Bassem Sami Akl Akl JBS Brazil Technical Services Director

Bassem Sami Akl Akl JBS Brazil Technical Services Director May, 2017

RELEVANCE OF AGRIBUSINESS TO BRAZIL * *Gross Domestic Product 2015 Data

RELEVANCE OF AGRIBUSINESS TO BRAZIL - LIVESTOCK * *Gross Domestic Product 2015 Data

RELEVANCE OF AGRIBUSINESSTO BRAZIL PRODUCTION AND EXPORT RANKING 1º 1º 1º 1º 1º 1º 1º 2º 2º EXPORTS PRODUCTION SUGAR COFFEE ORANGE JUICE SOYBEAN BEEF TABACCO CHICKEN MEAT ETHANOL 2º 2º 2º 2º 3º 3º CORN TURKEY MEAT 3º 4º 4º 4 PORK COTTON 5 4º 1º 1º 1º 2016 Data Source: ÚNICA, BRCITRUS, ABIOVE, ABIC, ABIEC, ABPA, CONAB, SECEX., SINDITABACO

BEEF

BRAZILIAN BEEF PROFILE 165.00 million 219.00 million heads 36.00 million heads 20,44% 9.2 MT CWE 7,32% MT CWE 79,56% 74.41% In Natura 1.40 million TEC 14% Processed 263.93 million TEC 11.56% Processed 217.28 million TEC 2017 Data

LARGEST CATLLE STOCKS Cattle Stocks - Selected Countries Summary (in 1,000 Head) Total Beginning Stocks 2013 2014 2015 2016 2017 (F) India 299,606 300,600 301,100 302,600 303,350 Brazil 203,273 207,959 213,035 219,180 226,037 China 103,434 103,000 100,450 100,275 100,085 United States 90,095 88,526 89,143 91,918 93,500 European Union 87,106 87,619 88,406 89,152 89,250 Argentina 51,095 51,545 51,545 52,565 53,515 Australia 28,418 29,291 29,102 27,413 27,750 Russia 19,930 19,564 19,152 18,879 18,430 Mexico 18,521 17,760 17,120 16,615 16,500 Turkey 14,022 14,532 14,345 14,127 14,047 Canada 12,305 12,220 11,925 12,035 12,100 Others 77,485 75,956 44,316 43,836 43,749 Total 1,005,290 1,008,572 979,639 988,595 998,313 Australia 3% Argentina 5% Russia 2% European Union 9% United States 9% Mexico 2% China 10% Turkey 2% Others 4% Canada 1% Brazil 23% India 30% Source: USDA Notes: May contain other bovines. (F): Forecast

BRAZILIAN LIVESTOCK PROFILE HERD DISTRIBUITION 2014 data Source: Agroconsult

BRAZILIAN LIVESTOCK PROFILE - STOCK-FARMING SYSTEM % of feedlot cattle slaughtered in relation to the total slaughter in Brazil. gado de confinamento Feedlot Cattle Pasture Cattle 2015 Data Source: Agroconsult / IBGE Prepared by ABIEC

BRAZILIAN LIVESTOCK PROFILE ANIMAL CHARACTERISTICS

LARGEST BEEF PRODUCERS Beef and Veal Production - Selected Countries Summary 1,000 Metric Tons (Carcass Weight Equivalent) Production 2013 2014 2015 2016 2017 (F) United States 11,751 11,075 10,817 11,502 11,808 Brazil 9,675 9,723 9,425 9,284 9,470 European Union 7,388 7,443 7,684 7,830 7,850 China 6,730 6,890 6,700 7,000 6,950 India 3,800 4,100 4,100 4,200 4,350 Argentina 2,850 2,700 2,720 2,650 2,700 Australia 2,359 2,595 2,547 2,125 2,015 Mexico 1,807 1,827 1,850 1,879 1,910 Pakistan 1,630 1,685 1,710 1,750 1,780 Turkey 1,217 1,245 1,423 1,642 1,630 Russia 1,385 1,375 1,355 1,335 1,315 Others 9,964 10,184 9,389 9,269 9,540 Total 60,556 60,842 59,720 60,466 61,318 Source: USDA Notes: Includes meat of other bovines for certain countries. India includes carabeef (water buffalo). (F): Forecast

LARGEST BEEF EXPORTERS Beef and Veal Trade - Selected Countries Summary 1,000 Metric Tons (Carcass Weight Equivalent) Total Exports 2013 2014 2015 2016 2017 (F) India 1,765 2,082 1,806 1,764 1,925 Brazil 1,849 1,909 1,705 1,698 1,950 Australia 1,593 1,851 1,854 1,480 1,325 United States 1,174 1,167 1,028 1,157 1,193 New Zealand 529 579 639 587 550 Canada 332 378 390 441 445 Uruguay 340 350 373 422 385 Paraguay 326 389 381 389 395 European Union 244 301 303 345 350 Mexico 166 194 228 258 275 Argentina 186 197 186 216 235 Others 618 595 643 669 668 Total 9,122 9,992 9,536 9,426 9,696 Source: USDA Notes: Includes meat of other bovines for certain countries. India includes carabeef (water buffalo). (F): Forecast

LARGEST BEEF IMPORTERS Beef and Veal Trade - Selected Countries Summary 1,000 Metric Tons (Carcass Weight Equivalent) Total Imports 2013 2014 2015 2016 2017 (F) United States 1,020 1,337 1,529 1,368 1,216 China 412 417 663 812 950 Japan 760 739 707 719 730 Korea, South 375 392 414 513 520 Russia 1 932 621 518 585 Hong Kong 473 646 339 453 375 European Union 376 372 363 369 375 Egypt 195 270 360 340 340 Chile 210 210 213 269 255 Canada 295 284 280 254 265 Malaysia 194 205 237 218 245 Others 2,114 2,085 1,935 1,878 1,907 Total 7,447 7,889 7,661 7,711 7,763 Source: USDA Notes: Includes meat of other bovines for certain countries. India includes carabeef (water buffalo). (F): Forecast

LARGEST BEEF CONSUMERS 2015 Data Source: FAO/USDA/FMI

BRAZILIAN BEEF EXPORTS Revenues Ton 2017 (January and February)

BRAZILIAN BEEF EXPORTS - PER PRODUCT VOL (TON) 133 COUNTRIES Offal 195.552 14% Processed 105.573 8% Casing 18.744 1% Salted 3.283 0% Casing 35 Salted 6 IN NATURA 84 IN NATURA 1.077.282 77% Processed 92 Offal 52 2016 Data Source: MDIC/SECEX/ABIEC

BRAZILIAN BEEF MAIN DESTINATION US$ 5,5 Billion 2016 data by revenue

BRAZILIAN BEEF MAIN DESTINATION - MAP 2015 Data Source: Agrosatélite/Agroconsult/SECEX/MDIC

SUSTAINABILITY IN BRAZIL 2015 Data Source: Agroconsult, IBGE, INPE, MAPA

SUSTAINABILITY DEVELOPMENT OF PASTURE AREAS AND YELD IN BRAZIL

SUSTAINABILITY DEFORESTATION AND MONITORING

FOOT AND MOUTH DISEASE (FMD)

FOOT AND MOUTH DISEASE (FMD) BRAZIL FMD free zone where vaccination is not practised FMD free zone where vaccination is practised FMD free zone where vaccination is practised, consisting on the former high surveillance zone FMD free zone where vaccination is practised FMD free zone where vaccination is practised Zone without a recognised FMD status

BOVINE SPONGIFORM ENCEPHALOPATHY - BSE

BOVINE SPONGIFORM ENCEPHALOPATHY - BSE

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