Brazilian Roundtable on Sustainable Livestock

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AGENDA

• BRAZIL & BRAZILIAN BEEF

• WHY GTPS?

• COMMITMENTS + ACTIONS & RESULTS SO FAR

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Brazil ~850 million ha (300 arable lands)

Land Use in Brazil2011 ~850 million ha (8,53 MM km2) 554 milllion ha of native vegetation (> 60% )

107 million ha of Conservation Units 103.5 million ha of Indigenous Land Settlements274 million ha of native vegetation in private properties (PPAs riparian and hills + Legal Reserve)69.5 native remaining vegetation in PPAs

60 million ha of productive land (crops, fruits, and planted forest)

38 million ha of urbanization and other uses

189 million ha of pastureland(at least 90 degraded)

Sources: minister of environment- MMA; IBGE – PAM (2010) and agricultural census (2006); INPE – terraclass; agricultural land use and expansion model brazil - aglue-br (gerd sparovek, ESALQ-USP). Notes: 1) the data on conservation units exclude the areas called environmental protection areas (apas); 2) the ppas data include natural vegetation along rivers, hills and top of hills; 3) the data for other natural vegetation areas include quilombola´s areas, public forests non settled and other remaining natural vegetation areas

BEEF PRODUCTION3.36%/year

PASTURELAND AREA21%

PRODUCTIVITY79%

ANIMAL PERFORMANCE

38%

OCUPATION RATES62%

“LAND SAVING EFFECT”525 Million ha Source: G.B.Martha Jr., E. Alves, E. Contini

Em revisão (EMBRAPA)

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Cattle production (1960-2010)

Rebanho212 milhões de cabeças

Abate40,4 milhões de cabeças

Produção de carne9,4 milhões TEC

171 milhões de hectares de pasto

Taxa de Lotação: 1,2 cab./ha

EXPORTAÇÃO (18%)1,69 milhões TEC

Mercado Interno (82%)7,7 millhões TEC

Consumo per capita :40kg/ano

Desfrute: 19,5%

Confinamentos: 4,08 mihões de cabeças (10% do abate total)

Peso Médio deCarcaça: 234 kg

Rendimento Médio Carcaça: (zebu): 51%-55%

Rússia: 27%Egito: 14%Hong Kong: 11%Outros: 49%

UE-27: 49%EUA: 16%Outros: 35%

Hong Kong: 64%Angola: 4%Outros: 31%

73% In Natura1,2 milhões TEC 92 países

16% Industrializada272 mil TEC 106 países

11% Miúdos e outros190 mil TEC

71 países

Brazilian Beef 2012

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Global pressure…

LIVESTOCK 189 mi ha -- 212 mi head (IBGE-2011)

SUGARCANE8,5 mi/ha (Conab)

GRAINS 50,86 mi/ha (Conab)

SILVICULTURE 7 mi/ha (SAE)

OTHERS~ 16 mi/ha (IBGE)

2012

LIVESTOCK INTENSIFICATION

1,1 para 1,7 Head/haou

3,2 para 5 @/ha/yr

RELEASING 56 millions ha

2022

CANA13,1 mi/ha (Fiesp/Icone)

SILVICULTURE 14 mi/ha (SAE)

LIVESTOCK 133 mi/ha(NIT) 227 mi/cab (Fiesp/Icone)

GRAINS58,5 mi/ha (Fiesp/Icone)

OTHERS ~16 mi/ha

FOREST LAWENFORCEMENT

Elaborado por:

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Challenge for the next 10 years

WHO WE ARE

• set up in late 2007, formally constituted in June 2009;

• made up of representatives from different segments from the value

chain;

• debates and formulates principles, standards and common practices to

be adopted by the sector which contribute to the development of

sustainable beef production in the triple bottom line;

• members of the RT plan to be proactive given these challenges, leading

dialogue and creating agreements to work towards sustainable cattle

farming, aware of the social and environmental responsibility held by all

those involved ;

• committed to zero deforestation, with the creation of the conditions

and forms of compensation to make it viable.DRAFT

BRSL Principles

1. Continuous improvement for sustainability

2. Transparency and ethics

3. Good agricultural and livestock management

practices

4. Legal compliance

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MEMBERS

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MEMBERS (56)PRODUCERS (8) ABPO – Brazilian Association of Organic Beef

Cattle ACRIMAT – Mato Grosso Cattle Breeders

Association ACRIOESTE – Western Bahia Cattle Raisers

Association ASSOCON – Brazil Cattle Feeders Association APPASA - Novo Santo Antônio Small-Scale

Farmers Association FAMASUL – Federation of Mato Grosso do Sul

Cattle Raising and Agriculture Nossa Senhora das Graças Farm – André

Bartocci Lagoa Bonita Farm – Sérgio Rocha

INDUSTRY (7) ABIECAssociation of Brazilian beef exporters BRF CICB – Centre for the Brazilian Tanning Industry Gelita JBS Marfrig Minerva

CIVIL SOCIETY ORGANIZATION (14) Aliança da Terra APPS – Association of Sustainable Beef Professionals BVRio - Bolsa Verde do Rio de Janeiro GRSB - Global Roundtable for Sustainable Beef Fundação Espaço Eco - FEE ICV – Instituto Centro de Vida IIS - International Institute for Sustainability IMAFLORA - Institute for Agricultural and Forest

Management and Certification IPAM The Amazon Environmental Research Institute Parceiros da Terra Institute – Geobrother NWF - National Wildlife Federation Solidaridad The Nature Conservancy WWF Brasil

GOVERNMENT (9) SAE – Secretariat of Strategic Affairs of the Presidency

of the Republic MMA – Ministry of the Environment Embassy of the Kingdom of the Netherlands UFMS - Federal University of Mato Grosso do Sul UFRGS - Universidade Federal de Rio Grande do Sul -

Faculdade de Agronomia (Depto de Zootecnia SALSA Project - Federal University of Viçosa The Agribusiness Intelligence Center – PENSA New Zealand Consulate General Francisco Vila (individual)

RETAIL & SERVICES (14) Agrotools Allflex Arcos Dourados Carrefour Dow Agro Sciences Elanco IBD Certificações McDonald’s Corporation

MSD Saúde Animal Nutreco Pão de Açucar Stoller Syngenta Wal Mart

FINANCIAL INSTITUTIONS (3) IFC Rabobank Brazil Santander

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OBSERVERS (11)

PRODUCERS (2) ARCA S/A AGROPECUÁRIA Associação Brasileira de Angus

INDUSTRY

RETAIL & SERVICES (6)

Agri63 Consultoria em Agronegócios Ltda Biofílica Environmental Investments DSM/Tortuga Rural Monitoramentos Ltda Via Verde Consultoria Agropecuária em Sistemas Tropicais VIS Insurance Broker and Benefits

FINANCIAL INSTITUTIONS

CIVIL SOCIETY ORGANIZATION & RESEARCH INSTITUTIONS 3

Amigos da Terra Center for Environmental Economics – NESA/

University of São Paulo CI - International Conservation - Brasil

GOVERNMENT

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GOVERNANCE

Fiscal Board Board of Directors

Executive Committee

Executive Coordinator

Administrative

Mediation Committee

(Temporary)

WorkingGroups

Technical Commissio

n

Indicators Scientific

Economic Incentives

Commission

Dissemination

Commission

General AssemblyGeneral Assembly

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GOVERNANCEExecutive Committee2012-2015

PresidentEduardo Bastos (Dow)

Vice President Maurício Campiolo (Acrimat)

Treasurer Fernando Sampaio (ABIEC)

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GOVERNANCEBoard of Director

Producers ACRIMAT – Maurício Campiolo ABPO – Leonardo Leite de

Barros FAMASUL – Eduardo Riedel

Industry JBS – Márcio Nappo Marfrig – Mathias Almeida ABIEC – Fernando Sampaio

Retail and Services Dow – Eduardo Bastos Stoller – Rodrigo Ferreira Wal Mart – Felipe Antunes

Financial Institucions IFC – Deborah Batista Santander – Christopher Wells Rabobank – Luiz Amaral

Civil Society Aliança da Terra – Marcos Reis TNC – Francisco Fonseca WWF Brasil – Ivens Teixeira

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GOVERNANCE

Working Groups

Technical Economic Incentives Dissemination

To find technical alternatives for better efficiency in:

• Pasture and land conservation• Nutrition• Health• Genetics• Welfare• Traceability• Management • Agreement to legislation

Indicators – define performance criteria and indicators MRV (Measurable, Reportable and Verifiable)

Scientific - GHG emissions, water database

To finance the development of sustainable production

• Improving Credit Management for sustainable cattle farming, reducing the demands in processes and making financial management of rural businesses one of the requirements for credit to be approved

• Promoting environmental and agrarian upgrading of farms, creating social and environmental incentives such as paying for environmental services

• Development of public policy on long-term financing for sustainable cattle farming and the training of financial agents for this differentiated credit to be approved

To disseminate solutions:

• Scientific knowledge management –(e.g.: Sustainable Cattle Farming Guide)

• Reorganization of education and training and the creation of demonstration units

• Adoption of model farms (public and private) to be benchmarks in sustainable production

• Improvement of communications with the media and better articulation between representative bodies in the sector

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National Climate Change Policy (PNMC)

DECREE No 7,390, DECEMBER 9, 2010

Regulates articles 6, 11 and 12 of Law no 12,187, of December 29, 2009, which establishes the National Climate Change Policy – PNMC – and takes other measures. 

THE PRESIDENT OF THE REPUBLIC, in the use of the powers conferred on him by article 84, subsection IV, of the Constitution, and considering the provision in articles 6, 11 and 12 of Law no 12,187, of December 29, 2009,  

DECREEES: 

Article 5. The forecast for national greenhouse gas emissions for the year 2020 in the sole paragraph of article 12 of Law no 12,187, 2009, is 3.236 billion tonCO2eq according to the methodological detailing described in the Annex to this Decree, composed of the forecast for the following sectors:I – Change in Land Use: 1.404 billion tonCO2eqII - Energy: 868 million tonCO2eqIII – Livestock farming: 730 million tonCO2eq, and IV – Industrial Processes and Waste Treatment: 234 million tonCO2eq 

Article 6§ 1  To comply with the provision in the main section, the following action contained in the plans referred to in article 3 of this Decree will initially be considered:IV – recovery of 15 million hectares of degraded pastureland;

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Federal Government

National Climate Change Policy

ABC Plan (alternatives to reduce emissions

from agriculture and livestock)

ABC Program (credit lines to promote

low carbon agriculture)

- R$ 4,5 billion (Jun/13 to Jul/14)

- R$ 1 million max. credit per

producer

- 5 % interest rate

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Protocol of Intentions

On the 4th of May 2012, GTPS signed a Protocol of Intentions with the Brazilian Ministry of Agriculture to cooperate with the Federal Government to achieve the goal of restoring 15 million ha of degraded pastures.

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Cooperation Agreement

The new Forestry Code (Federal Law No. 12.651/2012)

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• MMA – Ministry of the EnvironmentPromoting and Supporting environmental compliance

of rural properties Focused ON CAR – Rural Environmental Registry

A PROJECT TO PUT IN PLACE

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1. Close the efficiency gap and promote pasture restoration by increasing the use of technology in livestock production

2. Increase the use of technology by building capacity in multiplier agents (public outreachers)

Funding raising

• FSP (Farmer Support Programm)1. Implement good management practices (covering social, environmental and business

management) in pilot-farms and develop a step-by-step user friendly guide on best practices

2. Establish demonstration units in a few pilot-farms for practical training of multipliers of rural extension and technical assistance. Multipliers will be trained to diagnose issues and identify solutions at farm level, using the guide as reference rather than prescriptive guidance.

3. Develop and test criteria and indicators throughout the pilots to ensure they are applicable and adequate to monitor continuous improvement. To develop guidance for producers and GTPS members to apply the indicators themselves.

4. Increase GTPS’ internal capacity on management and administration, in preparation for the scale-up phase.

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Project to put in place...

U$

Production 83%

GTPS 11%

Administration 6%

States & ProjectsBahia - 1

Rondônia - 1Mato Grosso do Sul - 2

Pará - 2Mato Grosso - 1

856 ranchers 777.480 ha

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Some other initiatives

1. GRSB & GTPS Global Forum• 2nd Sustainable Livestock Global Forum in Brazil (1st semester

2014)2. Traceability with McDonald’s, JBS, BRF and others

• Amazon biome3. Sustainable menu for the games

• RJ Milk 600 MM l to 1,2 BN l until 20164. Salsa Project (beef, milk and soy)

• MS and MG5. NWF + Consumer Goods Forum

• Meeting in Brazil (Nov, 26)

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1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

5

10

15

20

25

30

0

10

20

30

40

50

60

70

80

90Yearly Deforestation

Cattle Herd (million animals)

Year

ly D

efor

esta

tion

(tho

usan

d km

2)

Prod

uctio

n in

the

Leg

al A

maz

on (m

illio

n m

etri

c to

ns o

r m

illio

n an

imal

s)

Cattle Herd

Source: IPAM

White Paper – deforestation x cattle

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Fonte: Bigma Consultoria - com base no IBGE

19901991

19921993

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20082009

20102011

20122013

165.0

166.3

167.5

168.8

170.0

171.3

172.5

173.8

175.0

176.3

177.5

178.8

180.0

0.700

0.800

0.900

1.000

1.100

1.200

1.300

Área de Pastagens Ocupação Bovina

mi h

a

cab/

ha

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White Paper – pastureland x cattle

http://www.youtube.com/watch?v=mGuhaYV2JKI DRAFT

THANK YOUMERCI

GRACIASOBRIGADO

Eduardo Brito Bastos – Presidentsecretariado@pecuariasustentavel.net

www.pecuariasustentavel.org.br

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