Required Report - public distribution

**Date:** 10/30/2004

**GAIN Report Number:** BR4628

4624

**Brazil**

**Dairy and Products**

**Annual**

**2004**

**Approved by:**

![](media/image1.wmf)William W. Westman, Agricultural Counselor

U.S. Embassy

**Prepared by:**

Joao F. Silva, Agricultural Specialist

**Report Highlights:**

Brazil's milk production is forecast to increase by 3 percent in 2005 to
24 billion liters and most dairy products will show a similar increase
in production boosted by higher purchasing power and lower unemployment
rates. In 2005, the Brazilian dairy sector will have the first trade
surplus on record, as the value of dairy exports will likely surpass
imports.

Includes PSD Changes: Yes

Includes Trade Matrix: No

Annual Report

Brasilia \[BR1\]

\[BR\]

Table of Contents

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

[Commodity Outlook, Fluid Milk 3](#commodity-outlook-fluid-milk)

[Production 3](#production)

[Consumption 4](#consumption)

[Prices 4](#prices)

[Trade 4](#trade)

[Tariff Rate Table 4](#tariff-rate-table)

[Stocks 5](#stocks)

[Policy 5](#policy)

[Commodity Outlook, Cheese 6](#commodity-outlook-cheese)

[Production 6](#production-1)

[Consumption 6](#consumption-1)

[Prices 6](#prices-1)

[Trade 7](#trade-1)

[Tariff Rate Table 7](#tariff-rate-table-1)

[Commodity Outlook, Butter 7](#commodity-outlook-butter)

[Production 7](#production-2)

[Prices 8](#prices-2)

[Tariff Rate Table 8](#tariff-rate-table-2)

[Commodity Outlook, Powdered Milk 8](#commodity-outlook-powdered-milk)

[Production 8](#production-3)

[Consumption 9](#consumption-2)

[Prices 9](#prices-3)

[Trade 9](#trade-2)

[Tariff Rate Table 9](#tariff-rate-table-3)

[Stocks 10](#stocks-1)

[Policy 10](#policy-1)

[Marketing 10](#marketing)

[Tables 12](#tables)

[PSD: Dairy, Milk, Fluid 12](#psd-dairy-milk-fluid)

[Imports: Dairy, Milk, Fluid 13](#imports-dairy-milk-fluid)

[Exports: Dairy, Milk, Fluid 14](#exports-dairy-milk-fluid)

[PSD: Dairy, Cheese 15](#psd-dairy-cheese)

[Imports: Dairy, Cheese 16](#imports-dairy-cheese)

[Exports: Dairy, Cheese 17](#exports-dairy-cheese)

[PSD: Dairy, Butter 18](#psd-dairy-butter)

[Imports: Dairy, Butter 19](#imports-dairy-butter)

[Exports: Dairy, Butter 20](#exports-dairy-butter)

[PSD, Dairy, Dry Whole Milk Powder 21](#psd-dairy-dry-whole-milk-powder)

[Imports: Dairy, Dry Whole Milk Powder
22](#imports-dairy-dry-whole-milk-powder)

[Exports: Dairy, Dry Whole Milk Powder
22](#exports-dairy-dry-whole-milk-powder)

[PSD: Dairy, Milk, Nonfat Dry 24](#psd-dairy-milk-nonfat-dry)

[Imports: Dairy, Milk, Nonfat Dry 25](#imports-dairy-milk-nonfat-dry)

[Exports: Dairy, Milk, Nonfat Dry 26](#exports-dairy-milk-nonfat-dry)

# Executive Summary

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.
Lower unemployment rates and increased disposable income will likely
boost domestic demand in general.

The dairy sector is expected to benefit from these improved economic
conditions. Total milk production is forecast to increase by 3 percent
in 2005, and most dairy products will show a similar increase in
production boosted by higher purchasing power and lower unemployment
rates. The Brazilian dairy sector will likely register its first trade
surplus on record in 2005, as the value of dairy exports will likely
surpass imports.

# Commodity Outlook, Fluid Milk

## Production

Note: Official milk production data in Brazil does not include
non-commercial and "informally" marketed milk, which represents about 35
percent of total milk production. OAA estimates are based on interviews
with trade and government sources and include both commercial, as well
as non-commercial and informally marketed milk.

Fluid milk production for CY 2005 (Jan-Dec) is forecast to increase to
24 billion liters, up 3 percent from the current year. The increase in
production reflects higher productivity, mostly from milk producers
associated with large Brazilian companies, and assumes good weather
conditions in the major producing areas. Higher demand for fluid milk
from social programs and continued favorable prices for milk producers,
supported by higher dairy exports, are also expected to boost an
increase in demand next year.

Higher productivity is the major factor contributing to increased milk
production in Brazil. The increase is coming mostly from integrated
producers who have the support of large multinational and Brazilian
dairies, such as Nestle, Parmalat, and Itambe. These companies provide
support to dairy farmers to invest in genetics, nutrition, quality, and
improved management practices. According to the most recent data
available from the 15 largest dairies in Brazil, the number of milk
producers under contract with these companies dropped by 16 percent to
95,847 producers in 2002 from 114,216 producers in 2001, but the average
productivity of these producers, increased by 24 percent, from 458
liters/day per producer in 2001 to 567 liters/day per producer in 2002.

Brazilian dairy producers are entitled to investment funds from the
national milk development program (Pro-Leite). For the 2004/05 marketing
year, the government has allocated US\$33 million to finance producers
to increase productivity through herd improvement, emphasis on quality,
and improved management practices.

Another major production factor is the increasing concentration of milk
production in the industry. In 2004, the 15 largest dairies should
account for nearly 63 percent of total fluid milk production under
federal inspection, an increase of 5 percent from 2003. The
concentration of production among fewer dairies also contributed to
increased concentration among fewer states, with production moving from
traditional milk producing areas in Minas Gerais to new frontier areas
in the Center-West region of the country.

## Consumption 

## 

Overall consumption of fluid milk is forecast to increase by three
percent in CY 2005. The increase is derived mostly from consumption for
industrial use. The increase in the employment rate and in the
purchasing power of Brazilian consumers is expected to boost consumption
of dairy products. Exports of dairy products are also contributing to
higher demand of fluid milk for industrial use.

According to trade sources, consumption of Ultra High Temperature (UHT)
milk in 2005 will reach nearly 86 percent of total fluid milk
consumption in Brazil. The increase in consumption of UHT is due to
several factors, including greater convenience to consumers, carton
packaging (not glass or plastic), no need for refrigeration, and
competitive pricing. Brazilian supermarkets sell predominantly UHT milk,
leaving "C" and "B" type refrigerated fresh milk to be sold by the
traditional mom-and-pop bread and convenience stores, but at lower
volumes.

## Prices

During September 2004 the average price paid to producers in Brazil was
R\$0.55 per liter (US\$ 0.19 per liter), up 2.3 percent from the same
period in 2003. The cost of production for the same month is estimated
at US\$ 0.16.

The average price of fluid milk (type "C") paid to producers during
Jan-Dec 2003 was R\$0.45 per liter in Minas Gerais (largest dairy state
in Brazil), followed by R\$0.43 per liter in Goias (second largest milk
producer). Assuming the average exchange rate of R\$3.06 per U.S. dollar
in 2003, these prices were respectively US\$ 0.15 and US\$ 0.14 per
liter. Average producer prices for milk in 2002 were 16 percent higher
compared to 2001.

## Trade 

Imports of fluid milk, mostly packaged UHT milk sold by companies from
Argentina and Uruguay with commercial interests in Brazil, continued to
drop in 2004, but it is expected to stabilize in 2005, although at
insignificant levels. Trade analysts attribute this drop to two factors:
a) the major devaluation of the Brazilian currency relative to the U.S.
dollar in 2003; and, b) higher domestic fluid milk production.

Brazil exports insignificant quantities of packaged fluid milk, mostly
to Paraguay and the Philippines.

## Tariff Rate Table

+----------------+--------------------+-------------+-----------------+
| Tariff Number  | Product            | Rate (%)    | Other Info      |
|                | Description        |             |                 |
| (HTS)          |                    | \(1\)       |                 |
+----------------+--------------------+-------------+-----------------+
| 0401.10.10     | Milk and Cream,    | 14          | Mercosul: Zero  |
|                | UHT                |             |                 |
+----------------+--------------------+-------------+-----------------+
| 0401.10.10     | Milk and Cream,    | 12          | Mercosul: Zero  |
|                | UHT                |             |                 |
+----------------+--------------------+-------------+-----------------+

Note: (1) MERCOSUL's Common External Tariff (CXT). The CXT is applied to
all imports other than from MERCOSUL. These tariffs are assessed on the
CIF value of the product. In addition, imports of milk and cream pay a
PIS/COFINS (social tax) of 9.25 percent.

## 

## Stocks

There are no government stocks of milk or milk products in Brazil.

## 

## Policy 

The new Agricultural and Livestock Plan for the 2004/2005 season
announced in July 2004, by the federal government allocates about
R\$39.5 billion: (US\$ 13.2 billion for rural credit, of which R\$10.7
billion (US\$ 3.6 billion) is for investment credit in the sector, up 86
percent from 2003. Dairy cattle producers can benefit from the following
investment credit programs, with subsidized interest rates (8.75 percent
per year), to increase productivity and overall milk production:

a\) PRODEAGRO. This program incorporated last year's program called
PROLEITE. The program is designed to modernize milk producer's
operations, provide incentives for cooling milk at the farm,
transportation, and silage. For the 2004/2005 marketing year, the total
amount of funds allocated under the PRODEAGRO is R\$200 million (US\$ 67
million), with a loan limit per producer established at R\$60,000 (US\$
20,000).

b\) MODERFROTA. This program is designed to finance farm equipment in
general. Total funds allocated under this program for 2004/2005 are
R\$5.5 billion (US\$ 1.8 million), and loan limits vary according to the
income of the producers.

c\) MODERINFRA. This program allows dairy producers to build or rebuild
silos and warehouses on their farms. The program was recently modified
to include irrigation systems. Funds allocated to this program during
2004/2005 are R\$700 million (US\$ 233 million) and are limited to
R\$100,000 (US\$ 33,000) per producer.

d\) MODERAGRO. This program incorporated last year's program called
PROPASTO. This program is designed for pasture improvement and recently
was modified to include soil erosion and conservation of lowlands. Total
funds allocated under this program for 2004/2005 are R\$900 million
(US\$ 300 million), and are limited to R\$200,000 (US\$ 67,000) per
producer.

Milk producers are also entitled to state dairy development programs
designed to increase productivity through pasture improvement and animal
genetics. State government programs are also developed to assist and
improve social and economic conditions of the small milk producers.
However, the most important state subsidy program to milk producers is
the exemption of the state value-added tax (ICMS) on the sale of milk by
producers and cooperatives. This benefit, however, is only available for
few a states in Brazil, mostly in the center-west and south regions.

In addition to these federal and state programs, milk producers also
benefit from financing programs from large dairies, such as Nestle and
Parmalat, which are specifically designed to increase milk productivity
and quality. These programs are only available for those integrated milk
producers with these respective dairies.

Other major policies affecting the dairy sector in 2004/05 are:

a\) Minimum reference price for milk of R\$0.38 or (US\$ 0.13), per
liter, for the states located in the southeast of Brazil, and R\$0.36
(US\$ 0.12), per liter, for other regions. These prices are used as
reference for government loan programs, and do not reflect real market
prices paid to producers, currently around R\$0.56 (US\$ 0.19), per
liter;

b\) The Ministry of Agriculture, Livestock, and Food Supply (MAPA) also
announced the implementation of the National Program to Increase Milk
Quality and Control (PNQL), which is designed to benefit consumers and
increase exports. This program is also designed to control fraud in milk
production, such as the mixture of whey powder in fluid milk and to curb
production of informal milk.

c\) MAPA also began the enforcement of a federal rule that prohibits the
use of imported powdered milk in social feeding programs financed by the
federal or state governments. In addition, the federal government also
increased surveillance of non-tariff barriers on dairy imports, such as
formal review and registration of foreign processing plant inspection
systems, greater pre inspection of plants in exporting countries,
certificates of origin, laboratory product-quality tests, and product
label registration according to the Brazilian consumer law. Since 2002,
the Brazilian Inspection Department for Products of Animal Origin
(DIPOA) resumed the registration of new U.S. dairy export plants to
export their products to Brazil.

d\) The FOME ZERO (Zero Hunger) program, initially announced as the
major social program of the new federal administration, has been
recently modified to include other social assistance programs. This
program is beginning to provide financial assistance to the poor. Milk
producers expect to benefit from this program in 2005.

e\) The Ministry of Agriculture, Livestock and Food Supply (MAPA) is
also in the process of publishing rules regarding the traceability
program for milk producers.

# Commodity Outlook, Cheese

## Production 

Note: There are no official statistics on production and consumption of
cheese in Brazil. OAA production estimates for cheese are based on
interviews with trade contacts and also include "informal" cheese
production.

Post forecasts cheese production in CY 2005 to increase by two percent
reflecting some improvement in the domestic demand for cheese combined
with an increase in cheese exports.

## Consumption 

Human consumption of fresh cheese is expected to increase in 2005
reflecting the higher purchasing power of consumers. However, most of
the increase in demand will continue to come from the fast-food
industry, institutional, and "specialty" cheeses (Gruyere, Gouda,
Cheddar).

## 

## Prices

Average wholesale prices of Brazilian-produced cheese by major types
are:

  ------------------------------------------ ----------------------------
  Type                                       US\$/Kilogram

  Minas (fresh farmer type)                  3.28

  Mozzarella                                 3.05

  Provolone                                  3.80

  Parmesan                                   4.55
  ------------------------------------------ ----------------------------

Notes: (1) Prices for Sao Paulo market, as of 10/30/2004.

\(2\) Current Exchange Rate: US\$1.00=R\$2.90

## Trade 

Cheese imports are expected to stabilize in 2005 after several years of
continued drop in cheese imports. Argentina and Uruguay remain as the
main suppliers of cheese to Brazil, basically because of the
preferential tariff treatment deriving from the MERCOSUL Agreement.

Exports of cheese are expected to be higher than imports in 2005 for the
first time on record, because of the favorable exchange rate, which
makes the Brazilian product competitive in world markets, and lower
production costs. However, the cheese industry is generally not prepared
to make major in-roads into the world markets due to the lack of
marketing infrastructure.

## Tariff Rate Table

+--------------+---------------------------+----------+---------------+
| Tariff       | Product Description       | Rate (%) | Other Info    |
| Number       |                           |          |               |
|              |                           |          |               |
| (HTS)        |                           |          |               |
+--------------+---------------------------+----------+---------------+
| 0406.10.10   | Cheese, Mozzarella        | 16       | Mercosul: 27% |
+--------------+---------------------------+----------+---------------+
| 0406.10.90   | Cheese, Other             | 16       | Mercosul:     |
|              |                           |          | Zero          |
+--------------+---------------------------+----------+---------------+
| 0406.20.00   | Cheese: Grated or         | 16       | Mercosul:     |
|              | Powdered                  |          | Zero          |
+--------------+---------------------------+----------+---------------+
| 0406.90.10   | Cheese, with a fat        | 16       | Mercosul: 27% |
|              | content less than 36 %,   |          |               |
|              | by weight                 |          |               |
+--------------+---------------------------+----------+---------------+
| 0406.90.20   | Cheese with a fat content | 16       | Mercosul: 27% |
|              | superior or equal to 36 % |          |               |
|              | and less than 46%,by      |          |               |
|              | weight                    |          |               |
+--------------+---------------------------+----------+---------------+

Notes:

\(1\) MERCOSUL' s Common External Tariff (CXT). The CXT tariff is
applied to all imports other than from MERCOSUL. These tariffs are
assessed on the CIF value of the product. In addition, imports of cheese
pay a PIS/COFINS (social tax) of 9.25 percent.

\(2\) Effective June 1, 2001, these types of cheeses were included on
the \"exception list\" of the Common External Tax (CXT), of the
MERCOSUL, per Resolution 16/01, of the Foreign Trade Chamber (CAMEX),
which altered Annex Two of the Decree Number 3,704 of December 27, 2000.
The 27% tax is charged in addition to the Import Tariff of 18.5 percent
for all imported cheeses, including MERCOSUL members

# Commodity Outlook, Butter

## Production 

*Note: There are no official statistics on production and consumption of
butter in Brazil. OAA*

*Production estimates for butter are based on interviews with trade
contacts, and also includes "informal" butter production.*

Butter production is projected to increase by 3 percent in CY 2005,
reflecting a small increase in domestic demand and lower imports.
Competition from margarine remains strong, with margarine production
expected to rise to 845,000 metric tons in 2005, up 4.8 percent from
2004. Imports are expected to continue to drop next year because of the
high cost of imports due to the devaluation of the Brazilian currency.
Uruguay, and to a lesser extent, Argentina, are the only suppliers of
butter to Brazil.

## Prices

  --------------------------------------------- -------------------------
  Type                                          US\$/kilogram

  Salted                                        2.00

  Unsalted                                      1.90
  --------------------------------------------- -------------------------

Notes: (1) Prices for Sao Paulo market, as of 10/30/04.

\(2\) Average Exchange Rate: US\$1.00=R\$2.90

## Tariff Rate Table

+---------------+---------------------+---------------+---------------+
| Tariff Number | Product Description | Rate (%)      | Other Info    |
|               |                     |               |               |
|               |                     | \(1\)         |               |
+---------------+---------------------+---------------+---------------+
| 0405.10.00    | Butter              | 16            | Mercosul:     |
|               |                     |               | Zero          |
+---------------+---------------------+---------------+---------------+
| 0405.90.10    | Butter Oil          | 16            | Mercosul:     |
|               |                     |               | Zero          |
+---------------+---------------------+---------------+---------------+

Note: MERCOSUL's Common External Tariff (CXT). The CXT tariff is applied
to all imports other than from MERCOSUL. These tariffs are assessed on
the CIF value of the product. In addition, imports of butter pay a
PIS/COFINS (social tax) of 9.25 percent.

# Commodity Outlook, Powdered Milk

## Production 

Note: There are no official statistics on production and consumption of
powdered milk in Brazil. OAA estimates for powdered milk production
(nonfat and whole milk) are based on interviews with the trade.

Post forecasts powdered milk production to increase by over 4 percent in
2005 to 553,000 metric tons, of which 80 percent is whole milk powder
(WMP), and 20 percent is nonfat dry milk powder (NDM). The following
factors support higher Brazilian powdered milk production in 2004/05:

a)  Higher import tariffs, devaluation of the Brazilian currency, and
    minimum import prices reduced imports of subsidized powdered milk;

b)  Higher exports of powdered milk because of a continued favorable
    exchange rate;

c)  Prohibition of the use of imported powdered milk in government's
    social programs;

d)  Higher allocation of government funds for social programs at the
    federal and state levels; and,

e)  Higher sanitary standards for imported milk;

f)  New credit programs have more than R\$100 million (US\$ 34 million)
    by the National Bank of Economic and Social Development (BNDES) to
    finance new investments for powdered milk production. This does not
    include private sector capital, which brings total investments up to
    US\$ 100 million; and,

g)  Reported increase of 25 percent in sales of equipment for producing
    powdered milk.

## Consumption 

Post forecasts powdered milk consumption to increase in 2005 by 2
percent, in view of the prospects for economic growth, lower
unemployment, and higher consumer income. In addition, during 2005, the
federal government is expected to allocate a significant amount of funds
for social programs designed to fight poverty and hunger.

## 

## Prices

Average wholesale prices of powdered milk, by type, are:

  ------------------------------------------ ----------------------------
  Type                                       US\$/kilogram

  Whole milk powder                          4.48

  Nonfat dry milk powder                     4.31
  ------------------------------------------ ----------------------------

Notes:

(1) Princes for Sao Paulo market, as of 10/30/04.

(2) Average Exchange Rate: US\$ 1.00=R\$2.90

## Trade

Imports of powder milk (both whole and nonfat) are estimated to decline
by 30 percent in 2004, following a significant drop of nearly 48 percent
in 2003. The significant decline of powdered milk imports in both years
is the result of higher import duties (after the antidumping
investigation), minimum import prices, and 17 percent devaluation of the
Brazilian currency in 2003.

Argentina and Uruguay are the major suppliers of powdered milk to
Brazil, accounting together for 86 percent of total imports, which is
comprised mostly of whole milk powder (83 percent of the total
imported). New Zealand is a minor supplier of powder milk to Brazil,
accounting for nearly 5 percent. The United States is not competitive in
the Brazilian market for powder milk.

Post forecasts exports of powder milk, mostly whole milk, to increase
significantly in 2005 by over 500 percent due mostly to a favorable
exchange rate and new markets for the Brazilian products. Iraq and
Algeria replaced Angola as the main destinations for Brazilian powder
milk.

## 

## Tariff Rate Table

+--------------+------------------------+------------+----------------+
| Tariff       | Product Description    | Rate (%)   | Other Info     |
| Number       |                        |            |                |
|              |                        |            |                |
| (HTS)        |                        |            |                |
+--------------+------------------------+------------+----------------+
| 0402.21.10   | Whole Milk Powder      | 16         | Mercosul: 27%  |
+--------------+------------------------+------------+----------------+
| 0402.21.20   | Nonfat Milk, Powder    | 16         | Mercosul: 27%  |
+--------------+------------------------+------------+----------------+
| 0404.10.00   | Whey Powder            | 14         | Mercosul: 27%  |
+--------------+------------------------+------------+----------------+

Notes:

(1) MERCOSUL's Common External Tariff (CXT). The CXT tariff is applied
    to all imports other than from MERCOSUL. These tariffs are assessed
    on the CIF value of the product. In addition, imports of powder milk
    pay a PIS/COFINS (social tax) of 9.25 percent;

(2) Effective June 1, 2001, milk powder was included in the "exception
    list" of the Common External Tariff (CXT), of the MERCOSUL, per
    Resolution 16/01, of the Foreign Trade Chamber (CAMEX), which
    altered Annex Two of the Decree Number 3.704 of December 27, 2000.
    The 27 percent tax is charged in addition to the import tariff of
    18.5 percent to all markets, including MERCOSUL members.

(3) In addition to the above tariffs, the Brazilian Foreign Trade Board
    (CAMEX) published the final report of their official dumping
    investigation, with the following results:

+---------------------+-----------------------------------+------------+
| Country             | Companies                         | Applied    |
|                     |                                   | Rates (%)  |
+---------------------+-----------------------------------+------------+
| New Zealand         | New Zealand Dairy Board           | 3.9        |
|                     |                                   |            |
|                     | All other companies               | 3.9        |
+---------------------+-----------------------------------+------------+
| European Union      | All companies, except Arla Foods  | 14.8       |
|                     | Ingredients Amba (see note below) |            |
|                     |                                   | 16.9       |
|                     | Cerealin S.A.                     |            |
+---------------------+-----------------------------------+------------+
| Uruguay             | All companies (see note below)    | 16.9       |
+---------------------+-----------------------------------+------------+

> Note: Argentina, and later Uruguay, negotiated with Brazilian
> officials a minimum
>
> export price for powdered milk exports to Brazil. Arla Foods
> Ingredients Amba
>
> from Denmark also negotiated a minimum export price. The minimum price
> was
>
> established at US\$1,900 per metric ton, FOB, and calculated using
> USDA's price list.
>
> \(4\) Effective August 26, 2002, whey powder was included in the
> "exception list" of the Common External Tariff (CXT), of the MERCOSUL,
> per Resolution 21, of the Foreign Trade Chamber (CAMEX), published in
> the Diario Oficial (Brazil's Federal Register) on August 26, 2002. The
> 27 percent tax is charged in addition to the Import Tariff of 15.5
> percent to all markets, including MERCOSUL members.

## Stocks 

There are no official government stocks of powdered milk in Brazil.

## Policy 

Please see section under Fluid Milk

## 

## Marketing 

Two important business organizations were formed in Brazil to market
Brazilian powdered milk overseas:

1\) SERLAC. The first Brazilian dairy trading to export Brazilian made
dairy products, mostly powdered milk, under the brand " Brazilian Dairy
Board", following the example of New Zealand. SERLAC includes five major
dairies and cooperatives: Itambe, Confepar, Paulista (CCL), Emare and
Ilpisa. SERLAC is working in the following markets: Algeria, Morocco,
Libya, Middle East, and Latin America. The United States is also a
target market.

2\) DPA. Nestle and Fonterra from New Zealand formed a joint venture
called Dairy Partners of Americas (DPA), which entered into operation on
January 1, 2003. The company has its headquarters in Brazil, and will
operate in Latin American counties. During 2003, DPA is operating only
in Argentina, Brazil, and Venezuela, expanding later to Chile, Ecuador,
Colombia, and the Caribean Islands. In 2004, DPA plans to initiate sales
to the NAFTA countries. Nestle's seven milk plants in Brazil will
service as the production base for DPA.

# Tables

## PSD: Dairy, Milk, Fluid

+-------------+-------+-------+-------+-------+-------+-------+-------+
| Brazil      |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Commodity   |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Dairy,      |       |       |       |       |       |       |       |
| Milk, Fluid |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| (1000       |       |       |       |       |       |       |       |
| HEAD)(1000  |       |       |       |       |       |       |       |
| MT)         |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
|             | 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 |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Cows In     | 15300 | 15300 | 15100 | 15200 | 0     | 15100 | (1000 |
| Milk        |       |       |       |       |       |       | HEAD) |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Cows Milk   | 22860 | 22860 | 23163 | 23317 | 0     | 24016 | (1000 |
| Production  |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Other Milk  | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Production  |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 22860 | 22860 | 23163 | 23317 | 0     | 24016 | (1000 |
| Production  |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Intra EC    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Total       | 3     | 3     | 3     | 1     | 0     | 2     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 3     | 3     | 3     | 1     | 0     | 2     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 22863 | 22863 | 23166 | 23318 | 0     | 24018 | (1000 |
| SUPPLY      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Intra EC    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Total       | 2     | 2     | 4     | 2     | 0     | 2     | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 2     | 2     | 4     | 2     | 0     | 2     | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Fluid Use   | 12391 | 12391 | 12589 | 12743 | 0     | 12750 | (1000 |
| Dom.        |       |       |       |       |       |       | MT)   |
| Consum.     |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Factory Use | 10320 | 10320 | 10423 | 10423 | 0     | 11116 | (1000 |
| Consum.     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Feed Use    | 150   | 150   | 150   | 150   | 0     | 150   | (1000 |
| Dom.        |       |       |       |       |       |       | MT)   |
| Consum.     |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL Dom.  | 22861 | 22861 | 23162 | 23316 | 0     | 24016 | (1000 |
| Consumption |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 22863 | 22863 | 23166 | 23318 | 0     | 24018 | (1000 |
| D           |       |       |       |       |       |       | MT)   |
| ISTRIBUTION |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Calendar    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Yr. Imp.    |       |       |       |       |       |       | MT)   |
| from U.S.   |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Calendar    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Yr. Exp. to |       |       |       |       |       |       | MT)   |
| U.S.        |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+

## Imports: Dairy, Milk, Fluid

+------------------+----------------+----------------+----------------+
| Import Trade     |                |                |                |
| Matrix           |                |                |                |
|                  |                |                |                |
| ###### Coun      |                |                |                |
| try {#country-1} |                |                |                |
|                  |                |                |                |
| Brazil           |                |                |                |
|                  |                |                |                |
| Commodity        |                |                |                |
|                  |                |                |                |
| Dairy, Milk,     |                |                |                |
| Fluid            |                |                |                |
+------------------+----------------+----------------+----------------+
| Time Period      | Jan-Dec        | Units:         | Metric Tons    |
+------------------+----------------+----------------+----------------+
| Imports for:     | 2002           |                | 2003           |
+------------------+----------------+----------------+----------------+
| U.S.             | 0              | U.S.           | 0              |
+------------------+----------------+----------------+----------------+
| Others           |                | Others         |                |
+------------------+----------------+----------------+----------------+
| Argentina        | 9              |                | 1              |
+------------------+----------------+----------------+----------------+
| Paraguay         | 1              |                | 0              |
+------------------+----------------+----------------+----------------+
| Uruguay          | 18             |                | 1              |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
| Total for Others | 28             |                | 2              |
+------------------+----------------+----------------+----------------+
| Others not       | 0              |                | 0              |
| Listed           |                |                |                |
+------------------+----------------+----------------+----------------+
| Grand Total      | 28             |                | 2              |
+------------------+----------------+----------------+----------------+

## Exports: Dairy, Milk, Fluid

+-------------------+----------------+----------------+----------------+
| Export Trade      |                |                |                |
| Matrix            |                |                |                |
|                   |                |                |                |
| Country           |                |                |                |
|                   |                |                |                |
| Brazil            |                |                |                |
|                   |                |                |                |
| Commodity         |                |                |                |
|                   |                |                |                |
| Dairy, Milk,      |                |                |                |
| Fluid             |                |                |                |
+-------------------+----------------+----------------+----------------+
| Time Period       | Jan-Dec        | Units:         | Metric Tons    |
+-------------------+----------------+----------------+----------------+
| Exports for:      | 2002           |                | 2003           |
+-------------------+----------------+----------------+----------------+
| U.S.              | 0              | U.S.           | 0              |
+-------------------+----------------+----------------+----------------+
| Others            |                | Others         |                |
+-------------------+----------------+----------------+----------------+
| Paraguay          | 1              |                | 1              |
+-------------------+----------------+----------------+----------------+
| Philippines       | 2              |                | 1              |
+-------------------+----------------+----------------+----------------+
|                   |                |                |                |
+-------------------+----------------+----------------+----------------+
|                   |                |                |                |
+-------------------+----------------+----------------+----------------+
|                   |                |                |                |
+-------------------+----------------+----------------+----------------+
|                   |                |                |                |
+-------------------+----------------+----------------+----------------+
|                   |                |                |                |
+-------------------+----------------+----------------+----------------+
|                   |                |                |                |
+-------------------+----------------+----------------+----------------+
|                   |                |                |                |
+-------------------+----------------+----------------+----------------+
| Total for Others  | 3              |                | 2              |
+-------------------+----------------+----------------+----------------+
| Others not Listed |                |                |                |
+-------------------+----------------+----------------+----------------+
| Grand Total       | 3              |                | 2              |
+-------------------+----------------+----------------+----------------+

## PSD: Dairy, Cheese

+-------------+-------+-------+-------+-------+-------+-------+-------+
| Country     |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Brazil      |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Commodity   |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Dairy,      |       |       |       |       |       |       |       |
| Cheese      |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| (1000 MT)   |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
|             | 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 |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Beginning   | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Stocks      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Production  | 460   | 460   | 470   | 470   | 0     | 480   | (1000 |
|             |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Intra EC    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Total       | 6     | 6     | 6     | 5     | 0     | 5     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 6     | 6     | 6     | 5     | 0     | 5     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 466   | 466   | 476   | 475   | 0     | 485   | (1000 |
| SUPPLY      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Intra EC    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Total       | 3     | 3     | 4     | 5     | 0     | 6     | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 3     | 3     | 4     | 5     | 0     | 6     | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Human Dom.  | 463   | 463   | 472   | 470   | 0     | 479   | (1000 |
| Consumption |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Other Use,  | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Losses      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Total Dom.  | 463   | 463   | 472   | 470   | 0     | 479   | (1000 |
| Consumption |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL Use   | 466   | 466   | 476   | 475   | 0     | 485   | (1000 |
|             |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Ending      | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Stocks      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 466   | 466   | 476   | 475   | 0     | 485   | (1000 |
| D           |       |       |       |       |       |       | MT)   |
| ISTRIBUTION |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Calendar    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Yr. Imp.    |       |       |       |       |       |       | MT)   |
| from U.S.   |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Calendar    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Yr. Exp. to |       |       |       |       |       |       | MT)   |
| U.S.        |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
|             |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+

## Imports: Dairy, Cheese

+---------------------+---------------+---------------+---------------+
| Import Trade Matrix |               |               |               |
|                     |               |               |               |
| Country             |               |               |               |
|                     |               |               |               |
| Brazil              |               |               |               |
|                     |               |               |               |
| Commodity           |               |               |               |
|                     |               |               |               |
| Dairy, Cheese       |               |               |               |
+---------------------+---------------+---------------+---------------+
| Time Period         | Jan-Dec       | Units:        | Metric Tons   |
+---------------------+---------------+---------------+---------------+
| Imports for:        | 2002          |               | 2003          |
+---------------------+---------------+---------------+---------------+
| U.S.                | 30            | U.S.          | 5             |
+---------------------+---------------+---------------+---------------+
| Others              |               | Others        |               |
+---------------------+---------------+---------------+---------------+
| Argentina           | 5,640         |               | 2,192         |
+---------------------+---------------+---------------+---------------+
| European Union      | 1,198         |               | 785           |
+---------------------+---------------+---------------+---------------+
| New Zealand         | 55            |               | 214           |
+---------------------+---------------+---------------+---------------+
| Switzerland         | 233           |               | 124           |
+---------------------+---------------+---------------+---------------+
| Uruguay             | 3,590         |               | 2,666         |
+---------------------+---------------+---------------+---------------+
|                     |               |               |               |
+---------------------+---------------+---------------+---------------+
|                     |               |               |               |
+---------------------+---------------+---------------+---------------+
|                     |               |               |               |
+---------------------+---------------+---------------+---------------+
|                     |               |               |               |
+---------------------+---------------+---------------+---------------+
|                     |               |               |               |
+---------------------+---------------+---------------+---------------+
| Total for Others    | 10716         |               | 5,981         |
+---------------------+---------------+---------------+---------------+
| Others not Listed   | 38            |               | 3             |
+---------------------+---------------+---------------+---------------+
| Grand Total         | 10784         |               | 5989          |
+---------------------+---------------+---------------+---------------+

## Exports: Dairy, Cheese

+------------------+----------------+----------------+----------------+
| Export Trade     |                |                |                |
| Matrix           |                |                |                |
|                  |                |                |                |
| Country          |                |                |                |
|                  |                |                |                |
| Brazil           |                |                |                |
|                  |                |                |                |
| Commodity        |                |                |                |
|                  |                |                |                |
| Dairy, Cheese    |                |                |                |
+------------------+----------------+----------------+----------------+
| Time Period      | Jan-Dec        | Units:         | Metric Tons    |
+------------------+----------------+----------------+----------------+
| Exports for:     | 2002           |                | 2003           |
+------------------+----------------+----------------+----------------+
| U.S.             | 493            | U.S.           | 983            |
+------------------+----------------+----------------+----------------+
| Others           |                | Others         |                |
+------------------+----------------+----------------+----------------+
| Argentina        | 804            |                | 825            |
+------------------+----------------+----------------+----------------+
| Chile            | 335            |                | 676            |
+------------------+----------------+----------------+----------------+
| Paraguay         | 59             |                | 281            |
+------------------+----------------+----------------+----------------+
| Taiwan           | 185            |                | 125            |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
| Total for Others | 1383           |                | 1907           |
+------------------+----------------+----------------+----------------+
| Others not       | 246            |                | 290            |
| Listed           |                |                |                |
+------------------+----------------+----------------+----------------+
| Grand Total      | 2122           |                | 3180           |
+------------------+----------------+----------------+----------------+

## PSD: Dairy, Butter

+-------------+-------+-------+-------+-------+-------+-------+-------+
| Country     |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Brazil      |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Commodity   |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Dairy,      |       |       |       |       |       |       |       |
| Butter      |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| (1000 MT)   |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
|             | 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 |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Beginning   | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Stocks      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Production  | 72    | 72    | 70    | 75    | 0     | 78    | (1000 |
|             |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Intra EC    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Total       | 4     | 4     | 2     | 1     | 0     | 1     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 4     | 4     | 2     | 1     | 0     | 1     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 76    | 76    | 72    | 76    | 0     | 79    | (1000 |
| SUPPLY      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Intra EC    | 0     | 2     | 0     | 2     | 0     | 3     | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Total       | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 0     | 2     | 0     | 2     | 0     | 3     | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Domestic    | 76    | 74    | 72    | 74    | 0     | 76    | (1000 |
| Consumption |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL Use   | 76    | 76    | 72    | 76    | 0     | 79    | (1000 |
|             |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Ending      | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Stocks      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 76    | 76    | 72    | 76    | 0     | 79    | (1000 |
| D           |       |       |       |       |       |       | MT)   |
| ISTRIBUTION |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Calendar    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Yr. Imp.    |       |       |       |       |       |       | MT)   |
| from U.S.   |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Calendar    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Yr. Exp. to |       |       |       |       |       |       | MT)   |
| U.S.        |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
|             |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+

## Imports: Dairy, Butter

+------------------+----------------+----------------+----------------+
| Import Trade     |                |                |                |
| Matrix           |                |                |                |
|                  |                |                |                |
| Country          |                |                |                |
|                  |                |                |                |
| Brazil           |                |                |                |
|                  |                |                |                |
| Commodity        |                |                |                |
|                  |                |                |                |
| Dairy, Butter    |                |                |                |
+------------------+----------------+----------------+----------------+
| Time Period      | Jan-Dec        | Units:         | Metric Tons    |
+------------------+----------------+----------------+----------------+
| Imports for:     | 2002           |                | 2003           |
+------------------+----------------+----------------+----------------+
| U.S.             | 0              | U.S.           | 0              |
+------------------+----------------+----------------+----------------+
| Others           |                | Others         |                |
+------------------+----------------+----------------+----------------+
| Argentina        | 4,701          |                | 206            |
+------------------+----------------+----------------+----------------+
| New Zealand      | 1,254          |                | 275            |
+------------------+----------------+----------------+----------------+
| Uruguay          | 5,251          |                | 2,917          |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
| Total for Others | 11206          |                | 3398           |
+------------------+----------------+----------------+----------------+
| Others not       | 72             |                | 112            |
| Listed           |                |                |                |
+------------------+----------------+----------------+----------------+
| Grand Total      | 11278          |                | 3510           |
+------------------+----------------+----------------+----------------+

## Exports: Dairy, Butter

+-----------------+-----------------+-----------------+-----------------+
| Export Trade    |                 |                 |                 |
| Matrix          |                 |                 |                 |
|                 |                 |                 |                 |
| Country         |                 |                 |                 |
|                 |                 |                 |                 |
| Brazil          |                 |                 |                 |
|                 |                 |                 |                 |
| #               |                 |                 |                 |
| ##### Commodity |                 |                 |                 |
|                 |                 |                 |                 |
| Dairy, Butter   |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Time Period     | Jan-Dec         | Units:          | Metric Tons     |
+-----------------+-----------------+-----------------+-----------------+
| Exports for:    | 2002            |                 | 2003            |
+-----------------+-----------------+-----------------+-----------------+
| U.S.            | 0               | U.S.            | 0               |
+-----------------+-----------------+-----------------+-----------------+
| Others          |                 | Others          |                 |
+-----------------+-----------------+-----------------+-----------------+
| Canada          | 140             |                 | 862             |
+-----------------+-----------------+-----------------+-----------------+
| Egypt           | 200             |                 | 318             |
+-----------------+-----------------+-----------------+-----------------+
| Peru            | 0               |                 | 386             |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Total for       | 340             |                 | 1566            |
| Others          |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Others not      | 30              |                 | 90              |
| Listed          |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Grand Total     | 370             |                 | 1656            |
+-----------------+-----------------+-----------------+-----------------+

##  PSD, Dairy, Dry Whole Milk Powder

+-------------+-------+-------+-------+-------+-------+-------+-------+
| Country     |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Brazil      |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Commodity   |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Dairy, Dry  |       |       |       |       |       |       |       |
| Whole Milk  |       |       |       |       |       |       |       |
| Powder      |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| (1000 MT)   |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
|             | 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 |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Beginning   | 31    | 0     | 31    | 0     |       | 0     | (1000 |
| Stocks      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Production  | 390   | 390   | 400   | 420   | 0     | 440   | (1000 |
|             |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Intra EC    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Total       | 47    | 33    | 47    | 23    | 0     | 20    | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 47    | 33    | 47    | 23    | 0     | 20    | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 468   | 423   | 478   | 443   | 0     | 460   | (1000 |
| SUPPLY      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Intra EC    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Total       | 27    | 3     | 30    | 15    | 0     | 23    | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 27    | 3     | 30    | 15    | 0     | 23    | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Human Dom.  | 410   | 420   | 417   | 428   | 0     | 437   | (1000 |
| Consumption |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Other Use,  | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Losses      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Total Dom.  | 410   | 420   | 417   | 428   | 0     | 437   | (1000 |
| Consumption |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL Use   | 437   | 423   | 447   | 443   | 0     | 460   | (1000 |
|             |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Ending      | 31    | 0     | 31    | 0     | 0     | 0     | (1000 |
| Stocks      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 468   | 423   | 478   | 443   | 0     | 460   | (1000 |
| D           |       |       |       |       |       |       | MT)   |
| ISTRIBUTION |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Calendar    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Yr. Imp.    |       |       |       |       |       |       | MT)   |
| from U.S.   |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Calendar    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Yr. Exp. to |       |       |       |       |       |       | MT)   |
| U.S.        |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
|             |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+

## Imports: Dairy, Dry Whole Milk Powder

+------------------+----------------+----------------+----------------+
| Import Trade     |                |                |                |
| Matrix           |                |                |                |
|                  |                |                |                |
| Country          |                |                |                |
|                  |                |                |                |
| Brazil           |                |                |                |
|                  |                |                |                |
| ###### Commodity |                |                |                |
|                  |                |                |                |
| Dairy, Dry Whole |                |                |                |
| Milk Powder      |                |                |                |
+------------------+----------------+----------------+----------------+
| Time Period      | Jan-Dec        | Units:         | Metric Tons    |
+------------------+----------------+----------------+----------------+
| Imports for:     | 2002           |                | 2003           |
+------------------+----------------+----------------+----------------+
| U.S.             | 0              | U.S.           | 0              |
+------------------+----------------+----------------+----------------+
| Others           |                | Others         |                |
+------------------+----------------+----------------+----------------+
| Argentina        | 61,125         |                | 19,228         |
+------------------+----------------+----------------+----------------+
| Chile            | 4,490          |                | 1,000          |
+------------------+----------------+----------------+----------------+
| European Union   | 598            |                | 105            |
+------------------+----------------+----------------+----------------+
| New Zealand      | 4,896          |                | 919            |
+------------------+----------------+----------------+----------------+
| Uruguay          | 25,023         |                | 11,365         |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
| Total for Others | 96132          |                | 32,617         |
+------------------+----------------+----------------+----------------+
| Others not       | 74             |                | 50             |
| Listed           |                |                |                |
+------------------+----------------+----------------+----------------+
| Grand Total      | 96206          |                | 32667          |
+------------------+----------------+----------------+----------------+

## Exports: Dairy, Dry Whole Milk Powder

+-----------------+-----------------+-----------------+-----------------+
| Export Trade    |                 |                 |                 |
| Matrix          |                 |                 |                 |
|                 |                 |                 |                 |
| ###### Count    |                 |                 |                 |
| ry {#country-2} |                 |                 |                 |
|                 |                 |                 |                 |
| Brazil          |                 |                 |                 |
|                 |                 |                 |                 |
| Commodity       |                 |                 |                 |
|                 |                 |                 |                 |
| Dairy, Dry      |                 |                 |                 |
| Whole Milk      |                 |                 |                 |
| Powder          |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Time Period     | Jan-Dec         | Units:          | Metric Tons     |
+-----------------+-----------------+-----------------+-----------------+
| Exports for:    | 2002            |                 | 2003            |
+-----------------+-----------------+-----------------+-----------------+
| U.S.            | 131             | U.S.            | 145             |
+-----------------+-----------------+-----------------+-----------------+
| Others          |                 | Others          |                 |
+-----------------+-----------------+-----------------+-----------------+
| Algeria         | 0               |                 | 940             |
+-----------------+-----------------+-----------------+-----------------+
| Angola          | 44              |                 | 151             |
+-----------------+-----------------+-----------------+-----------------+
| Chile           | 0               |                 | 625             |
+-----------------+-----------------+-----------------+-----------------+
| Iraq            | 0               |                 | 100             |
+-----------------+-----------------+-----------------+-----------------+
| New Zeland      | 0               |                 | 266             |
+-----------------+-----------------+-----------------+-----------------+
| Oman            | 1,000           |                 | 0               |
+-----------------+-----------------+-----------------+-----------------+
| Russia          | 169             |                 | 120             |
+-----------------+-----------------+-----------------+-----------------+
| U.A.E.          | 0               |                 | 250             |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Total for       | 1213            |                 | 2452            |
| Others          |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Others not      | 32              |                 | 372             |
| Listed          |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Grand Total     | 1376            |                 | 2969            |
+-----------------+-----------------+-----------------+-----------------+

## PSD: Dairy, Milk, Nonfat Dry

+-------------+-------+-------+-------+-------+-------+-------+-------+
| PSD Table   |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Country     |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Brazil      |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Commodity   |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| Dairy,      |       |       |       |       |       |       |       |
| Milk,       |       |       |       |       |       |       |       |
| Nonfat Dry  |       |       |       |       |       |       |       |
|             |       |       |       |       |       |       |       |
| (1000 MT)   |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
|             | 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 |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Beginning   | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Stocks      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Production  | 108   | 108   | 100   | 110   | 0     | 113   | (1000 |
|             |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Intra EC    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Total       | 12    | 7     | 16    | 5     | 0     | 5     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 12    | 7     | 16    | 5     | 0     | 5     | (1000 |
| Imports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 120   | 115   | 116   | 115   | 0     | 118   | (1000 |
| SUPPLY      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Intra EC    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Total       | 1     | 3     | 2     | 1     | 0     | 2     | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 1     | 3     | 2     | 1     | 0     | 2     | (1000 |
| Exports     |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Human Dom.  | 119   | 112   | 114   | 114   | 0     | 116   | (1000 |
| Consumption |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Other Use,  | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Losses      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Total Dom.  | 119   | 112   | 114   | 114   | 0     | 116   | (1000 |
| Consumption |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL Use   | 120   | 115   | 116   | 115   | 0     | 118   | (1000 |
|             |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Ending      | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Stocks      |       |       |       |       |       |       | MT)   |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| TOTAL       | 120   | 115   | 116   | 115   | 0     | 118   | (1000 |
| D           |       |       |       |       |       |       | MT)   |
| ISTRIBUTION |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Calendar    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Yr. Imp.    |       |       |       |       |       |       | MT)   |
| from U.S.   |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+
| Calendar    | 0     | 0     | 0     | 0     | 0     | 0     | (1000 |
| Yr. Exp. to |       |       |       |       |       |       | MT)   |
| U.S.        |       |       |       |       |       |       |       |
+-------------+-------+-------+-------+-------+-------+-------+-------+

## Imports: Dairy, Milk, Nonfat Dry

+------------------+----------------+----------------+----------------+
| Import Trade     |                |                |                |
| Matrix           |                |                |                |
|                  |                |                |                |
| Country          |                |                |                |
|                  |                |                |                |
| Brazil           |                |                |                |
|                  |                |                |                |
| Commodity        |                |                |                |
|                  |                |                |                |
| Dairy, Milk,     |                |                |                |
| Nonfat Dry       |                |                |                |
+------------------+----------------+----------------+----------------+
| Time Period      | Jan-Dec        | Units:         | Metric Tons    |
+------------------+----------------+----------------+----------------+
| Imports for:     | 2002           |                | 2003           |
+------------------+----------------+----------------+----------------+
| U.S.             | 0              | U.S.           | 0              |
+------------------+----------------+----------------+----------------+
| Others           |                | Others         |                |
+------------------+----------------+----------------+----------------+
| Argentina        | 6,037          |                | 2,564          |
+------------------+----------------+----------------+----------------+
| New Zealand      | 1,131          |                | 66             |
+------------------+----------------+----------------+----------------+
| Uruguay          | 10,434         |                | 4,080          |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
|                  |                |                |                |
+------------------+----------------+----------------+----------------+
| Total for Others | 17602          |                | 6,710          |
+------------------+----------------+----------------+----------------+
| Others not       | 0              |                | 25             |
| Listed           |                |                |                |
+------------------+----------------+----------------+----------------+
| Grand Total      | 17602          |                | 6735           |
+------------------+----------------+----------------+----------------+

## Exports: Dairy, Milk, Nonfat Dry

+-----------------+-----------------+-----------------+-----------------+
| Export Trade    |                 |                 |                 |
| Matrix          |                 |                 |                 |
|                 |                 |                 |                 |
| Country         |                 |                 |                 |
|                 |                 |                 |                 |
| Brazil          |                 |                 |                 |
|                 |                 |                 |                 |
| Commodity       |                 |                 |                 |
|                 |                 |                 |                 |
| Dairy, Milk,    |                 |                 |                 |
| Nonfat Dry      |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Time Period     | Jan-Dec         | Units:          | Metric Tons     |
+-----------------+-----------------+-----------------+-----------------+
| Exports for:    | 2002            |                 | 2003            |
+-----------------+-----------------+-----------------+-----------------+
| U.S.            | 1               | U.S.            | 0               |
+-----------------+-----------------+-----------------+-----------------+
| Others          |                 | Others          |                 |
+-----------------+-----------------+-----------------+-----------------+
| Angola          | 58              |                 | 451             |
+-----------------+-----------------+-----------------+-----------------+
| Algeria         | 2,500           |                 | 0               |
+-----------------+-----------------+-----------------+-----------------+
| Iraq            | 0               |                 | 2,325           |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Total for       | 2558            |                 | 2776            |
| Others          |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+