Meat An Environmentally Responsible Industry In case

Meat – An Environmentally Responsible Industry? In case Brazil 17 th WORLD MEAT CONGRESS South Africa - September 2008 Luiz Antonio Pinazza Director of the Brazilian Agribusiness Association – Abag Brazilian National Beef Cattle Council - CNPC abag@abag. com. br cnpc@cnpc. org. br

Brazil: Cattle Development The numbers show strong raising Year 1997 2007 % Herd - million head 156. 0 193. 0 23. 7 Offtake Rate - % 18. 6 23. 3 25. 0 Slaughter - million head 29. 1 45. 0 54. 6 Production - million tonnes (*) 5. 8 9. 3 60. 3 National Consumption – million tonnes (*) 5. 7 6. 9 21. 0 Exportation – million tonnes (*) 0. 3 2. 35 710. 0 Population (million persons) 160. 0 190. 0 18. 7 Consumption per capita – kg 36. 1 37. 1 2. 77 ( *) Equivalent carcass Source: CNPC

Brazil: Regional distribuition livestock herd 2007: 193 million head North 20. 0% Northeast 13. 0% 193 Mid. West 34. 8% Southeast 18. 8% South 13. 4% Source: CNPC/IBGE

Brazil: Cattle production on feed lot 2007: 2. 3 million head 5. 0% total slaughter herd GO : 23. 4 % MS : 17. 6 % MG : 16. 4% SP : 31. 6 % Others : 11. 0 % Source: Safras e Mercados

Brazil: Strong reduction of FMD Foot and Mouth Disease Brasil is signatary WTO: Agreement Sanitary and Phytosanitary Measures (SPS) and Member of OIE Fonte: MAPA

BRAZIL: FMD status certified by OIE RR AP PA PA AM MA CE RN PB PI PE AC AL TO SE RO BA MT MT Source: OIE-World Organization for Animal Health MG ES MS SP FREE WITH VAC. PR FREE WITH OUT VAC. BUFFER ZONE SC ZONE IN ERADICATION August 2008 D DF GO LAST OUTBREAK 2005 National Programm for FMD Eradication RS RJ

World: Why is there desinformation about Brazil ? Would be real honest? Two key issues or Would be INTENTIONAL?

World: Disappearing primary forests 1977 1650 1850 1000

World: Where are the intact forests? ü 35% in Latin America (Brazil is the largest) ü 28% in North America; ü 19% in Northern Asia: ü 7% in South Asia Pacific; ü 8% in Africa; üLess than 0. 3% in Western Europe . Source: Greenpeace - USA

Knowing Brazil use of land Territorial distribuition 90 million hectares availables “Attention” Source: IBGE e MAPA World : agriculture for producing food vs energy is a important discussion. Brazil: in particular case, there is still enough land to meet both demands Amazon Rain Florest . . 350 Breeding Pasture . . . 220 Protected Áreas . . . 55 Annual Cultures . . . 48 Permanent Cultures . . . 17 Cultivated Forest . . . 5 Cities, lakes, roads and others uses . . . 156 Total . . . 851 90 million hectares availables

Brazil: Sugar Cane Production Map 3 million hectares = production to suply 50% of fuel national consumption (ethanol/gas) South Center > 87% national production sugar cane

Brazil has been saved agricultural area Million hectares 3, 82 t/ha Brazil production 1970/71: 52 million tonnes 2007/08: 234 million tonnes no productivy area saved area 1, 44 t/ha planted area Source : ANDA/IBGE. 16 pricipal culturee Source : ANDA/IBGE. 16 pricipal

Brazilian Legal Amazon : “ A big continent” Area created by Law 1806/1953, with tax objetive BRAZIL 851 million hectares France Italy German Spain Area : 510 million hectares Territory : 8 states National territory share: 60% Population: 23 million persons Source: National Space Survey Institute - INPE

Brazil and its biomes Tradicional envirommental concern

There is another common confusion Amazon forest Area deforestation 1970: 1. 0 % - 50. 000 km 2 2007: 17. 5% - 712. 000 km 2 “Attention” Cerrado is not Amazon Forest Amazon Biome - 420 million hectares and 82% Legal Amazon Biome -

What are strategies questions ? Brazilian Legal Amazon: 23 million persons and national share pasture with 7. 8% ( Source: IBGE) How give them improvement and welfare conditions ? They need better standard life and social - economic progress Are there solutions and options ?

Brazil: Some cattle production figures ü Provide 5. 5 million jobs, most of them in development rural area; ü Roughly 220 million hectares of pasture: extensive system predominance; ü Pasture support herd 193 million ( the second largest in the world); ü Study has estimated that 23% of low-productivity pasture available; ü Brazilian cerrado is the main beef production: about 50. 0%; 50. 0% ü Lower pasture support: 0. 88 cattle head by hectare

Amazon: Deforestatiton has reduced ; ü Raise 50% last years; ü Action envolves 13 ministries; ü Arrested: 700 persons and 1 million wood cubic meters arrested; ü Bankrupt of 1500 firms in illegally areas; ü US$ 2. 5 billions in fines. Amazon: Sustentability plan is possible üPrivate farm: regularization. üPublic land: control and monitoring. 76% of Amazon biome area. üEcologic economic zone; üIntensive system in deforested area; üSmall farm: only in transition zone. 800 thousand in 42 million hectares; üPayment to stand tree: environmental asset; üIllegal commerce control: Europe buy 800 thousand tonnes ( US$ 570 million) of timber by year.

Brazil: Cattle future scenario ü ü ü ü Abundance soil and water; Modern tecnology; Genetic and nutrition: in 18 months, animal with 510 kg; Major priority: degradaded pasture recuperation; Excellent condition for animal welfare; Modern meat processing industry; Improve CO 2 balance. ü Sanitary evolution allows export live animal; ü Intensive production system; ü Raise cattle feed lot; ü Modern production with better offtake rate: 29%; ü Mad Cow (BSE) free; ü FMD erradication is almost complete Herd : 205 million head 2015 National cattle projection Source: CNPC Offtake rate – 29 % Production – 11, 8 million tonnes

The brazilian aproaches “ LIVESTOCK`S LONG SHADOW ENVIRONMENTAL ISSUES AND OPTIONS” Henning Steinfeld, Pierre Gerber, Tom Wassenaar et al. (FAO) Positives points üNegative impact of agricultural subsidies; üMeat is important source of nutrient to health human; üSector has contributed with job, earn, dignity and to avoid new deforestation; üProvides livelihoods to about 1. 3 billion peoples; üContributes about 40% to global agricultural output; üCattle must be analysed with especifics studies, without sensational news; Negative point ü Not to be consider CO 2 keep pasture ü Balance is essential

Brazil: Cattle CO 2 balance kg/year/hectare Emission: ü CO 2 – 44. 0 ü CH 4 – 49. 28 ü Total ( basis CO 2): 1226. 72 Keep pasture: üDegradaded pasture: 1. 000 üGood management practices: 2. 000 üAverage: 1772. 72 (*) 23% low productive pasture Positive balance: 546 Correct study against burn, deforestation, degradation soil and low tecnology. Important factors ü Dry material; ü Carbon and nitron relation; ü Organic decomposition; ü Animal by hectare. New study will be delivery on september

Brazil: Industrial pig production and environment 1. ü ü ü Production: 2. 6 million farmers; 46. 5% of brazilian’s farmers; 81% of farmers: < 100 hectares; 2. Environment protection: ü Brazil has with Sadia Alimentos a model project ü Project (MDL or 3 S) validated worldwide by UNO; ü 1000 pork producers are envolved; ü Credit is 389 tonnes of carbon/farm/year.

Enviromment Project MDL or 3 S ü Removes 98% of the organic pollution and 99. 9% of the fecal coliforms; ü 15% of the solids go to soil fertilizers; ü Sequential lagoon uses: ü No water contamination ( phosphates and nitrates); ü Excrements reservoirs with material structure to avoid the infiltration and contamination of natural resources.

THANKS TO INTERNATIONAL MEAT SECRETARIAT-IMS/OPIC; SOUTH AFRICA MEAT INDUSTRY COMPANY-SAMIC BRAZILIAN NATIONAL BEEF CATTLE COUNCIL -CNPC FOR LETTING ME MAKE THIS PRESENTATION AND ALLOWING ME TO BE PART OF THE ROUND TABLE