Competitiveness & Sustainability in a Globalized World Vitor... · Source: Companhia Nacional de...

C o p y r i g h t C o b b - V a n t r e s s , I n c .

4/20/2015

V i t o r H u g o B r a n d a l i z e

C o b b - V a n t r e s s

Competitiveness & Sustainability in a Globalized World

2 C o p y r i g h t C o b b - V a n t r e s s , I n c .

Our Story: Then

"Our people are the heart of our company."

Cobb Distribution

Pedigree

GGP

GP

Parents

Cobb Business

Cobb

North America

Cobb

South America

Cobb

Europe Cobb

Asia

Feeding the World

7

Feeding a Growing World

http://www.farming4rfuture.ca/en/about-us/learn-more/

8

Meat and Eggs Consumption (Per Capita)

7,000,000,000 people in 2010 43 Kg per capita

8,000,000,000 people in 2030

50 Kg per capita

Paul Aho, 2011

9

Feeding a Growing World

It’s estimated, by 2050, the world will need 70% more food than produced today.

Estimated

FOOD REQUIRED

(2050)

FOOD REQUIRED

(2013)

10

Global Protein Consumption

11 Fonte: FAO elaboração: ICONE

Population Growth Map (2005-2050)

Threats and Opportunities

In the last fourty years, Brazil has become from an

importing Country to the second largest exporter of

agricultural products in the world!

12

Brazil, the giant (Agribusiness) ! Exame Magazine, 01/10/2014


The sector represent:

* 23% of gross domestic product

* 27% of jobs, and;

* 44% of Brazilian Exports


Products Production Export World trade

(Participation)

Orange Juice 1º 1º 83%

Chicken Meat 3º 1º 41%

Sugar 1º 1º 41%

Soya 2º 1º 39%

Beef Meat 2º 2º 29%

Coffee 1º 1º 23%

Pork Meat 4º 4º 11%

Ethanol 2º 1º n.d.

Brazil Agribusiness

Source: CONAB, 2012, ABIOVE, 2011 and USDA, 2012

14

Why Brazil is one of the big player (Food Suppliers) in the world?

Because Brazil has, land and water available, perfect weather and people with ability to work in the field!

15

• Brazilian agricultural activity

occupies 27.3% of the territory

• 61% or 520 million hectares of

the country are still covered by

native vegetation

Scenario

16

Greece Ucraine Bosnia Croacia Macedonia Iceland Yugoslavia Norway Finland Switzerland Byelorussian

Austria Hungary Romania Holland Lituania Italy Poland Estonian

Czechoslovakia

France

Ireland

Belgium

Albania

Portugal

Spain Bulgaria

England

German

Letonia

Denmark

Sweden

Brazil's agricultural area (520 million ha) Total area of 32 European Countries


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://nossaterrafp.blogspot.com/2014_02_01_archive.html&ei=6i3eVPmtGci6ggTdrIG4Dw&bvm=bv.85970519,d.eXY&psig=AFQjCNH-6OpGL4iPi1fN9Pd3cRH4LZ-XZQ&ust=1423933282847765

18

Water Available

12% of water available (World)

Virtual consumption estimated of water for various products (L/kg producto)

Source: Hoekstra y Hung, 2003, Chapagain and Hoekstra, 2003, Zimmer and Renault,

2003 and Oki et al., 2003 Environmental Impact of Meat Production (wikipedia, 2012)

Products Average (Different authors)

Beef 16726

Pork 5469

Cheese 5288

Broiler 3809

Eggs 3519

Rice 2552

Soya 2517

Wheat 1437

Corn 1020

Milk 738

Potatoes 133

20

Corn – Crop Calendar

BRAZIL JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

CORN 1st Crop Plantation

Harvest

CORN 2nd Crop Plantation

Harvest

ARGENTINA JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

CORN Plantation

Harvest

UNITED STATES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

CORN Plantation

Harvest

Source: AMIS – Agricultural Market Information System (May 13)



21

Corn 1st Crop

Source: Companhia Nacional de Abastecimento – CONAB (Jun 13)

22

Corn 2nd Crop



Corn

North

Northeast

Central West

Southeast

South

- Production (Thousand / Short Tons) - Production (% by region) - Yield (Bushels / ha)


24

http://usda.mannlib.cornell.edu/usda/current/wasde/wasde-02-10-2015.pdf









25

Soybean– Production by region

26

Soybean – Crop Calendar

BRAZIL JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

SOYBEAN Plantation

Harvest

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Plantation

Harvest

ARGENTINA

SOYBEAN

UNITED STATES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

SOYBEAN Plantation

Harvest




27

North

Northeast

Central West

Southeast

South

- Production (Thousand / Short Tons) - Production (% by region) - Yield (Bushels / ha)

Soybean


28 C o p y r i g h t C o b b - V a n t r e s s , I n c . http://usda.mannlib.cornell.edu/usda/current/wasde/wasde-02-10-2015.pdf










The Global Kitchen


Foo

d S

urp

lus • United

States

• Brazil

• Argentina Fo

od

Def

icit

• Africa

• Middle East

• Europe

Pop

ula

tio

n C

ente

rs

• India

• China

Global Food Supply

31

Resources

Developed Poultry Industry

U.S. & Brazil


Poultry

Beef 6.0 kg of feed 365 days (Feedlot)

Pork 3.0 kg of feed 180 days

Eggs 2.0 kg of feed

Broiler 1.8 Kg of feed 42 days (2,8 Kg Live)

Beef 0.0 Kg of grain Grass

33

We believe that poultry will be the fastest growing land-based protein. Why????


Poultry

Feed conversion rate

Genetic advances

Life cycle

Universally accepted

35

Meat and Eggs in 2030 (Tons)

Meat 2011 2030

Beef 56 62

Pork 101 120

Chicken 74 120

Turkey 5 10

Eggs 68 88

Total 304 400 Paul Aho, 2011


Meat Production (Million / Tons)

Beef Pork Broiler Lamb Others Total Human Population

2010 66.2 102.2 96.9 14.4 5.6 285.4 6,908

2020 75.4 115.1 124.1 17.1 6.1 337.9 7,674

Increment

(%) 13.9 12.6 28.1 18.7 8.9 18.4 11.1

Adapted from OCDE-FAO, Agricultural Outlook 2010-2019

Chicken Meat Production (World) (1990-2030)

0

20

40

60

80

100

120

1990 2000 2010 2020 2030

Paul Aho, 2011


Chicken Production (1990 & 2010 - Million Tons)

1990 2010 Increment

Brazil 2.3 12.3 10.0

World 35 80 45

Paul Aho, 2011

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=L2LWx7wJyKCMDM&tbnid=k7olvruQP88zWM:&ved=0CAcQjRw&url=http://suasreceitas.com.br/tipo-receita/aves/page/8/&ei=sAk9VIX1NLT-8AGZ9IGoDw&bvm=bv.77161500,d.aWw&psig=AFQjCNF9EdMUnQE7wFnzEeQOK8F-zqi-aQ&ust=1413372683890140

39 Source: USDA, ABEF

The largest poultry meat producers

23%

18%

15% 4% 3%

37%

EUA China Brasil México Índia Outros USA

USA

Brazil

China

56% of World Production

Protein Consumption (World)

Others

40

Chicken Meat Production - Brazil (Million Tons.)

12,312

12,863

12,645

12,308

12,865

13,656

2010 2011 2012 2013 2014 2015

http://thumbs.dreamstime.com/z/chicken-thumbs-up-21955933.jpg

41

2008 2009 2010 2011 2012 2013 2014

Production 11033 11021 12312 12863 12645 12308 12691

Exportation 3646 3634 3820 3943 3917 3891 3995

% Exportation 33.0 33.0 31.0 30.7 31.0 31.6 31.4

Brazilian Poultry Production and Exportation (1000 ton)


Comments: * Projection

Production Volume

- In 2013, the volume of breeders placed decreased about 0.90% compared

to 2012, and the DOC production grew in Brazil in 2013 (2.50%).

- In 2014, the volume of breeders placed grew 6.90% compared to 2013, and

the DOC production grew in Brazil in 2014 (1.40%)

- In 2015, the volume of breeders placed must grow 3.45% compared to

2014, and we expect to grow the DOC production in Brazil in 2015 (2.00%)

2011 2012 2013 2014 2015

Breeder Placement (x 1,000)

49,75 46,50 46,1 49,3 51,0

2011 2012 2013 2014 2015

DOC Placement (x 1,000)

6,231,854 5,986,504 6,138,944 6,226,280 6,351,000

43

Adapted from Apinco, Conab, Cobb and Secex (Estimation from MB Agro, 2012) and

Aveworld, 2012

Year Production Export Import Domestic

Consumption

Consumption

(Per capita)

2002 7429 1625 0.6 5804 32.9

2012 12645 3917 2.2 8728 43.8

2020 15740 5170 10570 51.4

Brazilian Broiler Production Production and Consumption

(1000 ton)


Export ( % of Total World Production)

5% 1990 10% 2010 14% 2030

Paul Aho, 2011

45

History of Brazilian Poultry Industry

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.lrworld.com/ro/press/press-releases/2014/enjoy-brasil/&ei=LGTfVKiUGcmyggTN44OwDA&bvm=bv.85970519,d.eXY&psig=AFQjCNHqP1zLMXCQilmz1l_HJzgQqgLgtQ&ust=1424012511176262

46

Two years after the Two

Two years after discovery of Brazil (In 1502), Gonçalo Coello, brought the

first breeder to Brazil.

UBABEF, 2011 – The saga of the Brazilian Poultry Industry

Decade Important events

1950 - Project ETA 42 – Brazil – USA – pure breed implementation

1960 - Integration production model implemented in the Southern region of Brazil - Long term Government investment

1970 - Development of poultry industry and increase of Brazilian poultry consumption

1980 - Start of poultry whole chicken export to Middle East and broiler cuts to Japan - Economical crisis reduced the increment of internal chicken consumption - Return first PhDs from outside and start of Graduate Programs in Animal Production

1990 - Increase technical production and animal performance – reduction of production cost - Export to Europe

2000 Main broiler exporter in the world

2010 - 2015 Consolidation – BrFoods (Sadia + Perdigao), JBS (Doux + Seara + others)


Production and Economic Aspects

4.5 million people involved in the broiler business

1.5% of Growth Domestic Product

3th larger broiler producer, close to China

7st larger egg producer

Largest broiler exporter

Exports to more than 150 countries

31% of the total country production is exported

33.2 million tons broiler/breeder feed and 5.1million tons layers (56.6% of total animal feed production)


Brazilian Breeder and Broiler Production

50

Farm place and protection - Breeders


Broiler

52

Farm place and protection


Industry Consolidation

54

Top DOC Producers



Top DOC Producers


Breakdown of Brazilian Companies

Weekly Slaughter BRF

JBS

Cooperatives

Others

21%

28%

JBS Broilers / week:

26 million

BRF Broilers / week:

35 million

9%

42%

Coops Broilers / week:

11 million

Others Broilers / week:

53 million


Where the Brazilian Poultry Industry is Located?


Brazil: Pullet Cost

6.00

6.50

7.00

7.50

8.00

8.50

9.00

9.50

Jan/14Feb/14Mar/14Apr/14May/14Jun/14Jul/14Aug/14Sep/14Oct/14Nov/14Dec/14

Feed Ingred Cost (1.5 d)

Brasil=7.18 Prev=7.79 USA=8.71 Tp25%=8.21


Brazil: Pullet Developer

2545

2595

2645

2695

2745

2795

2845

2895


Calories/Kg. Feed (1.11 a)

Brasil=2,775 Prev=2,744 USA=2,843 Tp25%=2,761

60

Brazil: Combined Breeders Feed Nutrient Profile

2627

2677

2727

2777

2827

2877

2927


Calories/Kg. Feed (1.19 a)



Brazil: Breeder

77.00

79.00

81.00

83.00

85.00

87.00

89.00


% Adj Hatchability (1.16 d.1)



Brazil: Breeder

123.0

128.0

133.0

138.0

143.0

148.0

153.0

158.0

163.0


Chicks/Hen per 65 Wks (1.29 a.1)


63

Brazil: Growout

1.75

1.95

2.15

2.35

2.55

2.75

2.95


Bird Weight (6.1 m)



Brazil: Growout

168.00

178.00

188.00

198.00

208.00

218.00

228.00

238.00

Jan/14 Feb/14 Mar/14 Apr/14 May/14 Jun/14 Jul/14 Aug/14 Sep/14 Oct/14 Nov/14 Dec/14

Live Production Cost (6.1 a.1)


65

Brazil: Growout

5074

5274

5474

5674

5874

6074

6274


Actual Calorie Conversion (6.10 b.4)



Brazil: Growout

5074

5274

5474

5674

5874

6074

6274


Actual Calorie Conversion (6.10 b.4)



Brazil: Broiler Processing

84.0086.0088.0090.0092.0094.0096.0098.00

100.00102.00104.00

Jan 14 Feb 14 Mar 14 Apr 14May14

Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14

Brasil=95.68 95.24 96.36 97.37 98.77 97.87 94.79 98.28 99.87 98.26 97.60 96.22 95.68

Prev=95.13 94.89 92.63 90.61 93.94 91.90 94.65 98.13 94.82 96.25 96.23 95.13

USA=98.55 97.74 97.44 98.01 98.22 98.26 98.13 98.42 98.35 98.33 98.21 98.21 98.55

Tp25%=102.26 101.33 101.14 101.87 101.54 101.49 100.99 101.43 102.03 101.64 101.74 101.98 102.26

% Line Efficiency (2.4 a.1)

68

Brazil: Broiler Processing

68.00

70.00

72.00

74.00

76.00

78.00

80.00


WOG Yield (3.1 e.2)



Challenges that Brazil will need to overcome

71

Countries considered: • South Africa • Argentina • Austrália • Brazil • Canada • Chile • China • Colombia • South Korea • Spain • India • Mexico • Poland • Russia • Turkey

72

Results


Brazil is the 12th in the ranking of 14 countries in cost of labor due to low productivity, but it is the 4th in availability of manpower.

It lost three positions comparing to 2012 due to the lower growth of labor force.

AVAILABILITY AND COST OF LABOR

74

2006 2007 2008 2009 2010 2011 2012 2013

667 869 943 1.029 1.118 1.259 1.379 1.567

Brazil: Salaries and charges (Processing Plant) (Increased 18,5% per year)

75

INFRASTRUCTURE AND LOGISTICS Brazil is ranked last in the subfactor Transport Infrastructure, and in the intermediary third in the subfactors Energy and Telecommunications Infrastructure and Customs and Operators. In comparison with 2012, Brazil lost a position and was overtaken by India, due to the worsening in the ranking of the subfactors Energy and Telecommunications Infrastructure and Customs and Operators.

76

LOGISTICS (Challenges) • Highways in bad conditions

• Farms with difficult access during rain season

• Grain transportation mainly by trucks

• Long distances from farms to feed mills and

ports

• Lack of trucks to transport grains

• Corn as a new exportation product

• Infrastructure investments didn’t follow

production increment

• Increase in freight cost


TAXES

Brazil is the 14th country in the ranking. Regarding the four subsectors, only in total Tax Revenues (as the percentage of PIB) Brazil is in the intermediary third. In comparison with 2012, Brazil remained in the penultimate position, ahead of Argentina.


EDUCATION

Brazil was ranked 9th in 11 countries, which means that it is in the lower third.

In comparison with 2012, Brazil remained in the antepenultimate position, but due to the entry of Turkey, it went from the 8th to the 9th position.

Thank you

Competitiveness & Sustainability in a Globalized World Vitor... · Source: Companhia Nacional de...

Documents

Transcript of Competitiveness & Sustainability in a Globalized World Vitor... · Source: Companhia Nacional de...