Brazil China: a strategic partnership on poultry meat
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1 Brazil China: a strategic partnership on poultry meat Adriano Zerbini Market Relations Manager Brazilian Poultry Association - UBABEF
2 The Brazilian Poultry Association (UBABEF) Result of the merger of UBA and ABEF Mission: Topromote Brazilian poultry in Brazil and abroad, in order to provide the world population with a healthy and high quality source of animal protein. 106 member companies Poultry Meat (Chicken, Turkey, Duck and others) Eggs and Egg Products Genetics
3 UBABEF Members Poultry Meat Exporters
4 World Poultry Meat Production World Major Poultry Meat Producers USA Brazil China 54,5% world s production Source: USDA, UBABEF 4
5 Brazilian Poultry Meat Production Evolution of the Brazilian Poultry Meat Production (1.000 MT) Source: UBABEF
6 World Poultry Meat Exports World Major Poultry Meat Exporters (2010) Brasil EUA 73% of world s exports Source: USDA/MDIC 6 * Paws are not included
7 Brazilian Poultry Meat Exports The evolution of the Brazilian Poultry Meat Exports since 2000 Source: MDIC 7
8 Brazilian Poultry Meat Exports Main Destinations by Region (2010) 8
9 Where does this success come from? Natural Resources + Grain Availability + Integrated Production + Sanitary Status + Flexibility and variety of markets + Investment in Technology = One of the most advanced poultry productions in the world 9
10 The Integrated Production System What is it? - A partnership between: - The Industry(that supplies the day old chick, the feed, the vaccines and the veterinary control, and owns the slaughterhouse) - The integrated producer(small farmer responsible for the building the aviary and raising the chickens) - Representing part of the brazilian poultry chain that generates around 4.5 million direct and indirect jobs.
11 The Integrated Production System What does it generate? - Better quality and risk control; - Creates jobs on the rural area, mainly in small family owned farms, - Links thousands of small local producersto the global agribusiness
12 The Future of the World Poultry Market The populationwill 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 protein consumption, specially the cheaper ones. Environmental issues i. Poultry production consumes less water than other proteins ii. Poultry production demand less arable lands
13 The world will demand more poultry meat... Forecast for the World Meat Consumption (1000 MT) % Poultry % Beef % Swine % Sheep % Total % Source: OECD/FAO Agricultural Outlook
14 ...and Brazil is ready to supply it. Source: UBABEF Biomass Production Potential Water Availability Grains Availability Arable Land Availability 14
15 Main trade partners in Asia Main Asian importing partners of Brazilian poultry meat (MT) Partners % ASIA ,90 Japan ,54 Hong Kong ,63 China ,57 Singapore ,63 South Korea ,92 Philippines ,30 Azerbaijan ,39 Vietnam ,63 Others ,02 Source: UBABEF, SECEX
16 GDP and Population growth in China Growth GDP: 1,406% GDP per capita: 1,183% Population: 17.3% Source: IMF
17 Urbanisation in China 2009:No. of cities with > 10 mln people: 3 (Beijing, Shanghai, Chongqing) > 2 mln people: 36 > 1 mln people: 119 By 2025 > 10 mln people: 8 (Beijing, Shanghai, Chongqing, Guangzhou, Shenzhen, Tianjin Wuhan, Chengdu) > 5 mln people: 23 > 1 mln people: 221
18 Perspectives for the demand for Poultry Meat in China Source: USDA, COMTRADE, UBABEF
19 China Imports, Exports and Production of Poultry Meats (1000 Ton) Source: USDA, COMTRADE
20 Brazil China: cooperating for mutual benefits In 2004, a sanitary agreement for poultry meat was signed between Brazil and China, allowing trade to happen. NORTH SOUTHEAST 11,4% NORTHEAST Since 2009, 24 Brazilian exporting facilities were certified by the Chinese Authorities CENTRE-WEST to export to China. 13,6% Trade has been increasing gradually, but is close to its maximum capacity in Brazil as demand in China is growing and importers have been having a hard time to find more available products. 20
21 Brazil China: cooperating for mutual benefits Increasing trade is the first step to direct investments and joint ventures. For that to happen, a process of certification of more facilities is going on: 41 Brazilian slaughterhouses have recently responded to the Chinese Authorities sanitary questionnaire and are waiting for the results. Cooperation between Brazil and China in sanitary issues, product development and production techniques have huge potential. We believe there are many opportunities for both sides in this partnership! Brazilian Chicken processors look forward to increasing business with China! 21
22 Thank you! UBABEF Brazilian Poultry Association Phone:
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