
facilities and industry supplies medicine, quality control and
balanced food
Cooperative
System based on coordination between Cooperatives and industry
since Grand Parents. In the integration Cooperatives supply labor
and facilities and industry supplies medicine, quality control and
balanced food
 Brazilian Poultry Export
by Region (%)
BRAZIL

NORTH
2006
NORTHEAST
Paraná 27,7% CENTRE WEST 0,1%
Santa Catarina 27,9% 8,%
Rio Grande do Sul 22,5%
São Paulo 7,1% SOUTHEAST
Minas Gerais 3,8% 11,8%
Mato Grosso do Sul 3,5%
Goiás 3,6%
Mato Grosso 2,2%
Distrito Federal 1,5% SOUTH
Bahia 0,1% 79,2%
Outros ~
Source: ABEF
 Brazilian Meat Domestic Production
(in 1,000 Metric Tons)
10
9,335
8,494
8,811
8
7,517 8,482
6,794
6,505 6,643
7,189
6 Poultry
5,977 Pork
Beef
4 4,875
4,052 2,872
2,556 2,679 2,871

1,560 1,699

0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Poultry 130% growth

Pork 86% growth 1996 to 2006
Beef 26% growth
Source: ABEF, ABIPECS, ABIEC
 Brazilian Poultry Meat Production
2000 – 2006 (Ton)
56,2 %
10.000.000
9.000.000
8.000.000
7.000.000

9.335.546
6.000.000

9.297.151
5.000.000
5.976.523

4.000.000

3.000.000
2.000.000
1.000.000

0
2000 2001 2002 2003 2004 2005 2006

Source: ABEF
Companies/Brands
Main Brazilian Poultry Producers and
Exporters Companies

Producers Exporters

1. Sadia 1. Sadia
2. Perdigão 2. Perdigão
3. Seara 3. Seara
4. Doux Frangosul 4. Doux Frangosul
5. Avipal 5. Avipal
6. DaGranja 6. Diplomata
7. Aurora 7. Penabranca
8. Diplomata 8. Aurora
9. Penabranca 9. Coop. Lar
10. Copacol 10. Penasul
 Brazilian Participation on Global Poultry Meat
Production (1,000 Metric Tons)
15,5%
70.000

60.000

50.000

40.000

30.000

20.000
4,6%

10.000

0
1975 1980 1985 1990 1995 2000 2004 2005 2006
Brazil 484 1.250 1.490 2.356 4.050 5.977 8.494 9.297 9.335
World 10.142 14.866 19.039 25.082 30.967 44.497 46.739 48.930 60.090

Source: ABEF/USDA
 Brazilian Chicken Meat Exports
1975-2007 (Million Tones)
4.000
3.500
2846 2713 2850
3.000
2470
2.500
1960
2.000
1625
1.500
1266
916
1.000
169 273 299 429
500
4
0
75

80

85

90

95

00

01

02

03

04

05

06

)
(e
19

19

19

19

19

20

20

20

20

20

20

20

07
20
Source: ABEF
 Brazilian Chicken Meat Exports
1975-2007 (Million US$)
4.000
3.508 3.420
3.500
3.000
2.595 3.203
2.500
2.000
1.331 1.799
1.500
1.393
1.000
207 239 320 829
500
3 634
0
75

80

85

90

95

00

01

02

03

04

05

06

)
(e
19

19

19

20

20

20
19

19

20

20
20

20

07
20
Source: ABEF
 Brazilian Poultry Consumption
(kg/hab)
38,5 35,5 35,7
31,8 33,8 33,3 33,9
33,0
29,9
27,5

22,0

16,5

11,0

5,5

0,0
2000 2001 2002 2003 2004 2005 2006

Source: ABEF
 Brazilian Poultry Meat Destination
(2006)

Domestic Market
71 %

Exports
29%

Source: ABEF
 Main World Poultry Producers
(2006)(Million Tons)

United States 16.162

China 10.350
Brazil 9.336
European Union 7.425
Mexico 2.610
World 60.090

Source: ABEF; USDA

 Main World Poultry Meat Importers
2006
Russia
16,5%

Japan
10,5%
Other Countries
39,1%

Mexico
6,4%
Canada
Hong Kong 1,6%
6,3% Ukraine Emirates
Saudi Arabia Romania
3,1% 2,1%
5,5% 1,8%
China South Africa
4,7% 2,3%
Source: IKAR
Main Brazilian Poultry Importers (2006)

Country
1. Saudi Arabia 9. Kuwait
2. Japan 10.Germany
3. Hong Kong 11. Singapore
4. South Africa 12. Yemen
5. Russia 13. Romania
6.Nederland 14. China
7. Venezuela 15. UK
8. United Arab Emirates
 Brazilian Main Importers-World Regions
(2006)
Others European
9% Union 13%
Russia
8%

Middle East
26%
Asia
29%

South America
Africa
6%
9%

Source: ABEF
 Brazilian Poultry Exports by Product
(volume)
Processed
4% 3%

Whole Chicken
34% 37%

Cuts
60% 62%

Obs: 2005
2006

Source: ABEF
 Brazilian Competitive Advantages
(for all meats)

9 Production systems integrated and technologically updated

9 Competitive domestic market

9 World Class companies and brands

9 Ideal natural conditions to production

9 Enough Corn and Soya beans available to feed animals

9 Sanitary System recognized by the European Union and Japan

9 Emphasis on sanitary protection

 Poultry Sector in Brazil
2006

9 Third most important export product of Brazilian Agribusiness

9 Sixth export product of the total Brazilian Exports (after Soya
complex, oil, aircrafts, automobiles, sugar/ethanol)

9 Brazil exports poultry to more than 140 countries

9 The sector represents 1,5% of the country’s GDP

9 4 millions jobs depend on the poultry sector

 Avian Flu
Since 2003

9 About 30 Countries Affected

9 145 deaths around the world

Risks to Brazil
9 Migratory Birds

9 Foreign visitors

9Vessels from Africa

Migratory Routes
 Biosecurity Procedures

9 National Plan for Prevention of Avian Influenza and

Control and Prevention of the Newcastle Disease - Plano
Nacional de Controle e Prevenção da Doença de Newcastle e
de Prevenção Influenza Aviária – PNSA (1994) e Instrução
Normativa nº. 17 de 7 de abril de 2006
9 Import of live birds from affected countries prohibited
9 Intensification of Control
9 Systematic Pathogenic Analysis in critical Points of bird
migration
 Flow Chart of Public and Private Institutions
Brazilian Poultry

MAPA
PNCR PNSA

Public Area Poultry

Industry

SDA, Agriculture EMBRAPA Official

DDA, and Laboratories
DIPOA State Secret. Universities

UBA ABEF SINDAN / Poultry Diagnostic Independent

SINDIRACOES Associations Laboratories Producer
Sanitary Barriers
 Biosecurity Program
9 Specific actions are taken to prevent flock diseases
throughout the production system;
9 The complete process is monitored by a technical
staff;
9 Industry has its own Microbiological, Diagnostic and
Feed laboratories to support the production area
(monitoring, diagnosis);
9 Visitors control;
9 Breeder farms and hatcheries are isolated;
9 Water and environment periodic monitored.
 Biosecurity Program
9 Cleaning and disinfections program in all production
stages;
9 Shower and uniforms (hatchery and breeding)
9 Vaccination for the main flock diseases;
9 Established HACCP concepts throughout the
production chain
9 Production Chain Traceability
9 GPS location
Breeders Farms
Biosecurity Procedures
Water Source Protection
Water Reservoir
Truck Desinfecction
Feed Mill
 Brazilian Poultry Exports – Main
Markets in Asia (tons)
2003 2004 2005 2006
China 11,644 60,176 116,551 27,475
Singapore 64,062 66,387 74,462 74,594
Japan 184,950 323,087 404,769 322,803
Korea 3,022 901 4,819 19,805
Saudi Arabia 288,133 332,612 380,522 339,467
United Arab Emirates 99,920 120,528 131,737 147,129
Kuwait 59,774 100,658 141,500 99,564
Yemen 60,969 68,507 59,051 57,730
Malaysia In negotiation
Source: ABEF
 The Indonesian Market
(thousand tons)

2006 200

Domestic utilization 1,052 1,002

Exports 0 0

Imports 2 2

Source: FAO
The Halal Certification in Brazil
9Brazil has been one of the first exporters to
be qualified in the Halal slaughtering;
9Guidelines for slaughtering, storage,
handling and transportation fully observed
in every stage of Halal food processing;
 Brazilian Poultry Global
Challenges
2007
1- Avian Influenza Threat
2 – European Protectionism/quotas administration
3 – World Corn Demand
4 – Sanitary requirements used as non-tarrif barriers
5 – Institucional Marketing
6 – National Infra-structure
7 – US$ Exchange Rates
christian@abef.com.br