Required Report - Public distribution

**Date:** 9/28/2007

**GAIN Report Number:** BR7631

BR7631

**Brazil**

**Poultry and Products**

**Annual Report**

**2007**

**Approved by:**

![](media/image1.wmf)Beth Autry, Agricultural Attache

U.S. Embassy

**Prepared by:**

Joao F. Silva, Agricultural Specialist

**Report Highlights:**

Post projects broiler and turkey meat to increase in 2008 by 4 and 10
percent, respectively, in response to strong domestic demand and
continued expansion in exports. The improved in outlook for the
Brazilian economy in 2007-08 supports higher domestic demand for animal
protein benefiting broiler consumption over other types of meat. Poultry
producers and packers, however, are concerned about the long-term impact
of ethanol on world commodity prices, which increases feed costs to
producers.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Brasilia \[BR1\]

\[BR\]

Table of Contents

[Executive Summary 3](#executive-summary)

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

[Production 3](#production)

[Animal Health Update 3](#animal-health-update)

[Production Factors 4](#production-factors)

[Production costs 4](#production-costs)

[Consumption 5](#consumption)

[Trade 6](#trade)

[Policy 6](#policy)

[Marketing 6](#marketing)

[Commodity Outlook, Turkey 7](#commodity-outlook-turkey)

[Production 7](#production-1)

[Consumption 7](#consumption-1)

[Trade 7](#trade-1)

[Tables 8](#tables)

[PSD Table, Poultry, Meat, Broiler 8](#psd-table-poultry-meat-broiler)

[Poultry, Meat, Broiler, Exports, Jan-Aug 2006-07
9](#poultry-meat-broiler-exports-jan-aug-2006-07)

[PSD table, Poultry, Meat, Turkey 10](#psd-table-poultry-meat-turkey)

[Poultry Meat, Turkey, Exports, Jan-Aug 2006-07
11](#poultry-meat-turkey-exports-jan-aug-2006-07)

Data included in this report is not official USDA data. Official USDA
data is available at
[**http://www.fas.usda.gov/psdonline**](http://www.fas.usda.gov/psdonline)

# 

# Executive Summary

Post projects broiler and turkey production to increase by 4 and 10
percent, respectively, in 2008. The increase in production reflects
strong domestic and export demand for both types of meat. Poultry
packers, however, remain concerned about the impact of ethanol
production on world commodity prices and higher feed costs, despite
record Brazilian corn and soybean crops.

The improved outlook for the Brazilian economy supports higher domestic
demand for animal protein in 2008, as consumers' real income increased
by over five percent in the past 12 months, and most analysts project
stronger economic growth in 2008. Broiler consumption should benefit
from higher disposable income since chicken meat is highly competitive
in the retail market, compared to beef and pork. Broiler and turkey
exports remain firm in the world market, and the Brazilian product is
benefiting from disease free areas and competitive prices in most
traditional poultry markets. Continued market promotion also helps to
boost sales to emerging markets.

# Commodity Outlook, Broiler

# 

# Production

Post forecasts an increase in broiler production in 2008 of 4 percent,
supported by the following factors:

a)  Increase in exports due to continued higher world demand;

b)  Strong domestic demand; and,

c)  Aggressive market promotion efforts in overseas markets.

However, the following constraints could affect the project performance
of the Brazilian broiler industry in 2008: a) continued appreciation of
the Brazilian currency; b) higher production costs due to the impact of
ethanol on world commodity prices, despite a projected record Brazilian
corn and soybean crop in 2007-08; and c) possible new market access
constraints in the European Union that may reduce exports of processed
broilers to that market.

## 

Post revised upwards broiler production in 2007 to 10.1 million metric
tons, eight percent higher than last year's production. The 2007
increase in broiler production reflects mostly a rebound in the export
of broilers, principally cuts and processed broiler meat. In addition,
firm domestic demand, derived from a higher employment rate and consumer
purchasing power, supports a continued boost for animal protein. Retail
chicken prices are highly competitive with other meat prices,
principally beef. Also, continued expansion of broiler exports to new
and traditional markets, such as the European Union, supports growth in
exports during this year.

## Animal Health Update

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

The most recent policy recommendation has been the "Regionalization of
Sanitary Controls for Poultry". This concept involves a protocol between
6 states from the center-south regions of Brazil by which these states
establish tight border controls on transit of birds, eggs, and any other
related poultry products and byproducts for interstate commerce.

The Brazilian government also published on April 10, 2006, Directive
Number 17, which establishes the National Plan for Prevention of Avian
Influenza and the Control and Prevention of Newcastle Disease. According
to our trade source, the main problem with the implementation of
Directive 17 is the lack of funds. The Brazilian government promised to
allocate US\$ 130 million for this plan in 2007, but funds have not been
released yet.

Since 2002, Brazil has an inter-ministerial program to monitor migratory
birds from the South Pole, Argentina, and Paraguay. In 2003, this
program was improved to monitor and test birds with the potential to
carry the Avian Influenza virus. The program is a joint effort of the
Ministry of Agriculture, Ministry of Health, and Ministry of the
Environment.

## Production Factors

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

+-----------------+---------------+----------------+-----------------+
| Year            | Parent Stock  |                | Broiler Chicks  |
|                 |               |                |                 |
|                 |               |                | (1,000)         |
+-----------------+---------------+----------------+-----------------+
|                 | Layers        | Broilers       |                 |
|                 | (1,000) a/    |                |                 |
|                 |               | (1,000)        |                 |
+-----------------+---------------+----------------+-----------------+
| 2000            | 60,235        | 27,536         | 3,254,100       |
+-----------------+---------------+----------------+-----------------+
| 2001            | 62,544        | 28,597         | 3,473,600       |
+-----------------+---------------+----------------+-----------------+
| 2002            | 67,297        | 30,499         | 3,819,570       |
+-----------------+---------------+----------------+-----------------+
| 2003            | 77,943        | 31,035         | 3,907,100       |
+-----------------+---------------+----------------+-----------------+
| 2004            | 84,528        | 33,293         | 4,277,700       |
+-----------------+---------------+----------------+-----------------+
| 2005            | 87,788        | 36,664         | 4,695,800       |
+-----------------+---------------+----------------+-----------------+
| 2006            | 93,206        | 38,398         | 4,576,000       |
+-----------------+---------------+----------------+-----------------+
| 2007 (estimate) | 97,866        | 39,550         | 4,713,280       |
+-----------------+---------------+----------------+-----------------+

Note: a/ Monthly average quantities for layers.

Source: APINCO/UBA

## Production costs

Although Brazilian poultry companies do not release production cost
information, there are some representative costs supplied by trade
sources. During the first half of 2007, the estimated average cost of
broiler production reached R\$ 1.42 per kilogram, live weight, up 18.3
percent from an estimated cost of R\$1.20 per kilogram, live weight, for
the same period in 2006. The average exchange rate for January-June 2007
was R\$ 2.04 per US\$ 1.00, compared to R\$ 2.19 per US\$ 1.00 during
the same period in 2006.

Post projects feed prices to increase during the 2007-08 crop year
(October 1/September 30), despite an estimated record of corn and
soybean crops. The new crop plan announced by the federal government
will likely maintain the volume of subsidized funds available to corn
producers to finance their cost of production. However, poultry
producers are concerned about the impact of ethanol prices on major
world commodity prices.

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

+---------+-----------+----------+---------+------------+------------+
| Year    | Broiler   | W        |         |            |            |
|         | Cost      | holesale |         |            |            |
|         | (US\      | Prices   |         |            |            |
|         | $/KG/Live |          |         |            |            |
|         | Weight)   |          |         |            |            |
+---------+-----------+----------+---------+------------+------------+
|         |           | Live     | RTC     | Corn       | Soybean    |
|         |           | Weight   |         |            | Meal       |
|         |           |          | (U      | (U         | (US\$/KG)  |
|         |           | (        | S\$/KG) | S\$/60/KG) |            |
|         |           | US\$/KG) |         |            |            |
+---------+-----------+----------+---------+------------+------------+
| 2000    | 0.47      | 0.50     | 0.68    | 7.78       | 0.18       |
+---------+-----------+----------+---------+------------+------------+
| 2001    | 0.38      | 0.41     | 0.53    | 4.64       | 0.19       |
+---------+-----------+----------+---------+------------+------------+
| 2002    | 0.39      | 0.39     | 0.50    | 6.26       | 0.18       |
+---------+-----------+----------+---------+------------+------------+
| 2003    | 0.47      | 0.47     | 0.54    | 6.54       | 0.21       |
+---------+-----------+----------+---------+------------+------------+
| 2004    | 0.51      | 0.51     | 0.54    | 6.31       | 0.23       |
+---------+-----------+----------+---------+------------+------------+
| 2005    | 0.55      | 0.56     | 0.55    | 7.33       | 0.21       |
+---------+-----------+----------+---------+------------+------------+
| 2006    | 0.57      | 0.54     | 0.65    | 8.00       | 0.21       |
+---------+-----------+----------+---------+------------+------------+
| 2007    | 0.74      | 0.91     | 1.02    | 9.89       | 0.23       |
| (est.)  |           |          |         |            |            |
+---------+-----------+----------+---------+------------+------------+

RTC= Ready to Cook

Source: Trade

# Consumption

# 

Post forecasts domestic broiler consumption to increase by 4 percent in
2008. Current economic forecasts are for continued expansion of economic
growth, inflation at lower levels, stable unemployment rates, and
continued improvement in consumer purchasing power. Competition from
other meats is not expected to affect broiler consumption since broiler
meat is more affordable to lower income consumers compared to beef and
pork. In addition, demand is expected to increase from the food service
industry for products such as frozen chicken meals, pre-cooked meals,
and chicken burgers.

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

# Trade

Post projects broiler exports to expand by over five percent in 2008.
Our forecast is basically supported by higher world demand for broilers
due to the reduction of the concern over Avian Influenza, an estimated
increase in exports to traditional markets due to continued higher
demand for the Brazilian products which is very competitive, and
aggressive market promotion efforts by Brazilian poultry exporters in
new markets. However, concerns remain about the European Union's
possible restrictions, mostly for processed broilers.

Post revised export estimates for 2007 to include most recent trade
data. During January-August 2007, exports significantly increased by
over 21 percent, as compared to the same period in 2006. The increase is
mostly attributed to higher exports to the United Arab Emirates (50 %),
European Union (30 %), Hong Kong (24%, and Saudi Arabia (19%). Exports
to Russia and Japan dropped by five percent. However, the value of
exports increased substantially less than the volume, rising only 7
percent.

# Policy

There have been no changes in poultry production policy since our
previous annual report. For recent farm credit policy changes, please
see BR 6611. Te Poultry and Swine Board (formed by government and
private sector organizations) met recently and request from the federal
government to approve imports of GMO corn because of the current tight
outlook of corn supplies. In order to import GMO corn for animal feed, a
formal request must be submitted to the National Technical Committee on
Biotechnology (CTNBio) for pre-approval.

# Marketing

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

ABEF was one of the first private organizations to implement its export
promotion together with the federal government's market promotion agency
(APEX). ABEF has participated in several trade shows overseas, mostly in
Europe, Asia, and the Middle East. Promotion activities include in-store
promotions, general media activity, and market research. Although
similar to FAS's market promotion programs, ABEF includes several market
access activities such as eliminating sanitary barriers and conducting
trade servicing under the market access promotion buget for market
promotion. ABEF's 2007/08 budget for market promotion is estimated at
US\$ 2.7 million, of which APEX funds 45 percent.

# Commodity Outlook, Turkey

## Production

Note: There is no official data on turkey production in Brazil. Data
provided in this report is derived from interviews with sources from
major Brazilian packers. Post also revised production data back to 2002
to include data received from trade sources.

Post forecasts Brazilian turkey production to increase by 10 percent in
2008, primarily in response to strong domestic and export demand. In
addition, some investment projects to increase turkey production have
matured, and production is now reaching the market.

## 

## Consumption

The projected economic growth of 5 percent in 2008, combined with an
estimated lower unemployment rate, and higher disposable income, will
likely contribute to keeping domestic demand firm for animal protein,
benefiting turkey demand. However, most of this demand comes from the
food service industry.

Frozen Ready to Cook (RTC) turkey consumption remains highly seasonal in
Brazil, but it is changing rapidly. Trade sources estimate that 70
percent of whole turkey sales occur during the pre-Christmas period,
because consumer habits in Brazil favor turkey consumption during this
holiday season. However, processed turkey products, such as sliced loaf
and nuggets are consumed throughout the year. Other frozen turkey
entrees, like lasagna, pizza, and hamburgers are found in most
supermarkets.

## Trade

Post projects turkey exports to increase by 11 percent in 2008 due
mostly to continued strong demand from the European Union. During
January-August 2007, turkey exports in volume increased by 12 percent
compared to the same period last year, but the value of exports during
the same period increased substantially more than volume, rising 45
percent, due to higher average export price.

# Tables

## PSD Table, Poultry, Meat, Broiler

<table style="width:100%;">
<colgroup>
<col style="width: 12%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="11"><p><strong>PSD Table</strong></p>
<p><strong>Country</strong></p>
<p><strong>Brazil</strong></p>
<p><strong>Commodity</strong></p>
<p><strong>Poultry, Meat, Broiler</strong></p>
<p>(MIL HEAD)(1000 MT)(PERCENT)</p></td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
<td>UOM</td>
</tr>
<tr class="odd">
<td></td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
<td></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>01/2006</td>
<td>01/2006</td>
<td></td>
<td>01/2007</td>
<td>01/2007</td>
<td></td>
<td>01/2008</td>
<td>01/2008</td>
<td>MM/YYYY</td>
</tr>
<tr class="odd">
<td>Inventory (Reference)</td>
<td>39</td>
<td>39</td>
<td>38</td>
<td>40</td>
<td>40</td>
<td>41</td>
<td>0</td>
<td>0</td>
<td>42</td>
<td>(MIL HEAD)</td>
</tr>
<tr class="even">
<td>Slaughter (Reference)</td>
<td>4697</td>
<td>4697</td>
<td>4580</td>
<td>4980</td>
<td>4980</td>
<td>4860</td>
<td>0</td>
<td>0</td>
<td>5100</td>
<td>(MIL HEAD)</td>
</tr>
<tr class="odd">
<td>Beginning Stocks</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Production</td>
<td>9355</td>
<td>9355</td>
<td>9355</td>
<td>9795</td>
<td>9795</td>
<td>10105</td>
<td>0</td>
<td>0</td>
<td>10550</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Whole, Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Parts, Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Intra-EU Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Other Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Total Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>9355</td>
<td>9355</td>
<td>9355</td>
<td>9795</td>
<td>9795</td>
<td>10105</td>
<td>0</td>
<td>0</td>
<td>10550</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Whole, Exports</td>
<td>858</td>
<td>949</td>
<td>858</td>
<td>800</td>
<td>1035</td>
<td>850</td>
<td>0</td>
<td>0</td>
<td>850</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Parts, Exports</td>
<td>1644</td>
<td>1764</td>
<td>1644</td>
<td>1900</td>
<td>1920</td>
<td>2055</td>
<td>0</td>
<td>0</td>
<td>2210</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Intra EU Exports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Other Exports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Total Exports</td>
<td>2502</td>
<td>2713</td>
<td>2502</td>
<td>2700</td>
<td>2955</td>
<td>2905</td>
<td>0</td>
<td>0</td>
<td>3060</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Human Consumption</td>
<td>6853</td>
<td>6642</td>
<td>6853</td>
<td>7095</td>
<td>6840</td>
<td>7200</td>
<td>0</td>
<td>0</td>
<td>7490</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Other Use, Losses</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Total Dom. Consumption</td>
<td>6853</td>
<td>6642</td>
<td>6853</td>
<td>7095</td>
<td>6840</td>
<td>7200</td>
<td>0</td>
<td>0</td>
<td>7490</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Total Use</td>
<td>9355</td>
<td>9355</td>
<td>9355</td>
<td>9795</td>
<td>9795</td>
<td>10105</td>
<td>0</td>
<td>0</td>
<td>10550</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>9355</td>
<td>9355</td>
<td>9355</td>
<td>9795</td>
<td>9795</td>
<td>10105</td>
<td>0</td>
<td>0</td>
<td>10550</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>CY Imp. from U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>CY Exp. to U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
</tbody>
</table>

Note: Not Official USDA Data

## Poultry, Meat, Broiler, Exports, Jan-Aug 2006-07

+----------------+--------------+-----------+--------------+----------+
| **Export Trade |              |           |              |          |
| Matrix**       |              |           |              |          |
|                |              |           |              |          |
| **Country**    |              |           |              |          |
|                |              |           |              |          |
| Brazil         |              |           |              |          |
|                |              |           |              |          |
| **Commodity**  |              |           |              |          |
|                |              |           |              |          |
| Poultry, Meat, |              |           |              |          |
| Broiler        |              |           |              |          |
+----------------+--------------+-----------+--------------+----------+
| Time Period    | Jan-Aug      | Units:    | Metric Tons  |          |
+----------------+--------------+-----------+--------------+----------+
| Exports for:   | 2006         |           | **2007**     |          |
+----------------+--------------+-----------+--------------+----------+
| U.S.           | 0            | U.S.      | 0            |          |
+----------------+--------------+-----------+--------------+----------+
| Others         |              | Others    |              |          |
+----------------+--------------+-----------+--------------+----------+
| Angola         | 20172        |           | 23452        |          |
+----------------+--------------+-----------+--------------+----------+
| China          | 25910        |           | 11750        |          |
+----------------+--------------+-----------+--------------+----------+
| European Union | 249500       |           | 322750       |          |
+----------------+--------------+-----------+--------------+----------+
| Hong Kong      | 191082       |           | 236501       |          |
+----------------+--------------+-----------+--------------+----------+
| Japan          | 226043       |           | 214905       |          |
+----------------+--------------+-----------+--------------+----------+
| Kuwait         | 54000        |           | 87023        |          |
+----------------+--------------+-----------+--------------+----------+
| Russia         | 140428       |           | 127357       |          |
+----------------+--------------+-----------+--------------+----------+
| Saudi Arabia   | 211524       |           | 251153       |          |
+----------------+--------------+-----------+--------------+----------+
| Singapore      | 46073        |           | 58929        |          |
+----------------+--------------+-----------+--------------+----------+
| South Africa   | 135555       |           | 118823       |          |
+----------------+--------------+-----------+--------------+----------+
| UAE            | 86082        |           | 128950       |          |
+----------------+--------------+-----------+--------------+----------+
| Venezuela      | 101514       |           | 103017       |          |
+----------------+--------------+-----------+--------------+----------+
| Total for      | 1487883      |           | 1684610      |          |
| Others         |              |           |              |          |
+----------------+--------------+-----------+--------------+----------+
| Others not     | 237980       |           | 409623       |          |
| Listed         |              |           |              |          |
+----------------+--------------+-----------+--------------+----------+
| Grand Total    | 1725863      |           | 2094233      |          |
+----------------+--------------+-----------+--------------+----------+

Notes:

  -----------------------------------------------------------------------
  \(1\) Includes HTS Codes: 0207.11; 0207.12; 0207.13; 0207.14; and
  1602.32

  \(2\) Beginning 2006, data for the European Union includes Bulgaria and
  Romania.
  -----------------------------------------------------------------------

## PSD table, Poultry, Meat, Turkey

<table>
<colgroup>
<col style="width: 12%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="11"><p><strong>PSD Table</strong></p>
<p><strong>Country</strong></p>
<p><strong>Brazil</strong></p>
<p><strong>Commodity</strong></p>
<p><strong>Poultry, Meat, Turkey</strong></p>
<p>(MIL HEAD)(1000 MT)(PERCENT)</p></td>
</tr>
<tr class="even">
<td></td>
<td>2006</td>
<td>Revised</td>
<td></td>
<td>2007</td>
<td>Estimate</td>
<td></td>
<td>2008</td>
<td>Forecast</td>
<td></td>
<td>UOM</td>
</tr>
<tr class="odd">
<td></td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
<td></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>01/2006</td>
<td>01/2006</td>
<td></td>
<td>01/2007</td>
<td>01/2007</td>
<td></td>
<td>01/2008</td>
<td>01/2008</td>
<td>MM/YYYY</td>
</tr>
<tr class="odd">
<td>Inventory (Reference)</td>
<td>33</td>
<td>33</td>
<td>36</td>
<td>0</td>
<td>0</td>
<td>37</td>
<td>0</td>
<td>0</td>
<td>39</td>
<td>(MIL HEAD)</td>
</tr>
<tr class="even">
<td>Slaughter (Reference)</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(MIL HEAD)</td>
</tr>
<tr class="odd">
<td>Beginning Stocks</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Production</td>
<td>290</td>
<td>310</td>
<td>353</td>
<td>320</td>
<td>0</td>
<td>380</td>
<td>0</td>
<td>0</td>
<td>420</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Whole, Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Parts, Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Intra-EU Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Other Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Total Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>290</td>
<td>310</td>
<td>353</td>
<td>320</td>
<td>0</td>
<td>380</td>
<td>0</td>
<td>0</td>
<td>420</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Whole, Exports</td>
<td>0</td>
<td>0</td>
<td>4</td>
<td>0</td>
<td>0</td>
<td>1</td>
<td>0</td>
<td>0</td>
<td>2</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Parts, Exports</td>
<td>153</td>
<td>187</td>
<td>152</td>
<td>160</td>
<td>0</td>
<td>162</td>
<td>0</td>
<td>0</td>
<td>178</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Intra EU Exports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Other Exports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Total Exports</td>
<td>153</td>
<td>187</td>
<td>156</td>
<td>160</td>
<td>0</td>
<td>163</td>
<td>0</td>
<td>0</td>
<td>180</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Human Consumption</td>
<td>137</td>
<td>123</td>
<td>197</td>
<td>160</td>
<td>0</td>
<td>217</td>
<td>0</td>
<td>0</td>
<td>240</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Other Use, Losses</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Total Dom. Consumption</td>
<td>137</td>
<td>123</td>
<td>197</td>
<td>160</td>
<td>0</td>
<td>217</td>
<td>0</td>
<td>0</td>
<td>240</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Total Use</td>
<td>290</td>
<td>310</td>
<td>353</td>
<td>320</td>
<td>0</td>
<td>380</td>
<td>0</td>
<td>0</td>
<td>420</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>290</td>
<td>310</td>
<td>353</td>
<td>320</td>
<td>0</td>
<td>380</td>
<td>0</td>
<td>0</td>
<td>420</td>
<td>(1000 MT)</td>
</tr>
<tr class="even">
<td>CY Imp. from U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
<tr class="odd">
<td>CY Exp. to U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>(1000 MT)</td>
</tr>
</tbody>
</table>

Not Official USDA Data

## Poultry Meat, Turkey, Exports, Jan-Aug 2006-07

<table>
<colgroup>
<col style="width: 1%" />
<col style="width: 22%" />
<col style="width: 3%" />
<col style="width: 11%" />
<col style="width: 11%" />
<col style="width: 7%" />
<col style="width: 13%" />
<col style="width: 2%" />
<col style="width: 13%" />
<col style="width: 7%" />
<col style="width: 6%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><p><strong>Export Trade Matrix</strong></p>
<p><strong>Country</strong></p>
<p>Brazil</p>
<p><strong>Commodity</strong></p>
<p>Poultry, Meat, Turkey</p></td>
<td></td>
</tr>
<tr class="even">
<td colspan="3">Time Period</td>
<td colspan="2">Jan-Aug</td>
<td colspan="2">Units:</td>
<td colspan="3">Metric Tons</td>
<td></td>
</tr>
<tr class="odd">
<td colspan="3">Exports for:</td>
<td colspan="2">2006</td>
<td colspan="2"></td>
<td colspan="3"><strong>2007</strong></td>
<td></td>
</tr>
<tr class="even">
<td colspan="3">U.S.</td>
<td colspan="2">0</td>
<td colspan="2">U.S.</td>
<td colspan="3">0</td>
<td></td>
</tr>
<tr class="odd">
<td colspan="3">Others</td>
<td colspan="2"></td>
<td colspan="2">Others</td>
<td colspan="3"></td>
<td></td>
</tr>
<tr class="even">
<td colspan="3">Angola</td>
<td colspan="2">1450</td>
<td colspan="2"></td>
<td colspan="3">2133</td>
<td></td>
</tr>
<tr class="odd">
<td colspan="3">Cuba</td>
<td colspan="2">609</td>
<td colspan="2"></td>
<td colspan="3">397</td>
<td></td>
</tr>
<tr class="even">
<td colspan="3">European Unon</td>
<td colspan="2">45716</td>
<td colspan="2"></td>
<td colspan="3">59147</td>
<td></td>
</tr>
<tr class="odd">
<td colspan="3">Gabon</td>
<td colspan="2">3834</td>
<td colspan="2"></td>
<td colspan="3">4524</td>
<td></td>
</tr>
<tr class="even">
<td colspan="3">Peru</td>
<td colspan="2">1194</td>
<td colspan="2"></td>
<td colspan="3">1237</td>
<td></td>
</tr>
<tr class="odd">
<td colspan="3">Russia</td>
<td colspan="2">9189</td>
<td colspan="2"></td>
<td colspan="3">3959</td>
<td></td>
</tr>
<tr class="even">
<td colspan="3">South Africa</td>
<td colspan="2">9906</td>
<td colspan="2"></td>
<td colspan="3">9056</td>
<td></td>
</tr>
<tr class="odd">
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="3"></td>
<td></td>
</tr>
<tr class="even">
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="3"></td>
<td></td>
</tr>
<tr class="odd">
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="3"></td>
<td></td>
</tr>
<tr class="even">
<td colspan="3">Total for Others</td>
<td colspan="2">71898</td>
<td colspan="2"></td>
<td colspan="3">80453</td>
<td></td>
</tr>
<tr class="odd">
<td colspan="3">Others not Listed</td>
<td colspan="2">28689</td>
<td colspan="2"></td>
<td colspan="3">31879</td>
<td></td>
</tr>
<tr class="even">
<td colspan="3">Grand Total</td>
<td colspan="2">100587</td>
<td colspan="2"></td>
<td colspan="3">112332</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td>Notes:</td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr class="even">
<td></td>
<td colspan="10">(1) Includes HTS Codes: 02072400; 02072500; 02072600;
02072700; 16023100</td>
</tr>
<tr class="odd">
<td></td>
<td colspan="10">(2) Beginning 2006, data for the European Union
includes Bulgaria and Romania.</td>
</tr>
</tbody>
</table>