SUMÁRIO ABIEC 2018 INGLÊS REVISADO - brazilianbeef.org.br · 2017 was, without a doubt, a challenging period for Brazilian livestock. The country's political and economic scenario

2018

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Brazilian Livestock Profile

Contents

The importance of Brazilian livestock farming 08

Chain and jobs quantification 12

Livestock farming in Brazil 20

Livestock farming worldwide 30

Industry 34

Brazilian Exports 36

Livestock retrospective and projections 42

Sustainability 44

Health 46

01

02

03

04

05

06

07

08

09

2017 was, without a doubt, a challenging period for Brazilian livestock. The country's political and economic scenario remained unstable and showed di�iculties of recovery, although the GDP reacted and presented an 1% growth. At the same time, the meat supply chain had to restructure themselves to face a serious crisis that raised suspicion from the international markets and put into question the credibility of the Brazilian product. Fortunately, we can say that this episode strengthened the sector, and allowed it to improve processes and strengthen the dialogue with countries that import our meat. Proof of this is that, even in this scenario, Brazilian beef exports closed the year with a revenue of US$ 6.2 billion, a 13% growth compared to 2016. In volume, shipments totaled 1,533 thousand tonnes, a 9% increase compared to the same period in the previous year.

The figures show Brazil's strength as the world's leading beef supplier and reveal the chain's ability to react and refine its production models to meet market needs. This way, ABIEC is aligned with the interests of its 32 associated companies, working to expand exports, to reduce trade barriers and to promote Brazilian beef worldwide. A work focused on the continuous improvement of production processes, and the quality and sustainability of the product.

Based on this commitment, we estimate that in 2018 we will have an increase in volume shipped and growth in export sales. New markets one of the focus of the association, which also intends to increase the presence of Brazilian products in partner countries, always guided by

the principles of ethics and transparency.For this work to be e�icient, we have to maintain a solid and reliable base of information and business intelligence. So, ABIEC presents in this report the main data that map the entire Brazilian livestock performance in 2017. The information comes from reliable sources that give credibility to the publication.We expect this material to be another contribution of this association to the growth and development of our industry.

6 Brazilian Livestock Profile

2017 was, without a doubt, a challenging period for Brazilian livestock. The country's political and economic scenario remained unstable and showed di�iculties of recovery, although the GDP reacted and presented an 1% growth. At the same time, the meat supply chain had to restructure themselves to face a serious crisis that raised suspicion from the international markets and put into question the credibility of the Brazilian product. Fortunately, we can say that this episode strengthened the sector, and allowed it to improve processes and strengthen the dialogue with countries that import our meat. Proof of this is that, even in this scenario, Brazilian beef exports closed the year with a revenue of US$ 6.2 billion, a 13% growth compared to 2016. In volume, shipments totaled 1,533 thousand tonnes, a 9% increase compared to the same period in the previous year.

The figures show Brazil's strength as the world's leading beef supplier and reveal the chain's ability to react and refine its production models to meet market needs. This way, ABIEC is aligned with the interests of its 32 associated companies, working to expand exports, to reduce trade barriers and to promote Brazilian beef worldwide. A work focused on the continuous improvement of production processes, and the quality and sustainability of the product.

Based on this commitment, we estimate that in 2018 we will have an increase in volume shipped and growth in export sales. New markets one of the focus of the association, which also intends to increase the presence of Brazilian products in partner countries, always guided by

Antonio Jorge CamardelliPresident of the Brazilian BeefExporters Association (ABIEC)

the principles of ethics and transparency.For this work to be e�icient, we have to maintain a solid and reliable base of information and business intelligence. So, ABIEC presents in this report the main data that map the entire Brazilian livestock performance in 2017. The information comes from reliable sources that give credibility to the publication.We expect this material to be another contribution of this association to the growth and development of our industry.

7Brazilian Livestock Profile


1

The importance of Brazilian livestock farming

Brazil closed 2017 registering a growth in the Gross Domestic Product (GDP), which reached R$ 6.56 trillion. In the same period, agribusiness GDP went from R$ 1.44 trillion in 2016 to 1.42 trillion in 2017, while livestock GDP increased 0.69% to R$ 433 billion.


In 2017, agribusiness GDP accounted for 22% of country’s

total GDP. Meanwhile, livestock GDP accounted for 31% of

agribusiness GDP. Beef exports, accounting for 3.2% of all

Brazil's exports in 2017, grew 9.6% in volume and 13.9% in

revenues, being fundamental to maintain the trade

surplus in Brazil, together with the balance of agribusiness

as a whole. Livestock GDP accounted for 31% of agribusiness GDP

Year 2014 2015 2016 2017

R$ billion 461.40 511.27 504.86 523.25

Inputs and industry services R$ billion 0.74 0.90 0.90 0.86

Advertising, marketing and events R$ million 545.7 662.5 656.9 629.3

Private research and studies R$ million 27.3 33.1 32.8 31.5

Support services R$ million 171.9 208.7 206.9 198.2

Inputs and services for livestock production R$ billion 60.59 65.01 61.65 61.12

Feed R$ million 9,376.2 12,056.8 11,279.4 10,357.6

Protocols and semen R$ million 441.7 528.0 568.7 525.0

Cattle health R$ million 1,855.4 1,976.3 2,133.0 2,312.9

Diesel and electric power R$ million 5,254.0 6,360.9 6,748.0 6,857.9

Agricultural inputs R$ million 8,924.2 10,315.2 10,687.3 10,410.5

Maintenance, services and parts R$ million 4,895.9 5,479.2 6,195.7 6,389.5

Employees and duties R$ million 7,920.7 9,012.0 10,304.3 11,055.0

Bulls R$ million 1,059.3 1,394.8 1,383.6 1,345.8

Machinery, equipment and animals for work R$ million 4,463.2 3,231.3 1,609.1 1,565.2

Improvements and building materials R$ million 10,742.9 7,777.7 3,873.2 3,767.4

Services, supplies and inputs farms R$ million 5,655.3 6,876.4 6,864.2 6,534.6

Auctions and brokers R$ million 817.0 922.2 894.1 881.5

Inputs freight R$ million 2,576.7 3,237.6 3,089.6 2,928.2

Technical services R$ million 132.5 158.4 170.6 157.5

Administrative and accounting services R$ million 38.6 43.8 50.2 54.0

Living animal freight inter farms R$ million 286.5 369.1 411.7 422.2

Cattle for slaughter in the property R$ million 1,804.0 2,145.3 2,247.9 2,091.2

Total livestock turnover R$ billion 89.74 100.20 97.26 96.04

Replenishment cattle R$ million 14,576.4 18,624.6 18,203.8 17,582.6

Male R$ million 11,499.2 14,682.9 14,378.9 13,854.20 Female R$ million 3,077.2 3,941.7 3,824.8 3,728.40 Animals for breeding R$ million 2,165.9 2,362.7 2,471.1 2,378.10 Slaughtered cattle R$ million 71,312.4 78,403.4 75,690.3 75,041.7 Male R$ million 46,837.4 52,580.5 51,334.6 49,451.80 Female R$ million 24,475.0 25,822.9 24,355.6 25,590.00 Live cattle exports R$ million 1,585.2 686.5 715.1 883.8 Semen exports R$ million 3.2 4.8 5.8 7.3 Other livestock revenue R$ million 95.5 118.0 174.5 147.8 Inputs and industry services R$ billion 41.66 42.88 44.75 48.67 Packaging R$ million 1,211.2 1,287.3 1,332.7 1,477.40 Electric power R$ million 1,081.8 1,135.4 1,153.9 1,290.6 PPEs R$ million 117.9 122.0 125.8 137.4Inputs for the operation R$ million 788.8 822.4 893.8 1,038.6Services R$ million 1,566.7 1,633.4 1,775.1 2,062.9 Live cattle freight R$ million 1,324.2 1,389.9 1,412.6 1,579.8 Beef freight R$ million 117.9 122.0 125.8 137.4 Employees R$ million 18,346.3 18,786.5 19,516.2 20,935.6 Administrative, associations and marketing R$ million 3,140.2 3,279.6 3,561.5 4,011.2 Other fixed costs R$ million 13,962.2 14,297.3 14,852.6 16,002.8 Slaughterhouses revenue R$ billion 111.12 127.31 123.75 124.68 Beef domestic market R$ million 72,977.2 85,342.2 82,240.8 83,246.1 Beef exports R$ million 16,832.7 19,489.7 18,618.6 19,396.9 Leather exports R$ million 6,907.1 7,455.0 7,070.5 6,029.9 Leather domestic market R$ million 2,484.0 2,765.6 3,639,2 3,198.2 Tallow domestic market R$ million 1,605.2 1,606.9 1,401,4 1,174.5 Other subproducts R$ million 10,314.8 10,654.9 10,783,2 11,638.1 Retail inputs and services R$ billion 14.51 15.79 16.49 15.933 Sta� and services R$ milhões 11,939.5 13,832.7 15,046.9 14,406.1 Intra retail packaging and freight R$ milhões 924.4 885.0 888.4 930.6 Services and supplies in butchers shops R$ milhões 1,641.8 1,076.3 552.6 596.7 Total retail revenue R$ billion 143.05 159.17 160.06 175.93 Beef retail R$ million 125,330.5 141,505.7 141,505.7 154,355.2 Other products retail R$ million 17,714.5 17,666.8 18,553.9 21,579.3 Social impacts related to the productive chain * R$ billion 93.20 101.85 103.38 110.68 Taxes and union contributions ** R$ million 69,101.8 75,579.0 75,071.8 81,416.9 External wages created by income e�ect *** R$ million 24,097.2 26,69.2 28,311.2 29,264.1 * item not added to the chain transaction / ** total is already included in the prices and costs / *** Estimates by income e�ect; the total will comprise other productive chains, proportionally

Source: Athenagro / ABIEC / SECEX / IBGE / CEPEA / BNDES

New methodology: Elaborated by Athenagro, from the livestock universe and technical and marketing indicators

Data check: carried out using information from Sindirações, Conab, CNA, Sindan, Asbram, Asbia, BNDES, Balance of companies, Firjan e Agroconsult’s agricultural division

AGRIBUSINESS GDP REPRESENTATION IN BRAZIL IN 2017

Agribusiness GDP

Other sectors GDP

Source: Cepea/USP, CNA (Agribusiness GDP); IBGE (Total GDP)

Other sectors GDP 5.14 78.4%

Agribusiness GDP 1.42 21.6%

TOTAL GDP in Brazil 6.56

Graph 2

78%

22%

2017 R$ (trillion)

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0.95 1.01.09 1.20

1.321.49

1.721.96

2.172.41

2.723.11

3.333.89

4.384.81

5.335.78

6.00

6.266.56

0.28 0.28 0.300.35

0.380.44

0.52 0.54 0.530.56

0.620.71

0.72

0.840.92

0.93

1.02

1.10

1.23

1.43 1.42

0.07 0.07 0.07 0.08 0.10 0.10 0.11 0.12 0.12 0.110.15

0.20 0.200.23 0.23 0.22

0.290.34

0.390.43 0.43

00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0TOTAL GDP

AGRIBUSINESS GDP

LIVESTOCK FARMING GDP

*TOTAL GDP, AGRIBUSINESS GDP, LIVESTOCK FARMING GPD (GDP SINCE 1997 - R$ TRILLION)

Source: Athenagro, Cepea/USP, CNA (Agribusiness GDP); IBGE (Total GDP)*Adjusted methodology based on available indicators

Graph 1


Year 2014 2015 2016 2017

R$ billion 461.40 511.27 504.86 523.25






Feed R$ million 9,376.2 12,056.8 11,279.4 10,357.6







Bulls R$ million 1,059.3 1,394.8 1,383.6 1,345.8
















LIVESTOCK FARMING GDP AND AGRICULTURE GDP REPRESENTATION IN BRAZIL’S AGRIBUSINESS GDP IN 2017

Livestock Farming GDP

Agriculture GDP

Source: Athenagro, dados Cepea/USP, CNA (Agribusiness GDP); IBGE (Total GDP)

Agriculture 0.99 69.4%

Livestock Farming 0.43 30.6%

Agribusiness 1.42

Graph 3

69%

31%

2017 RS (trillion)

AGRIBUSINESS BALANCE - BILLIONS US$

Graph 4

0.0

20.0

-20.0

40.0

-40.0

60.0

-60.0

80.0

-80.0

100.0

-100.0

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Source: Athenagro, Agrostat, SECEX/MDIC, Conab

AGRIBUSINESS BALANCE OTHER PRODUCTS BALANCE TOTAL BALANCE OF BRAZIL

10.84

9.81

8.76

11.49

11.78

13.43

12.26

12.21

15.17

13.51

14.80

14.85

19.06

20.39

25.90

34.20

38.51

42.77

49.70

59.96

54.89

63.04

77.46

79.41

82.91

80.13

75.15

71.31

8186

5.28

0.95

1.82

3.75

1.52

-2.96

-15.72

-17.80

-21.9

3

-20.1

3

-16.09

-15.58

-16.38

-7.20

-1.03

-0.36

6.42

3.68

-9.67

-35.00

-29.6

1

-42.9

0

-47.6

7

-60.0

1

-80.6

2

-84.1

9

-55.4

7

-23.6

2

-14.87

16.1210.75 10.58

15.2413.30 10.47

-3.47-5.60

-6.76-6.62

-1.29 -0.73

2.68 13.2024.88

33.84

44.93 46.46

40.03

24.9625.27

20.15

29.79

19.39

2.29

-4.05

19.69

47.68

66.99


Year 2014 2015 2016 2017

R$ billion 461.40 511.27 504.86 523.25






Feed R$ million 9,376.2 12,056.8 11,279.4 10,357.6







Bulls R$ million 1,059.3 1,394.8 1,383.6 1,345.8

















2

Chain and jobs quantificationThe beef cattle business moved R$ 523.25 billion in 2017. This number represents a 3.6% increase compared to the R$504 billion total in 2016. In almost a decade, the amount generated by the beef cattle supply chain increased more than 80%, from the inputs used in livestock production, through the sales of animals, to the total sales by industry and retail.

Even with a reduction in total livestock turnover (1.25%), there was a growth in the revenue of

slaughterhouses (+0.75%) - mainly due to growth in beef for the domestic market (+1.22%), and exports

(+4.17%). In addition, items such as industrial inputs and services (+8.7%) and total retail revenues (+9.9%)

also registered growth.

In 2017, livestock was responsible for the creation of 353,725

job openings with a formal contract, according to data from

the General Register of Employment and Unemployment

(CAGED). This number represents a 0.4% increase compared to

the jobs created in 2016. When we observe the balance of jobs,

which is the di�erence between job vacancies created and

closed, the balance of livestock was positive, with 8,371. In

2016, the balance had been negative, with -2,357.

In 2017, the amount moved

by the chain totaled R$

523.25 billion, a 3.6%

increase compared to 2016.

Year 2014 2015 2016 2017

R$ billion 461.40 511.27 504.86 523.25






Feed R$ million 9,376.2 12,056.8 11,279.4 10,357.6







Bulls R$ million 1,059.3 1,394.8 1,383.6 1,345.8

















Year 2014 2015 2016 2017

R$ billion 461.40 511.27 504.86 523.25






Feed R$ million 9,376.2 12,056.8 11,279.4 10,357.6







Bulls R$ million 1,059.3 1,394.8 1,383.6 1,345.8
















Scheme 1

CHAIN MAPPING BEEF AGROINDUSTRIAL SYSTEM- 2017

Livestock farming Agribusiness Transactions in 2017

Inputs and services forlivestock production

61.12R$ billion

At farms96.04

R$ billion

Feed10,357.6

R$ million

Protocols and semen

525.0R$ million

Cattle health2,312.9

R$million

Diesel and electric power

6,857.9R$ million

Agricultural inputs

10,410.5R$ million

Maintenance, services and parts

6,389.5R$ million

Employees and duties

11,055.0R$ million

Bulls1,345.8

R$ million

Animals for breeding2,378.1

R$ million

Services, supplies and inputs farms

Auctions and brokersInputs freightTechnical servicesAdministrative and accounting servicesLiving animal freight inter farmsCattle for slaughter in the property

R$ million

881.52,928.2157.554.0422.22,091.2

Demands for inputs industries

Advertising, marketing and eventsPrivate research and studiesSupport Services

Semen exports7.3

R$ million

Other livestock revenue147.8

R$ million

Live cattle exports883.8

R$ million

Replenishment cattle17,582.6

R$ million

Slaughtered cattle75,041.7

R$ million

Male49,451.8

R$ millionFemale25,590.0

R$ million

Male13,854.2

R$ millionFemale3,728.4

R$ million

Machinery, equipment andanimals for work

1,565.2R$ million

Improvements andbuilding materials

3,767.4R$ million

* item not added to the chain transaction / ** total is already included in the prices and costs /*** Estimates by income e�ect; the total will comprise other productive chains, proportionally

Source: Athenagro , Abiec, Secex, IBGE, Cepea, BNDES


Year 2014 2015 2016 2017

R$ billion 461.40 511.27 504.86 523.25






Feed R$ million 9,376.2 12,056.8 11,279.4 10,357.6







Bulls R$ million 1,059.3 1,394.8 1,383.6 1,345.8
















523.25 R$ billion

Taxes and Unions contributions**External wages created by income effect ***

Inputs and industry services48.67

R$ billion

Slaughterhouse revenue124.68

R$ billion

Retails inputs and services15.933

R$ billion

Total Retail revenue175.93

R$ billion

Retail Services and Costs

Sta� and servicesIntra retail packaging and freightServices and supplies in butchers

R$ million

14,406.1930.6596.7

R$ million

629.331.5198.2

Packaging1,477.4

R$ million

Beef domestic market83,246.1

R$ million

Beef retail154.355,2R$ million

Electric power1,290.6

R$ million

Beef exports19,396.9

R$ million

PPE´s 137.4

R$ million

Leather exports6,029.9

R$ million

Inputs for operation1,038.6

R$ million

Leather domestic market3,198.2

R$ million

Services2,062.9

R$ million

Tallow domestic market1,174.5

R$ million

Live cattle freight1,579.8

R$ million

Beef freight 137.4

R$ million

Employees20,935.6

R$ million

Administrative, associationsand marketing

4,011.2R$ million

Other fixed cost16,002.8

R$ million

Other subproducts11,638.1

R$ million

Other products retail21.579,4

R$ million


Data check: carried out using information from Sindirações, Conab, CNA, Sindan, Asbram, Asbia, BNDES, Balance of companies,Firjan e Agroconsult´s agricultural division

Social impacts related to the productive chain - estimate *

R$ million81,416.929,264.1


Table 2LIVESTOCK FARMING AGRIBUSINESS TRANSACTIONS FROM 2007 TO 2017 - ADJUSTED METHODOLOGY

Year R$ billion US$ billion 2007 280.3 143.9

2008 311.6 169.8

2009 310.8 155.5

2010 340.8 193.6

2011 366.8 219.1

2012 390.5 199.9

2013 414.0 191.9

2014 461.4 196.0

2015 511.3 153.4

2016 504.9 144.7

2017 523.3 164.0

Year 2014 2015 2016 2017

R$ billion 461.40 511.27 504.86 523.25






Feed R$ million 9,376.2 12,056.8 11,279.4 10,357.6







Bulls R$ million 1,059.3 1,394.8 1,383.6 1,345.8
















Source: Athenagro / ABIEC / SECEX / IBGE / CEPEA / BNDES - Prepared by ABIEC

Table 1LIVESTOCK FARMING AGRIBUSINESS TRANSACTIONS FROM 2007 TO 2017 - ADJUSTED METHODOLOGY


Year 2014 2015 2016 2017

R$ billion 461.40 511.27 504.86 523.25






Feed R$ million 9,376.2 12,056.8 11,279.4 10,357.6







Bulls R$ million 1,059.3 1,394.8 1,383.6 1,345.8

















Year 2014 2015 2016 2017

R$ billion 461.40 511.27 504.86 523.25






Feed R$ million 9,376.2 12,056.8 11,279.4 10,357.6







Bulls R$ million 1,059.3 1,394.8 1,383.6 1,345.8
















Job class – jobs lost Formal Jobs 2013 2014 2015 2016 2017

Finishing of Leather Footwear Under Contract -24,652 -22,657 -19,224 -14,309 -14,486

Livestock Support Activities not Previously Specified -12,283 -13,366 -12,134 -10,944 -9,931

Animal Feed Wholesales -5,562 -5,948 -5,802 -5,288 -4,847

Live Animal Wholesales -1,028 -1,081 -993 -796 -664

Beef, Pork and Byproduct Wholesales -15,672 -16,133 -14,847 -12,047 -11,232

Wholesale of Leather, Wool, Furs and Other Non-Edible Byproducts of Animal Origin -1,219 -1,312 -1,196 -952 -827

Wholesale of Medications and Drugs for Veterinary Use -1,632 -1,671 -1,841 -1,802 -1,965

Retail Meat Sales – Butchers -37,048 -38,679 -35,974 -33,979 -34,624

Retail Sales of Veterinary Medications -10,621 -11,243 -10,764 -9,817 -9,924

Beef Cattle Growers -121,948 -123,062 -118,385 -112,595 -111,529

Tanning and Other Leather Preparations -21,183 -21,718 -16,879 -13,861 -13,056

Manufacture of Animal Feed -20,245 -21,362 -19,340 -17,418 -15,817

Manufacture of Leather Goods not Previously Specified -7,016 -6,795 -5,818 -4,546 -3,685

Manufacture of Leather Footwear -91,315 -85,700 -69,392 -51,127 -50,830

Manufacture of Medications for Veterinary Use -2,577 -2,259 -2,161 -1,866 -1,988

Manufacture of Meat Products -23,741 -23,955 -20,113 -16,761 -14,208

Meatpacking – Cattle Slaughter -63,384 -61,530 -60,177 -43,662 -42,572

Maintenance and Repair of Agriculture and Livestock Machinery and Equipments -2,370 -2,898 -2,831 -2,954 -3,169

Total -463,496 -461,369 -417,871 -354,724 -345,354

Source: MTE/CAGED


Job class - balance of jobs Formal Jobs 2013 2014 2015 2016 2017

Finishing of Leather Footwear Under Contract -594 -1,508 -3,068 104 -1,465

Livestock Support Activities not Previously Specified -163 -264 -42 -647 -84

Animal Feed Wholesales 649 675 266 44 328

Live Animal Wholesales 59 116 -101 -65 202

Beef, Pork and Byproduct Wholesales 3,195 1,387 -103 -123 1,579

Wholesale of Leather, Wool, Furs and Other Non-Edible Byproducts of Animal Origin 55 -109 -271 -161 -145

Wholesale of Medications and Drugs for Veterinary Use 256 218 139 190 343

Retail Meat Sales – Butchers 3,301 1,953 1,081 1,675 1,913

Retail Sales of Veterinary Medications 1,079 1,310 328 306 391

Beef Cattle Growers -3,526 -1,865 1,861 -984 -2,094

Tanning and Other Leather Preparations 557 -1,865 -1,756 -852 -1,032

Manufacture of Animal Feed 1,757 2,805 2,132 -562 1,931

Manufacture of Leather Goods not Previously Specified -457 -333 -822 -458 -327

Manufacture of Leather Footwear -8,288 -11,511 -11,032 1,922 -3,659

Manufacture of Medications for Veterinary Use 217 457 219 -14 183

Manufacture of Meat Products 973 522 -760 -1,592 1,139

Meatpacking – Cattle Slaughter 7,502 1,042 -6,683 -1,399 8,894

Maintenance and Repair of Agriculture and Livestock Machinery and Equipment 413 461 -114 259 274

Total 6,985 -6,509 -18,726 -2,357 8,371

Job class – jobs openings created Formal Jobs 2013 2014 2015 2016 2017

Finishing of Leather Footwear Under Contract 24,058 21,149 16,156 14,413 13,021

Livestock Support Activities not Previously Specified 12,120 13,102 12,092 10,297 9,847

Animal Feed Wholesales 6,211 6,623 6,068 5,332 5,175

Live Animal Wholesales 1,087 1,197 892 731 866

Beef, Pork and Byproduct Wholesales 18,867 17,520 14,744 11,924 12,811

Wholesale of Leather, Wool, Furs and Other Non-Edible Byproducts of Animal Origin 1,274 1,203 925 791 682

Wholesale of Medications and Drugs for Veterinary Use 1,888 1,889 1,980 1,992 2,308

Retail Meat Sales – Butchers 40,349 40,632 37,055 35,654 36,537

Retail Sales of Veterinary Medications 11,700 12,553 11,092 10,123 10,315

Beef Cattle Growers 118,422 121,197 120,246 111,61 109,435

Tanning and Other Leather Preparations 21,740 19,853 15,123 13,009 12,024

Manufacture of Animal Feed 22,002 24,167 21,472 16,856 17,748

Manufacture of Leather Goods not Previously Specified 6,559 6,462 4,996 4,088 3,358

Manufacture of Leather Footwear 83,027 74,189 58,360 53,049 47,171

Manufacture of Medications for Veterinary Use 2,794 2,716 2,380 1,852 2,171

Manufacture of Meat Products 24,714 24,477 19,353 15,169 15,347

Meatpacking – Cattle Slaughter 70,886 62,572 53,494 42,263 51,466

Maintenance and Repair of Agriculture and Livestock Machinery and Equipment 2,783 3,359 2,717 3,213 3,443

Total 470,481 454,860 399,145 352,367 353,725

Table 3 BALANCE OF FORMAL JOBS GENERATED BY THE CATTLE LIVESTOCK GROWING CHAIN

Year 2014 2015 2016 2017

R$ billion 461.40 511.27 504.86 523.25






Feed R$ million 9,376.2 12,056.8 11,279.4 10,357.6







Bulls R$ million 1,059.3 1,394.8 1,383.6 1,345.8
















Job class – jobs lost Formal Jobs 2013 2014 2015 2016 2017

Finishing of Leather Footwear Under Contract -24,652 -22,657 -19,224 -14,309 -14,486

Livestock Support Activities not Previously Specified -12,283 -13,366 -12,134 -10,944 -9,931

Animal Feed Wholesales -5,562 -5,948 -5,802 -5,288 -4,847

Live Animal Wholesales -1,028 -1,081 -993 -796 -664

Beef, Pork and Byproduct Wholesales -15,672 -16,133 -14,847 -12,047 -11,232

Wholesale of Leather, Wool, Furs and Other Non-Edible Byproducts of Animal Origin -1,219 -1,312 -1,196 -952 -827

Wholesale of Medications and Drugs for Veterinary Use -1,632 -1,671 -1,841 -1,802 -1,965

Retail Meat Sales – Butchers -37,048 -38,679 -35,974 -33,979 -34,624

Retail Sales of Veterinary Medications -10,621 -11,243 -10,764 -9,817 -9,924

Beef Cattle Growers -121,948 -123,062 -118,385 -112,595 -111,529

Tanning and Other Leather Preparations -21,183 -21,718 -16,879 -13,861 -13,056

Manufacture of Animal Feed -20,245 -21,362 -19,340 -17,418 -15,817

Manufacture of Leather Goods not Previously Specified -7,016 -6,795 -5,818 -4,546 -3,685

Manufacture of Leather Footwear -91,315 -85,700 -69,392 -51,127 -50,830

Manufacture of Medications for Veterinary Use -2,577 -2,259 -2,161 -1,866 -1,988

Manufacture of Meat Products -23,741 -23,955 -20,113 -16,761 -14,208

Meatpacking – Cattle Slaughter -63,384 -61,530 -60,177 -43,662 -42,572

Maintenance and Repair of Agriculture and Livestock Machinery and Equipments -2,370 -2,898 -2,831 -2,954 -3,169

Total -463,496 -461,369 -417,871 -354,724 -345,354

Source: MTE/CAGED


Year 2014 2015 2016 2017

R$ billion 461.40 511.27 504.86 523.25






Feed R$ million 9,376.2 12,056.8 11,279.4 10,357.6







Bulls R$ million 1,059.3 1,394.8 1,383.6 1,345.8

















3

Livestock Farming in BrazilIn 2017, the Brazilian cattle herd was 221.81 million head. The number of cattle slaughter was 39.2 million head. So, the volume of meat produced reached 9.71 million T of carcass-weight equivalent (CWE).

Of the total beef produced, 20% was exported and 80% supplied the domestic market, ensuring consumption

of around 37.5 kg of beef per capita in 2017.

164.96 million pasture hectaresStocking rate: 1.34 head/haOccupation rate: 0.94 UA/ha

Cattle Herd221.81 million

heads

Slaughter39.2 million

heads

Beefproduction9.71 million

T CWE

Live cattle import240 heads

Live cattle exports407,365 heads

Carcass average weight:247.66 kg

Avarage carcass yield: (zebu):52.3%-55%

O�take: 19.4%Apparent o�take: 17.7%Feedlots: 4.09 million heads

(10.44% of total slaughter)

EXPORTS (20.9%)2.032 million T CWE

Domestic market7.73 million T CWE (79.06% of production) + 57 thousand T CWE of importation

Per capita consumption:37.55 kg/year

77.41% In Natura1.57 million T CWE

11.04% Processed224.27 thousand T CWE

11.54% O�als and others234.62 thousand T CWE

93 countriesHong Kong: 20%China: 18%Egypt: 12%Russia: 11%Others: 39%

92 countriesEU-28: 42%USA: 27%Others: 31%

78 countriesHong Kong: 66%Russia: 6%Ivory Coast: 4%Others: 24%

Source: Athenagro, data Secex/MDIC, IBGE - - Prepared by ABIEC

Year 2014 2015 2016 2017

R$ billion 461.40 511.27 504.86 523.25






Feed R$ million 9,376.2 12,056.8 11,279.4 10,357.6







Bulls R$ million 1,059.3 1,394.8 1,383.6 1,345.8

















The average consumption

per capita was slightly

more than 37 kilos of beef

in 2017

Year 2014 2015 2016 2017

R$ billion 461.40 511.27 504.86 523.25






Feed R$ million 9,376.2 12,056.8 11,279.4 10,357.6







Bulls R$ million 1,059.3 1,394.8 1,383.6 1,345.8
















Graph 519

74

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

*201

7

Source: IBGE, Mapa, Athenagro *Preliminary

BRAZILIAN CATTLE HERD - MILLION HEADS92

.50

102.

5310

7.35

107.

3010

6.94

109.

18 118.

9712

1.79

123.

4912

4.19

127.

6512

8.42

132.

2213

5.73

139.

6014

4.15

147.

1015

2.14

154.

2315

5.13

158.

2416

1.23

158.

2916

1.42

163.

1516

4.62

169.

88 176.

39 185.

35 195.

55 204.

5120

7.16

205.

8919

9.75

202.

3120

5.31

209.

5421

2.82

211.

2821

1.76

207.

4221

4.39

218.

23

221.

81*

50

100

150

200

250

BRAZILIAN CATTLE HERD DEVELOPMENT PER REGION - MILLION HEADS

Graph 6

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

*201

7

50

0

100

150

200

250

Source: IBGE, Athenagro * Preliminary

CENTRAL WESTSOUTHSOUTHEASTNORTHEASTNORTH


Table 4 CATTLE HERD - STATE

Year 2014 2015 2016 2017

R$ billion 461.40 511.27 504.86 523.25






Feed R$ million 9,376.2 12,056.8 11,279.4 10,357.6







Bulls R$ million 1,059.3 1,394.8 1,383.6 1,345.8
















CATTLE HERD -ESTIMATE IN 2017

(HEADS)*STATE

STATE CATTLE HERDPERCENTAGE IN

BRAZIL TOTAL(%)

CATTLE HERD GROWTH IN

THE LAST 11 YEARS(%)

% OF CATTLE EXCLUSIVELY

DESTINED FOR SLAUGHTERPER STATE

NUMBER OFPROPERTIESCONTAINING

CATTLE**

Mato Grosso 31,181.730 14.06% 19.63% 94.60% 82,558

Minas Gerais 23,856,968 10.76% 7.45% 41.36% 354,062

Goiás 23,213,738 10.47% 12.43% 68.51% 111,693

Mato Grosso do Sul 22,487,652 10.14% -5.22% 94.65% 48,601

Pará 20,475,541 9.23% 16.99% 89.56% 83,688

Rio Grande do Sul 13,781,896 6.21% -1.38% 77.16% 329,901

Rondônia 13,762,339 6.20% 19.84% 82.20% 63,273

São Paulo 11,481,365 5.18% -10.23% 73.34% 128,238

Bahia 10,503,011 4.74% -2.43% 56.97% 314,243

Paraná 9,680,494 4.36% -0.86% 65.42% 211,936

Tocantins 8,739,554 3.94% 12.61% 86.56% 43,348

Maranhão 7,569,629 3.41% 14.46% 77.94% 93,263

Santa Catarina 4,486,325 2.02% 29.63% 34.64% 147,338

Acre 3,013,614 1.36% 22.86% 93.00% 18,626

Ceará 2,450,057 1.10% 4.14% 41.63% 124,456

Rio de Janeiro 2,403,790 1.08% 14.70% 51.15% 30,464

Espírito Santo 2,051,238 0.92% -3.21% 53.80% 30,935

Pernambuco 2,039,198 0.92% -2.67% 50.91% 140,226

Piauí 1,684,555 0.76% -8.37% 80.72% 75,469

Amazonas 1,362,800 0.61% 9.61% 78.27% 13,782

Alagoas 1,273,845 0.57% 23.75% 64.74% 45,135

Paraíba 1,242,730 0.56% 13.72% 59.31% 92,024

Sergipe 1,211,760 0.55% 13.51% 49.51% 40,663

Rio Grande do Norte 910,307 0.41% -11.39% 49.55% 47,480

Roraima 771,271 0.35% 51.65% 86.63% 4,732

Distrito Federal 98,514 0.04% -0.23% 68.36% 1,597

Amapá 71,596 0.03% -34.36% 72.23% 661

BRAZIL 221,805,517 100.00% 206.63% 74.43% 2,678,392

Source: Athenagro, IBGE * Preliminary data stock for the end of year ** Data provided in the last Census - 2006



Table 5 CATTLE HERD IN THE MAJOR LIVESTOCK FARMING MUNICIPALITIES IN BRAZIL AND CATTLE HERD GROWTH

Muinicipality/StateCattle herd in1997 (heads)

Cattle herd in2007 (heads)

Cattle herd in

2017 (heads)*

Cattle herdgrowth

in the last20 years (heads)

Cattle herdgrowth in thelast 10 years

(heads)


(%)


(%)

São Félix do Xingu - PA 216,699 1,653,231 2,236,438 2,019,739 583,207 932.05% 35.28%

Corumbá - MS 1,598,477 1,811,254 1,849,860 251,383 38,606 15.73% 2.13%

Ribas do Rio Pardo - MS 1,002,191 1,174,380 1,166,886 164,695 -7,494 16.43% -0.64%

Cáceres - MT 503,000 832,292 1,131,397 628,397 299,105 124.93% 35.94%

Marabá - PA 183,600 430,300 1,090,603 907,003 660,303 494.01% 153.45%

Vila Bela da Santíssima Trindade - MT 387,159 839,469 1,020,151 632,992 180,682 163.50% 21.52%

Juara - MT 507,192 813,217 992,424 485,232 179,207 95.67% 22.04%

Novo Repartimento - PA 118,500 363,456 986,181 867,681 622,725 732.22% 171.33%

Porto Velho - RO 113,578 567,948 915,192 801,614 347,244 705.78% 61.14%

Aquidauana - MS 588,727 810,790 796,863 208,136 -13,927 35.35% -1.72%

Cumaru do Norte - PA 103,664 447,412 821,659 717,995 374,247 692.62% 83.65%

Nova Crixás - GO 458,000 715,350 765,184 307,184 49,834 67.07% 6.97%

Alta Floresta - MT 423,107 748,572 718,159 295,052 -30,413 69.73% -4.06%

Porto Murtinho - MS 553,289 672,990 709,452 156,163 36,462 28.22% 5.42%

Juína - MT 304,749 532,901 724,441 419,692 191,540 137.72% 35.94%

Pontes e Lacerda - MT 470,000 553,688 679,053 209,053 125,365 44.48% 22.64%

Vila Rica - MT 211,286 646,150 668,847 457,561 22,697 216.56% 3.51%

Alegrete - RS 591,438 530,061 659,526 68,088 129,465 11.51% 24.42%

Sant'Ana do Livramento - RS 477,748 512,755 629,290 151,542 116,535 31.72% 22.73%

Três Lagoas - MS 821,900 790,810 672,861 -149,039 -117,949 -18.13% -14.91%

Altamira - PA 118,082 402,340 668,222 550,140 265,882 465.90% 66.08%

Santa Maria das Barreiras - PA 178,346 559,603 637,765 459,419 78,162 257.60% 13.97%

Rio Verde de Mato Grosso - MS 488,725 551,387 614,926 126,201 63,539 25.82% 11.52%

Água Azul do Norte - PA 197,683 409,909 630,866 433,183 220,957 219.13% 53.90%

Porto Esperidião - MT 236,367 465,265 595,538 359,171 130,273 151.95% 28.00%

Camapuã - MS 660,095 590,414 594,293 -65,802 3,879 -9.97% 0.66%

Pacajá - PA 81,108 256,420 595,538 514,430 339,118 634.25% 132.25%

Novo Progresso - PA 87,000 105,989 588,721 501,721 482,732 576.69% 455.45%

Nova Mamoré - RO 55,174 342,839 620,065 564,891 277,226 1023.84% 80.86%

Santana do Araguaia - PA 225,539 475,412 576,027 350,488 100,615 155.40% 21.16%

Itupiranga - PA 79,100 290,000 571,505 492,405 281,505 622.51% 97.07%

São Miguel do Araguaia - GO 360,000 485,000 585,167 225,167 100,167 62.55% 20.65%

Campo Grande - MS 548,465 576,640 560,853 12,388 -15,787 2.26% -2.74%

Rio Branco - AC 159,250 368,432 533,278 374,028 164,846 234.87% 44.74%

Santo Antônio do Leverger - MT 285,812 409,452 596,593 310,781 187,141 108.74% 45.71%

Santa Rita do Pardo - MS 492,187 510,635 569,188 77,001 58,553 15,64% 11.47%

Coxim - MS 394,494 471,741 547,843 153,349 76,102 38.87% 16.13%

Jaru - RO 217,014 501,994 536,698 319,684 34,704 147.31% 6.91%

Paranaíba - MS 517,473 494,208 559,024 41,551 64,816 8.03% 13.12%

Xinguara - PA 515,873 400,022 515,615 -258 115,593 -0.05% 28.90%

Água Clara - MS 634,837 705,850 533,613 -101,224 -172,237 -15.94% -24.40%

Source: Athenagro, IBGE *Preliminary data stock for the end of the year

Acre

Amapá

Pará

Rondônia

Maranhão

Piauí

Ceará

ParaíbaPernambuco

AlagoasSergipe

Bahia

Tocantins

Mato Grosso

Mato Grosso do Sul

Goiás

Minas GeraisEspirito Santo

Rio de JaneiroSão Paulo

Paraná

Roraima


CATTLE FEEDLOTS (MILLION HEADS) AND ITS REPRESENTATIVENESS IN THETOTAL CATTLE SLAUGHTERED IN BRAZIL (%)

Graph 7

Fonte: Athenagro, IBGE *Preliminary

0%

3%

6%

9%

12%

15%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

*

2

0

3

4

5

6

CATTLE FEEDLOTS - MILLION HEADS

% OF CATTLE IN FEEDLOTS IN THE TOTAL SLAUGHTERED IN BRAZIL

2.06

2.42

2.90

3.56

3.08

3.46

3.90

4.06

3.38

3.05

3.85

4.08

4.38

4.67

5.19

5.20

5.26

6.91%7.58%

8.62%

9.15%

7.22%7.30%

8.41%

10.05%

8.75%

7.76%

9.96%

9.93% 10.16%

10.97%

13.08%

14.09%

13.42%

Map 1

CATTLE HERD DISTRIBUTION IN BRAZIL

Amazonas

Santa Catarina

Rio Grande do Sul

Rio Grande do Norte

State Borders

0 - 20.00020.001 - 200.000200.001 - 450.000450.001 - 2.000.000

Cattle Herd (heads)

Source: IBGE / LAPIG - Prepared by ABIEC


Map 2

PASTURE DISTRIBUTION IN BRAZIL

Fonte: IBGE / LAPIG - Elaboração ABIEC

Acre

Amapá

Pará

Rondônia

Maranhão

Piauí

Ceará

ParaíbaPernambuco

AlagoasSergipe

Bahia

Tocantins

Mato Grosso

Mato Grosso do Sul

Goiás



Paraná

Roraima

Amazonas

Santa Catarina

Rio Grande do Sul

Rio Grande do Norte

State BordersPasture area


0.00

1 - 3 @/ha 3 - 6 @/ha 6 - 12 @/ha 12 - 18 @/ha 18 - 26 @/ha 26 - 38 @/ha

7.50

15.00

22.50

30.00

37.50

75.00

60.00

67.50

52.50

45.00

82.50

90.00

97.50

105.00

112.50

120.00

127.50

135.00

DEPRECIATION

ELECTRIC POWER

MANAGEMENT

MAINTENANCE

EMPLOYEES

REPLENISHMENT

FUEL AND LUBRIFICANT

AGROCHEMICALS

CORRECTIVE AND FERTILIZER

HEALTH PROGRAM

FEED

Graph 8

PRODUCTION COST IN FULL CYCLE FARMS FOR SIX TECHNOLOGIES LEVELS - FULL CYCLE - 2017 AVERAGE

PRODUCTION COST IN FULL CYCLE FARMS FOR SIX TECHNOLOGIES LEVELS - FULL CYCLE - 2017 AVERAGE

Source: Athenagro

Source: Athenagro

Feed 11.68 13.83 17.46 28.11 31.00 35.65

Health program 3.54 3.60 3.90 3.79 3.97 3.64

Correctives and fertilizers 0.00 4.55 16.08 16.24 18.94 17.79

Agrochemicals 0.00 7.86 4.60 3.33 1.74 0.97

Fuels and lubricants 11.88 7.14 6.52 5.97 5.80 5.36

Replenishment 0.00 1.06 3.79 7.35 7.72 6.93

Employees 22.16 19.74 14.58 10.82 9.11 7.13

Maintenance 17.54 8.42 5.89 5.77 5.12 3.93

Management 2.22 1.97 1.46 1.08 0.91 0.71

Eletric power 0.59 0.36 0.33 0.30 0.29 0.27

Depreciation 53.25 29.56 21.20 11.95 8.93 6.28

Total operating costs 122.85 98.09 95.80 94.72 93.54 88.66

Full cycle - R$/@RESULTS COMPONENTS

Extrativism1 - 3 @/ha

Low tech3 - 6@/ha

Medium tech6-12@/ha

Proper12-18@/ha

High tech18-26@/ha

Intensive26-38@/ha


0.00

1 - 3 @/ha 3 - 6 @/ha 6 - 12 @/ha 12 - 18 @/ha 18 - 26 @/ha 26 - 38 @/ha

7.5015.00

22.5030.00

37.50

75.00

60.00

67.50

52.5045.00

82.5090.00

97.50105.00

112.50120.00127.50135.00

142.00

150.00

DEPRECIATION

ELECTRIC POWER

MANAGEMENT

MAINTENANCE

EMPLOYEES

REPLENISHMENT


AGROCHEMICAL


PHEALTH PROGRAM

FEED

Graph 9

PRODUCTION COST IN BREEDING FARMS FOR SIX TECHNOLOGIES LEVELS - BREEDING - 2017 AVERAGE

PRODUCTION COST IN BREEDING FARMS FOR SIX TECHNOLOGIES LEVELS - BREEDING - 2017 AVERAGE

Source: Athenagro

Source: Athenagro

Feed 9.84 10.91 27.23 35.54 48.41 58.43

Health program 3.03 3.51 4.26 4.49 4.74 4.72


Agrochemicals 0.00 7.01 4.57 3.61 1.91 1.16


Replenishment 0.00 1.92 6.24 11.77 11.67 11.67

Employees 16.81 19.78 14.51 11.73 10..51 9.32

Maintenance 13.80 7.78 5.86 5.66 4.95 4.23

Management 1.68 1.98 1.45 1.17 1.05 0.93

Eletric power 0.46 0.31 0.32 0.31 0.32 0.32

Depreciation 40.77 20.94 12.70 10.85 8.68 7.21


Breeding - R$/@RESULTS COMPONENTS


Low tech3 - 6@/ha

Medium tech6-12@/ha

Proper12-18@/ha

High tech18-26@/ha

Intensive26-38@/ha


0.00

1 - 3 @/ha 3 - 6 @/ha 6 - 12 @/ha 12 - 18 @/ha 18 - 26 @/ha 26 - 38 @/ha

7.50

15.00

22.50

30.00

37.50

75.00

60.00

67.50

52.50

45.00

82.50

90.00

97.50

105.00

112.50

120.00

127.50

135.00

DEPRECIATION

ELECTRIC POWER

MANAGEMENT

MAINTENANCE

EMPLOYEES

REPLENISHMENT


AGROCHEMICALS


HEALTH PROGRAM

FEED

Graph 10PRODUCTION COST IN REARING AND FINISHING FARMS FOR SIX TECHNOLOGIES LEVELS -REARING AND FINISHING - 2017 AVERAGE

PRODUCTION COST IN REARING AND FINISHING FARMS FOR SIX TECHNOLOGIES LEVELSREARING AND FINISHING - 2017 AVERAGE

Source: Athenagro

Source: Athenagro

Feed 4.79 9.71 14.11 18.05 21.62 23.57

Health program 1.45 1.94 2.03 1.50 1.48 1.49


Agrochemicals 0.00 5.30 2.39 1.64 0.86 0.47


Replenishment 66.25 66.25 66.25 66.25 66.25 66.25

Employees 9.22 8.70 4.44 3.29 3.08 2.48

Maintenance 9.68 5.41 2.92 2.27 1.95 1.64

Management 0.92 0.87 0.44 0.33 0.31 0.25

Eletric power 0.33 0.25 0.20 0.15 0.15 0.14

Depreciation 25.88 16.74 9.27 4.13 1.12 2.04


Rearing and finishing - R$/@RESULTS COMPONENTS


Low tech3 - 6@/ha

Medium tech6-12@/ha

Proper12-18@/ha

High tech18-26@/ha

Intensive26-38@/ha


4

Livestock Farming Worldwide

DEVELOPMENT OF CATTLE AND BUBALUS MEAT PRODUCTION BETWEEN 2007 AND 2017 - THOUSAND T CWE*

Graph 11

ChinaTurkey

IndiaPaquistan

EgyptMexico

United States of AmericaSouth Africa

AustraliaUnited Kingdom

FranceGermany

CanadaRussia

ItalyArgentina

European UnionBrazil

Source: Athenagro, FAO, USDA, OCDE

• European Union gathers 28 countries

* Preliminary

0 500-500 1000-1000 1500-1500

Table 6 LARGEST HERDS AND BEEF PRODUCERS IN THE WORLD IN 2017

COUNTRYCATTLE

((MILLION HEADS)BUBALUS

(MILLION HEADS)TOTAL

(MILLION HEADS)WORLD % BEEF

PRODUCTION* (1000 T CWE)

WORLD %

Brazil 221.8 1.4 223.2 13.6% 9.7 1.4%India 186.8 113.4 300.2 18.3% 2.9 4.3%China 83.6 24.0 107.6 6.5% 7.1 10.5%USA 92.7 0.0 92.7 5.6% 12.1 17.9%Ethiopia 60.0 0.0 60.0 3.6% 0.4 0.5%Argentina 53.3 0.0 53.3 3.2% 2.7 4.0%Pakistan 43.1 36.9 80.1 4.9% 1.8 2.7%Mexico 34.1 0.0 34.1 2.1% 1.9 2.8%Australia 25.5 0.0 25.5 1.6% 2.1 3.1%Tanzania 27.2 0.0 27.2 1.7% 0.3 0.5%European Union 89.3 0.4 89.7 5.5% 7.4 10.9%Others 524.7 25.0 549.7 33.4% 19.2 28.5%world 1,442.2 201.1 1,643.4 100.0% 67.5 100.0%

Source: Athenagro, USDA, FAO *Beef production includes bubalus meat

Table 7 LARGEST BEEF EXPORTERS IN 2017

Country Exports (thousand T CWE)* Exports/Production (%) Production (thousand T CWE)

Brazil 2,032.1 20.93% 9,708.2India 1,513.0 52.50% 2,881.7Australia 1,399.7 67.04% 2,087.9USA 1,362.7 11.28% 12,076.4New Zealand 582.6 90.55% 643.4Uruguay 501.1 90.68% 552.6Canada 444.3 37.82% 1,174.7Germany 429.0 38.43% 1,116.4European Union** 379.0 5.16% 7,350.8Argentina 350.9 12.84% 2,732.9Others 3,570.9 13.12% 27,209.7World 12,565.2 18.61% 67,534.6

* bubalus and beef ** extra-block exports Source: FAO, USDA, Athenagro

31Perfil da Pecuária no Brasil

The Brazilian herd is the

largest in the world.

Table 8 LARGEST IMPORTERS WORLDWIDE AND BRAZIL’S REPRESENTATION IN THOSE MARKETS IN 2017

Country Total Imports (1000 T CWE) Imports from Brazil (1000 T CWE) % BR

USA 1,462.6 78.8 5.39%Vietnam 1,136.2 6.3 0.56%China 804.3 274.7 34.16%Japan 701.8 0.0 0.00%South Korea 584.9 0.5 0.08%Italy 454.7 42.1 9.26%United Kingdom 434.2 60.7 13.97%Russia 410.0 193.0 47.08%Netherlands 404.6 32.5 8.04%Germany 377.7 12.4 3.28%France 369.6 2.1 0.56%Bangladesh 337.4 0.0 0.00%Chile 302.0 84.4 27.96%Egypt 298.1 198.5 66.57%Canada 244.1 5.6 2.29%Hong Kong 434.0 434.0 100.00%Malaysia 184.0 4.4 2.36%Others 3,625.0 537.6 14.83%World 12,565.2 1,967.6 15.66%European Union 2,979.1 179.2 6.02%

Source: OECD, USDA, Athenagro


DEVELOPMENT OF CATTLE AND BUBALUS MEAT EXPORTS BETWEEN 2007 AND 2017 - THOUSAND T CWE

Graph 12

Source: Athenagro, FAO, USDA, OCDE

0 400200 600-200 800 1000 1200-400

BrazilArgentina

IrelandFrance

GermanyItaly

CanadaBelgiumUruguay

NetherlandsNew Zealand

AustraliaParaguay

PolandMexico

European UnionUSA

India

Ranking

USA 12,168.8 37.2 327.1

China 7,959.7 5.7 1,388.3

Brazil 7,797.6 37.5 207.7

Argentina 2,410.3 54.7 44.0

Russia 1,848.6 12.6 146.3

Mexico 1,842.5 14.1 130.2

Pakistan 1,743.7 9.0 193.6

France 1,511.4 23.3 64.9

Egypt 1,342.9 14.6 92.0

India 1,285.5 1.0 1,326.9

Japan 1,215.7 9.6 126.1

United Kingdom 1,133.8 17.2 66.0

Italy 1,120.2 18.3 61.4

Turkey 1,087.0 13.7 79.4

Germany 1,079.9 13.0 83.0

South Africa 974.6 17.2 56.7

Canada 955.7 26.2 36.5

Vietnam 864.8 9.2 93.6

South Korea 820.3 16.1 51.0

Uzbekistan 804.9 25.4 31.7

Chile 494.9 26.9 18.4

Netherlands 292.3 17.1 17.0

Iran 291.6 3.6 81.4

Saudi Arabia 197.4 6.0 32.7

Hong Kong 174.6 23.6 7.4

United Arab Emirates 95.9 9.5 10.1

Uruguay 87.4 25.4 3.4

Others 17,578.1 11.0 2,608.2World 69,180.3 9.4 7,385.3

Total beef consumption(1000 T CWE)

Population(millions)

Consumption per capita(kg/person/year)


Table 9LARGEST BEEF CONSUMERS IN 2017

Source: FAO. USDA, FMI, Athenagro


5

IndustryMap 3

ACTIVE SIF MEATPACKING INDUSTRIESLOCATION IN 2017

SLAUGHTER BY CATEGORY OF INSPECTION - 2017

Graph 13

*Estimated valueSources: IBGE, Athenagro

Amapá

Pará

Rondônia

Maranhão

Piauí

Ceará

ParaíbaPernambuco

AlagoasSergipe

Bahia

Tocantins

Mato Grosso

Mato Grosso do Sul

Goiás



Paraná

Roraima

Amazonas

Acre

Santa Catarina

Rio Grande do Sul

Rio Grande do Norte

State Borders

Active Meatpacking Plants

Source: ABIEC

SIF 58.71% 23.0

SIE 15.26% 6.0

SIM 5.29% 2.1

Others 20.74% 8.1

Total 100.00% 39.24

2017 % million heads

SIF59%

SIE15%

SIM5%

Others21%



6 Brazilian exportsTable 10 EXPORTS, IMPORTS AND TOTAL BALANCES - 2017

Net exportsSector

US$ billionExports

US$ billionImports

US$ billionBalance

Others sectors 100.30 123.92 -23.62Agribusiness 84.93 13.63 71.31

Brazil total 185.24 137.55 47.68Source: Athenagro. MAPA, Secex/MDIC

Table 11 BEEF EXPORTS IMPORTANCE IN BRAZIL’S TOTAL EXPORTS AND AGRIBUSINESS EXPORTS IN 2017

Agribusiness exportation 2017

Meat 15,473.80 6,716 18.22%Chicken meat 7,134.79 4,231.59 8.40%in natura 6,427.89 3,944.21 7.57%processed 706.89 287.37 0.83%Beef 6,069.26 1,477 7.15%in natura 5,069.89 1,206.37 5.97%processed 494.59 88.03 0.58%Pork 1,611.62 683.84 1.90%in natura 1,465.03 592.61 1.72%Turkey meat 273.20 110 0.32%in natura 140.72 72 0.17%processed 132.48 38 0.16%Leather and other goods 2,358.06 471 2.78%Other livestock products 368.91 207 0.43%Live animals 357.81 132 0.42%Live cattle 276.04 130 0.33%Fish 246.01 41 0.29%Dairy products 112.58 39 0.13%Total livestock farming exports 18,548.26 7,398 21.84%Total other sectors (excluding cattle products) 76,231.22 89.75%Total other sectors (excluding livestock farming) 66,386.33 78.16%Total agribusiness exports 84,934.59 100.00%

Source: Athenagro, MAPA, Secex/MDIC, AgroStat

Beef 7.15%Leather and other goods 2.78%Live Cattle 0.33%Total other sectors (excluding cattle products) 89.75%

Meat 18.22%Leather and other goods 2.78%Other livestock products 0.43%Total other sectors (excluding livestock farming) 78.16%

Million US$ 1000 Tonnes %/US$


Graph 14 BRAZILIAN BEEF EXPORTS REPRESENTATIVENESS

Mi US$ %

Brazil total exports 185,235.40 100%Other sectors total exports 100,300.81 54%Total agribusiness exports 84,934.59 46%

Source: Athenagro, MAPA, Secex/MDIC, AgroStat

Table 12 BRAZILIAN BEEF EXPORTS PER PRODUCT - 2016 AND 2017

CATEGORY 20161000 US$

20171000 US$

Variation US$ (%)

2016T

2017T

Variation T

(%)

2016US$/t

2017US$/t

Variation medium

price(%)

In natura 4,349,284.02 5,086,170.79 16.94% 1,077,333.79 1,210,136.91 12.33% 4,037.08 4,202.97 4.11%

O�als 496,204.61 583,845.40 17.66% 195,551.30 208,149.80 6.44% 2,537.47 2,804.93 10.54%

Processed 600,957.33 516,802.50 -14.00% 105,572.30 89,707.75 -15.03% 5,692.38 5,760.96 1.20%

Casings 49,802.24 69,064.69 38.68% 18,743.91 20,971.29 11.88% 2,656.98 3,293.30 23.95%

Salted 19,706.10 28,905.68 46.68% 3,283.43 5,496.73 67.41% 6,001.68 5,258.71 -12.38%

Total 5,515,954.30 6,284,789.06 13.94% 1,400,484.73 1,534,462.47 9.57% 3,938.60 4,095.76 3.99%

Source: MIDC / SECEX Prepared by ABIEC

Totalagribusiness

exports

46%

Other sectors

54%

Beef

3%

Beef 6,069.26 3%


BRAZILIAN BEEF EXPORTS

Graph 15

Source: MDIC / SECEX - Prepared by Abiec

Revenue (Thousand US$ )

TONNES

(US$/T)

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

0

1,000

2,000

3,000

4,000

5,000

6,000

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Country Revenue (thousand US$)

Hong Kong 1,528,811.97

China 939,365.84 European Union 712,981.25 Iran 559,249.54 Egypt 529,156.60 Russia 487,112.38 USA 295,166.11 Chile 281,246.72 Saudi Arabia 168,650.84 United Arab Emirates 96,342.28 Others 686,705.55

MAIN DESTINATION OF BRAZILIAN BEEF EXPORTS IN 2017 - BY REVENUE (THOUSAND US$)

Graph 16

Source: MDIC / SECEX - Prepared by ABIEC

2%

11%

3%

4%

5%

8%

8%

9% 11%

15%

24%

159,

651

213,

944

326,

323

358,

699

543,

639

637,

496

855,

429

1,18

4,29

5

1,35

8,67

9

1,52

6,94

1

1,61

8,46

0

1,38

6,66

1

1,24

6,50

1

1,23

2,63

1

1,09

7,94

7

1,24

4,73

5

1,51

2,58

7

1,57

4,92

6

1,39

9,25

9

1,40

0,48

5

1,53

4,46

2

468,

463

633,

268

857,

573

837,

264

1,06

2,76

5

1,15

3,44

0

1,59

8,49

0

2,53

5,61

9

3,07

4,31

7

3,94

3,41

7

4,45

6,21

3

5,41

3,45

9

4,15

5,84

0

4,82

5,84

5

5,37

8,58

5

5,77

2,02

5

6,71

1,19

6

7,25

0,08

4

5,93

8,92

1

5,51

5,95

4

6,28

4,78

9

2,93

4.29

2,95

9.97

2,62

7.99

2,33

4.17

1,95

4.91

1,80

9.33

1,86

8.64

2,14

1.04

2,26

2.73

2,58

2.56

2,75

3.37

3,90

3.95

3,33

4.00

3,91

5.08

4,89

8.77

4,63

7.15

4,43

6.90

4,60

3.44

4,24

4.33

3,93

8.60

4,09

5.76

Map 4

BRAZILIAN BEEF BUYING MARKETS - 2017 (T CWE)

Country Volume (T)

Hong Kong 406,448.09

China 213,724.15

Egypt 153,731.17

Russia 151,618.73

Iran 133,035.39

European Union 109,780.07

Chile 64,687.76

Saudi Arabia 42,266.40

USA 39,536.70

United Arab Emirates 22,594.38

Others 197,039.63

MAIN DESTINATION OF BRAZILIAN BEEF EXPORTS IN 2017 - BY VOLUME (TONNES)

Graph 17


1%3%

3%

4%

7%

9%

10% 10%

14%

26%13%

25.806 - 315.570550 - 25.80616 - 5500 - 16


RUSSIA

HONG KONG

EGYPT

IRAN

VENEZUELA

USA

CHILE

CHINA

SAUDI ARABIA

EUROPEAN UNION

ISRAEL

LARGEST BRAZILIAN BEEF MARKETS IN 2017 - %

0%


10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

201720162015201420132012201120102009200820072006200520042003200220012000199919981997

Graph 18 e 19

LARGEST BRAZILIAN BEEF MARKETS IN 2017- THOUSAND US$

OTHERS

EUROPEAN UNION

ISRAEL

SAUDI ARABIA

CHINA

CHILE

USA

VENEZUELA

IRAN

EGYPT

HONG KONG

LARGEST BRAZILIAN BEEF MARKETS IN 2017 BY REVENUE

1000

US$

7,000,000

8,000,000

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000


1,000,000

0

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017


Graph 20 e 21

LARGEST BRAZILIAN BEEF MARKETS IN 2017, BY VOLUME

OTHER

EUROPEAN UNION

ISRAEL

SAUDI ARABIA

CHINA

CHILE

USA

VENEZUELA

IRAN

RUSSIA

HONG KONG

EGYPT

RUSSIA

HONG KONG

EGYPT

IRAN

VENEZUELA

USA

CHILE

CHINA

SAUDI ARABIA

OTHERS

EUROPEAN UNION

ISRAEL

LARGEST BRAZILIAN BEEF MARKETS IN 2017, BY VOLUME

LARGEST BRAZILIAN BEEF MARKETS IN 2017 - %



1000

ton

Beef

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

0

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

201720162015201420132012201120102009200820072006200520042003200220012000199919981997


Livestock retrospectiveand projections

Table 13 CATTLE HERD, BEEF PRODUCTION, EXPORTS, IMPORTS, COMSUMPTION, AND COMSUMPTION PER CAPITAIN THE LAST 10 YEARS

Unit 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Herd Mi heads 200 202 205 210 213 211 212 212 215 218 222

Beef production TT CWE 10,644 9,325 9,180 9,365 9,102 9,704 10,227 10,123 9,697 9,142 9,708

Exports TT CWE 2,324 1,998 1,771 1,708 1,501 1,692 2,021 2,097 1,882 1,882 2,032

Imports TT CWE 32 32 41 41 45 60 57 77 59 64 57

Consumption TT CWE 8,352 7,359 7,450 7,697 7,646 8,072 8,263 8,103 7,874 7,324 7,733

Consumption per capita kg/heads/year 44 38 39 39 39 41 41 40 39 36 38

Source: Athenagro, Secex/MDIC, IBGE

Table 14 LIVESTOCK FARMING HISTORY DATA AND FORECASTS BY 2027

Variable Unit 1997 2002 2007 2012 2017 2022 2027Total Herd Mi heads 161 185 200 211 222 221 221

Production 1000 T CWE 5,922 7,537 10,644 9,704 9,756 11,850 12,169

Export 1000 T CWE 309 986 2,324 1,692 2,032 2,708 3,061

Import 1000 T CWE - 74 32 60 57 62 60

Domestic comsumption 1000 T CWE 5,612 6,626 8,352 8,072 7,733 9,205 9,168

Per capita availability carcass kg /person/year 34 37 44 41 38 43 41

Beef consumption beef kg /person/year 28 30 36 33 30 34 33

Slaughter 1000 heads 26,432 31,955 46,378 41,077 39,201 46,618 46,605

Pasture area 1000 ha 186,521 185,590 184,253 174,999 164,957 158,677 156,397

Stocking rate heads/ha 0.87 1.00 1.08 1.21 1.34 1.39 1.41

Occupation rate animal unit/ha 0.61 0.70 0.76 0.85 0.94 0.98 0.99

Carcass average weight kg/head slaughtered 224.02 235.88 229.51 236.23 248.87 254.19 261.10

O�take Percentage 16% 17% 23% 19% 18% 21% 21%

Source: Athenagro, IBGE, Secex/MDIC


7


Sustainability

• Pastures in working conditions 162.8 19%

• Pastures at advanced stage of degradation 6.1 1%

• Agriculture (annual, forests, semiperennial and perennial) 75.5 9%

• Cities, roads, water courses and other uses 38 4%

• Native forest regeneration (Amazon biome) 22.8 3%

• Legal reserves and Permanent Protection areas (APPs) 109.7 13%

• Untouched wilderness 436.6 51%

BRAZIL’S LAND USE

Source: Athenagro, Agrosatélite, IBGE, INFE, MAPA

Brazil 851.5 100.00%

%Total Area

(million ha)

Pastures in workingconditions

19%

Pastures at advancedstage of degradation

1%

Legal reserves andPermanent Protection areas (APPs)

13%Native forest regeneration

(Amazon biome)

3%Cities, roads, water courses

and other uses

4%Agriculture (annual,

forests, semiperennial and perennial)

9%

Untouchedwilderness

51%


8


Forest Code

Legal Reserve (RL)

The rural property that, covered bynatural vegetation, can be exploited forsustainable forest management, withinthe limits established by law for the biomein which it is located.- 80% of property in the Legal Amazon- 35% on properties located in the Savannaformations in the Legal Amazon- 20% on properties located in forest area- 20% on properties located in the CamposGerais area

DEVELOPMENT OF PASTURE AREAS AND YIELD IN BRAZIL

Graph 22

Source: Athenagro, dados IBGE, Lapig, Terraclass, Agrosatélite, Prodes, Map Biomas

Evolution of the pasture area vs productivity

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

@/h

a/ye

ar

MIL

LIO

N H

A

PASTURE AREA (MILLION HA) YIELD (@/HA/YEAR)

191

18

9

18

9

188

18

7

187

187

18

7

186

186

18

6

18

6

18

6

185

18

5

18

4

18

4

184

18

3

182

179

17

7

175

170

16

8

167

16

5

16

5

1

2

3

4

5

150

200

185

1.63

1.73

1.73

1.73

1.83

1.90

2.10

2.16

2.10

2.32

2.33

2.60

2.85

2.93

3.33

3.54

3.86

3.74

3.45

3.42

3.57

3.48

3.67

4.02

4.03

3.92

3.74

4.01


Permanent Preservation Area (APP)

Untouchable natural areas, with strict limits on exploitation; in other words, direct economic exploitation isnot allowed.- Protection of river banks (30 to 500 meters)- Protection of lakes (30 to 100 meters)- Springs (50 meters)- Hills with an incline of over 45°- Others

Envirommental Regulation Program (PRA) and Rural Envirommental Registry (CAR)

Environmental Regulation Program (PRA): a set of actions to be developed by rural landowners andsquatters to adapt and promote environmental compliance.Rural Environmental Registry (CAR): a set of geo-referenced property information, with division of APPs,RLs, remnants of native vegetation and other information, used to draw a digital map from which the valuesof the areas undergoing environmental diagnosis are calculated.

Deforestation and monitoring

ANNUAL DEFORESTATION RATES IN THE LEGAL AMAZON IN HECTARES

Graph 23

Source: PRODES/Instituto Nacional de Pesquisas Espaciais *estimated rate

0

5

10

15

20

25

30

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

*201

7

1,822,600

1,816,500

2.165.100

2,539,6002,777,200

1,901,400

1,428,600

1,165,100

1,291,100

746,400

700,000

641,800

457,100584,300

501,200620,700

789,300

662,400


GTPS

Within a Roundtable format, the GTPS (Brazilian Roundtable on Sustainable Livestock)is an organization that covers every link in the beef value chain and promotes sustainablelivestock development through articulation of the chain, continued improvementand dissemination of information.

The Group debates and formulates principles, standards and common practices for the development of sustainable beef production. The GTPS sees sustainability as an evolving process.

The GTPS is committed to zero deforestation, dependent upon the creation of mechanisms for economic compensation so that this practice is made viable.

GTPS Members- Producers- Industries- Retail and services industry companies- Financial institutions- NGO´s

GTPS Pillars- Continuous improvement of sustainability- Transparency and ethics- Best practices in agricultural and livestock production- Legal compliance

HealthHistory of the evolution of the status of foot-and-mouth disease in Brazil


9

1998

- The states of Rio Grande do Sul and Santa Catarina are recognized as the first Foot-and-Mouth Disease Free Zone with vaccination - Reintroduction of foot-and-mouth disease in the state of Rio Grande do Sul, with suspension of the status of foot-and-mouth disease free zone with vaccination for the said state and Santa Catarina

2000- Recognition of foot-and-mouth disease free zone with vaccination for the state of Paraná and Federal District, and parts of the states of Goiás, Mato Grosso, Minas Gerais and São Paulo

2001 - Expansion of the foot-and-mouth disease free zone with vaccination, with recognition of the states of Bahia, Espírito Santo, Mato Grosso do Sul, Rio de Janeiro, Sergipe, Tocantins and parts of Goiás, Mato Grosso, Minas Gerais and São Paulo

2002- Reinstatement of foot-and-mouth disease free zone with vaccination status for the states of Rio Grande do Sul and Santa Catarina

2003- Expansion of the foot-and-mouth disease free zone with vaccination, with recognition of the state of Rondônia.

2007- Recognition of the state of Santa Catarina as a foot-and-mouth disease free zone without vaccination and the center-south region of the state of Pará as a foot-and-mouth disease free zone with vaccination

2008

- MAY: Reinstatement of the recognition of foot-and-mouth disease free zone for the states of Bahia, Federal District, Espírito Santo, Goiás, Mato Grosso, Minas Gerais, Paraná, Rio de Janeiro, São Paulo, Sergipe and Tocantins.

2008

- JULY: Reinstatement of the recognition of foot-and-mouth disease free zone for the State of Mato Grosso do Sul -Reestablishment of the full area suspended in 2005 - Reinstatement of the recognition of foot-and-mouth disease free zone with vaccination status in the High-Vigilance Zone of the state of Mato Grosso do Sul - February 2011

2011- Recognition of the protection zones of Bahia and Tocantins as foot-and-mouth disease free with vaccination and expansion of the foot-and-mouth disease free zone with vaccination of Rondônia and Amazonas - May 2011

2014- Recognition of the states of Alagoas, Ceará, Maranhão, Paraíba, Pernambuco, Piauí, Rio Grande do Norte and the northern region of the state of Pará as being foot-and-mouth disease free zone with vaccination, being incorporated into the free zone already consolidated in the country - May 2014

2018Recognition by the OIE of Brazil as a country free of foot-and-mouth disease with vaccination

foot-and-mouth disease free zone with vaccination - recognized by the OIE

infected zone

bu�er zone / protection zone

foot-and-mouth disease free zone without vaccination - recognized by the OIE

free zone with recognition suspended

Table 16MEMBER COUNTRIES KNOWN TO POSE A NEGLIGIBLE RISK OF BSE ACCORDING TO CHAPTER 11.4 OF THE LAND CODE

AustraliaAustriaBelgiumBrazilBulgariaChile

ColombiaCosta RicaCroatiaCyprusCzech RepublicDenmark

EstoniaFinlandGermanyHungaryIcelandIndia

IsraelItalyJapanKorea (Rep. of)LatviaLiechtenstein

LithuaniaLuxembourgMaltaMexicoNamibiaNew Zealand

NorwayPanamaParaguayPeruPolandPortugal

RomaniaSingaporeSlovakia SloveniaSpainSweden

SwitzerlandThe NetherlandsUnited States of AmericaUruguay


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SUMÁRIO ABIEC 2018 INGLÊS REVISADO - brazilianbeef.org.br · 2017 was, without a doubt, a challenging period for Brazilian livestock. The country's political and economic scenario