Required Report - public distribution

**Date:** 8/30/2006

**GAIN Report Number:** BR6623

B

**Brazil**

**Poultry and Products**

**Annual Poultry Report**

**2006**

**Approved by:**

![](media/image1.wmf)Elizabeth Mello, Acting Agricultural Counselor

U.S. Embassy

**Prepared by:**

Joao F. Silva, Agricultural Specialist

**Report Highlights:**

After several years of strong growth in both production and exports, the
Brazilian broiler industry is currently facing a decline in both
production and exports because of the impact of Avian Influenza on world
broiler consumption, valuation of the Brazilian currency, and local
animal health problems. However, post forecast broiler production and
exports to recover in 2007 by four and two percent, respectively.
Stronger domestic demand is expected to be the main factor of broiler
expansion next year.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Brasilia \[BR1\]

\[BR\]

Table of Contents

[Executive Summary 3](#executive-summary)

[Commodity Outlook, Broiler 3](#commodity-outlook-broiler)

[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 7](#marketing)

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

[Production 8](#production-1)

[Consumption 8](#consumption-1)

[Trade 8](#trade-1)

[Tables 9](#tables)

[PSD table, Poultry, Meat, Broiler 9](#psd-table-poultry-meat-broiler)

[Poultry, Meat, Broiler, Exports, Jan-Jun 2005-06
10](#poultry-meat-broiler-exports-jan-jun-2005-06)

[PSD table, Poultry, Meat, Turkey 11](#psd-table-poultry-meat-turkey)

[Poultry, Meat, Turkey, Exports, Jan-Jun 2005-06
12](#poultry-meat-turkey-exports-jan-jun-2005-06)

# Executive Summary

Broiler production is projected to increase by 4 percent in 2007,
reflecting moderate increase in exports and strong domestic demand,
because of higher consumer purchasing power and competitive prices for
broilers compared to other meats. Producers margins are expected to
decline in 2007 compared to the current year due to continued valuation
of the Brazilian currency and projected higher feed costs. Brazilian
broiler exporters are concerned with proposed tariff changes in the
European Union, which will likely restrict imports of processed broiler
products. This measure is also expected to affect turkey exports.

# Commodity Outlook, Broiler

## Production

Post forecasts an increase in broiler production in 2007 of 4 percent,
supported by the following factors:

a)  A moderate increase in exports compared to previous year;

b)  Strong domestic demand; and,

c)  Aggressive market promotion efforts conducted and financed by the
    Brazilian government agency for market development in new markets;

However, the following constraints can affect the projected performance
of the Brazilian broiler industry in 2007: a) continued appreciation of
the Brazilian currency combined with high domestic interest rates; b)
projected higher production costs due to smaller soybean and corn crops;
and c) possible new market access constraints in the European Union that
may reduce exports of processed broilers to that market.

Post revised broiler production in 2006 to 9.3 million metric tons, down
one percent from the record production level of 9.4 million metric tons
last year. This year's decline in production is mostly attributed to a
major drop in the export market due to reduced consumption of chicken in
major world markets, as a result of the negative impact of Avian
Influenza. However, the decline in this year's production is somewhat
offset by a strong domestic demand due to lower retail prices of frozen
chicken deviated from the export market.

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 58 percent of the estimated broiler meat production in 2006 will
consist of broiler parts and 42 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. It 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 prefer whole broilers.

## Industry Concentration

Ten Brazilian poultry processors account for 52 percent of total broiler
slaughter and 79 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**            **Share of Broiler      **Share of Broiler
                         Slaughter (%)**         Exports (%)**

  Sadia                  14                      26

  Perdigao               11                      17

  Seara                  06                      12

  Doux Frangosul         05                      10

  Avipal                 05                      08

  DaGranja               03                      02

  Aurora                 02                      01

  Diplomata              02                      01

  Penabranca             02                      01

  Copacol                02                      01

  Total                  52                      79
  ---------------------- ----------------------- -------------------------

Note: 2005 data. Percentages have been rounded.

Source: ABEF

## 

## 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            | 60,235        | 27,536         | 3,254,100       |
+-----------------+---------------+----------------+-----------------+
| 2001            | 62,544        | 28,597         | 3,473,600       |
+-----------------+---------------+----------------+-----------------+
| 2002            | 67,297        | 30,499         | 3,819,570       |
+-----------------+---------------+----------------+-----------------+
| 2003            | 77,943        | 31,035         | 3,907,100       |
+-----------------+---------------+----------------+-----------------+
| 2004            | 84,528        | 33,293         | 4,277,700       |
+-----------------+---------------+----------------+-----------------+
| 2005            | 87,788        | 36,664         | 4,695,800       |
+-----------------+---------------+----------------+-----------------+
| 2006 (estimate) | 98,937        | 38,130         | 4,790,700       |
+-----------------+---------------+----------------+-----------------+

Note: Monthly average quantities for layers.

Source: APINCO/UBA

## 

## 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 2006, the estimated average cost of
broiler production reached R\$1.20 per kilogram, live weight, down 12.4
percent from an estimated cost of R\$1.37 per kilogram, live weight,
from the same period in 2005. The average exchange rate for Jan-Jun 2006
was R\$ 2.19 per US\$ 1.00, compared to R\$ 2.53 per US\$ 1.00 during
the same period in 2005.

Post projects feed prices to increase during the 2006-07 crop year (Oct
1/Sep 30), based on projected smaller harvests of corn and soybeans. The
new crop plan announced by the federal government will likely maintain
the volume of subsidized funds available to corn producers to finance
their cost of production.

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       |
|        |            |          | (U      | (U         | (US\$/KG)  |
|        |            | (        | S\$/KG) | S\$/60/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    | 7.33       | 0.21       |
+--------+------------+----------+---------+------------+------------+
| 2006   | 0.47       | 0.47     | 0.65    | 6.96       | 0.20       |
|        |            |          |         |            |            |
| (Ja    |            |          |         |            |            |
| n-Jun) |            |          |         |            |            |
+--------+------------+----------+---------+------------+------------+

RTC= Ready to Cook

Source: Trade

## Animal Health Update

Since the outbreaks of Avian Influenza in Asia, the Brazilian government
has encouraged 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 "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.

The Brazilian government also published on April 10, 2006, Directive
Number 17, which establishes the National Plan for Prevention of Avian
Influenza and the Control and Prevention of Newcastle Disease. According
to our trade source, the main problem with the implementation of
Directive 17 is the lack of funds. The Brazilian government promised to
allocate US\$ 130 million for this plan. As of August 30, funds have not
been released.

Brazil also established in 2002 an inter-ministerial 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.

Two cases of Newcastle disease were officially diagnosed in Brazil in
2006 and officially notified to the World Organization for Animal Health
(OIE). The first case was officially confirmed on July 4 in the
municipality of Vale Real, state of Rio Grande do Sul. However, the
owners of the poultry farm reported the event to the official veterinary
authority on May 4. As of August 24, 2006 no evidence of the presence of
the disease has been detected, although restrictive measures remain in
the surveillance zones. This case prompted several international
restrictions from nearly 40 countries since Rio Grande do Sul is a major
exporter of poultry products.

The second case of Newcastle disease was identified in a small village
near the capital city of Manaus, (in the State of Amazonas), but it
presented no risks to the major commercial production and export areas
of the south of Brazil.

## Consumption

Post forecasts domestic broiler consumption to increase by 5 percent in
2007. 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 public statistics available 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,
according to some market analysts, the structure of broiler demand is
changing. 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 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, 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 the center of processors' new strategies.

## Trade

Post projects broiler exports to recover by four percent in 2007. Our
forecast is basically supported by higher world demand for broilers due
to the reduction of the concern over Avian Influenza, an estimated
increase in exports to Russia and other markets in Eastern Europe, and
aggressive market promotion efforts by Brazilian poultry exporters in
new markets. However, the new quota constraint imposed by the European
Union may temper the expansion of broiler exports in 2007, mostly for
processed broiler.

Review of 2006 exports. Post revised broiler exports downward in 2006 to
reflect the new realities of the world market as seen by our trade
sources. Currently, Brazilian poultry exporters estimate a major drop in
broiler exports of 14 percent, mostly due to the oversupply of broiler
meat in world markets because of lower demand for poultry meat, in view
of the Avian Influenza scare, in several traditional Brazilian export
markets.

## Policy

There have been no changes in poultry production policy since our
previous annual report. For recent farm credit policy changes please see
BR 6611.

## 

## Marketing 

The Brazilian Poultry Exporters Association (ABEF) is a private,
non-profit organization formed by the largest poultry processors and
exporters of Brazil. 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

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 2006/07 budget for market promotion is
estimated at US\$ 2.3 million, of which APEX funds 45 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
major Brazilian packers.

Post forecasts Brazilian turkey production to increase by 10 percent in
2007, basically supported by strong 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 4 percent, lower unemployment rate, and
higher disposable income will likely contribute to maintain domestic
demand firm for turkey at a significant rate of 17 percent. However,
most of this demand comes from the food service industry.

Frozen Ready to Cook (RTC) turkey consumption remains highly seasonal in
Brazil, but it is changing rapidly. Trade sources estimate that 70
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. Other frozen turkey
entrees, like lasagna, pizza, hamburgers is found in most supermarkets.

## Trade

Turkey exports are projected to increase in 2007, after a drop in
exports for this year. During Jan-Jun 2006, 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      |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Commodity   |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Poultry,    |       |       |       |       |       |       |       |
| Meat,       |       |       |       |       |       |       |       |
| Broiler     |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| (1000       |       |       |       |       |       |       |       |
| MT)(MIL     |       |       |       |       |       |       |       |
| HEAD)       |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
|             | 2005  | Re    | 2006  | Est   | 2007  | For   | UOM   |
|             |       | vised |       | imate |       | ecast |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
|             | USDA  | Post  | USDA  | Post  | USDA  | Post  |       |
|             | Off   | Est   | Off   | Est   | Off   | Est   |       |
|             | icial | imate | icial | imate | icial | imate |       |
|             | \[    | \[    | \[    | \[    | \[    | \[    |       |
|             | Old\] | New\] | Old\] | New\] | Old\] | New\] |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Market Year |       | 01    |       | 01    |       | 01    | MM    |
| Begin       |       | /2005 |       | /2006 |       | /2007 | /YYYY |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Inventory   | 37    | 37    | 40    | 39    | 0     | 39    | (MIL  |
| (Reference) |       |       |       |       |       |       | HEAD) |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Slaughter   | 4696  | 4696  | 5070  | 4790  | 0     | 4980  | (MIL  |
| (Reference) |       |       |       |       |       |       | HEAD) |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Beginning   | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Stocks      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Production  | 9360  | 9350  | 10035 | 9280  | 0     | 9670  | (1000 |
|             |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Whole,      | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Parts,      | 1     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Intra EC    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Other       | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 1     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 9361  | 9350  | 10035 | 9280  | 0     | 9670  | (1000 |
| SUPPLY      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Whole,      | 1092  | 1044  | 1075  | 808   | 0     | 880   | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Parts,      | 1647  | 1802  | 1825  | 1642  | 0     | 1620  | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Intra EC    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Other       | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 2739  | 2846  | 2900  | 2450  | 0     | 2500  | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Human       | 6622  | 6504  | 7135  | 6830  | 0     | 7170  | (1000 |
| Consumption |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Other Use,  | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Losses      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Total Dom.  | 6622  | 6504  | 7135  | 6830  | 0     | 7170  | (1000 |
| Consumption |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL Use   | 9361  | 9350  | 10035 | 9280  | 0     | 9670  | (1000 |
|             |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Ending      | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Stocks      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 9361  | 9350  | 10035 | 9280  | 0     | 9670  | (1000 |
| D           |       |       |       |       |       |       | MT)   |
| ISTRIBUTION |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Calendar    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Yr. Imp.    |       |       |       |       |       |       | MT)   |
| from U.S.   |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+

Note: Not Official USDA Data

## Poultry, Meat, Broiler, Exports, Jan-Jun 2005-06

+------------------+---------------+---------------+------------------+
| Export Trade     |               |               |                  |
| Matrix           |               |               |                  |
|                  |               |               |                  |
| Country          |               |               |                  |
|                  |               |               |                  |
| Brazil           |               |               |                  |
|                  |               |               |                  |
| Commodity        |               |               |                  |
|                  |               |               |                  |
| Poultry, Meat,   |               |               |                  |
| Broiler          |               |               |                  |
+------------------+---------------+---------------+------------------+
| Time Period      | Jan-Jun       | Units:        | Metric Tons      |
+------------------+---------------+---------------+------------------+
| Exports for:     | 2005          |               | 2006             |
+------------------+---------------+---------------+------------------+
| U.S.             | 0             | U.S.          | 0                |
+------------------+---------------+---------------+------------------+
| Others           |               | Others        |                  |
+------------------+---------------+---------------+------------------+
| Angola           | 14,596        |               | 17,267           |
+------------------+---------------+---------------+------------------+
| China            | 63,707        |               | 21,032           |
+------------------+---------------+---------------+------------------+
| European Union   | 178,076       |               | 157,701          |
+------------------+---------------+---------------+------------------+
| Hong Kong        | 67,487        |               | 132,624          |
+------------------+---------------+---------------+------------------+
| Japan            | 190,756       |               | 183,952          |
+------------------+---------------+---------------+------------------+
| Kuwait           | 66,119        |               | 35,902           |
+------------------+---------------+---------------+------------------+
| Russia           | 134,276       |               | 101,836          |
+------------------+---------------+---------------+------------------+
| Saudi Arabia     | 177,798       |               | 142,645          |
+------------------+---------------+---------------+------------------+
| Singapore        | 34,443        |               | 34,368           |
+------------------+---------------+---------------+------------------+
| South Africa     | 76,560        |               | 105,485          |
+------------------+---------------+---------------+------------------+
| UAE              | 61,320        |               | 55,362           |
+------------------+---------------+---------------+------------------+
| Venezuela        | 43,144        |               | 78,982           |
+------------------+---------------+---------------+------------------+
| Total for Others | 1108282       |               | 1,067,156        |
+------------------+---------------+---------------+------------------+
| Others not       | 243,328       |               | 173,843          |
| Listed           |               |               |                  |
+------------------+---------------+---------------+------------------+
| Grand Total      | 1351610       |               | 1240999          |
+------------------+---------------+---------------+------------------+

## PSD table, Poultry, Meat, Turkey

+-------------+------+-------+------+-------+------+-------+--------+
| PSD Table   |      |       |      |       |      |       |        |
|             |      |       |      |       |      |       |        |
| Country     |      |       |      |       |      |       |        |
|             |      |       |      |       |      |       |        |
| Brazil      |      |       |      |       |      |       |        |
|             |      |       |      |       |      |       |        |
| Commodity   |      |       |      |       |      |       |        |
|             |      |       |      |       |      |       |        |
| Poultry,    |      |       |      |       |      |       |        |
| Meat,       |      |       |      |       |      |       |        |
| Turkey      |      |       |      |       |      |       |        |
|             |      |       |      |       |      |       |        |
| (1000       |      |       |      |       |      |       |        |
| MT)(MIL     |      |       |      |       |      |       |        |
| HEAD)       |      |       |      |       |      |       |        |
+-------------+------+-------+------+-------+------+-------+--------+
|             | 2005 | Re    | 2006 | Est   | 2007 | For   | UOM    |
|             |      | vised |      | imate |      | ecast |        |
+-------------+------+-------+------+-------+------+-------+--------+
|             | USDA | Post  | USDA | Post  | USDA | Post  |        |
|             | Offi | Est   | Offi | Est   | Offi | Est   |        |
|             | cial | imate | cial | imate | cial | imate |        |
|             | \[O  | \[    | \[O  | \[    | \[O  | \[    |        |
|             | ld\] | New\] | ld\] | New\] | ld\] | New\] |        |
+-------------+------+-------+------+-------+------+-------+--------+
| Market Year |      | 01    |      | 01    |      | 01    | M      |
| Begin       |      | /2005 |      | /2006 |      | /2007 | M/YYYY |
+-------------+------+-------+------+-------+------+-------+--------+
| Inventory   | 32   | 32    | 33   | 33    | 0    | 0     | (MIL   |
| (Reference) |      |       |      |       |      |       | HEAD)  |
+-------------+------+-------+------+-------+------+-------+--------+
| Slaughter   | 0    | 0     | 0    | 0     | 0    | 0     | (MIL   |
| (Reference) |      |       |      |       |      |       | HEAD)  |
+-------------+------+-------+------+-------+------+-------+--------+
| Beginning   | 0    | 0     | 0    | 0     | 0    | 0     | (1000  |
| Stocks      |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| Production  | 275  | 275   | 310  | 290   | 0    | 320   | (1000  |
|             |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| Whole,      | 0    | 0     | 0    | 0     | 0    | 0     | (1000  |
| Imports     |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| Parts,      | 0    | 0     | 0    | 0     | 0    | 0     | (1000  |
| Imports     |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| Intra EC    | 0    | 0     | 0    | 0     | 0    | 0     | (1000  |
| Imports     |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| Other       | 0    | 0     | 0    | 0     | 0    | 0     | (1000  |
| Imports     |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| TOTAL       | 0    | 0     | 0    | 0     | 0    | 0     | (1000  |
| Imports     |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| TOTAL       | 275  | 275   | 310  | 290   | 0    | 320   | (1000  |
| SUPPLY      |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| Whole,      | 10   | 10    | 0    | 0     | 0    | 0     | (1000  |
| Exports     |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| Parts,      | 151  | 151   | 187  | 153   | 0    | 160   | (1000  |
| Exports     |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| Intra EC    | 0    | 0     | 0    | 0     | 0    | 0     | (1000  |
| Exports     |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| Other       | 0    | 0     | 0    | 0     | 0    | 0     | (1000  |
| Exports     |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| TOTAL       | 161  | 161   | 187  | 153   | 0    | 160   | (1000  |
| Exports     |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| Human       | 114  | 114   | 123  | 137   | 0    | 160   | (1000  |
| Consumption |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| Other Use,  | 0    | 0     | 0    | 0     | 0    | 0     | (1000  |
| Losses      |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| Total Dom.  | 114  | 114   | 123  | 137   | 0    | 160   | (1000  |
| Consumption |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| TOTAL Use   | 275  | 275   | 310  | 290   | 0    | 320   | (1000  |
|             |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| Ending      | 0    | 0     | 0    | 0     | 0    | 0     | (1000  |
| Stocks      |      |       |      |       |      |       | MT)    |
+-------------+------+-------+------+-------+------+-------+--------+
| TOTAL       | 275  | 275   | 310  | 290   | 0    | 320   | (1000  |
| D           |      |       |      |       |      |       | MT)    |
| ISTRIBUTION |      |       |      |       |      |       |        |
+-------------+------+-------+------+-------+------+-------+--------+
| Calendar    | 0    | 0     | 0    | 0     | 0    | 0     | (1000  |
| Yr. Imp.    |      |       |      |       |      |       | MT)    |
| from U.S.   |      |       |      |       |      |       |        |
+-------------+------+-------+------+-------+------+-------+--------+

## Poultry, Meat, Turkey, Exports, Jan-Jun 2005-06

+------------------+----------------+----------------+----------------+
| Country          |                |                |                |
|                  |                |                |                |
| Brazil           |                |                |                |
|                  |                |                |                |
| Commodity        |                |                |                |
|                  |                |                |                |
| Poultry, Meat,   |                |                |                |
| Turkey           |                |                |                |
+------------------+----------------+----------------+----------------+
| Time Period      | Jan-Jun        | Units:         | Metric Tons    |
+------------------+----------------+----------------+----------------+
| Exports for:     | 2005           |                | 2006           |
+------------------+----------------+----------------+----------------+
| U.S.             | 0              | U.S.           | 0              |
+------------------+----------------+----------------+----------------+
| Others           |                | Others         |                |
+------------------+----------------+----------------+----------------+
| Angola           | 1,052          |                | 1,050          |
+------------------+----------------+----------------+----------------+
| Bulgaria         | 3,918          |                | 3,225          |
+------------------+----------------+----------------+----------------+
| European Union   | 43,183         |                | 40,323         |
+------------------+----------------+----------------+----------------+
| Gabon            | 1,303          |                | 2,483          |
+------------------+----------------+----------------+----------------+
| Russia           | 6,238          |                | 6,790          |
+------------------+----------------+----------------+----------------+
| South Africa     | 5,681          |                | 7,645          |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
| Total for Others | 61,375         |                | 61,516         |
+------------------+----------------+----------------+----------------+
| Others not       | 11,966         |                | 10,288         |
| Listed           |                |                |                |
+------------------+----------------+----------------+----------------+
| Grand Total      | 72,141         |                | 71,230         |
+------------------+----------------+----------------+----------------+