Required Report - public distribution

**Date:** 8/31/2004

**GAIN Report Number:** BR4620

BR4620

**Brazil**

**Poultry and Products**

**Annual Report**

**2004**

**Approved by:**

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

U.S. Embassy

**Prepared by:**

Joao F. Silva, Agricultural Specialist

**Report Highlights:**

Brazilian poultry production is expected to reach another record in 2005
due to continued expansion in exports and a rebound in domestic
production because of higher employment rate and more disposable income
from consumers. Profit margins are expected to remain firm 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, Broilers 3](#commodity-outlook-broilers)

[Production 3](#production)

[Production Factors 4](#production-factors)

[Production Costs 4](#production-costs)

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

[Consumption 5](#consumption)

[Trade 6](#trade)

[Major Market Destinations 7](#major-market-destinations)

[Japan 7](#japan)

[Russia 7](#russia)

[European Union 7](#european-union)

[Middle East Markets 7](#middle-east-markets)

[Other markets 8](#other-markets)

[Stocks 8](#stocks)

[Policy 8](#policy)

[Marketing 9](#marketing)

[Commodity Outlook, Turkey 10](#commodity-outlook-turkey)

[Production 10](#production-1)

[Consumption 10](#consumption-1)

[Trade 10](#trade-1)

[Tables 11](#tables)

[PSD table, Poultry, Meat, Broiler 11](#psd-table-poultry-meat-broiler)

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

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

[PSD table, Poultry, Meat, Turkey 14](#psd-table-poultry-meat-turkey)

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

[Poultry, Meat, Broiler Exports, Jan-Dec 2003-04
16](#poultry-meat-broiler-exports-jan-dec-2003-04-1)

# Executive Summary

Broiler production is expected to increase by 6 percent in 2005 due to a
rebound in domestic consumption and continued expansion in exports.
Turkey production is also projected to increase by over 14 percent due
to booming exports. The Brazilian poultry industry is having one of
their best years in terms of production, exports, and profit margins.
The combination of these factors has increased the share prices of
Brazil's top poultry exporters.

Market analysts project economic growth around 5 percent in 2005,
reflecting the results of strong measures in fiscal and monetary
policies to curb inflation rates and the public deficit. Spurred by
record exports, most sectors of the Brazilian economy increased their
capacity utilization to meet a growing world demand for Brazilian goods
and an improved domestic demand for durable goods and food. Lower
unemployment rates and increased disposable income will likely benefit
demand for animal proteins.

# Commodity Outlook, Broilers

## Production

Post projects an increase in broiler production in 2004 to reach 8.6
million metric tons, up 6 percent from the record production level of
8.1 million metric tons this year. The projected increase in production
reflects the following factors: a) rebound in domestic consumption due
to higher employment rate and consumer purchasing power as the Brazilian
economy improves; b) continued expansion in poultry exports due to a
favorable exchange rate, exports to new markets due to market promotion,
and the impact of Asian Influenza in the world poultry market which
continues to benefit Brazilian exports; c) maturing investments in
productive capacity by major poultry packers, mostly in the Center-West
region of the country d) Profit margins for both producers and exporters
are expected to continue to be firm in 2005 due to projected lower feed
costs and a less volatile exchange rate; e) additional funds in the
federal budget for social programs to fight hunger and improve
nutritional levels of the poor;

Nearly 98 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 2004 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. These companies produce whole broilers to meet demand from the
export market, such as Saudi Arabia, which prefers whole birds. Leading
Brazilian poultry producers have developed sophisticated processed food
product lines, which include not only various poultry meat cuts but also
prepared poultry, pork, and fish-based dishes.

In 2004, the ten largest poultry processors in Brazil are expected to
account for nearly 56 percent of total broiler slaughter, up from 55
percent in 2003, reflecting some consolidation in the sector. These same
companies are also leaders in pork production in Brazil, which allows
for economies of scale and greater use of lower-cost feeds based on
volume purchases. Also, these large companies import corn under the
drawback system, which allows for exemption of import duties (currently
at 8 percent) normally applied to corn imports from outside the MERCOSUL
trading block. However, under this system, poultry processors must prove
that corn imported will be used for producing products for export.

Review of 2004:

Estimates for broiler production, exports, and domestic consumption
remain unchanged from our semi annual report, dated February 6, 2004.

## 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 (1,000)    Broilers (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         65,736            31,035            3,907,100

  2004 (est)   67,900            32,300            4,172,300
  ------------ ----------------- ----------------- -----------------------

Source: Trade

## 

## 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 2004, the estimated average cost of
broiler production reached R\$1.44 per kilogram, live weight (about US\$
0.22 per pound), up 4 percent from an estimated cost of R\$1.40 per
kilogram, live weight (about US\$ 0.21 per pound) from the same period
of 2003. These prices in dollars are based on an average exchange rate
of R\$3.00 per dollar during Jan-Jun 2003-04. The exchange rate as of
August 30, 2004 is R\$2.95 per dollar.

During Jan-June 2004, the price of soybean meal increased by 30 percent,
compared to the same period in 2003 due to booming soybean exports and
lower than expected production. However, during the same period, corn
prices remained stable. Post projects feed prices to remain stable
during the 2004-05 crop year (Oct 1/Sep 30), based on current estimates
that soybean and corn crops will be higher than the previous crop year
and lower volatility of the exchange rate. The new crop plan announced
by the federal government in June 2004, maintained the volume of
subsidized funds available to corn producers to finance their cost of
production at R\$400,000 (US\$ 133,000) per producer.

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

+--------------+------------+---------+--------+----------+----------+
| Year         | Broiler    | Wh      |        |          |          |
|              | Cost       | olesale |        |          |          |
|              | (US        | Prices  |        |          |          |
|              | \$/KG/Live |         |        |          |          |
|              | Weight)    |         |        |          |          |
+--------------+------------+---------+--------+----------+----------+
|              |            | Live    | RTC    | Corn     | Soybean  |
|              |            | Weight  |        |          | Meal     |
|              |            |         | (US    | (US\     | (        |
|              |            | (U      | \$/KG) | $/60/KG) | US\$/KG) |
|              |            | S\$/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     | 0.20     |
+--------------+------------+---------+--------+----------+----------+
| 2004         | 0.48       | 0.48    | 0.54   | 6.59     | 0.26     |
| (Jan/Jun)    |            |         |        |          |          |
+--------------+------------+---------+--------+----------+----------+

Source: Trade RTC = Ready to Cook

## Animal Health Update

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.

Since the outbreaks of Avian Influenza in Asia, the Brazilian government
has activated the Sectorial 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: 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.

Nitrofuran. The European Union agreed to lower the spot check from 100
to 20 percent for Brazilian poultry meat for traces of the banned
antibiotic nitrofuran. According to trade sources, since August 2003, no
residues for nitrofuran have been found on Brazilian poultry samples due
to the action plan put in place by Brazilian officials to address the
deficiencies and enforce the action plan.

## Consumption 

The outlook for 2005 calls for a rebound in broiler consumption compared
to this year, mostly because of a projected decrease in the unemployment
rates, higher per capita income due to the improvement in economic
conditions and higher funds allocated to social programs, which could
have a small impact on food consumption in general.

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. In addition, broiler meat is more affordable to
lower income consumers compared to beef and pork.

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 2005 to increase by 10 percent in
volume because of the following factors: a) continued expansion into new
markets due to market promotion programs; b) positive impact on
Brazilian poultry exports due to the outbreaks of Avian Influenza in
different regions of the world, and c) favorable exchange rate which
makes the Brazilian product highly competitive.

Overview of 2004: During the first half of 2004 broiler exports reached
1.1 million metric tons, up 22 percent from the same period last year.
This expansion in volume is higher than initially estimated by trade
sources early in the year. In addition, the expansion in value of
exports is significantly higher at 58 percent, compared to the same
period in 2003 due to an increase of 28 percent in the average export
price. The Brazilian Poultry Exporters Association (ABEF) informed that
the total volume exported could have been higher this year if the
shortage of containers did not affect some shipments combined with the
strike of Brazilian government inspectors that temporarily hit all
exports of agricultural and food products.

The significant increase in the value of exports in 2004 can also be
attributed to the following strategy adopted by major broiler packers
and exporters: (1) prioritize the valorization of chicken prices due to
the outbreaks of Avian Influenza in different regions of the world; (2)
concentrate efforts on the exports of high value products (parts and
processed broilers); and, (3) expand and/or maintain volume by market
promotion in non-traditional markets.

BRAZIL: Volume of broiler exports, during Jan-Jun, 2003-04, in metric
tons (PWE):

  --------------- ------------------ ------------------ ------------------
  TYPE            2003               2004               Change (%)

  Whole           363,333            451,622            24.3

  Parts           549,353            658,763            19.9

  Processed       17,718             20,725             16.9

  TOTAL           930,404            1,131,110          21.6
  --------------- ------------------ ------------------ ------------------

Source: Brazilian Office of Foreign Trade (SECEX).

## Major Market Destinations

### Japan

Exports of broiler parts to Japan increased by 80 percent in volume
during Jan-Jun 2004, compared to the same period in 2003, while the
value of exports increased significantly by 190 percent. The average
price of chicken meat exports to Japan in the period increased by 61
percent from US\$ 988 to US\$ 1,590 per metric ton, FOB.

According to our trade sources, the increase in the volume exported to
Japan is due to the ban on fresh/frozen poultry from China, Thailand,
and the United States. The volume of exports to Japan would have been
higher if consumption in that market had not declined. Brazilian traders
estimate a decline in chicken consumption in Japan of nearly 20 percent
during 2004. Traders say that higher exports of chicken meat to Japan
have somewhat offset the impact of the decline of chicken meat exports
to Russia and the European Union during the first half of 2004.

Brazilian poultry exporters also expect trade with Japan to continue to
be strong in 2005 due to continued Japanese import restrictions from
other suppliers because of the Avian Influenza.

### Russia

Brazilian Chicken meat exports to Russia (whole and parts) decreased by
31 percent in volume during Jan-Jun 2004, compared to the same period in
2003. Although exports of whole broilers remained nearly flat at 40,000
metric tons, broiler parts dropped by nearly 50 percent during the first
half of 2004.

Although the total volume of broiler exports to Russia declined by 31
percent, the value of exports increased by 7 percent, compared to the
same period in 2003. According to Brazilian exporters this increase in
value is the result of higher export prices to Russia and the quota
system that contributed to increase the cost of imports. Brazilian
exporters are also optimistic that the new Russian government resolution
that allows redistribution of poultry meat may contribute to increase
their market share in the Russian market in 2005.

### European Union

Exports of broilers to the European Union dropped by 12 percent in
volume, during the first half of 2004 due to the following factors: (1)
increase of 75 percent in the tariff for broiler parts (chicken breast);
(2) overall drop of 5 percent in poultry consumption in the European
Union due to the effects of Avian Influenza; and, (3) Major drop of
nearly 50 percent in the export of chicken meat, mostly parts, to
Germany due to competition from other suppliers and the impact of
Brazilian meat with residues of nitrofuran. Brazilian poultry exporters
are optimistic that they will recover their market share in the European
Union in 2005 due to an expected increase in poultry consumption and
higher exports to Germany.

### Middle East Markets

In general, volume of Brazilian broiler exports to the Middle East
markets increased by 22 percent during the first half of 2004. Saudi
Arabia remains as the largest market for Brazilian poultry exports in
volume and second in value. During the first half of 2004, exports to
Saudi Arabia, mostly whole broilers, increased by 13 percent in volume
and 37 percent in value. Although Brazilian poultry exporters are
optimistic about increasing exports to Saudi Arabia in 2005, they are
concerned about possible restrictions from the Saudi government intended
to protect the local poultry industry. Trade sources reported that the
Saudi poultry industry could file an anti dumping case against Brazilian
poultry imports.

### Other markets

Brazilian chicken meat exports to non-traditional markets increased by
118 percent during the first half of 2004. Exports to the Former Soviet
Republics increased significantly by over 400 percent during the first
half of 2004, mostly due to higher exports to Ukraine and Georgia. China
also became an important market for Brazilian exporters with imports
increasing from an insignificant volume of 600 metric tons during
Jan-Jun 2003 to 19,655 metric tons during Jan-Jun 2004.

## Stocks 

There are no official stocks of poultry in Brazil.

## 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-caled "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) in
1999;

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.

On August 20, 2003 the Ministry of Agriculture officially declared 8
states in Brazil as free of \"Newcastle\" disease. The states are: Rio
Grande do Sul, Santa Catarina, Parana, Sao Paulo, Minas Gerais, Goias,
Mato Grosso, and Mato Grosso do Sul. These states account for over 80
percent of poultry production, and for the entire poultry production
destined for exports.

The National Bank for Economic and Social Development (BNDES) provides
meat packing houses (meat plants) subsidized long-term loans to build or
modernize their meat packing houses. 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 is estimated at US\$160 million in 2004. 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's 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 2004 is estimated US\$4.8 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 51 percent of all poultry 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 2004 budget for market promotion is estimated
at US\$1.5 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 about 90 percent of turkey production in
Brazil.*

Brazilian turkey production is estimated to increase by nearly 15
percent in 2005 because of an expected rebound in domestic demand due to
the improved conditions of the Brazilian economy, and booming turkey
exports. The second poultry packer in Brazil also announced a major
investment in a new plant in the center-west region of Brazil to
increase production of turkey for the export market.

## 

## Consumption

The projected economic growth of 5 percent, lower unemployment rate, and
higher disposable income will likely contributed to increase turkey
consumption in 2005 by nearly 6 percent.

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 2005, after
an-all time export record estimated for this year. During Jan-Jun 2004,
turkey exports in volume increased by nearly 24 percent compared to the
same period last year, which reflects the competitiveness of the
Brazilian product. The value of turkey exports during Jan-Jun 2004
increased significantly at 73 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)       |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
|             | 2003  | Re    | 2004  | Est   | 2005  | 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       |       | /2003 |       | /2004 |       | /2005 | /YYYY |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Inventory   | 31    | 31    | 32    | 32    | 0     | 34    | (MIL  |
| (Reference) |       |       |       |       |       |       | HEAD) |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Slaughter   | 3740  | 3907  | 3870  | 3985  | 0     | 0     | (MIL  |
| (Reference) |       |       |       |       |       |       | HEAD) |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Beginning   | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Stocks      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Production  | 7645  | 7645  | 8105  | 8105  | 0     | 8620  | (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       | 7645  | 7645  | 8105  | 8105  | 0     | 8620  | (1000 |
| SUPPLY      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Whole,      | 764   | 798   | 788   | 958   | 0     | 1065  | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Parts,      | 1140  | 1162  | 1312  | 1297  | 0     | 1415  | (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       | 1904  | 1960  | 2100  | 2255  | 0     | 2480  | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Human       | 5741  | 5685  | 6005  | 5850  | 0     | 6140  | (1000 |
| Consumption |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Other Use,  | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Losses      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Total Dom.  | 5741  | 5685  | 6005  | 5850  | 0     | 6140  | (1000 |
| Consumption |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL Use   | 7645  | 7645  | 8105  | 8105  | 0     | 8620  | (1000 |
|             |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Ending      | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Stocks      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 7645  | 7645  | 8105  | 8105  | 0     | 8620  | (1000 |
| D           |       |       |       |       |       |       | MT)   |
| ISTRIBUTION |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Calendar    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Yr. Imp.    |       |       |       |       |       |       | MT)   |
| from U.S.   |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+

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

+----------------------------+--------------------+--------------------+
| Time Period                | Jan-Jun            |                    |
|                            |                    |                    |
|                            | Metric Tons        |                    |
+----------------------------+--------------------+--------------------+
| Exports for:               | 2003               | 2004               |
+----------------------------+--------------------+--------------------+
| US                         | 0                  | 0                  |
+----------------------------+--------------------+--------------------+
| Saudi Arabia               | 138,443            | 156,883            |
+----------------------------+--------------------+--------------------+
| Japan                      | 82,451             | 148,624            |
+----------------------------+--------------------+--------------------+
| Hong Kong                  | 96,350             | 92,111             |
+----------------------------+--------------------+--------------------+
| Russia                     | 127,731            | 87,773             |
+----------------------------+--------------------+--------------------+
| Netherlands                | 56,654             | 55,476             |
+----------------------------+--------------------+--------------------+
| UAE                        | 43,085             | 54,807             |
+----------------------------+--------------------+--------------------+
| South Africa               | 33,784             | 53,786             |
+----------------------------+--------------------+--------------------+
| Kuwait                     | 34,440             | 49,557             |
+----------------------------+--------------------+--------------------+
| Germany                    | 66,995             | 34,136             |
+----------------------------+--------------------+--------------------+
| Yemen                      | 25,949             | 33,342             |
+----------------------------+--------------------+--------------------+
| Singapore                  | 30,556             | 27,443             |
+----------------------------+--------------------+--------------------+
| Ukraine                    | 9,424              | 26,656             |
+----------------------------+--------------------+--------------------+
| Venezuela                  | 3,751              | 21,904             |
+----------------------------+--------------------+--------------------+
| U.K.                       | 19,001             | 20,371             |
+----------------------------+--------------------+--------------------+
| China                      | 626                | 19,681             |
+----------------------------+--------------------+--------------------+
| Cuba                       | 6,114              | 18,938             |
+----------------------------+--------------------+--------------------+
| Angola                     | 15,847             | 18,919             |
+----------------------------+--------------------+--------------------+
| Romania                    | 11,935             | 15,241             |
+----------------------------+--------------------+--------------------+
| Qatar                      | 14,454             | 15,035             |
+----------------------------+--------------------+--------------------+
| Oman                       | 14,327             | 12,733             |
+----------------------------+--------------------+--------------------+
| Canada                     | 1,124              | 12,636             |
+----------------------------+--------------------+--------------------+
| Spain                      | 16,288             | 12,603             |
+----------------------------+--------------------+--------------------+
| Total for Others           | 849,329            | 988,655            |
+----------------------------+--------------------+--------------------+
| Others not Listed          | 81,081             | 142,522            |
+----------------------------+--------------------+--------------------+
| Grand Total                | 930410             | 1131177            |
+----------------------------+--------------------+--------------------+

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

+-------------------------+---------------------+---------------------+
| Time Period             | Jan-Dec             |                     |
|                         |                     |                     |
|                         | Metric Tons         |                     |
+-------------------------+---------------------+---------------------+
| Exports for:            | 2002                | 2003                |
+-------------------------+---------------------+---------------------+
| U.S.                    | 0                   | 0                   |
+-------------------------+---------------------+---------------------+
| Saudi Arabia            | 251,351             | 288,555             |
+-------------------------+---------------------+---------------------+
| Russia                  | 295,919             | 201,715             |
+-------------------------+---------------------+---------------------+
| Hong Kong               | 143,304             | 199,982             |
+-------------------------+---------------------+---------------------+
| Japan                   | 164,215             | 185,179             |
+-------------------------+---------------------+---------------------+
| Netherlands             | 78,564              | 119,967             |
+-------------------------+---------------------+---------------------+
| UAE                     | 78,788              | 100,781             |
+-------------------------+---------------------+---------------------+
| Germany                 | 82,802              | 99,443              |
+-------------------------+---------------------+---------------------+
| South Africa            | 47,812              | 76,428              |
+-------------------------+---------------------+---------------------+
| Singapore               | 43,375              | 64,086              |
+-------------------------+---------------------+---------------------+
| Yemen                   | 48,148              | 60,981              |
+-------------------------+---------------------+---------------------+
| Kuwait                  | 47,094              | 60,626              |
+-------------------------+---------------------+---------------------+
| U.K.                    | 69,877              | 40,214              |
+-------------------------+---------------------+---------------------+
| Oman                    | 27,683              | 38,654              |
+-------------------------+---------------------+---------------------+
| Ukraine                 | 0                   | 35,057              |
+-------------------------+---------------------+---------------------+
| Spain                   | 26,100              | 33,528              |
+-------------------------+---------------------+---------------------+
| Angola                  | 29,940              | 32,140              |
+-------------------------+---------------------+---------------------+
| Romania                 | 7,675               | 28,213              |
+-------------------------+---------------------+---------------------+
| Qatar                   | 22,784              | 25,240              |
+-------------------------+---------------------+---------------------+
| Czech Republic          | 5,088               | 18,309              |
+-------------------------+---------------------+---------------------+
| Bahrain                 | 15,050              | 16,506              |
+-------------------------+---------------------+---------------------+
| Venezuela               | 0                   | 16,177              |
+-------------------------+---------------------+---------------------+
| China                   | 9,905               | 11,644              |
+-------------------------+---------------------+---------------------+
| France                  | 23,693              | 11,045              |
+-------------------------+---------------------+---------------------+
| Cuba                    | 24,053              | 10,546              |
+-------------------------+---------------------+---------------------+
| Bulgaria                | 3,248               | 10,050              |
+-------------------------+---------------------+---------------------+
| Total for Others        | 1,546,468           | 1,785,066           |
+-------------------------+---------------------+---------------------+
| Others not Listed       | 78,419              | 174,707             |
+-------------------------+---------------------+---------------------+
| Grand Total             | 1,624,887           | 1,959,773           |
+-------------------------+---------------------+---------------------+

## PSD table, Poultry, Meat, Turkey

+-------------+-------+-------+-------+-------+-------+-------+-------+
| PSD Table   |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Country     |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Brazil      |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Commodity   |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Poultry,    |       |       |       |       |       |       |       |
| Meat,       |       |       |       |       |       |       |       |
| Turkey      |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| (1000       |       |       |       |       |       |       |       |
| MT)(MIL     |       |       |       |       |       |       |       |
| HEAD)       |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
|             | 2003  | Re    | 2004  | Est   | 2005  | 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       |       | /2003 |       | /2004 |       | /2005 | /YYYY |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Inventory   | 0     | 27    | 0     | 29    | 0     | 32    | (MIL  |
| (Reference) |       |       |       |       |       |       | HEAD) |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Slaughter   | 0     | 0     | 0     | 0     | 0     | 0     | (MIL  |
| (Reference) |       |       |       |       |       |       | HEAD) |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Beginning   | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Stocks      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Production  | 200   | 200   | 215   | 220   | 0     | 250   | (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       | 200   | 200   | 215   | 220   | 0     | 250   | (1000 |
| SUPPLY      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Whole,      | 5     | 7     | 5     | 8     | 0     | 10    | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Parts,      | 107   | 104   | 120   | 120   | 0     | 145   | (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       | 112   | 111   | 125   | 128   | 0     | 155   | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Human       | 88    | 89    | 90    | 92    | 0     | 95    | (1000 |
| Consumption |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Other Use,  | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Losses      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Total Dom.  | 88    | 89    | 90    | 92    | 0     | 95    | (1000 |
| Consumption |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL Use   | 200   | 200   | 215   | 220   | 0     | 250   | (1000 |
|             |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Ending      | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Stocks      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 200   | 200   | 215   | 220   | 0     | 250   | (1000 |
| D           |       |       |       |       |       |       | MT)   |
| ISTRIBUTION |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Calendar    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Yr. Imp.    |       |       |       |       |       |       | MT)   |
| from U.S.   |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
|             |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+

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

+----------------------------+--------------------+--------------------+
| Time Period                | Jan-Jun            |                    |
|                            |                    |                    |
|                            | Metric Tons        |                    |
+----------------------------+--------------------+--------------------+
| Exports for:               | 2003               | 2004               |
+----------------------------+--------------------+--------------------+
| U.S.                       | 0                  | 0                  |
+----------------------------+--------------------+--------------------+
| Netherlands                | 7,791              | 13,997             |
+----------------------------+--------------------+--------------------+
| Germany                    | 11,880             | 12,708             |
+----------------------------+--------------------+--------------------+
| South Africa               | 4,161              | 7,360              |
+----------------------------+--------------------+--------------------+
| U.K.                       | 4,966              | 3,631              |
+----------------------------+--------------------+--------------------+
| Russia                     | 5,033              | 3,535              |
+----------------------------+--------------------+--------------------+
| Italy                      | 546                | 2,095              |
+----------------------------+--------------------+--------------------+
| Bulgaria                   | 928                | 2,010              |
+----------------------------+--------------------+--------------------+
| Gabon                      | 474                | 1,092              |
+----------------------------+--------------------+--------------------+
| Angola                     | 416                | 974                |
+----------------------------+--------------------+--------------------+
|                            |                    |                    |
+----------------------------+--------------------+--------------------+
| Total for Others           | 36195              | 47,402             |
+----------------------------+--------------------+--------------------+
| Others not Listed          | 10025              | 9,868              |
+----------------------------+--------------------+--------------------+
| Grand Total                | 46220              | 57270              |
+----------------------------+--------------------+--------------------+

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

+----------------------------+--------------------+--------------------+
| Time Period                | Jan-Dec            |                    |
|                            |                    |                    |
|                            | Metric Tons        |                    |
+----------------------------+--------------------+--------------------+
| Exports for:               | 2002               | 2003               |
+----------------------------+--------------------+--------------------+
| U.S.                       | 0                  | 0                  |
+----------------------------+--------------------+--------------------+
| Germany                    | 20,791             | 25,539             |
+----------------------------+--------------------+--------------------+
| Netherlands                | 16,959             | 21,755             |
+----------------------------+--------------------+--------------------+
| U.K.                       | 9,721              | 10,932             |
+----------------------------+--------------------+--------------------+
| Russia                     | 12,971             | 10,929             |
+----------------------------+--------------------+--------------------+
| South Africa               | 4,956              | 10,123             |
+----------------------------+--------------------+--------------------+
| Peru                       | 3,643              | 3,297              |
+----------------------------+--------------------+--------------------+
| Haiti                      | 1,176              | 3,095              |
+----------------------------+--------------------+--------------------+
| Bulgaria                   | 1,173              | 2,588              |
+----------------------------+--------------------+--------------------+
| Italy                      | 3,589              | 2,535              |
+----------------------------+--------------------+--------------------+
| France                     | 1,836              | 2,381              |
+----------------------------+--------------------+--------------------+
| Spain                      | 1,778              | 1,994              |
+----------------------------+--------------------+--------------------+
| Cuba                       | 1,736              | 1,496              |
+----------------------------+--------------------+--------------------+
| Angola                     | 904                | 1,474              |
+----------------------------+--------------------+--------------------+
| Gabon                      | 1,010              | 1,387              |
+----------------------------+--------------------+--------------------+
| Cote d Ivoire              | 16                 | 1,259              |
+----------------------------+--------------------+--------------------+
| Benin                      | 216                | 1,179              |
+----------------------------+--------------------+--------------------+
| Total for Others           | 82,475             | 101,963            |
+----------------------------+--------------------+--------------------+
| Others not Listed          | 7325               | 9,788              |
+----------------------------+--------------------+--------------------+
| Grand Total                | 89800              | 111751             |
+----------------------------+--------------------+--------------------+