Required Report - public distribution

**Date:** 8/31/2005

**GAIN Report Number:** BR5622

B

**Brazil**

**Livestock and Products**

**Annual Report**

**2005**

**Approved by:**

![](media/image1.wmf)Alan Hrapsky, Agricultural Counselor

U.S. Embassy

**Prepared by:**

Joao F. Silva, Agricultural Specialist

**Report Highlights:**

Post projects beef and pork production to increase by five and three
percent, respectively, in 2006, mostly driven by strong demand from the
export market, as Brazil continues to benefit from the problems derived
from animal disease outbreaks in some regions of the world. Although the
Brazilian economy is projected to grow by 3.5 percent in 2006 with
inflation under control, domestic demand for animal protein is estimated
to increase at moderate rates due to the lack of consumer confidence
resulting from the current political uncertainties and the high level of
consumer debt from purchases of durable goods. Profit margins for both
livestock producers and packers are expected to remain slim due to lower
cattle prices, appreciation of the Brazilian currency, and higher
production costs.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Brasilia \[BR1\]

\[BR\]

Table of Contents

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

[Commodity Outlook, Cattle 3](#commodity-outlook-cattle)

[Production 3](#production)

[Geographical Distribution of Cattle
4](#geographical-distribution-of-cattle)

[Cattle Traceability Program 4](#cattle-traceability-program)

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

[Policy 5](#policy)

[Tariff Rate Table 6](#tariff-rate-table)

[Commodity Outlook, Beef 6](#commodity-outlook-beef)

[Production 6](#production-1)

[Consumption 7](#consumption)

[Trade 7](#trade)

[Stocks 8](#stocks)

[Policy 8](#policy-1)

[Marketing 8](#marketing)

[Tariff Rate table 10](#tariff-rate-table-1)

[Commodity Outlook, Pork 10](#commodity-outlook-pork)

[Production 10](#production-2)

[Consumption 11](#consumption-1)

[Trade 11](#trade-1)

[Marketing 11](#marketing-1)

[Policy 12](#policy-2)

[Tariff Rate Table 12](#tariff-rate-table-2)

[PSD Tables 13](#psd-tables)

[Animal Numbers, Cattle 13](#animal-numbers-cattle)

[PSD Table, Beef 14](#psd-table-beef)

[Export Trade Matrix, Beef, Jan-Jun 2005
15](#export-trade-matrix-beef-jan-jun-2005)

[Animal Numbers, Swine 16](#animal-numbers-swine)

[PSD Table, Pork 17](#psd-table-pork)

[Export Trade Matrix, Pork, Jan-Jun 2005
18](#export-trade-matrix-pork-jan-jun-2005)

# Executive Summary

Cattle inventories continue to expand in Brazil in response to higher
investments in animal genetics, and improved pasture and management
practices stimulated by government credit programs. Beef production is
projected to increase by five percent in 2006, mostly driven by strong
demand from the export market, as Brazil continues to benefit from the
problems derived from animal disease outbreaks in some regions of the
world. Continued strong export demand combined with moderate growth in
domestic consumption will likely increase pork production by 3 percent
in 2006.

However, there are some constraints that may temper the projected
increase in beef and pork production in the near future: the continued
appreciation of the Brazilian currency, higher interest rates,
uncertainties derived from the current political crisis which dropped
consumer confidence and consumer high debt, lack of adequate financing
for government sanitary and inspection programs, lower cattle prices,
and projected lower economic growth in 2006 as compared to the current
year.

# Commodity Outlook, Cattle

## Production

Cattle inventories will continue to increase in 2005/06, reaching nearly
178 million head by the end of 2006, which gives Brazil the largest
commercial cattle herd in the world. The calf crop is estimated to
increase by 3 percent, reflecting higher yields obtained by Brazilian
livestock producers. Two major factors are still contributing to the
expansion and improvement of the productivity of the cattle industry in
Brazil:

First, an improvement in animal genetics, mostly through the use of
crossbreeding programs in the center-west regions of the country, is the
most significant factor. During the past five years, the use of
artificial insemination in beef cattle increased by over 50 percent,
while for dairy cattle it increased only by 7 percent. Brazilian
cattlemen use imported bull semen, such as Red Angus, Angus, Simental,
and Limousin to cross with the \"Nelore\" breed. Brazilian breeders are
also using an increasing quantity of Brahman semen imported from the
United States.

Second, higher enrollment in the Program for Pasture Improvement
(PROPASTO), which was created by the Federal Government in 2000. Last
year, the federal government renamed this program to \"MODERAGRO\",
which also includes funds for soil erosion and conservation of lowlands.
Program funds for the 2005/06-crop year have not been officially
announced yet, but the Minister of Agriculture projected an increase of
12 percent in funds for next year's crop. Total MODERAGRO funds are
expected to reach R\$650 million (approximately US\$ 280 million).
Cattle producers use these funds at subsidized interest rates at 8.75
percent per year (commercial rates are beyond 25 percent). It is
estimated that there are 180 million hectares of pasture in Brazil, of
which 60 percent are cultivated (improved) pastures, while the balance
is considered \"native\" pastures. Improved forage seed production will
continue to increase in 2005 due to the MODERAGRO program.

However, lower cattle prices, appreciation of the Brazilian currency,
and higher production costs may temper the continued success of
Brazilian livestock producers in the near future. In 2005, cattle
producers began a legal battle by filing a complaint against beef
packers under the Ministry of Justice's Economic Defense Council for
practices of cartel.

## Geographical Distribution of Cattle

For the past two decades there has been a movement of cattle towards the
Center-West regions. However, because of the strong expansion of
soybeans in these areas, and more recently competition with sugarcane,
the appreciation of land prices in the center-west areas has prompted a
movement of cattle breeders towards the Northern region, especially to
those areas located in the so-called pre-Amazon (area not as dense as
the rain forests), such as in the southern area of the state of Para,
Mato Grosso, and Rondonia. Environmental studies indicate that cattle
ranchers are responsible for 75 percent of the deforestation of the
Amazon as opposed to wood producers. Analysts say that raising cattle in
these areas of the Amazon is 10 percent more profitable than other
regions in Brazil land prices are lower than other areas in the
Center-South where competition is stronger for crop production
(soybeans, cotton, and corn).

The following table provides a geographical distribution of the cattle
herd in Brazil, by major regions, based on the ending inventories
projected for 2004.

  ----------------------- ----------------------------- -----------------
  **Region**              **Cattle Herd (1,000 head)**  **Share (%)**

  North                   30,882                        17.8

  Northeast               22,555                        13.0

  Southeast               34,256                        19.7

  South                   25,776                        14.8

  Center-West             60,202                        34.7

  TOTAL                   173,671                       100.0
  ----------------------- ----------------------------- -----------------

Source: Office of Agricultural Counselor (OAA).

## Cattle Traceability Program

The Ministry of Agriculture, Livestock, and Food Supply (MAPA)
officially announced the Brazilian System of Identification and
Certification of Bovine and Buffalo Origin (SISBOV, in Portuguese) in
early 2002. The system was developed to monitor all bovine animals born
in Brazil or imported. The animals registered under the SISBOV will be
monitored by private certification entities accredited by MAPA. The
identification shall include the following: a) identification of the
farm of origin; b) identification of the animal; c) month of birth or
entry on the farm; d) sex of the animal; e) system of breeding and
feeding; f) records of sales; g) additional information for the
certification of the animal; h) sanitary information (vaccination,
treatments); i) for imported animals, identification requires: country
and farm of origin, date of import authorization and date of entry in
Brazil, number of import license and farm of destination; and, j) in the
case of slaughter, the meat packer is responsible for filing with MAPA
the documents related to the identification of the animal.

The Animal Health Department (DDA) of the Ministry of Agriculture
estimates that there are over 50 million animals under this program,
about 30 percent of Brazil's cattle herd, and 30 companies accredited by
DDA to conduct traceability in Brazil.

The SISBOV program is facing some serious controversy between cattle
breeders on one side and government officials and meat packers on the
other side. The core of the controversy has to do with the requirements
for tracing cattle to the farm instead of tracing animals individually.
These controversies may delay the full implementation of the program.

## Animal Health Update

Brazil has made significant progress in eradicating Foot-and-Mouth
Disease (FMD). Currently, 15 states out of 26 (50 percent of the
national territory) and 84 percent of the cattle herd are free of FMD.
The last outbreak of FMD in Brazil occurred in June 2004 in the
municipality of Monte Alegre, state of Para, in the Amazon region.
Russia and Argentina temporarily suspended imports of beef and swine
from Brazil because of the outbreak, but imports were resumed two weeks
later. Government officials expect that by the end of 2006 the entire
country will be free of FMD as a result of the vaccination program and
will meet the deadline established by the National Plan for Eradication
of Foot-and-Mouth Disease (PNEFA).

Government officials are proclaiming that Brazil has the largest cattle
herd (about 145 million head) in the world free of FMD, with
vaccination, officially recognized by the Office of International
Epizooties (OIE). The federal government also increased the total amount
of funds for animal health programs during 2005/06 from R\$68 million
(about US\$23 million) to approximately R\$140 million (US\$47 million).
Animal health officials expect that total number of doses of FMD
vaccines in 2005 will reach 366 million, up almost 4 percent from the
record of 328 million doses in 2003**.**

Brazil and its neighbors in South America (Argentina, Bolivia, Chile,
Paraguay, Peru, and Uruguay) created in mid-July 2003 the Permanent
Veterinary Council (CVP, in Portuguese) to monitor the FMD situation in
the region, exchange technical information on the disease, and work
together to acquire international funds to eradicate the disease from
these countries, which comprise central and southern South America. The
CVP goal is to eradicate FMD from the region by 2009.

The Scientific Steering Committee (SSC) of the European Union reassessed
the geographical BSE risk for Brazil from GBR 1 to GBR 2 (unlikely, but
a BSE risk cannot be excluded), basically due to the cattle imports from
the United Kingdom during 1991-95.

APHIS has completed the FMD risk assessment of Brazil to allow exports
of fresh/frozen beef to the United States, but the report is still
pending publication.

## Policy

The new Agriculture and Livestock Plan for the 2005/2006 marketing year
has not been officially announced, but the federal government is
expected to allocate R\$44.3 billion (US\$ 19.2 billion) for rural
credit, of which R\$11.5 billion (US\$ 5.1 billion) is for investment
credit in the sector, up 4.2 percent from 2004. Beef cattle producers
can benefit from the following investment credit programs, designed to
increase cattle productivity and beef production:

a\) MODERAGRO (former PROPASTO) is a program for pasture improvement
that now includes funds for soil erosion and conservation of low lands).
Each livestock producer can borrow up to R\$150,000 (US\$50,000) with
fixed subsidized interest rates of 8.75 percent, per year (market rates
are above 14 percent per year). The total amount of financial resources
allocated to MODERAGRO during 2005/06-crop year is estimated at R\$900
million (US\$ 390 million).

b\) SILO/WAREHOUSE (MODERINFRA). This program allows livestock producers
to build or rebuild silos and warehouses on their farms. The program was
also modified to include irrigation. Funds allocated to this program
during 2005/06 are R\$700 million (US\$ 304 million). The funds are
limited to R\$100,000 (US\$ 43,000) per livestock producer, with a fixed
subsidized interest rate at 8.75 percent per year.

c\) MODERFROTA. This program is aimed at the modernization of farmers'
agricultural machinery. Total funds allocated to this program during
2005/06 are R\$5.5 billion (US\$ 2.4 billion).

d\) FINAME. This program is offered outside of the rural credit lines
referred to above, under the auspices of the BNDES (National Bank for
Economic and Social Development), and includes long-term subsidized
loans for breeding programs and seeds.

e\) In addition to the federal programs above, producers and packers are
entitled to state and municipal programs and subsidies, of which the
most important are the pasture recuperation programs and at the packers
level, subsidization of the state tax (ICMS), up to 70 percent, with
terms of five to 10 years.

The Constitutional Fund for the center-west region (FCO) is the largest
source of funds at subsidized rates for pasture, soil recuperation
programs, and improvement of animal genetics. Small cattle producers can
also benefit from a variety of other subsidized programs within the new
economic objectives of assisting family farmers and improving the social
conditions of all small farmers in Brazil.

## Tariff Rate Table

  ------------------- --------------------- ----------- ------------------
  **Tariff Number     **Product             **Rate      **Other Info**
  (HTS)**             Description**         (%)\***     

  0102.10.10          Breeding Stock        0           

  0102.90.90          Bovine for Slaughter  2           Free: Mercosul

  0511.10.00          Bovine Semen          0           

  0511.99.10          Bovine Embryos        0           
  ------------------- --------------------- ----------- ------------------

-   Assessed on the CIF value of the product

-   Updated as of 8/31/2005

# Commodity Outlook, Beef

## Production

Post projects an increase of 5 percent in beef production in 2006 to
reach nearly 8.9 million metric tons from the current record production
of 8.4 million metric tons. The following factors support our current
forecast: a) continued expansion in the export market in view of the BSE
outbreaks in certain producing countries; b) aggressive marketing
efforts by Brazilian packers; c) competitive export prices; and, d)
increase in domestic demand, although at moderate levels.

## Consumption

Domestic consumption of beef in 2006 is expected to increase by 2
percent, but from a high level of existent per capita beef consumption.
This moderate increase also reflects a projected lower economic growth
of 3.5 percent in 2006 combined with a decline in consumer confidence in
view of the uncertainties derived from the current political crisis. In
addition, the high level of consumer debt, mostly for durable goods, may
negatively impact on the consumption of animal proteins.

So far, the Zero Hunger Program has had no impact on beef consumption.
Analysts cite limited program funds to bring about an increase in
consumption of animal protein, except for milk.

## Trade

Post projects total beef exports (fresh/frozen and processed) in 2006 to
reach 2.2 million metric tons (CWE), an increase of 15 percent over
2005. Brazilian beef exports are expected to continue to increase
because of the competitiveness of Brazilian beef, the continued impact
of adverse animal health conditions in other countries favoring
Brazilian sales, and aggressive market promotion efforts, including
promotion in new markets. Major target markets for Brazilian beef are
China, the Middle East, Russia, and Chile, although the European Union
is expected to remain as the main destination for Brazilian beef.

Total beef exports (fresh/frozen/processed), during Jan-June 2005,
increased by 28 percent in volume to 618,000 metric tons (PWE) and by 29
percent in value to US\$ 1.4 billion. The average export price remained
about the same as last year at US\$ 2,253.61 per metric ton. Although
the European Union remains as the main destination of Brazilian beef
with a market share of nearly 27 percent, beef exports to Russia
increased significantly by 95 percent during Jan-Jun 2005, compared to
the same period last year. Other major destinations for Brazilian beef
are Egypt and Chile. According to trade sources, the increase in oil
prices has contributed to the hike in Brazilian beef exports this year
as consumers in the oil producing countries have higher disposable
income to purchase animal protein. Total beef imports during the first
half of 2005 decreased by 20 percent in volume, mostly from Uruguay.

Brazilian beef exporters have also diversified their product mix.
Although the largest increase in exports of cuts during Jan-Jun 2005 was
for boneless beef (hindquarters), trade sources indicate that other cuts
(forequarters), comprise a larger share of the overall beef exports,
mostly to markets in the Middle East and Eastern Europe.

Exports of processed beef, mostly corned beef, to the United States
dropped by nearly 6 percent during January-June 2005, compared to the
same period last year. Beginning May 5, 2005, Brazil self suspended its
processed beef exports to the United States following an enforcement
audit conducted by the USDA's Food Safety Inspection Service (FSIS). As
of August 5, exports resumed for most packers, and the overall impact on
exports in 2005 to the United States should be minimum.

Note: Differences between export data reported by Brazilian trade
sources and those used by Post are due to the use of different
conversion factors. Brazilian sources use a 2.5 factor for conversion of
processed beef into CWE, while Post uses 1.79 factor. The same applies
for boneless beef, as Post uses 1.42 as the conversion factor, while
Brazilian trade sources use 1.36.

## 

## 

## Stocks

There are no official stocks of beef in Brazil

## Policy

The National Bank for Economic and Social Development (BNDES) provides
meat-packing houses (meat plants) subsidized long-term loans to build or
modernize their meat packing houses. BNDES does not provide the loans
directly to the producer or packer, but through other state and
commercial private banks. Total funds allocated under BNDES for the
livestock sector are estimated to have increased to US\$ 360 million in
2005. BNDES also offers the following programs aimed at financing
exports, which are used by meat packers:

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

These programs represent an alternative for exporters to reduce the
costs of their export operations. ACC enables an exporter to obtain a
cash advance based on the export contract, prior to shipment of the
product, while ACE is a cash advance after shipment of the product.
Repayment terms are 180 days before or after shipment of the products.
The cost to the exporters of obtaining ACC or ACE advances is equal to
the international cost of financing exports (LIBOR plus a spread), now
approximately 12 percent. There are several ways of combining ACC with
other export credit programs, but the two most important for
agricultural and food exports are:

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

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

\(2\) BNDES-Exim:

The main objective of this program is to expand Brazilian exports in
general, including agricultural commodities, by making three types of
credit lines available to exporters at costs competitive with
international financing. The most widely used line of credit is similar
to a buyer's or supplier's credit. Financing covers 100 percent of the
shipment and repayment terms vary between 181 days to 12 years with
interest rates based on LIBOR plus a spread.

This program is also referred to as the Brazilian \"Eximbank\" within
BNDES. The amount allocated for this program in 2003 is estimated at
US\$ 4.6 billion, of which meat plants (including poultry) may take up
to US\$ 800 million.

## Marketing

The private, non-profit organization, the Brazilian Beef Processors and
Exporters Association (ABIEC), is comprised of the largest beef
processors, packers, and exporters. In the past, ABIEC functioned mostly
as a national lobbying group with few international market promotion
activities. The association emphasized trade servicing, specifically
related to the elimination of sanitary barriers to Brazilian beef in the
European Union, Asia, and Russia. Since 2001, ABIEC initiated an
aggressive market promotion program approved by the National Export
Promotion Agency (APEX), in cooperation with the Office of Production
and Marketing (SPC) of the Ministry of Agriculture, Livestock, and Food
Supply (MAPA). The objective of this program is to promote the brand
\"Brazilian Beef\", emphasizing the product as \"natural\" (grass-fed
beef as opposed to grain-fed beef) and environmentally sound or
beneficial.

ABIEC is expected to target markets worldwide but their primary focus
will be the European Union that now accounts for nearly 60 percent of
Brazilian beef exports. Other markets include the Middle East, Russia,
Asia, Latin America (mainly Chile), and the United States. Specific
market development activities will concentrate on trade shows, trade
servicing, and logistical support to the Brazilian government to remove
non-tariff trade barriers to Brazilian beef.

Activities also include publicity on CNN International and reverse
marketing (travel to Brazil by foreign importers of beef and specialized
journalists). Several foreign teams from the European Union and other
countries have visited Brazil during the first part of their market
promotion project to evaluate cattle breeding and meat production. Two
groups of foreign journalists, also from the European Union, and policy
makers have toured cattle producing areas in the Center-West and meat
packers in several states.

Nearly 60 percent of Brazil's beef exports originate from five major
beef packers (Bertin, Friboi, Independencia, Minerva, and Frigotel).
These meat packers have the following strategy to consolidate their
market share in overseas markets.

First, they are negotiating with the poultry and pork packers to form a
\"meat alliance\" to discuss common policies in international meat
forums.

Second, they plan to open offices in four \"key\" cities: Washington,
Geneva, Brussels, and Tokyo. These offices may evolve into export
trading companies formed by the five largest beef exporters.

ABIEC has an agreement with APEX in the value of R\$3.6 million (US\$
1.6 million) for market promotion during 2005/06 marketing year, of
which APEX will fund 50 percent. The major promotional initiatives in
2005/06 are trade missions to target markets in Arab countries, China,
Malaysia, South Africa, and Russia. In addition, trade show activities
in the European Union, such as the Anuga and Sial, remain a priority for
Brazilian beef exporters.

ABIEC is also promoting the first Brazilian Beef \"Catalog\" with all
cuts available for exports. The catalog is available in seven languages
besides Portuguese: English, French, Spanish, Italian, German, Arabic,
and Russian. Other marketing initiatives for beef include:

a)  Certified \"organic beef\";

b)  \"Patanal\" veal. The Pantanal is one of the most important
    ecological systems in the world, located in the center-west region
    of Brazil;

c)  Supermarket Beef Certification of Origin Program, mostly carried out
    by Brazil's largest retail chain, Pao de Acucar, and by French
    retailer Carrefour, and,

d)  Beef alliances, similar to those in the United States. The most
    popular beef alliances in Brazil are: \"Montana Grill\" which sells
    beef from young steers to steakhouses and supermarkets in Brazil;
    \"Bassi\"; \"Wessel\"; \"Red Angus Beef\" in the South of Brazil,
    and \"Nelore Natural\", mostly in the center-west region of Brazil.

## 

## Tariff Rate table

+--------------+---------------------------+--------+-----------------+
| **Tariff     | **Product Description**   | **Rate | **Other Info**  |
| Number**     |                           | (%)    |                 |
|              |                           | \***   |                 |
+--------------+---------------------------+--------+-----------------+
| 0201.10.10   | Fresh or Frozen Bone-in   | 10     | Duty-free from  |
|              | Beef Cuts or Carcasses    |        | Mercosul        |
| 0202.10.10   |                           |        |                 |
+--------------+---------------------------+--------+-----------------+
| 0201.30.00   | Fresh or Frozen Boneless  | 12     | Duty-free from  |
|              | Beef                      |        | Mercosul        |
| 0202.30.00   |                           |        |                 |
+--------------+---------------------------+--------+-----------------+
| 0206.10.00   | Bovine: Variety Meats     | 10     | Duty-free from  |
|              |                           |        | Mercosul        |
+--------------+---------------------------+--------+-----------------+
| 0210.20.00   | Meat of Bovine Animals    | 10     | Duty-free from  |
|              |                           |        | Mercosul        |
+--------------+---------------------------+--------+-----------------+
| 1602.50.00   | Processed Bovine Meat     | 16     | Duty-free from  |
|              |                           |        | Mercosul        |
+--------------+---------------------------+--------+-----------------+

-   Assessed on the CIF value of the product

-   Updated as of 8/31/2005.

# Commodity Outlook, Pork

## Production

Post forecasts pork production to increase by three percent in 2006
because of continued strong demand from the export market combined
higher domestic demand. This projection assumes a moderate increase in
feed costs since the new Crop Plan to be officially announced for
2005/06-crop year will likely inject more subsidized credit to increase
corn production. It also assumes that current favorable returns to hog
breeders will continue the first half of next year. Brazilian pork
exporters also project a moderate devaluation of the Brazilian currency
in 2005 that will make the Brazilian product more competitive in world
markets.

Our forecast also estimates an increase in hog production in the
center-west region due to investments made by national and foreign
groups, mostly in the state of Mato Grosso. These investments benefit
from long-term federal credit lines as well state development programs.
An increase in hog production in the center-west region will off-set a
small decline in hog production in the south region of Brazil where hog
producers have balanced supply and demand to increase profit margins.
However, the three most southern states of Brazil still account for
about 40 percent of swine slaughter and the production system is highly
vertical.

About 40 percent of Brazilian pork production is concentrated among 10
large pork packers, of which Sadia accounts for 11 percent of
production, followed by Perdigao with 8 percent, Aurora with 7 percent,
and Seara with 5 percent. Although Seara only accounts for 5 percent of
total pork production in Brazil, the company alone accounts for nearly
25 percent of all pork exports.

## Consumption

Pork consumption in 2006 is expected to recover from 2005 mostly because
of the expected stable consumer prices and strong market promotion
conducted jointly by producers and packers to increase per capita
domestic consumption of pork in Brazil.

Pork utilization in Brazil is estimated at 70 percent
industrial/processing, and 30 percent fresh consumption. A promotional
campaign to increase fresh pork consumption, which started in the south,
has expanded to other major cities in the southeast. Pork producers
remain concerned about the seasonal trend of fresh pork consumption in
Brazil that is concentrated during the winter months (June-August), and
are trying to address this concern with their campaign to promote the
benefits of pork consumption year-round. Pork producers are trying to
close the gap between the regions of Brazil in terms of pork
consumption. Currently, per capita pork consumption is concentrated in
the South with per capita consumption at 18 kilograms and the Southeast
at 15 kilograms, while the Center-West (11 kilograms) and Northeast (6
kilograms) regions consume less pork.

## Trade

Pork exports are projected to increase by a small rate in 2005, after a
surprising significant increase this year. According to trade sources,
although pork exports are still too concentrated in the Russian market,
exports to other non-traditional markets are increasing through
negotiations to resolve SPS issues and aggressive market promotion.

The volume of pork exports during Jan-Jun 2005 increased by 30 percent.
This result is significantly better than previously estimated by pork
exporters and reflects continued booming sales to Russia. Exports to
other destinations in Eastern Europe also increased significantly, such
as Kazakhstan, Uzbekistan, and Ukraine. The value of pork exports during
Jan-Jun 2005 jumped by 81 percent, due to a higher average price of US\$
1,954.98 per metric ton, up 39 percent from the same period last year.

## Marketing

In addition to the domestic campaign to increase consumption of fresh
pork, Brazilian pork exporters initiated a marketing program in 2002 to
expand overseas sales of pork. The program is half financed by the
Brazilian Pork Processors and Exporters Association (ABIPECS) and the
other half by the Federal Government Export Promotion Agency (APEX). In
2005, the program has received additional funds of US\$ 1.5 million.

ABIPECS is a private, non-profit organization aimed at supporting pork
exporters in overseas markets. Since pork processors and exporters in
Brazil are also the poultry processors and exporters, ABIPECS works
jointly with ABEF, the poultry exporters association, in market
promotion. They share the same offices and staff, but their market
promotion budgets are separate. ABIPECS' major goal is to develop new
markets for Brazilian pork exports that are still highly concentrated in
Russia. Pork exports are also concentrated among five major companies,
which account for 72 percent of all exports (based on 2002 data): Seara
(26%), Sadia (17%), Perdigao (14%), Pamplona (10%), and Frangosul (5%).
The same concentration is true for the three most southern states of
Brazil.

Market promotion programs developed by ABIPECS include: trade servicing,
participation in trade shows (principally FOODEX Japan, HOFEX Hong Kong,
World Food Moscow, SIAL, and ANUGA Germany), display and sampling of
products, sales catalogs in foreign languages, trade missions, reverse
trade missions, and publicity. More recently, ABIEC jointly with the
Brazilian Embassy in certain important cities of the world has innovated
their programs by promoting Brazilian "barbecue" style (churrasco) for
selected audiences. Brazilian "barbecue" style restaurants
(churrascarias) are growing in different countries of the world, such as
in the United States and China.

Target overseas markets include: Asia, the European Union, and other
countries in Latin America. Since Russia became the largest importer of
Brazilian pork, ABIPECS is targeting Russian retailers in their
promotional efforts to avoid the high cost of doing business in Russia
through European trading companies.

## Policy

The same programs referred on pages 6 and 7 of this report apply to pork
packers. In addition, pork packers can also benefit from a subsidized
long-term credit program through the Ministry of Science and Technology
(MCT) to finance projects aimed at genetic development and improvements
in pork quality and carcass yields. Total funds allocated under this
program for 2003/04 are estimated at US\$ 10 million.

## Tariff Rate Table

+--------------+---------------------------+--------+-----------------+
| **Tariff     | **Product Description**   | **Rate | **Other Info**  |
| Number**     |                           | (%)    |                 |
|              |                           | \***   |                 |
+--------------+---------------------------+--------+-----------------+
| 0203.10.10   | Fresh or Frozen Bone-in   | 10     | Duty-free from  |
|              | Pork Cuts or Carcasses    |        | Mercosul        |
| 0203.20.10   |                           |        |                 |
+--------------+---------------------------+--------+-----------------+
| 0201.30.00   | Fresh or Frozen Boneless  | 10     | Duty-free from  |
|              | Pork                      |        | Mercosul        |
| 0202.30.00   |                           |        |                 |
+--------------+---------------------------+--------+-----------------+
| 0206.30.00   | Pork: Variety Meats       | 10     | Duty-free from  |
|              |                           |        | Mercosul        |
+--------------+---------------------------+--------+-----------------+
| 0210.11.00   | Pork meat                 | 10     | Duty-Free from  |
|              |                           |        | Mercosul        |
+--------------+---------------------------+--------+-----------------+
| 1602.40.00   | Processed Pork Meat       | 16     | Duty-free from  |
|              |                           |        | Mercosul        |
+--------------+---------------------------+--------+-----------------+

-   Assessed on the CIF value of the product

-   Updated as of 8/31/2005

# 

# 

# 

# 

# 

# PSD Tables

## Animal Numbers, Cattle

+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| PSD     |     |         |     |         |     |         |     |     |
| Table   |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| Country |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| Brazil  |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| Co      |     |         |     |         |     |         |     |     |
| mmodity |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| Animal  |     |         |     |         |     |         |     |     |
| N       |     |         |     |         |     |         |     |     |
| umbers, |     |         |     |         |     |         |     |     |
| Cattle  |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| (1000   |     |         |     |         |     |         |     |     |
| HEAD)   |     |         |     |         |     |         |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
|         | 2   | Revised | 2   | E       | 2   | F       | UOM |     |
|         | 004 |         | 005 | stimate | 006 | orecast |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
|         | U   | Post    | U   | Post    | U   | Post    |     |     |
|         | SDA | E       | SDA | E       | SDA | E       |     |     |
|         | Of  | stimate | Of  | stimate | Of  | stimate |     |     |
|         | fic | \[New\] | fic | \[New\] | fic | \[New\] |     |     |
|         | ial |         | ial |         | ial |         |     |     |
|         | \   |         | \   |         | \   |         |     |     |
|         | [Ol |         | [Ol |         | [Ol |         |     |     |
|         | d\] |         | d\] |         | d\] |         |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Market  |     | 01/2004 |     | 01/2005 |     | 01/2006 | M   |     |
| Year    |     |         |     |         |     |         | M/Y |     |
| Begin   |     |         |     |         |     |         | YYY |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Total   | 165 | 165492  | 169 | 169567  | 173 | 173671  | (1  |     |
| Cattle  | 492 |         | 583 |         | 671 |         | 000 |     |
| Beg.    |     |         |     |         |     |         | HE  |     |
| Stks    |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Dairy   | 33  | 33098   | 33  | 33913   | 0   | 34734   | (1  |     |
| Cows    | 098 |         | 917 |         |     |         | 000 |     |
| Beg.    |     |         |     |         |     |         | HE  |     |
| Stks    |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Beef    | 46  | 46338   | 47  | 47749   | 0   | 48628   | (1  |     |
| Cows    | 338 |         | 483 |         |     |         | 000 |     |
| Beg.    |     |         |     |         |     |         | HE  |     |
| Stocks  |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Pro     | 46  | 46234   | 47  | 47648   | 0   | 49149   | (1  |     |
| duction | 234 |         | 653 |         |     |         | 000 |     |
| (Calf   |     |         |     |         |     |         | HE  |     |
| Crop)   |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Intra   | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| EC      |     |         |     |         |     |         | 000 |     |
| Imports |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Total   | 1   | 0       | 0   | 1       | 0   | 1       | (1  |     |
| Imports |     |         |     |         |     |         | 000 |     |
|         |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 1   | 0       | 0   | 1       | 0   | 1       | (1  |     |
| Imports |     |         |     |         |     |         | 000 |     |
|         |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 211 | 211726  | 217 | 217216  | 173 | 222821  | (1  |     |
| SUPPLY  | 727 |         | 236 |         | 671 |         | 000 |     |
|         |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Intra   | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| EC      |     |         |     |         |     |         | 000 |     |
| Exports |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Total   | 16  | 16      | 0   | 45      | 0   | 75      | (1  |     |
| Exports |     |         |     |         |     |         | 000 |     |
|         |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 16  | 16      | 0   | 45      | 0   | 75      | (1  |     |
| Exports |     |         |     |         |     |         | 000 |     |
|         |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Cow     | 12  | 12800   | 13  | 13900   | 0   | 15290   | (1  |     |
| Sl      | 800 |         | 100 |         |     |         | 000 |     |
| aughter |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Calf    | 900 | 900     | 900 | 900     | 0   | 900     | (1  |     |
| Sl      |     |         |     |         |     |         | 000 |     |
| aughter |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Other   | 22  | 23255   | 24  | 24181   | 0   | 24563   | (1  |     |
| Sl      | 643 |         | 065 |         |     |         | 000 |     |
| aughter |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Total   | 36  | 36955   | 38  | 38981   | 0   | 40753   | (1  |     |
| Sl      | 343 |         | 065 |         |     |         | 000 |     |
| aughter |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Loss    | 5   | 5188    | 5   | 4519    | 0   | 4185    | (1  |     |
|         | 785 |         | 500 |         |     |         | 000 |     |
|         |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Ending  | 169 | 169567  | 173 | 173671  | 0   | 177808  | (1  |     |
| Inve    | 583 |         | 671 |         |     |         | 000 |     |
| ntories |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 211 | 211726  | 217 | 217216  | 0   | 222821  | (1  |     |
| DISTR   | 727 |         | 236 |         |     |         | 000 |     |
| IBUTION |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| C       | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| alendar |     |         |     |         |     |         | 000 |     |
| Yr.     |     |         |     |         |     |         | HE  |     |
| Imp.    |     |         |     |         |     |         | AD) |     |
| from    |     |         |     |         |     |         |     |     |
| U.S.    |     |         |     |         |     |         |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| C       | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| alendar |     |         |     |         |     |         | 000 |     |
| Yr.     |     |         |     |         |     |         | HE  |     |
| Exp. to |     |         |     |         |     |         | AD) |     |
| U.S.    |     |         |     |         |     |         |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+

## PSD Table, Beef

+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| PSD     |     |         |     |         |     |         |     |     |
| Table   |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| Country |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| Brazil  |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| Co      |     |         |     |         |     |         |     |     |
| mmodity |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| Meat,   |     |         |     |         |     |         |     |     |
| Beef    |     |         |     |         |     |         |     |     |
| and     |     |         |     |         |     |         |     |     |
| Veal    |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| (1000   |     |         |     |         |     |         |     |     |
| MT      |     |         |     |         |     |         |     |     |
| CW      |     |         |     |         |     |         |     |     |
| E)(1000 |     |         |     |         |     |         |     |     |
| HEAD)   |     |         |     |         |     |         |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
|         | 2   | Revised | 2   | E       | 2   | F       | UOM |     |
|         | 004 |         | 005 | stimate | 006 | orecast |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
|         | U   | Post    | U   | Post    | U   | Post    |     |     |
|         | SDA | E       | SDA | E       | SDA | E       |     |     |
|         | Of  | stimate | Of  | stimate | Of  | stimate |     |     |
|         | fic | \[New\] | fic | \[New\] | fic | \[New\] |     |     |
|         | ial |         | ial |         | ial |         |     |     |
|         | \   |         | \   |         | \   |         |     |     |
|         | [Ol |         | [Ol |         | [Ol |         |     |     |
|         | d\] |         | d\] |         | d\] |         |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Market  |     | 01/2004 |     | 01/2005 |     | 01/2006 | M   |     |
| Year    |     |         |     |         |     |         | M/Y |     |
| Begin   |     |         |     |         |     |         | YYY |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Sl      | 36  | 36955   | 38  | 38981   | 0   | 40753   | (1  |     |
| aughter | 343 |         | 065 |         |     |         | 000 |     |
| (Ref    |     |         |     |         |     |         | HE  |     |
| erence) |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Be      | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| ginning |     |         |     |         |     |         | 000 |     |
| Stocks  |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Pro     | 7   | 7975    | 8   | 8455    | 0   | 8880    | (1  |     |
| duction | 975 |         | 455 |         |     |         | 000 |     |
|         |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Intra   | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| EC      |     |         |     |         |     |         | 000 |     |
| Imports |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Total   | 53  | 53      | 50  | 45      | 0   | 40      | (1  |     |
| Imports |     |         |     |         |     |         | 000 |     |
|         |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 53  | 53      | 50  | 45      | 0   | 40      | (1  |     |
| Imports |     |         |     |         |     |         | 000 |     |
|         |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 8   | 8028    | 8   | 8500    | 0   | 8920    | (1  |     |
| SUPPLY  | 028 |         | 505 |         |     |         | 000 |     |
|         |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Intra   | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| EC      |     |         |     |         |     |         | 000 |     |
| Exports |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Total   | 1   | 1628    | 1   | 1950    | 0   | 2240    | (1  |     |
| Exports | 628 |         | 850 |         |     |         | 000 |     |
|         |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 1   | 1628    | 1   | 1950    | 0   | 2240    | (1  |     |
| Exports | 628 |         | 850 |         |     |         | 000 |     |
|         |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Human   | 6   | 6400    | 6   | 6550    | 0   | 6680    | (1  |     |
| Dom.    | 400 |         | 655 |         |     |         | 000 |     |
| Cons    |     |         |     |         |     |         | MT  |     |
| umption |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Other   | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| Use,    |     |         |     |         |     |         | 000 |     |
| Losses  |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 6   | 6400    | 6   | 6550    | 0   | 6680    | (1  |     |
| Dom.    | 400 |         | 655 |         |     |         | 000 |     |
| Cons    |     |         |     |         |     |         | MT  |     |
| umption |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Ending  | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| Stocks  |     |         |     |         |     |         | 000 |     |
|         |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 8   | 8028    | 8   | 8500    | 0   | 8920    | (1  |     |
| DISTR   | 028 |         | 505 |         |     |         | 000 |     |
| IBUTION |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| C       | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| alendar |     |         |     |         |     |         | 000 |     |
| Yr.     |     |         |     |         |     |         | MT  |     |
| Imp.    |     |         |     |         |     |         | C   |     |
| from    |     |         |     |         |     |         | WE) |     |
| U.S.    |     |         |     |         |     |         |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| C       | 89  | 89      | 100 | 100     | 0   | 0       | (1  |     |
| alendar |     |         |     |         |     |         | 000 |     |
| Yr.     |     |         |     |         |     |         | MT  |     |
| Exp. to |     |         |     |         |     |         | C   |     |
| U.S.    |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+

## Export Trade Matrix, Beef, Jan-Jun 2005

+--------------------+---------------+---------------+---------------+
| Export Trade       |               |               |               |
| Matrix             |               |               |               |
|                    |               |               |               |
| Country            |               |               |               |
|                    |               |               |               |
| Brazil             |               |               |               |
|                    |               |               |               |
| Commodity          |               |               |               |
|                    |               |               |               |
| Meat, Beef and     |               |               |               |
| Veal               |               |               |               |
+--------------------+---------------+---------------+---------------+
| Time Period        | Jan-Jun       | Units:        | Metric Tons   |
+--------------------+---------------+---------------+---------------+
| Exports for:       | 2004          |               | 2005          |
+--------------------+---------------+---------------+---------------+
| U.S.               | 24,254        | U.S.          | 22,914        |
+--------------------+---------------+---------------+---------------+
| Others             |               | Others        |               |
+--------------------+---------------+---------------+---------------+
| Algeria            | 4,693         |               | 27,310        |
+--------------------+---------------+---------------+---------------+
| Angola             | 4,924         |               | 5,053         |
+--------------------+---------------+---------------+---------------+
| Bulgaria           | 3,926         |               | 24,791        |
+--------------------+---------------+---------------+---------------+
| Chile              | 52,295        |               | 41,615        |
+--------------------+---------------+---------------+---------------+
| Egypt              | 66,806        |               | 76,678        |
+--------------------+---------------+---------------+---------------+
| European Union     | 151,131       |               | 158,322       |
+--------------------+---------------+---------------+---------------+
| Iran               | 25,360        |               | 6,908         |
+--------------------+---------------+---------------+---------------+
| Israel             | 13,519        |               | 12,137        |
+--------------------+---------------+---------------+---------------+
| Lebanon            | 4,515         |               | 7,933         |
+--------------------+---------------+---------------+---------------+
| Phillippines       | 14,429        |               | 10,379        |
+--------------------+---------------+---------------+---------------+
| Russia             | 56,949        |               | 111,329       |
+--------------------+---------------+---------------+---------------+
| South Africa       | 4,998         |               | 7,632         |
+--------------------+---------------+---------------+---------------+
| UAE                | 3,694         |               | 3,863         |
+--------------------+---------------+---------------+---------------+
| Total for Others   | 407239        |               | 493,950       |
+--------------------+---------------+---------------+---------------+
| Others not Listed  | 49839         |               | 100,721       |
+--------------------+---------------+---------------+---------------+
| Grand Total        | 481332        |               | 617585        |
+--------------------+---------------+---------------+---------------+

## Animal Numbers, Swine

+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| PSD     |     |         |     |         |     |         |     |     |
| Table   |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| Country |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| Brazil  |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| Co      |     |         |     |         |     |         |     |     |
| mmodity |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| Animal  |     |         |     |         |     |         |     |     |
| N       |     |         |     |         |     |         |     |     |
| umbers, |     |         |     |         |     |         |     |     |
| Swine   |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| (1000   |     |         |     |         |     |         |     |     |
| HEAD)   |     |         |     |         |     |         |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
|         | 2   | Revised | 2   | E       | 2   | F       | UOM |     |
|         | 004 |         | 005 | stimate | 006 | orecast |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
|         | U   | Post    | U   | Post    | U   | Post    |     |     |
|         | SDA | E       | SDA | E       | SDA | E       |     |     |
|         | Of  | stimate | Of  | stimate | Of  | stimate |     |     |
|         | fic | \[New\] | fic | \[New\] | fic | \[New\] |     |     |
|         | ial |         | ial |         | ial |         |     |     |
|         | \   |         | \   |         | \   |         |     |     |
|         | [Ol |         | [Ol |         | [Ol |         |     |     |
|         | d\] |         | d\] |         | d\] |         |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Market  |     | 01/2004 |     | 01/2005 |     | 01/2006 | M   |     |
| Year    |     |         |     |         |     |         | M/Y |     |
| Begin   |     |         |     |         |     |         | YYY |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 32  | 32081   | 32  | 32323   | 32  | 32938   | (1  |     |
| Be      | 081 |         | 323 |         | 938 |         | 000 |     |
| ginning |     |         |     |         |     |         | HE  |     |
| Stocks  |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Sow     | 3   | 3005    | 3   | 3020    | 0   | 3030    | (1  |     |
| Be      | 005 |         | 010 |         |     |         | 000 |     |
| ginning |     |         |     |         |     |         | HE  |     |
| Stocks  |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Pro     | 30  | 30015   | 30  | 31914   | 0   | 32509   | (1  |     |
| duction | 015 |         | 465 |         |     |         | 000 |     |
| (Pig    |     |         |     |         |     |         | HE  |     |
| Crop)   |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Intra   | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| EC      |     |         |     |         |     |         | 000 |     |
| Imports |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Total   | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| Imports |     |         |     |         |     |         | 000 |     |
|         |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| Imports |     |         |     |         |     |         | 000 |     |
|         |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 62  | 62096   | 62  | 64237   | 32  | 65447   | (1  |     |
| SUPPLY  | 096 |         | 788 |         | 938 |         | 000 |     |
|         |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Intra   | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| EC      |     |         |     |         |     |         | 000 |     |
| Exports |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Total   | 1   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| Exports |     |         |     |         |     |         | 000 |     |
|         |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 1   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| Exports |     |         |     |         |     |         | 000 |     |
|         |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Sow     | 200 | 200     | 200 | 200     | 0   | 200     | (1  |     |
| Sl      |     |         |     |         |     |         | 000 |     |
| aughter |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| OTHER   | 28  | 28373   | 28  | 29900   | 0   | 31050   | (1  |     |
| SL      | 373 |         | 450 |         |     |         | 000 |     |
| AUGHTER |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Total   | 28  | 28573   | 28  | 30100   | 0   | 31250   | (1  |     |
| Sl      | 573 |         | 650 |         |     |         | 000 |     |
| aughter |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Loss    | 1   | 1200    | 1   | 1199    | 0   | 1050    | (1  |     |
|         | 199 |         | 200 |         |     |         | 000 |     |
|         |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Ending  | 32  | 32323   | 32  | 32938   | 0   | 33147   | (1  |     |
| Inve    | 323 |         | 938 |         |     |         | 000 |     |
| ntories |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 62  | 62096   | 62  | 64237   | 0   | 65447   | (1  |     |
| DISTR   | 096 |         | 788 |         |     |         | 000 |     |
| IBUTION |     |         |     |         |     |         | HE  |     |
|         |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| C       | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| alendar |     |         |     |         |     |         | 000 |     |
| Yr.     |     |         |     |         |     |         | HE  |     |
| Imp.    |     |         |     |         |     |         | AD) |     |
| from    |     |         |     |         |     |         |     |     |
| U.S.    |     |         |     |         |     |         |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| C       | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| alendar |     |         |     |         |     |         | 000 |     |
| Yr.     |     |         |     |         |     |         | HE  |     |
| Exp. to |     |         |     |         |     |         | AD) |     |
| U.S.    |     |         |     |         |     |         |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+

## PSD Table, Pork

+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| PSD     |     |         |     |         |     |         |     |     |
| Table   |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| Country |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| Brazil  |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| Co      |     |         |     |         |     |         |     |     |
| mmodity |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| Meat,   |     |         |     |         |     |         |     |     |
| Swine   |     |         |     |         |     |         |     |     |
|         |     |         |     |         |     |         |     |     |
| (1000   |     |         |     |         |     |         |     |     |
| MT      |     |         |     |         |     |         |     |     |
| CW      |     |         |     |         |     |         |     |     |
| E)(1000 |     |         |     |         |     |         |     |     |
| HEAD)   |     |         |     |         |     |         |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
|         | 2   | Revised | 2   | E       | 2   | F       | UOM |     |
|         | 004 |         | 005 | stimate | 006 | orecast |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
|         | U   | Post    | U   | Post    | U   | Post    |     |     |
|         | SDA | E       | SDA | E       | SDA | E       |     |     |
|         | Of  | stimate | Of  | stimate | Of  | stimate |     |     |
|         | fic | \[New\] | fic | \[New\] | fic | \[New\] |     |     |
|         | ial |         | ial |         | ial |         |     |     |
|         | \   |         | \   |         | \   |         |     |     |
|         | [Ol |         | [Ol |         | [Ol |         |     |     |
|         | d\] |         | d\] |         | d\] |         |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Market  |     | 01/2004 |     | 01/2005 |     | 01/2006 | M   |     |
| Year    |     |         |     |         |     |         | M/Y |     |
| Begin   |     |         |     |         |     |         | YYY |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Sl      | 28  | 28573   | 28  | 28650   | 0   | 0       | (1  |     |
| aughter | 573 |         | 650 |         |     |         | 000 |     |
| (Ref    |     |         |     |         |     |         | HE  |     |
| erence) |     |         |     |         |     |         | AD) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Be      | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| ginning |     |         |     |         |     |         | 000 |     |
| Stocks  |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Pro     | 2   | 2600    | 2   | 2765    | 0   | 2850    | (1  |     |
| duction | 600 |         | 670 |         |     |         | 000 |     |
|         |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Intra   | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| EC      |     |         |     |         |     |         | 000 |     |
| Imports |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Total   | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| Imports |     |         |     |         |     |         | 000 |     |
|         |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| Imports |     |         |     |         |     |         | 000 |     |
|         |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 2   | 2600    | 2   | 2765    | 0   | 2850    | (1  |     |
| SUPPLY  | 600 |         | 670 |         |     |         | 000 |     |
|         |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Intra   | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| EC      |     |         |     |         |     |         | 000 |     |
| Exports |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Total   | 621 | 621     | 640 | 745     | 0   | 770     | (1  |     |
| Exports |     |         |     |         |     |         | 000 |     |
|         |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 621 | 621     | 640 | 745     | 0   | 770     | (1  |     |
| Exports |     |         |     |         |     |         | 000 |     |
|         |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Human   | 1   | 1979    | 2   | 2020    | 0   | 2080    | (1  |     |
| Dom.    | 979 |         | 030 |         |     |         | 000 |     |
| Cons    |     |         |     |         |     |         | MT  |     |
| umption |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Other   | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| Use,    |     |         |     |         |     |         | 000 |     |
| Losses  |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 1   | 1979    | 2   | 2020    | 0   | 2080    | (1  |     |
| Dom.    | 979 |         | 030 |         |     |         | 000 |     |
| Cons    |     |         |     |         |     |         | MT  |     |
| umption |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| Ending  | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| Stocks  |     |         |     |         |     |         | 000 |     |
|         |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| TOTAL   | 2   | 2600    | 2   | 2765    | 0   | 2850    | (1  |     |
| DISTR   | 600 |         | 670 |         |     |         | 000 |     |
| IBUTION |     |         |     |         |     |         | MT  |     |
|         |     |         |     |         |     |         | C   |     |
|         |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| C       | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| alendar |     |         |     |         |     |         | 000 |     |
| Yr.     |     |         |     |         |     |         | MT  |     |
| Imp.    |     |         |     |         |     |         | C   |     |
| from    |     |         |     |         |     |         | WE) |     |
| U.S.    |     |         |     |         |     |         |     |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+
| C       | 0   | 0       | 0   | 0       | 0   | 0       | (1  |     |
| alendar |     |         |     |         |     |         | 000 |     |
| Yr.     |     |         |     |         |     |         | MT  |     |
| Exp. to |     |         |     |         |     |         | C   |     |
| U.S.    |     |         |     |         |     |         | WE) |     |
+---------+-----+---------+-----+---------+-----+---------+-----+-----+

## Export Trade Matrix, Pork, Jan-Jun 2005

+--------------------+---------------+---------------+---------------+
| Export Trade       |               |               |               |
| Matrix             |               |               |               |
|                    |               |               |               |
| Country            |               |               |               |
|                    |               |               |               |
| Brazil             |               |               |               |
|                    |               |               |               |
| Commodity          |               |               |               |
|                    |               |               |               |
| Meat, Swine        |               |               |               |
|                    |               |               |               |
| Time Period        |               |               |               |
|                    |               |               |               |
| Jan-Jun            |               |               |               |
|                    |               |               |               |
| Units:             |               |               |               |
|                    |               |               |               |
| Metric Tons        |               |               |               |
+--------------------+---------------+---------------+---------------+
| Exports for:       | 2004          |               | 2005          |
+--------------------+---------------+---------------+---------------+
| U.S.               |               | U.S.          |               |
+--------------------+---------------+---------------+---------------+
| Others             |               | Others        |               |
+--------------------+---------------+---------------+---------------+
| Albania            | 1,652         |               | 4,795         |
+--------------------+---------------+---------------+---------------+
| Angola             | 883           |               | 2,161         |
+--------------------+---------------+---------------+---------------+
| Argentina          | 11,721        |               | 8,864         |
+--------------------+---------------+---------------+---------------+
| Bulgaria           | 2,047         |               | 2,953         |
+--------------------+---------------+---------------+---------------+
| China              | 1,444         |               | 1,180         |
+--------------------+---------------+---------------+---------------+
| European Union     | 6,141         |               | 2,165         |
+--------------------+---------------+---------------+---------------+
| Georgia            | 1,400         |               | 1,702         |
+--------------------+---------------+---------------+---------------+
| Haiti              | 679           |               | 886           |
+--------------------+---------------+---------------+---------------+
| Hong Kong          | 23,539        |               | 24,856        |
+--------------------+---------------+---------------+---------------+
| Lithuania          | 1,095         |               | 1,499         |
+--------------------+---------------+---------------+---------------+
| Moldova            | 479           |               | 3,490         |
+--------------------+---------------+---------------+---------------+
| Kazakhstan         | 207           |               | 4,609         |
+--------------------+---------------+---------------+---------------+
| Korea              | 330           |               | 3,281         |
+--------------------+---------------+---------------+---------------+
| Russia             | 130,063       |               | 172,334       |
+--------------------+---------------+---------------+---------------+
| Singapore          | 7,083         |               | 6,734         |
+--------------------+---------------+---------------+---------------+
| South Africa       | 7,996         |               | 10,780        |
+--------------------+---------------+---------------+---------------+
| UAE                | 787           |               | 3,185         |
+--------------------+---------------+---------------+---------------+
| Ukraine            | 4,437         |               | 8,403         |
+--------------------+---------------+---------------+---------------+
| Uruguay            | 4,030         |               | 3,450         |
+--------------------+---------------+---------------+---------------+
| Total for Others   | 206013        |               | 267,327       |
+--------------------+---------------+---------------+---------------+
| Others not Listed  | 5176          |               | 7,747         |
+--------------------+---------------+---------------+---------------+
| Grand Total        | 211189        |               | 275074        |
+--------------------+---------------+---------------+---------------+