Required Report - public distribution

**Date:** 8/19/2005

**GAIN Report Number:** BR5620

B

**Brazil**

**Poultry and Products**

**Annual Poultry Report**

**2005**

**Approved by:**

![](media/image1.wmf)Oliver Flake, Acting Agricultural Counselor

U.S. Embassy

**Prepared by:**

Joao F. Silva, Agricultural Specialist

**Report Highlights:**

Brazilian poultry production is forecast to increase in 2006 and reach a
new record due to continued booming exports and firm domestic demand.
Brazilian poultry exports are benefiting from the animal health
problems, mostly Avian Influenza, affecting several areas of the world.
Lower production costs in 2005 and higher exports prices have
contributed to higher profit margins of most poultry packers and
benefited integrated broiler producers.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Brasilia \[BR1\]

\[BR\]

[**Executive Summary 3**](#executive-summary)

[Commodity Outlook, Broilers 3](#commodity-outlook-broilers)

[Production 3](#production)

[Industry Concentration 3](#industry-concentration)

[Production Factors 4](#production-factors)

[Production Costs 4](#production-costs)

[Animal Health Update 5](#animal-health-update)

[Consumption 6](#consumption)

[Trade 6](#trade)

[Policy 7](#policy)

[Marketing 8](#marketing)

[Commodity Outlook, Turkey 8](#commodity-outlook-turkey)

[Production 8](#production-1)

[Consumption 9](#consumption-1)

[Trade 9](#trade-1)

[Tables 10](#tables)

[PSD table, Poultry, Meat, Broiler 10](#psd-table-poultry-meat-broiler)

[Poultry, Meat, Broiler Exports, Jan-Jul 2004-05
11](#poultry-meat-broiler-exports-jan-jul-2004-05)

[Poultry, Meat, Broiler Exports, Jan-Dec 2003-04
12](#poultry-meat-broiler-exports-jan-dec-2003-04)

[PSD table, Poultry, Meat, Turkey 13](#psd-table-poultry-meat-turkey)

[Poultry, Meat, Turkey, Exports, Jan-Jun 2004-05
14](#poultry-meat-turkey-exports-jan-jun-2004-05)

[Poultry Meat, Turkey, Exports, Jan-Dec 2003-04
15](#poultry-meat-turkey-exports-jan-dec-2003-04)

# Executive Summary

Broiler production is expected to increase by 5 percent in 2006,
following a record production of 9.1 million metric tons estimated for
this year. The increase in broiler production in Brazil continues to be
driven by record exports as Brazil makes major in-roads in different
markets due to the animal health problems faced by some competitors. In
addition, firm domestic consumption contributes to the expansion in
production.

Despite the complaints of Brazilian poultry packers against the
appreciation of the Brazilian currency (nearly 15 percent in 2005) and
higher domestic interest rates, exports of broilers are booming and
profit margins have increased due to lower production costs and an
increase in the average export price of broilers in 2005.

# Commodity Outlook, Broilers

## Production

Post forecasts an increase in broiler production in 2006 of 5 percent
from this year's record production, supported by the following factors:
a) continued expansion in the export market, although at a lower pace
than this year; b) expansion of broiler exports to new markets, such as
China, and to a wide range of approximately 135 countries; c) strong
market promotion efforts jointly conducted and financed by the Brazilian
government agency for market development; and, d) continued expansion in
domestic demand. However, the following constraints can affect the
projected performance of the Brazilian broiler industry in 2006: a) the
continued appreciation of the Brazilian currency, higher domestic
interest rates, and higher production costs due to projected reduction
in the area planted for soybeans and tight corn supplies through March
of 2006 that could negatively impact on producers profit margins.

Post revised the estimated broiler production in 2005 to nearly 9.1
million metric tons, up 8 percent from the record production level of
8.4 million metric tons last year. This year's increase in production is
mostly attributed to higher than initially expected expansion in the
export market due to continued animal health problems in various
countries, mostly the Avian Influenza crisis in Asia, combined with firm
domestic demand.

Nearly 97 percent of the poultry meat produced in Brazil is broiler
meat, with the balance consisting mainly of turkey production, which is
increasing rapidly but from a small base. According to trade sources,
about 55 percent of the estimated broiler meat production in 2005 will
consist of broiler parts and 45 percent of whole broilers. This is the
result of a strategy adopted by the large broiler processors in Brazil
to add value to their products in order to increase their profit margins
and shift away from a \"commodity\" type of product, such as whole
broilers. Also reflects the significant increase in the past years of
exports of broiler parts and other processed broiler products, although
some markets, such as Saudi Arabia still prefers whole broilers.

## Industry Concentration

Ten Brazilian poultry processors account for 55 percent of total broiler
slaughter and 85 percent of broiler exports, reflecting an increasing
consolidation in the sector. These same companies are also leaders in
pork production and exports in Brazil, which allows for economies of
scale and greater use of lower-cost feeds based on volume purchases. The
broiler production system of these companies is highly integrated.

  ---------------------------------- ------------------- ----------------
  **Company**                        **% Of Slaughter**  **% Of Exports**

  Sadia                              14                  28

  Perdigao                           12                  19

  Seara                              07                  13

  Frangosul                          06                  11

  Avipal                             05                  06

  DaGranja                           03                  01

  Aurora                             02                  02

  Diplomata                          02                  02

  Penabranca                         02                  02

  Copacol                            02                  01

  Total                              55                  85
  ---------------------------------- ------------------- ----------------

Source: Trade

-   Percentages have been rounded.

## Production Factors

The following table provides an overview of the production of parent
stock and day-old chicks in Brazil:

+----------------+--------------+-----------------+-------------------+
| Year           | Parent Stock |                 | Broiler Chicks    |
|                |              |                 |                   |
|                |              |                 | (1,000)           |
+----------------+--------------+-----------------+-------------------+
|                | Layers       | Broilers        |                   |
|                | (1,000)      |                 |                   |
|                |              | (1,000)         |                   |
+----------------+--------------+-----------------+-------------------+
| 2000           | 60,949       | 27,536          | 3,254,100         |
+----------------+--------------+-----------------+-------------------+
| 2001           | 63,606       | 28,597          | 3,473,600         |
+----------------+--------------+-----------------+-------------------+
| 2002           | 67,769       | 30,499          | 3,819,570         |
+----------------+--------------+-----------------+-------------------+
| 2003           | 77,367       | 31,035          | 3,907,100         |
+----------------+--------------+-----------------+-------------------+
| 2004           | 83,931       | 33,293          | 4,277,700         |
+----------------+--------------+-----------------+-------------------+
| 2005 (est.)    | 95,723       | 36,100          | 4,600,000         |
+----------------+--------------+-----------------+-------------------+
| 2006           | 103,200      | 38,300          | 4,830,000         |
| (forecast)     |              |                 |                   |
+----------------+--------------+-----------------+-------------------+

Source: Trade

Note: Monthly average quantities for layers.

## Production Costs

Although Brazilian poultry companies do not release production cost
information, there are some representative costs supplied by trade
sources. During the first half of 2005, the estimated average cost of
broiler production reached R\$1.32 per kilogram, live weight, down 8
percent from an estimated cost of R\$1.44 per kilogram, live weight,
from the same period in 2004. The average exchange rate for Jan-Jun 2005
was R\$ 2.53 per US\$ 1.00, compared to R\$ 2.98 per US\$ 1.00 during
the same period in 2004.

During Jan-June 2005, the price of soybean meal declined by 13 percent,
compared to the same period in 2004 due to a large U.S. crop and
slightly larger Brazilian crop. However, during the same period, corn
prices increased by 12 percent in dollar terms. Please see table below.
Post projects feed prices to increase during the 2005-06 crop year (Oct
1/Sep 30), based on current tight supplies of corn and soybeans that are
only expected to expand following the summer harvest in March of 2006.
The new crop plan to be announced soon by the federal government will
likely maintain the volume of subsidized funds available to corn
producers to finance their cost of production at R\$400,000 (US\$
158,000) per producer.

Sao Paulo: Broiler production costs and wholesale prices for broilers
(RTC), corn, and soybean meal:

+------------+-----------+----------+----------+-----------+----------+
| Year       | Broiler   | W        |          |           |          |
|            | Cost      | holesale |          |           |          |
|            | (US\      | Prices   |          |           |          |
|            | $/KG/Live |          |          |           |          |
|            | Weight)   |          |          |           |          |
+------------+-----------+----------+----------+-----------+----------+
|            |           | Live     | RTC      | Corn      | Soybean  |
|            |           | Weight   |          |           | Meal     |
|            |           |          | (        | (US       | (        |
|            |           | (        | US\$/KG) | \$/60/KG) | US\$/KG) |
|            |           | US\$/KG) |          |           |          |
+------------+-----------+----------+----------+-----------+----------+
| 2000       | 0.47      | 0.50     | 0.68     | 7.78      | 0.18     |
+------------+-----------+----------+----------+-----------+----------+
| 2001       | 0.38      | 0.41     | 0.53     | 4.64      | 0.19     |
+------------+-----------+----------+----------+-----------+----------+
| 2002       | 0.39      | 0.39     | 0.50     | 6.26      | 0.18     |
+------------+-----------+----------+----------+-----------+----------+
| 2003       | 0.47      | 0.47     | 0.54     | 6.54      | 0.21     |
+------------+-----------+----------+----------+-----------+----------+
| 2004       | 0.51      | 0.51     | 0.54     | 6.31      | 0.23     |
+------------+-----------+----------+----------+-----------+----------+
| 2005       | 0.51      | 0.51     | 0.55     | 7.09      | 0.21     |
| (Jan/Jun)  |           |          |          |           |          |
+------------+-----------+----------+----------+-----------+----------+

Source: Trade

RTC= Ready to Cook

## Animal Health Update

Since the outbreaks of Avian Influenza in Asia, the Brazilian government
has activated the Chamber for Poultry and Swine to develop preventive
measures against the possibility of Avian Influenza being introduced in
Brazil. In addition to the animal health requirements, which are part of
the National Poultry Health Program, several preventive measures have
already been adopted, such as: tightening controls at ports and airports
for tourists and visitors arriving from Asia, prohibition to import
paddy rice from Asian countries, prohibitions for visitors from Asia to
visit Brazilian poultry farms, and new restrictive import requirements
for imported poultry genetics, such as day-old chicks.

The most recent policy recommendation has been the so-called
"Regionalization of Sanitary Controls for Poultry". This concept, which
is expected to be in place by early 2007, involves a protocol between 6
states from the center-south regions of Brazil, by which these states
would establish tight border controls on transit of birds, eggs, and any
other related poultry products and byproducts for inter-state commerce.

Brazil established in 2002 a program to monitor migratory birds from the
South Pole, Argentina, and Paraguay. Since 2003, this program was
improved to monitor and tests birds with potential to carry the Avian
Influenza virus. The program is a joint effort of the Ministry of
Agriculture, Ministry of Health, and Ministry of the Environment.

A case of nonpathogenic Newcastle Virus was officially diagnosed in late
may 2005 in Jaguari, state of Mato Grosso do Sul by the official
government laboratory -- Lanagro. The results indicated an Intracerebral
Pathogenicity Index (IPC) of 0.41. Samples collected and analyzed also
showed a negative result for Avian Influenza by using Agar-gel
Immunodiffusion test (AGID). Although the incident occurred away from
the major producing areas, the Brazilian Animal Health Department (DSA)
placed the area under quarantine and culled about 17,000 birds.

The Department of Inspection for Animal Origin Products (DIPOA) of the
Ministry of Agriculture, Livestock, and Food Supply (MAPA) released the
results of the Dripping Test to measure the water content in Brazilian
frozen broilers. Since the beginning of the testing, DIPOA tested 2,155
samples, which resulted in 450 positive results (frauds). DIPOA has
applied fines of more than US\$ 10,000 to those companies involved and
it is recommending that all processors purchase equipments for dripping
tests. Brazilian legislation allows a limit of 6% percent water content
in frozen broiler.

## Consumption

Post forecasts domestic broiler consumption to increase by 4 percent in
2006. Current economic forecasts are for continued expansion of economic
growth, inflation at lower levels, stable unemployment rates, and
continued improvement in consumer purchasing power. Competition from
other meats is not expected to affect broiler consumption since broiler
meat is more affordable to lower income consumers compared to beef and
pork. In addition, demand is expected to increase from the food service
industry for products such as frozen chicken meals, pre-cooked meals,
and chicken burgers.

There are no statistics on the structure of domestic broiler consumption
between whole birds and parts. However, Brazilian consumers still have
an overwhelming preference for large whole broilers as a result of lower
prices relative to beef products. However, the structure of broiler
demand is changing in Brazil according to some market analysts. Since
the economic stabilization in late 1994, there has also been a shift in
consumption toward more highly processed broiler products, mostly among
the Brazilian middle and upper classes. The traditional diet staples,
rice and dried beans, are losing ground to animal protein products such
as poultry and dairy products. Large Brazilian poultry processors are
responding to these changes by shifting their sales mix strategies
toward broiler parts (mostly leg quarters and breast meat) and further
processed value-added branded products, such as frozen chicken meals,
pre-cooked meals, chicken nuggets, and chicken burgers. The
institutional, food service, and fast food markets also offer great
potential for Brazilian firms. Tailoring products to these sectors'
needs is key to the processors' new strategies.

## Trade

Post projects broiler exports in 2006 to increase by 7 percent in
volume, about half of the expected growth estimated for this year's
record. The following factors support our forecast: a) continued
expansion into new markets due to market promotion programs and new
sanitary agreements, such as with Korea; and, b) positive impact on
Brazilian poultry exports due to the outbreaks of Avian Influenza in
different regions of the world. However, the continued appreciation of
the Brazilian currency and expected higher production costs may affect
the profit margins of exporters and their competitive edge.

January-July 2005 broiler exports reached 1.6 million metric tons, up 20
percent from the same period in 2004, while the value of exports for the
same period reached US\$ 1.8 billion, up 27 percent from last year. The
average export price for January-July 2005 was US\$ 1,141 per metric ton
compared to US\$ 1,084 per metric ton for the same period last year.

Broiler parts exports increased by over 23 percent during Jan-July 2005,
while whole broilers increased by over 12 percent, and processed
broilers increased by over 71 percent. Major destinations of Brazilian
broiler exports during January-July 2005 were: China (up 224 percent),
Russia (up 53 percent), Japan (up 30 percent), and European Union (up 13
percent).

## Policy

There have been no changes in poultry production policy since our
previous annual report. The poultry sector outlined its policy goals in
the so-called "Brasilia Letter", in which, leading poultry producers
requested from the Brazilian government the following policies and/or
actions:

a)  Strengthening Animal Health and Inspection Services, including the
    implementation of the new National Poultry Inspection Program
    (PNSA);

b)  Restructuring of taxes on agricultural inputs, including exemption
    from the state ICMS, similar to a value-added tax;

c)  Infrastructure (road and storage facility) improvement programs
    aimed at reducing the cost of transporting and storing grains;

d)  Establishment of new production financing and export credit programs
    for the poultry and pork sectors; and,

e)  Support from the government in multilateral negotiations to combat
    subsidies and protectionist measures by competitors and importing
    countries abroad.

The National Bank for Economic and Social Development (BNDES) provides
meat packers with subsidized long-term loans to build or modernize their
meat packinghouses. BNDES does not provide the loan directly to the
producer or packer, but through other state and commercial private
banks. Total funds allocated under BNDES for the livestock sector are
estimated at US\$ 300 million in 2005. BNDES also offers the following
programs aimed at financing exports, which are used by meat packers:

\(1\) ACC - Advance on Export Contracts and ACE - Advance of Exchange
Delivered:

These programs represent an alternative for exporters to reduce the
financial costs of their export operations. ACC enables an exporter to
obtain a cash advance based on his export contract, prior to shipment of
the product, while ACE is a cash advance after shipment of the product.
Repayment terms are 180 days before or after shipment of the products.
The cost to the exporters of obtaining ACC or ACE advances is equal to
the international cost of financing exports (LIBOR plus a spread), now
approximately 12 percent.

There are several ways of combining ACC with other export credit
programs, but the two most important for agricultural and food exports
are:

--- ACC+PROEX. This program combines the benefits of ACC and PROEX
programs described above. Established through Circular 2,825 of the
Central Bank of Brazil on June 24, 1998, the program is mostly used by
exporters of high-value food products or processed agricultural
commodities.

--- ACC + RURAL. This program allows exporters of coffee and soybeans to
obtain cash advances (ACC) on their exports from the Bank of Brazil,
using as collateral the Rural Promissory Note (CPR). The cash advance is
limited to 50 percent of the export value of the shipment.

\(2\) BNDES-Exim:

The main objective of this program is to expand Brazilian exports in
general, including agricultural commodities, by making three types of
credit lines available to the exporters at costs competitive with
international financing. The most widely used line of credit is similar
to a buyer or supplier's credit. Financing covers 100 percent of the
shipment and repayment terms vary between 181 days to 12 years with
interest rates based on LIBOR plus a spread. This program is also
referred as the Brazilian \"Eximbank\" within BNDES. The amount
allocated for this program in 2005 is estimated US\$ 6.8 billion, of
which meat plants (including poultry) may take up to US\$ 800 million.

## Marketing 

The Brazilian Poultry Exporters Association (ABEF) is a private,
non-profit organization formed by the largest poultry processors and
exporters. ABEF has similar goals and programs compared to the U.S.
Poultry and Egg Export Council (USAPEEC). ABEF has worked in the past as
a national lobbying group for poultry exporters with program activities
aimed at the Brazilian government, international organizations, and
foreign governments to guarantee market access and reduction of
non-tariff barriers for Brazilian broiler exports. The five largest
poultry exporters account for nearly 90 percent of all poultry exports
from Brazil, and the two leading poultry processors - SADIA and PERDIGAO
account for nearly haf of all exports.

ABEF was one of the first private organizations to implement its export
promotion together with the federal government's market promotion
agency - APEX. Since 2000, ABEF has participated in several trade shows
overseas, mostly in Europe, Asia, and the Middle East. Promotion
activities include in-store promotions, general media activity, and
market research. Although similar to FAS's market promotion programs,
ABEF includes several market access activities such as eliminating
sanitary barriers and conducting trade servicing, under the budget for
market promotion. ABEF's 2005 budget for market promotion is estimated
at US\$ 1.8 million, of which APEX funds 43 percent.

# Commodity Outlook, Turkey

## Production

*Note: There is no official data on turkey production in Brazil. Data
provided in this report is derived from interviews with sources from
SADIA, which accounts for nearly 70 percent of turkey production in
Brazil.*

Post forecast Brazilian turkey production to increase by 11 percent in
2005 against a record increase of 17 percent in 2005. The increased in
turkey production reflects booming turkey exports and firm domestic
demand. In addition, some investment projects to increase turkey
production have matured and production is now reaching the market.

## 

## Consumption

The projected economic growth of 5 percent, lower unemployment rate, and
higher disposable income will likely contribute to maintain domestic
demand firm for turkey at around a 5 percent increase. Most of this
demand comes from the food service industry.

Frozen Ready to Cook (RTC) turkey consumption remains highly seasonal in
Brazil. Trade sources estimate that 85 percent of whole turkey sales
occur during the pre-Christmas period, because consumer habits in Brazil
favor turkey consumption during this holiday season. However, processed
turkey products, such as sliced loaf and nuggets are consumed throughout
the year. This is part of Sadia's business strategy to increase
consumption of processed turkey products and to expand consumption of
whole turkeys during other major holidays in Brazil.

## Trade

Turkey exports are expected to continue to increase in 2006, after an
all-time export record estimated for this year. During Jan-Jun 2005,
turkey exports in volume increased by nearly 25 percent compared to the
same period last year, which reflects the competitiveness of the
Brazilian product. The value of turkey exports during Jan-Jun 2005 also
increased by 12 percent compared to the same period last year due to an
increase of the average export price.

# Tables

## PSD table, Poultry, Meat, Broiler

+----------+-----+----------+-----+----------+-----+----------+------+
| PSD      |     |          |     |          |     |          |      |
| Table    |     |          |     |          |     |          |      |
|          |     |          |     |          |     |          |      |
| Country  |     |          |     |          |     |          |      |
|          |     |          |     |          |     |          |      |
| Brazil   |     |          |     |          |     |          |      |
|          |     |          |     |          |     |          |      |
| C        |     |          |     |          |     |          |      |
| ommodity |     |          |     |          |     |          |      |
|          |     |          |     |          |     |          |      |
| Poultry, |     |          |     |          |     |          |      |
| Meat,    |     |          |     |          |     |          |      |
| Broiler  |     |          |     |          |     |          |      |
|          |     |          |     |          |     |          |      |
| (1000    |     |          |     |          |     |          |      |
| MT)(MIL  |     |          |     |          |     |          |      |
| HEAD)    |     |          |     |          |     |          |      |
+----------+-----+----------+-----+----------+-----+----------+------+
|          | 2   | Revised  | 2   | Estimate | 2   | Forecast | UOM  |
|          | 004 |          | 005 |          | 006 |          |      |
+----------+-----+----------+-----+----------+-----+----------+------+
|          | U   | Post     | U   | Post     | U   | Post     |      |
|          | SDA | Estimat  | SDA | Estimat  | SDA | Estimat  |      |
|          | Of  | e\[New\] | Of  | e\[New\] | Of  | e\[New\] |      |
|          | fic |          | fic |          | fic |          |      |
|          | ial |          | ial |          | ial |          |      |
|          | \   |          | \   |          | \   |          |      |
|          | [Ol |          | [Ol |          | [Ol |          |      |
|          | d\] |          | d\] |          | d\] |          |      |
+----------+-----+----------+-----+----------+-----+----------+------+
| Market   |     | 01/2004  |     | 01/2005  |     | 01/2006  | MM/  |
| Year     |     |          |     |          |     |          | YYYY |
| Begin    |     |          |     |          |     |          |      |
+----------+-----+----------+-----+----------+-----+----------+------+
| I        | 33  | 33       | 34  | 36       | 0   | 38       | (MIL |
| nventory |     |          |     |          |     |          | H    |
| (Re      |     |          |     |          |     |          | EAD) |
| ference) |     |          |     |          |     |          |      |
+----------+-----+----------+-----+----------+-----+----------+------+
| S        | 4   | 4278     | 4   | 4600     | 0   | 4830     | (MIL |
| laughter | 278 |          | 492 |          |     |          | H    |
| (Re      |     |          |     |          |     |          | EAD) |
| ference) |     |          |     |          |     |          |      |
+----------+-----+----------+-----+----------+-----+----------+------+
| B        | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| eginning |     |          |     |          |     |          | 1000 |
| Stocks   |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Pr       | 8   | 8408     | 8   | 9080     | 0   | 9530     | (    |
| oduction | 408 |          | 830 |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Whole,   | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Imports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Parts,   | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Imports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Intra EC | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Imports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Other    | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Imports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| TOTAL    | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Imports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| TOTAL    | 8   | 8408     | 8   | 9080     | 0   | 9530     | (    |
| SUPPLY   | 408 |          | 830 |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Whole,   | 0   | 975      | 1   | 1790     | 0   | 1980     | (    |
| Exports  |     |          | 065 |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Parts,   | 2   | 1495     | 1   | 1050     | 0   | 1060     | (    |
| Exports  | 451 |          | 530 |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Intra EC | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Exports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Other    | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Exports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| TOTAL    | 2   | 2470     | 2   | 2840     | 0   | 3040     | (    |
| Exports  | 451 |          | 595 |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Human    | 5   | 5938     | 6   | 6240     | 0   | 6490     | (    |
| Con      | 957 |          | 235 |          |     |          | 1000 |
| sumption |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Other    | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Use,     |     |          |     |          |     |          | 1000 |
| Losses   |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Total    | 5   | 5938     | 6   | 6240     | 0   | 6490     | (    |
| Dom.     | 957 |          | 235 |          |     |          | 1000 |
| Con      |     |          |     |          |     |          | MT)  |
| sumption |     |          |     |          |     |          |      |
+----------+-----+----------+-----+----------+-----+----------+------+
| TOTAL    | 8   | 8408     | 8   | 9080     | 0   | 9530     | (    |
| Use      | 408 |          | 830 |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Ending   | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Stocks   |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| TOTAL    | 8   | 8408     | 8   | 9080     | 0   | 9530     | (    |
| DIST     | 408 |          | 830 |          |     |          | 1000 |
| RIBUTION |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Calendar | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Yr. Imp. |     |          |     |          |     |          | 1000 |
| from     |     |          |     |          |     |          | MT)  |
| U.S.     |     |          |     |          |     |          |      |
+----------+-----+----------+-----+----------+-----+----------+------+

## Poultry, Meat, Broiler Exports, Jan-Jul 2004-05

+-------------------+----------------+----------------+----------------+
| Export Trade      |                |                |                |
| Matrix            |                |                |                |
|                   |                |                |                |
| Country           |                |                |                |
|                   |                |                |                |
| Brazil            |                |                |                |
|                   |                |                |                |
| Commodity         |                |                |                |
|                   |                |                |                |
| Poultry, Meat,    |                |                |                |
| Broiler           |                |                |                |
+-------------------+----------------+----------------+----------------+
| Time Period       | Jan-Jun        | Units:         | Metric Tons    |
+-------------------+----------------+----------------+----------------+
| Export for:       | 2004           |                | 2005           |
+-------------------+----------------+----------------+----------------+
| U.S.              |                | U.S.           |                |
+-------------------+----------------+----------------+----------------+
| Others            |                | Others         |                |
+-------------------+----------------+----------------+----------------+
| Angola            | 18919          |                | 14596          |
+-------------------+----------------+----------------+----------------+
| China             | 19681          |                | 63707          |
+-------------------+----------------+----------------+----------------+
| European Union    | 133368         |                | 150366         |
+-------------------+----------------+----------------+----------------+
| Hong Kong         | 92111          |                | 67487          |
+-------------------+----------------+----------------+----------------+
| Japan             | 148624         |                | 190756         |
+-------------------+----------------+----------------+----------------+
| Kuwait            | 49557          |                | 66119          |
+-------------------+----------------+----------------+----------------+
| Russia            | 87773          |                | 134276         |
+-------------------+----------------+----------------+----------------+
| Saudi Arabia      | 156883         |                | 177798         |
+-------------------+----------------+----------------+----------------+
| Singapore         | 27443          |                | 34443          |
+-------------------+----------------+----------------+----------------+
| South Africa      | 53786          |                | 76560          |
+-------------------+----------------+----------------+----------------+
| UAE               | 54807          |                | 61320          |
+-------------------+----------------+----------------+----------------+
| Venezuela         | 21904          |                | 43144          |
+-------------------+----------------+----------------+----------------+
| Total for Others  | 842952         |                | 1080572        |
+-------------------+----------------+----------------+----------------+
| Others not Listed | 288225         |                | 271038         |
+-------------------+----------------+----------------+----------------+
| Grand Total       | 1131177        |                | 1351610        |
+-------------------+----------------+----------------+----------------+

## Poultry, Meat, Broiler Exports, Jan-Dec 2003-04

+------------------+----------------+----------------+----------------+
| Export Trade     |                |                |                |
| Matrix           |                |                |                |
|                  |                |                |                |
| Country          |                |                |                |
|                  |                |                |                |
| Brazil           |                |                |                |
|                  |                |                |                |
| ###### Commodity |                |                |                |
|                  |                |                |                |
| Poultry, Meat,   |                |                |                |
| Broiler          |                |                |                |
+------------------+----------------+----------------+----------------+
| Time Period      | Jan-Dec        | Units:         | Metric Tons    |
+------------------+----------------+----------------+----------------+
| Exports for:     | 2003           |                | 2004           |
+------------------+----------------+----------------+----------------+
| U.S.             |                | U.S.           |                |
+------------------+----------------+----------------+----------------+
| Others           |                | Others         |                |
+------------------+----------------+----------------+----------------+
| Angola           | 32134          |                | 34648          |
+------------------+----------------+----------------+----------------+
| China            | 11644          |                | 60176          |
+------------------+----------------+----------------+----------------+
| European Union   | 338669         |                | 309685         |
+------------------+----------------+----------------+----------------+
| Hong Kong        | 199982         |                | 179299         |
+------------------+----------------+----------------+----------------+
| Japan            | 185179         |                | 325959         |
+------------------+----------------+----------------+----------------+
| Kuwait           | 60626          |                | 102674         |
+------------------+----------------+----------------+----------------+
| Russia           | 201716         |                | 200944         |
+------------------+----------------+----------------+----------------+
| Singapore        | 64063          |                | 66387          |
+------------------+----------------+----------------+----------------+
| Saudi Arabia     | 288555         |                | 333223         |
+------------------+----------------+----------------+----------------+
| UAE              | 100772         |                | 121740         |
+------------------+----------------+----------------+----------------+
| Total for Others | 1483340        |                | 1734735        |
+------------------+----------------+----------------+----------------+
| Others not       | 476433         |                | 734961         |
| Listed           |                |                |                |
+------------------+----------------+----------------+----------------+
| Grand Total      | 1959773        |                | 2469696        |
+------------------+----------------+----------------+----------------+

## PSD table, Poultry, Meat, Turkey

+----------+-----+----------+-----+----------+-----+----------+------+
| PSD      |     |          |     |          |     |          |      |
| Table    |     |          |     |          |     |          |      |
|          |     |          |     |          |     |          |      |
| Country  |     |          |     |          |     |          |      |
|          |     |          |     |          |     |          |      |
| Brazil   |     |          |     |          |     |          |      |
|          |     |          |     |          |     |          |      |
| C        |     |          |     |          |     |          |      |
| ommodity |     |          |     |          |     |          |      |
|          |     |          |     |          |     |          |      |
| Poultry, |     |          |     |          |     |          |      |
| Meat,    |     |          |     |          |     |          |      |
| Turkey   |     |          |     |          |     |          |      |
|          |     |          |     |          |     |          |      |
| (1000    |     |          |     |          |     |          |      |
| MT)(MIL  |     |          |     |          |     |          |      |
| HEAD)    |     |          |     |          |     |          |      |
+----------+-----+----------+-----+----------+-----+----------+------+
|          | 2   | Revised  | 2   | Estimate | 2   | Forecast | UOM  |
|          | 004 |          | 005 |          | 006 |          |      |
+----------+-----+----------+-----+----------+-----+----------+------+
|          | U   | Post     | U   | Post     | U   | Post     |      |
|          | SDA | Estimat  | SDA | Estimat  | SDA | Estimat  |      |
|          | Of  | e\[New\] | Of  | e\[New\] | Of  | e\[New\] |      |
|          | fic |          | fic |          | fic |          |      |
|          | ial |          | ial |          | ial |          |      |
|          | \   |          | \   |          | \   |          |      |
|          | [Ol |          | [Ol |          | [Ol |          |      |
|          | d\] |          | d\] |          | d\] |          |      |
+----------+-----+----------+-----+----------+-----+----------+------+
| Market   |     | 01/2004  |     | 01/2005  |     | 01/2006  | MM/  |
| Year     |     |          |     |          |     |          | YYYY |
| Begin    |     |          |     |          |     |          |      |
+----------+-----+----------+-----+----------+-----+----------+------+
| I        | 29  | 29       | 32  | 32       | 0   | 33       | (MIL |
| nventory |     |          |     |          |     |          | H    |
| (Re      |     |          |     |          |     |          | EAD) |
| ference) |     |          |     |          |     |          |      |
+----------+-----+----------+-----+----------+-----+----------+------+
| S        | 0   | 0        | 0   | 0        | 0   | 0        | (MIL |
| laughter |     |          |     |          |     |          | H    |
| (Re      |     |          |     |          |     |          | EAD) |
| ference) |     |          |     |          |     |          |      |
+----------+-----+----------+-----+----------+-----+----------+------+
| B        | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| eginning |     |          |     |          |     |          | 1000 |
| Stocks   |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Pr       | 226 | 240      | 246 | 280      | 0   | 310      | (    |
| oduction |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Whole,   | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Imports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Parts,   | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Imports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Intra EC | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Imports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Other    | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Imports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| TOTAL    | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Imports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| TOTAL    | 226 | 240      | 246 | 280      | 0   | 310      | (    |
| SUPPLY   |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Whole,   | 7   | 7        | 8   | 10       | 0   | 0        | (    |
| Exports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Parts,   | 129 | 129      | 144 | 160      | 0   | 190      | (    |
| Exports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Intra EC | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Exports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Other    | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Exports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| TOTAL    | 136 | 136      | 152 | 170      | 0   | 190      | (    |
| Exports  |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Human    | 90  | 104      | 94  | 110      | 0   | 120      | (    |
| Con      |     |          |     |          |     |          | 1000 |
| sumption |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Other    | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Use,     |     |          |     |          |     |          | 1000 |
| Losses   |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Total    | 90  | 104      | 94  | 110      | 0   | 120      | (    |
| Dom.     |     |          |     |          |     |          | 1000 |
| Con      |     |          |     |          |     |          | MT)  |
| sumption |     |          |     |          |     |          |      |
+----------+-----+----------+-----+----------+-----+----------+------+
| TOTAL    | 226 | 240      | 246 | 280      | 0   | 310      | (    |
| Use      |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Ending   | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Stocks   |     |          |     |          |     |          | 1000 |
|          |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| TOTAL    | 226 | 240      | 246 | 280      | 0   | 310      | (    |
| DIST     |     |          |     |          |     |          | 1000 |
| RIBUTION |     |          |     |          |     |          | MT)  |
+----------+-----+----------+-----+----------+-----+----------+------+
| Calendar | 0   | 0        | 0   | 0        | 0   | 0        | (    |
| Yr. Imp. |     |          |     |          |     |          | 1000 |
| from     |     |          |     |          |     |          | MT)  |
| U.S.     |     |          |     |          |     |          |      |
+----------+-----+----------+-----+----------+-----+----------+------+

## Poultry, Meat, Turkey, Exports, Jan-Jun 2004-05

+---------------------+---------------+---------------+---------------+
| Export Trade Matrix |               |               |               |
|                     |               |               |               |
| Country             |               |               |               |
|                     |               |               |               |
| Brazil              |               |               |               |
|                     |               |               |               |
| Commodity           |               |               |               |
|                     |               |               |               |
| Poultry, Meat,      |               |               |               |
| Turkey              |               |               |               |
+---------------------+---------------+---------------+---------------+
| Time Period         | Jan-Jun       | Units:        | Metric Tons   |
+---------------------+---------------+---------------+---------------+
| Export for:         | 2004          |               | 2005          |
+---------------------+---------------+---------------+---------------+
| U.S.                |               | U.S.          |               |
+---------------------+---------------+---------------+---------------+
| Others              |               | Others        |               |
+---------------------+---------------+---------------+---------------+
| Angola              | 974           |               | 1052          |
+---------------------+---------------+---------------+---------------+
| Bulgaria            | 2010          |               | 3918          |
+---------------------+---------------+---------------+---------------+
| France              | 336           |               | 1971          |
+---------------------+---------------+---------------+---------------+
| Gabon               | 1092          |               | 1303          |
+---------------------+---------------+---------------+---------------+
| Germany             | 12708         |               | 20510         |
+---------------------+---------------+---------------+---------------+
| Italy               | 2095          |               | 2669          |
+---------------------+---------------+---------------+---------------+
| Netherlands         | 13997         |               | 11986         |
+---------------------+---------------+---------------+---------------+
| Russia              | 3535          |               | 6238          |
+---------------------+---------------+---------------+---------------+
| South Africa        | 7360          |               | 5681          |
+---------------------+---------------+---------------+---------------+
| Spain               | 864           |               | 2799          |
+---------------------+---------------+---------------+---------------+
| U.K.                | 3631          |               | 860           |
+---------------------+---------------+---------------+---------------+
| Total for Others    | 48602         |               | 58987         |
+---------------------+---------------+---------------+---------------+
| Others not Listed   | 8668          |               | 13154         |
+---------------------+---------------+---------------+---------------+
| Grand Total         | 57270         |               | 72141         |
+---------------------+---------------+---------------+---------------+

## Poultry Meat, Turkey, Exports, Jan-Dec 2003-04

+---------------------+---------------+---------------+---------------+
| Export Trade Matrix |               |               |               |
|                     |               |               |               |
| Country             |               |               |               |
|                     |               |               |               |
| Brazil              |               |               |               |
|                     |               |               |               |
| Commodity           |               |               |               |
|                     |               |               |               |
| Poultry, Meat,      |               |               |               |
| Turkey              |               |               |               |
+---------------------+---------------+---------------+---------------+
| Time Period         | Jan-Dec       | Units:        | Metric Tons   |
+---------------------+---------------+---------------+---------------+
| Exports for:        | 2003          |               | 2004          |
+---------------------+---------------+---------------+---------------+
| U.S.                |               | U.S.          |               |
+---------------------+---------------+---------------+---------------+
| Others              |               | Others        |               |
+---------------------+---------------+---------------+---------------+
| Angola              | 1474          |               | 2086          |
+---------------------+---------------+---------------+---------------+
| Bulgaria            | 2588          |               | 6222          |
+---------------------+---------------+---------------+---------------+
| France              | 2381          |               | 704           |
+---------------------+---------------+---------------+---------------+
| Gabon               | 1387          |               | 2344          |
+---------------------+---------------+---------------+---------------+
| Germany             | 25539         |               | 35414         |
+---------------------+---------------+---------------+---------------+
| Italy               | 2535          |               | 4197          |
+---------------------+---------------+---------------+---------------+
| Netherlands         | 21755         |               | 30701         |
+---------------------+---------------+---------------+---------------+
| Russia              | 10929         |               | 8406          |
+---------------------+---------------+---------------+---------------+
| South Africa        | 10123         |               | 14948         |
+---------------------+---------------+---------------+---------------+
| Spain               | 1994          |               | 2360          |
+---------------------+---------------+---------------+---------------+
| U.K.                | 10932         |               | 5284          |
+---------------------+---------------+---------------+---------------+
| Total for Others    | 91637         |               | 112666        |
+---------------------+---------------+---------------+---------------+
| Others not Listed   | 20114         |               | 23804         |
+---------------------+---------------+---------------+---------------+
| Grand Total         | 111751        |               | 136470        |
+---------------------+---------------+---------------+---------------+