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BRCHICKEN

Galo (Cock, 1962) Mixed technique, Ecoline on paper by Brazilian artist Aldemir Martins, whose work was inspired by this fowl and its longstanding presence in Brazilian culture.

The World Eats Better And Safer With Brazilian Chicken

contents

A MessAGe FRoM tHe PResIDent

Cover: Galo (Cock) ­ 1962 Mixed technique, Ecoline on paper. By: Aldemir Martins (1922-2006) The right to use this image for this cover was kindly granted by Mr. Pedro Martins, curator of the work of painter Aldemir Martins (www.estudioaldemirmartins.com).

Brazilian Poultry Farming: Quality with SuStainaBility

The success of Brazilian chicken meat in international markets can be seen by the sheer scale of the numbers for our exports. Today our products sell in 153 countries and account for 41% of exports of this kind of animal protein worldwide. The hard work that has been done throughout the chicken supply chain, always with the support of the Brazilian Chicken Producers and Exporters Association (ABEF) means that the country has been the leading global exporter since 2004. Today our sector generates 1.5% of Brazilian gDP and 4.5 million direct and indirect jobs. Brazil has maintained its competitiveness despite the instability we have seen in major import markets, due to the international financial crisis. The data shows that our exports have grown 15% per year since 2000, by volume. I should emphasize that this is the consequence of producers, meat packers and exporters all working together, in union. This excellent partnership has been the key factor for the sector not simply to have retained its existing markets in this very difficult situation, but also to have gained new markets for Brazilian chicken, specifically India, China and Algeria. This exporting success reflects occupying less arable land. Animal welfare is a major concern for the Brazilian poultry sector. In this context ABEF, working together with the Ministry of Agriculture, Livestock and Supply, offers courses in best practices for chicken production. The aim is to improve the technical capacity of integrated producers and their families in questions relating to pre-slaughter handling, transportation of birds, environmental management and biosecurity in aviaries. Another concern is about flock nutrition ­ in Brazil poultry feed is based on a mixture of corn and soy. The net result of all these efforts is that our product is today accepted in the world's most demanding markets, like the European union and Japan, and also in markets that impose religious rules on food production, for example Islamic halal slaughter. Despite the challenges it has been facing, the Brazilian exporting sector is betting on the quality and sanitary control of Brazilian chicken to keep pace with the global trend of ever-expanding consumption of this protein.

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BRChicken is published by the Brazilian Chicken Producers and Exporters Association (ABEF), with the support of APEX-Brasil, the Brazilian Trade and Investment Promotion Agency, an autonomous agency linked to the Ministry of Industry, Development and Foreign Trade. Brazilian ChiCken ProduCers and exPorters assoCiation (aBeF) Executive President Francisco Sérgio Turra Executive Director Ricardo Santin Trade Promotion Isis Nogueira Sardella, Eliene Turci Technical Advisor Sulivan Pereira Alves Brazilian Chicken Producers and Exporters Association (ABEF) Av. Brigadeiro Faria Lima, 1912, Suite 20L São Paulo, SP, Brazil CEP 01451-907 Tel/Fax: 55 (11) 3031-4115 www.abef.com.br e-mail: [email protected] BRChicken is produced for ABEF by Editora Brazil Now

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Brazilian Poultry FarminG: Quality with SuStainaBility

A messAge from frAncisco TurrA, presidenT of The ABef.

editora Brazil now DIRECToR AND EDIToR Dirceu Brisola ENgLISh EDIToR Brian Nicholson CoNTRIBuToR Luiz Gonzaga S. Neto PhoToS Beatriz Silveira; Divulgação Abef, Doux, Edu Campos, Embrapa, Governo do ES, Rivelli; José Biavatti gRAPhIC DESIgN AssaokaAD Comunicação gRAPhIC PRoDuCTIoN Solange Melendez PRINTED AT Ipsis Gráfica Editora Brazil Now Ltda. Av. Prof. Alfonso Bovero, 323 01254-000 São Paulo SP Brazil Phone: +55 (11) 3672-4323 Fax: +55 (11) 3875-7100 www.brazilnow.com RESPoNSIBLE DIRECToR Dirceu Brisola (MT 8.961)

toP Quality ProduCtion For GloBal Food SaFety and SeCurity

BrAzil hAs Achieved unrivAled compeTiTiveness in The producTion of

chicken meAT, wiTh high quAliTy And excellenT sAniTAry sTAndArds, showing ThAT iT is reAdy To meeT The growing gloBAl demAnd for AnimAl proTein.

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Growth with PreServation

BrAzil's world-fAmous nATurAl resources will noT suffer wiTh The

growTh in chicken meAT producTion. sTricT environmenTAl lAws Are BAcked up By The AwArenes of poulTry producers.

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Sanitary exCellenCe throuGhout the SuPPly Chain

By AdopTing rigorous conTrols AT All sTAges of producTion, The

BrAziliAn chicken meAT exporTing indusTry hAs Become A world BenchmArk for sAniTAry Technology.

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animal wellFare PromoteS ConSCientiouS ConSumPtion

The BrAziliAn chicken supply chAin is governed By lAws, norms,

Francisco turra, executive President of the Brazilian Chicken Producers and exporters association (aBeF)

proTocols And producTion prAcTices ThAT promoTe AnimAl well-Being. good for The producT, And good for The eThicAl consumer.

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StrenGth and tradition enSure Continued Growth

recognized worldwide for iTs experTise in producing chicken meAT, The

BrAziliAn poulTry secTor is expAnding cApAciTy while invesTing in Technology, new plAnT And sAniTAry conTrol.

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the BeSt aGrarian reForm

The inTegrATed producTion sysTem AdopTed By The BrAziliAn chicken

meAT indusTry creATes joBs And income in The counTryside, so mAking An essenTiAl difference for ThousAnds of smAll And medium fArmers.

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a SeCure Path to SuCCeSS

meeT The 29 compAnies in ABef ThAT TodAy AccounT for 75% of BrAzil's

chicken meAT producTion And no less ThAn 93% of exporTs.

work that has been done throughout the entire sector. Most important is the very high sanitary standard of Brazilian poultry production. Quality, sanitary control and sustainability are key qualities of our product. Brazilian poultry production meets the most modern sanitary and handling standards, in addition to having a very low environmental impact. All chicken destined for export is produced in plants located far from the Amazon region, and studies prove that our chicken production consumes less water than production of other animal proteins, while

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coVeR stoRY

Top quAlITy produCTIoN for gloBAl food SAfETy ANd SECurITy

BrAzIl HAS ACHIEvEd uNrIvAlEd CompETITIvENESS IN THE produCTIoN of CHICKEN mEAT, WITH HIgH quAlITy ANd ExCEllENT SANITAry STANdArdS, SHoWINg THAT IT IS rEAdy To mEET THE groWINg gloBAl dEmANd for ANImAl proTEIN.

over the last five years, a powerful but unusual combination of natural factors ­ available land, ample water and a favorable climate ­ has combined with strong investment in the latest animal production technology to make Brazil the world's leading exporter of chicken meat, responsible for 41% of global exports and present in 153 different national markets. The quality and sanitary standard of Brazilian chicken meat are continually being tested and approved by the most demanding consumers. It's a success story rooted in the traditional competence of the productive sector and the advanced sanitary technology that permeates the entire supply chain, from the insemination of eggs and the breeding of birds by small producers right through to final shipment of the industrialized product. Brazilian leadership is based on 40 years of research into poultry production. Significant investments have been made in genetic selection, nutritional improvement and balance, an appropriate environment (temperature and ventilation), control of diseases and

sanitation, correct handling (including norms for animal welfare), transportation and meat processing. This knowledge, in turn, helps organize and maximize the potential of Brazil's inherent natural advantages. The country is a major grain producer ­ soy and corn are natural chicken feed ­ with an abundance of water, lots of sun and agreeable temperatures that permit natural thermal conditioning. Add in environmental sustainability, because chicken production does not threaten any important Brazilian biome, be it the Amazon or any other, and the result is an advantage over other meat production systems by virtue of lower energy consumption and a smaller contribution to global warming. These last two aspects were listed in a report by the uK government's Department for Environment, Food and Rural Affairs (DEFRA) ­ see box on page 8. The `virtuous circle' of Brazilian chicken production includes another element, this time of a social nature. The sector is structured in a way that ensures incomes and a better quality of life in the countryside, so benefitting

thousands of small integrated family producers. This set of factors makes the Brazilian chicken industry socially and environmentally sustainable, as well as highly competitive, with unbeatable cost and quality. The sector is therefore ready to answer the challenge of global food security, complying with the strictest public policies of every country that seeks to guarantee its population permanent sources of healthy animal protein. "Chicken meat is the world's cheapest and healthiest source of animal protein. And Brazil is a world benchmark for production of this longevity protein," said Francisco Turra, president of the Brazilian Chicken Producers and Exporters Association (ABEF). This expertise has an impact on the world food supply, a question that constitutes a major global priority and a challenge for global production. According to Bernard Vallat, director general of World organization for Animal health (oIE) who holds a doctorate in veterinary medicine, the global demand for animal protein (meat,

doux chicken production in Brazil: protecting the environment.

number of meals per day and consuming a much larger quantity of meat, milk and eggs, whenever possible. Sanitation ­ The sanitary status of animal protein is crucial to providing consumers with a quality product. And in poultry health Brazil is, without a doubt, an international benchmark. "The Brazilian industrial poultry sector exhibits a high level of sanitary protection against those factors that could put its production at risk," said Inácio Kroetz, Secretary of Farming Defense at the Ministry of Agriculture, Livestock and Supply (MAPA). "In addition to the vigilance systems of producers, sector association, municipalities and states, we have a modern industrial sector that is monitored by Brazil's Federal Inspection Service, which checks the quality, innocuousness, health and compliance of the products," Kroetz said. Another factor stimulating the consumption of chicken is the widespread

milk and eggs) is set to expand by 50% through 2020, driven by population growth and the millions of poor households who are likely to enjoy increased purchasing power. These homes, particularly in more populous countries such as the so-called BRICs (Brazil, Russia, India and China) are already changing their eating habits, increasing the

search for diets with a lower fat content. Easily digestible and rich in amino acids, chicken meat is an excellent source of proteins and contains less fat than red meats. According to the oECD-FAo Agricultural outlook 2009-2018, a report prepared jointly by the organization for Economic Cooperation and Development and the uN's Food and Agriculture organization, by 2018 chicken will be the world's most consumed meat, accounting for 24% of total consumption, ahead of pork (22%), lamb (20%) and beef (18%). "The world needs to eat well and chicken is the meat; it has good nutritional value and is cheaper than any other," said Mário Lanznaster, president of Coopercentral Aurora, one of the largest cooperatives in the Brazilian meat sector. "There are no restrictions on chicken meat, be they religious or cultural, and economically it is the most attractive," said Lanznaster.

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the challenge of supply ­ The great challenge now facing global agribusiness is how to meet the growing demand. over the last 10 years the Brazilian poultry supply chain has demonstrated a vigorous ability to expand production. In 1998, Brazil produced just 4.9 million tonnes of chicken; it is now set to reach 11.5 million tonnes in 2009, according to a projection by the Brazilian Poultry Association (uBA). Exports jumped from uS$620 million in 1998 to uS$6.9 billion in 2008. The country has been the world's top exporter since 2004. In spite of the economic crisis which deepened in the last quarter of 2008, Brazilian chicken exports last year earned uS$6.9 billion, an increase of almost 40% over the uS$5 billion exported in 2007. And this year, even with the crisis in world commerce, the ABEF is projecting export growth of up to 5% by volume. The excellence of Brazilian chicken meat is confirmed by the most demanding international markets. Exports to Japan grew by 101% in 2008, to uS$1.16 billion, making that country Brazil's largest single customer. Brazil currently accounts for 90% of Japanese imports of raw chicken meat, and the demanding, meticulous standards of Japanese sanitary authorities, amongst the highest in the world, are well known. hong Kong, another important market, purchased uS$563 million of Brazilian chicken in 2008, up 30.7% on the previous year. Brazil supplies 63% of all chicken imported by hong Kong. Brazilian chicken also has a strong presence in the Middle East, with highlights being Saudi Arabia and the united Arab Emirates. Also on the list of the 10 largest importers of Brazilian chicken are the Netherlands, Venezuela, Russia, South Africa and germany. These are all specific markets that demand different cuts and advanced poultry production technology. For Clovis Pereira, commercial manager of Diplomata, Brazil's sixth largest com-

pany in terms of bird slaughter, "the potential for expansion of poultry activity makes Brazil the only producer able to sustainably supply the large volumes that world demand could require." investments in Brazil - For this reason, significant investments are being made at every stage of the Brazilian poultry industry and a vigorous process of consolidation is underway. Sadia and Perdigão, the country's two largest chicken processors and exporters, merged in May of this year to form Brasil Foods SA (BRF), a giant born with

players like Cargill, Tyson Foods, Doux and Dawn Farms are currently expanding their activities in Brazil, including buying local companies. Cargill and Tyson Foods alone are investing uS$300 million in new plant and chicken production lines (see article in this edition). At the end of July the Marfrig group agreed financing of uS$27.3 million with the Banco do Brasil to build 744 new aviaries through 2011 in four states, and to upgrade existing aviaries. "This will be an important tool to stimulate Marfrig's business and to strengthen the whole chicken supply

Index of Water Shortage

delivering poultry feed to the storage silos.

Brazil has abundant fresh water.

42 plants, annual billing projected at over uS$10 billion and the potential to become the largest meat processor in the world. After raising uS$3.2 billion in a primary share offer in mid July, Brasil Foods then announced an injection of uS$519 million to bolster Sadia, after the company rang up losses with financial derivatives and the devaluation of the real against the dollar at the end of 2008. BRF will absorb and realize the potential of investments totaling uS$2.7 billion made by Sadia and Perdigão over the last two years in new factories and the expansion of existing plants. Large Brazilian groups such as Marfrig and Minerva and international

chain," said Marcos Antonio Molina dos Santos, president of the group, in a release. Clever Ávila, director of industrial technology at Cargill Meats, said that "Brazil, by its natural vocation, has the competence to remain a large producer and contribute to the security of the world food supply." Big country ­ The only way to meet the enormous world demand for animal protein is to intensify farming production. This requires land, water, labor and technology. And Brazilian poultry enjoys undeniable advantages in all four factors. According to the oECD-FAo Agricultural outlook 2009-2018, of the

INDEx oF hyDRIC STRESS

Low

Although chicken production requires less arable land than beef, sheep and pigs, this reserve of land will play an important role in the question of world food security, particularly in the production of grains which are also used as poultry feed. Potential for grains ­ on average 90% of Brazilian poultry feed is composed of corn (70%) and soy (20%), and the country is one of the world's largest producers of these grains. The volume of feed used in Brazil for chicken production is around 28 million tonnes per year. In 2008, the country's grain harvest set a new national record at 145 million tonnes. For 2009, the Brazilian Institute of geography and Statistics (IBgE) estimates the grain harvest at 135 million tonnes, which would be the second largest ever. "Brazilian chicken is basically corn-fed, which gives the meat better consistency and a more attractive appearance,"

hiGh

Source: World Resources Institute

1.56 billion hectares available in the world for farming, more than half lies in South America (particularly in Brazil) and Sub-Saharan Africa. Roberto Rodrigues, a former Brazilian agriculture minister and a professor of agronomy who studies this question, calculates that Brazil has a strategic reserve of 91 million hectares ready for agricultural expansion. This is three times greater than the area currently occupied by Brazilian arable farming,

and could be used without any damage to the Amazon biome or other native forests. "Brazil is the country with the greatest amount of land in the world available for expansion of arable and cattle farming, and could increase its production of grains and meat by 200%," said Dilvo grolli, director-president of Coopavel, a cooperative of 16 members and 3,000 associate members in Paraná State.

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said Lanznaster, the Aurora president. It also makes the meat tastier. Advantages like these mean that Brazil has continued to strongly expand its food exports through recent years, particularly in those products where it is a world leader ­ soy, sugar, coffee, fruit, juices and meat in general. river catchment areas ­ Water resources are another factor contributing to Brazil's excellent performance in agriculture. The country has 12% of the total world reserves of available fresh water, according to the National Water Agency (ANA), which is linked to the Ministry of the Environment. Counting rivers from other countries that drain into the Amazon, uruguay and Paraguay basins, the country's share of available fresh water increases to no less than 18%. The country's river network is both vast and dense. It includes various huge rivers ­ large in length, width and depth.

BrazIlIan ProductIon of chIcken Meat

In millions of tonnes.

enVIRonMentAl sustAInAbIlItY

10,939

12,000 10,000 8,000 6,000 4,461 4,000 2,000 0.0

groWTH WITH prESErvATIoN

BrAzIl'S World-fAmouS NATurAl rESourCES WIll NoT SuffEr WITH THE groWTH IN CHICKEN mEAT produCTIoN. STrICT ENvIroNmENTAl lAWS ArE BACKEd up By THE AWArENES of poulTry produCErS.

1997 2001 2002 2000 2000 2001 2002 2003 2004 2005 2006 2007 2008

Average annual growth of 8.5% p.a. for 11 years Source: ABEF

Best known are the Amazon, the biggest river in the world, the Paraguay, the São Francisco and the Paraná. The Amazon hydrographic Region contains 73,6% of all Brazil's surface-level freshwater. The country also has the world's

loweR eneRGY consuMPtIon AnD ReDuceD GAs eMIssIons

A report published by the UK Government concluded that chicken production in Brazil is similar to that in the United Kingdom, but that energy consumption and the Global Warming Potential from the emission of greenhouse gases are lower in Brazil, by 25% and 17% respectively. According to the study, published by the Department for Environment, Food and Rural Affairs (DEFRA) in 2008, the two production systems are similar in terms of breeding stock lines, the adequate composition of feed, the absence of disease outbreaks and the use of fertilizers. Main differences lay in the scale of the aviaries, which tend to be larger in the UK, in Brazil's use of natural ventilation because of the tropical climate, and in the use of corn rather than wheat as the energy source in poultry feed. The costs and expenses inside the aviaries were similar. The report showed that the direct use of energy is lower in Brazil and is equal to around 7% of total consumption, compared with 26% in the UK. Of the energy used directly in production in Brazil, 65% comes from electricity. There are two reasons for this, the study said. In the first place, most of the feed used in Brazil has a much lower transportation cost, because it is mainly produced locally. Secondly, Brazilian aviaries normally have natural ventilation, without the cost of a heating system. Another differential is that most of Brazil's electricity (84%) comes from renewable non-thermal sources, while in the UK electricity is generated mainly from natural gas or coal, or comes from nuclear plants.

second largest underground reserve of fresh water, the guarani Aquifer, lying below some 1.2 million km2 of land. According to the oECD report, water is becoming increasing scarce in many parts of the world. Pollution and predatory use are depleting sources while population continues to grow, as does the competition for the various uses of water. In 2005, 35% of people in developed countries in the oECD lived in areas characterized by hydric stress ­ where per capita demand for water exceeds available resources (see water stress map). In 2025, according to the oECD study, 1.8 billion people could be living in countries or regions with an absolute shortage of water, while two thirds of the world population could be living under hydric stress. According to an index used by the uN to express the availability of water, Brazil has a comfortable situation with 33,376 cubic meters per person per year. Both the uN and the European Environment Agency describe Brazil as being in a privileged situation in terms of the supply and demand for water. This availability of water directly affects agricultural production and represents an advantage, even though poultry farming requires less use of water than other types of animal protein production.

The Brazilian chicken industry is concentrated in the South, Southeast and Center-West of the country, far from the Amazon Forest ­ the richest and most important biome in Brazil and the world ­ and producers adopt routine practices to control the environmental impact of their activities. Brazil is a signatory to the principal international conventions and treaties on the environment, such as the Kyoto Protocol, and its environmental legislation is widely recognized as being amongst the strictest in the world. This explains why the production of chicken in Brazil has never been involved in the frequent, heated controversies about the impact of productive

activities on the environment. "Environmental sustainability is one of the principal concerns of the Brazilian poultry exporting sector," said Francisco Turra, president of the Brazilian Chicken Producers and Exporters Association (ABEF). According to ABEF data, 75.4% of Brazilian exports of chicken meat come from the South of the country, followed by the Center-West (12.5%) and the Southeast (11.4%). That means that the Northeast and North together account for just 0.7% of national exports. As well as being some 4,000 kilometers from the Amazon ­ equivalent to twice the distance between Lisbon

Chicken aviaries in the midst of well-preserved nature.

and London ­ the principal production and processing units are strictly controlled by federal, state and municipal authorities, not to mention the export companies themselves who are constantly concerned about protecting their brands in foreign markets. Both producers and the exporting companies are required by law to hold an environmental license to produce. Sadia, one of the main Brazilian chicken processors, invested R$67.4 million in 2008 for environment programs in their integrated production process that involves 10,000 rural producers. Last year, the company signed on to the Brazilian ghg Protocol Program which provides for the measurement, reporting and management of greenhouse gases in the country. Last year the company constructed the meat sector's first zero carbon factory, an agri-industrial unit at Vitória de Santo Antão in Pernambuco State. This will compensate for 100% of carbon emitted by virtue of its operations via a reforestation project in degraded areas of Atlantic Rainforest in the Northeast. Some 3.5 million native trees will be planted, with each hectare absorbing around 400 tonnes of Co2. Similarly Perdigão, one of Brazil's largest chicken exporters, destined R$34.7

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aMazon BIoMe

ASPECTS oF VEGETATIoN

Prairie with trees Contacts Forest - Seasonal deciduous Forest - Seasonal semi-deciduous Forest - open ombrophilic Forest - Dense ombrophilic Forest - Mixed ombrophilic Pioneer formations River Savanna Steppe savanna

410 million hectares 49% of the total area Many different ecosystems (350 million hectares of forests, but also wetlands and savannas)

Cartographic base prepared by the IBGE / Directorate of Geosciences, 2004

relatIve IMPact of Poultry ProductIon on the envIronMent

Beef cattle energy consumption (gj) (Gigajoules) co2 and n2o Impact on global warming co2 and n2o Impact on eutrophication co2 and n2o Impact on acidification

Source: AJC International

concentratIon

hogs chicken 17 6.4 100 394 12 4.2 48 173 South 75.4% north northeast Center-west 12.5% Southeast 11.4%

28 16 158 471

million to environmental improvement projects in 2008. of this, R$16.8 million went to the company's Renewable Forests Program, which uses planted lumber as an industrial energy source, so avoiding destruction of native forests and consumption of fossil fuel. Some 6,000 hectares of the company's renewable forests are eligible for carbon credits under the Kyoto Protocol. under the system of integrated chicken production that is widely used in Brazil, around one million producers, most of them small and medium family farmers, are linked to agri-industry exporters. "The producers and the agriindustries have a very close relationship, thanks to the integration system,

and this makes it easy to spread best practices for production, the environment and animal well-being throughout the supply chain," said Márcio Antônio Portocarrero, secretary of farming and cooperative development at the Ministry of Agriculture, Livestock and Supply (MAPA). In this way, the question of the environment is strongly linked to productive processes in the chicken supply chain. "The more we produce within environmental and other rules, the greater the remuneration we receive from the integrator (the agri-industry)," said Ronaldo Negri, an integrated producer who supplies Cargill from his own property in Ermo in Santa Catarina State. "For example, we make

compost from the aviary bed, and after fermentation this becomes agricultural fertilizer. This is guidance that we receive from the technical team of the integrator," Negri said. With two aviaries and capacity for 108,000 birds, Negri explained that he removes the bed (the material that lines the floor of the aviary and which accumulates bird droppings), takes it to "a small, totally enclosed building" and makes a layer. on top of this, he puts another layer with dead birds, and so on. "We do this after every batch of birds," said Negri. Antonio Maldaner, a small integrated producer for Aurora, a cooperative in Santa Catarina, explained that he could not simply expose waste to the open air "so we have a compost processer inside the farm." Maldaner won a prize from the cooperative this year. There were various reasons, but principal was his adoption of practices for preserving the environment. In addition to reusing organic material, as does Negri, Maldaner protects his water sources. The Maldaner property, which is divided by a creek, has 20 head of dairy cattle, pig production and chicken farming. "In the past the cattle walked through the creek. Now they don't do that any more, to avoid contaminating the water," Maldaner said. "We have also preserved the vegetation along the river banks, and we take care of our springs," he said. The Brazilian climate and environmental characteristics also help chicken production be more ecologically efficient. A study published in the united Kingdom stated that the Brazilian chicken production system uses less energy and emits less greenhouse gases (see box on page 8). Contributory factors are the availability of sunlight, natural ventilation and prevailing temperatures that dispense with heating systems. Energy is also saved by virtue of a lower cost for transportation of feed, because grains are produced close by.

HeAltHY MeAt

By AdopTINg rIgorouS CoNTrolS AT All STAgES of produCTIoN, THE BrAzIlIAN CHICKEN mEAT ExporTINg INduSTry HAS BEComE A World BENCHmArK for SANITAry TECHNology.

The Brazilian poultry industry has successfully disseminated to all stages of the supply chain an awareness that this activity can be sustainable and competitive only if it ensures sanitary excellence throughout the production process, with strict inspections and veterinary controls that are rigorous, far-reaching and balanced. It has also disseminated knowledge of the practices needed to make this happen. The concept of sanitary safety "from farm to fork" is present at all stages of production: in the breeding stock; in the eggs and chicks; in the quality of the feed, which is natural, based on corn and soy; in the control of how flocks are handled on family properties that are integrated with agri-industries; in respect for the rules of animal welfare; in the industrial processes; and in transportation, marketing and shipment of the product. Rigorous legislation for poultry production and the use of veterinary medication, federal and state plans of sanitary inspection, international certification for the quality and health of Brazilian chicken and a modern, proactive private sector have all helped make Brazil's industrial poultry sector into a world benchmark in sanitary terms. Brazil has developed a poultry sector that maintains tight control over the principal bird diseases such as Newcastle and Salmonellosis, and the country is recognized by the World organization for Animal health (oIE) as an area free from the deadly Avian Influenza. Not a single case of avian flu has been detected. "Working in partnership with the federal government, the poultry exporting companies have made a

SANITAry ExCEllENCE THrougHouT THE Supply CHAIN

Cutting room calisthenics for workers at the rivelli alimentos plant.

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doctor and specialist in quality management at Doux do Brasil. For Clever Ávila, director of industrial technology at the meats department of Cargill, owner of the Seara brand in Brazil, the country's sanitary status in poultry is progressing every year. "The sanitary zoning set up by the federal government makes it easier to exercise control between states and at frontiers," said Ávila. "Moreover, the Brazilian industry understands that there is no competition between companies in the sanitary question. This has al-

and technology centers of Brazil's four largest chicken exporters also participate: Perdigão, Sadia, Cargill/Seara and Doux Frangosul. The Brazilian government has two major programs directed to sanitary control of the country's poultry sector. These have become international benchmarks. one is the National Poultry health Program (PNSA), which conducts epidemiological and sanitary monitoring of bird illnesses ­ the regionalization plan is part of this. The other is the National Plan for Control

duction. These include hazard Analysis of Critical Control Points (hACCP), Standard Procedure of operational hygiene (SPoh) and Standard operating Procedure (SoP). Installations of major agri-industries have received international certification from bodies such as the International organization for Standardization (ISo), the good Agricultural Practices (global gAP) and the International Food Standard (IFS). x-ray ­ The PNCRC is a Brazilian government tool to ensure food safety both for the Brazilian consumer and for countries which have commercial relations with Brazilian agribusiness. "MAPA collects samples throughout the country to assess the use of veterinary medicines and contaminants in the productive sectors being monitored ­ in other words, the PNCRC can be considered an `X-ray' of the process," said PNCRC Coordinator Leandro Feijó. however, government efforts would not produce goods results without participation of the productive sector. "Brazilian poultry companies have adopted within their own control programs measures to avoid receiving and slaughtering birds whose sanitary handling indicates non-observance of best practices, for example, not allowing the specified time period between any veterinary medication that might have been used, and slaughter," Feijó explained. To meet the requirements of more than 150 different markets, the PNCRC follows the technical and scientific recommendations of the Codex Alimentarius and the strictest consensual technical norms determined by the working group of the Codex Committee on Residues of Veterinary Drugs in Foods (CCRVDF). In the last two years, MAPA has been audited by sanitary authorities from the European union's Food and Veterinary office (FVo). This body verified the outstanding progress made by the PNCRC and the safety offered

healthy chicks: the result of constant laboratory research into breeding stocks.

constant effort to ensure that Brazil continues to be a safe haven in terms of animal health, so guaranteeing international consumers the quality of Brazilian meat exports," said Francisco Turra, a former agriculture minister who is now president of the Brazilian Chicken Producers and Exporters Association (ABEF). Chicken farming in Brazil is structured around partnership agreements between agri-industries, cooperatives and thousands of small and mediumsized producers. It's called the `integration system.' Birds eat feed based on corn and soy ­ Brazil is one of the largest grain producers in the world ­ without the use of hormones, which as well as being prohibited would be economically unviable. The production of healthy chicken meat, consumed in more than 150 countries, is made possible thanks to the availability of natural ventilation, with the constant renewal of air inside the aviaries, and ample sunshine, providing natural light and amenable temperatures.

According to Inácio Kroetz, who holds a master's degree in Veterinary Medicine and is Secretary for Farming Defense (SDA) at the Ministry of Agriculture, Livestock and Supply (MAPA), Brazil has managed over the years to harmonize and reinforce the chicken farming supply chain with respect to sanitary questions. "There is, happily, a high degree of awareness about sanitary control throughout the whole chicken supply chain. The private sector, the animal health people and agencies that inspect products of animal origin all work in total harmony, each carrying out their role," he said. Ricardo Santin, who is executive director of ABEF, said that "the Brazilian chicken supply chain has developed its own specific sanitary technology, with highly specialized professionals from both the industry itself and from the federal and state governments exercising strict control of chicken farming, all backed up by a web of specialist poultry laboratories." Such control extends from bird feed and incubators through

producers' aviaries to the chicken meat packing houses. More than 90% of the Brazilian chicken-meat cold stores and packing sheds are controlled by the Federal Inspection Service (SIF). Also, the industry and the government ensure traceability of production lots and breeding stocks and are ready to immediately isolate any sanitary problem should it arise. Private sector investment in sanitation has been significant. Doux do Brasil, for example, has three laboratories just for the poultry sector, all with ISo 17025 certification. one is for pathological analysis in aviaries, another checks the quality and sanitary safety of the meat, and a third evaluate the quality of the bird feed. There are dozens of food engineers, biologists, zootechnicians, veterinary doctors and so on, all monitoring the sanitary quality of the product. "We are free of the main poultry diseases and this is the result of solid investment in production processes," said José Luís Kieling Franco, a veterinary

there is strict attention to sanitary control at all stages of the chicken supply chain.

lowed companies to work together to improve our sanitary status." The zoning mentioned by Ávila was set up by MAPA in 2008 as part of the Plan for Regionalization of Sanitary Control of Brazilian Poultry, which conducts audits and classifies statelevel sanitary structures to ensure better control of national production. The Brazilian project has been approved by the oIE and the World Trade organization (WTo). It determines adherence to strict biosafety criteria, and has come to be seen internationally as a model for regionalizing and compartmentalizing animal production. The project benefits both the countries that export and import chicken. Research is headed up by MAPA, and chicken farms

of Residues and Contaminants (PNCRC), which addresses products of animal and vegetable origin (PNCRC-A and PNCRC-Vegetable). These programs conform to norms of the Codex Alimentarius, which was drawn up jointly by the united Nations' Food and Agriculture organization (FAo) and the World health organization (Who), and establishes world standards of conduct in food production. The Brazilian programs are also recognized by extremely demanding markets like the European union. Both the Codex Alimentarius and the oIE norms are parameters adopted by the WTo. The Brazilian sanitary programs use internationally recognized tools for the management of quality in animal pro-

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AnIMAl cARe

ANImAl WEllfArE promoTES CoNSCIENTIouS CoNSumpTIoN

THE BrAzIlIAN CHICKEN Supply CHAIN IS govErNEd By lAWS, NormS, proToColS ANd produCTIoN prACTICES THAT promoTE ANImAl WEll-BEINg. good for THE produCT, ANd good for THE ETHICAl CoNSumEr.

Brazilian poultry farming is backed up by a network of specialized laboratories.

by Brazilian sanitary authorities in terms of the absence of harmful chemicals in chicken exported to Europe. The Eu report concluded: "The Brazilian government has worked hard and invested substantial resources to increase the degree of confidence in chemical safety in food of animal origin exported to the European union." For Feijó, the PNCRC allows the Brazilian government to ensure the quality of Brazilian chicken. It demonstrates to all countries that the Brazilian government is committed to the quality and reliability of its sanitary programs. under the National Poultry health Program the Brazilian government acts together with representative bodies from the sector and the companies to monitor breeding stock, conduct stud-

ies of viral activity, monitor bird migration and check on slaughter practices, amongst other things. This program includes the Contingency Plan for Avian Influenza and Newcastle Disease, with preventative actions which include, amongst others, monitoring migratory birds in Brazil. For example, MAPA observes migratory winter stop-over sites around the country, collecting samples and testing serum. It also checks on domestic birds adjacent to these sites. This permanent monitoring makes it possible to detect the eventual arrival of birds carrying influenza. "These programs show why Brazil has never registered the presence of the deadly bird flu," Kroetz explained. At all Brazilian chicken export plants, all products are analyzed before leaving the factory. Inspection is handled by the company and by the SIF, using teams of veterinary doctors and assistants working for MAPA. The SIF authorizes companies to sell their food both domestically and in the rest of the

world. Control starts with the breeding stock in the chicken farms ­ these are protected from disease vectors ­ and includes the classification of eggs which give origin to meat-producing birds, vaccination to protect chicks against the main diseases, transportation, housing and slaughter. "Integrated poultry producers conduct research, they make studies, they hire qualified professionals and they spread know-how throughout the supply chain, so allowing for the planning and control of activities to ensure excellent standards of quality and sanitary safety," said osório Dal Bello, director of animal husbandry technology at Sadia. Rules for visiting the production plants are very strict. Foreign visitors can enter the factory only after a quarantine period of 48 hours, and even then only after showering and wearing clothes and safety equipment provided by the companies, properly following all biosecurity procedures.

Back in 1934, Brazil enacted a law that imposed fines and prison terms on people who mistreat animals. Even though the 75-year-old edict fails to specifically address the question of animal welfare, and its legality has been questioned, the law nevertheless heralded interest in a matter that has become a rallying cry for producers and consumers alike in the 21st century ­ concern for animal well-being and the ethical consumption of products derived from them.

The question was addressed again in 1979 when the Farm Animal Welfare Council (FAWC), an agency of the British government, laid down five basic principles for animal well-being: animals should be free from hunger and thirst; free from discomfort; free from pain, injury and sickness; free to behave naturally; and free from fear and stress. These five principles won international recognition and today are key to the image and credibility of products

of animal origin. Protocols, norms and recommendations for animal welfare have become an important and integral part of programs of best production practices in Brazilian poultry exporting companies. The government, private-sector representative bodies and the poultry companies themselves are signing technical and scientific cooperation agreements with other countries, setting up training and qualification programs and updating productive processes which

Brazilian chickens enjoy more space, with lateral ventilation and natural illumination to promote animal well-being.

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training," said Alves, who is a member of the committee that coordinated preparation of the Protocol for Welfare of Chickens and Turkeys, drawn up jointly by ABEF and the Brazilian Poultry union (uBA). Published 2008, the protocol is designed to give hands-on guidance to poultry producers in Brazil. It follows advice from the World organization for Animal health (oIE) and conforms to relevant resolutions of both the European union and the Brazilian government. The final draft of the document was drawn up with participation from various animal protection organizations, in particular the World Society for the Protection of Animals (WSPA).

of the farm animals area at WSPA/Brazil and the coordinator of Steps. "Birds that are poorly handled and stressed tend to have more injuries, fractures and bruising." And even if they are not injured, birds that suffer from thermal stress ­ subject to high temperatures in the aviaries or during transportation ­ can yield meat of lesser quality. "Thermal stress causes the bird to expend more energy, which can result in pale meat with tougher texture and consistency. It can for example lead to the breast meat of a chicken being tougher," Ludtke said. Perdigão, one of Brazil's largest chicken meat exporters, is aware of these risks and six years ago instituted

welfare at all stages of poultry production," said Eliana Renuncio Bodanese, a veterinarian who is a technical advisor to Aurora. "We have adapted bird handling procedures to make them better and we have created educational and structural programs based on the "five principles of freedom", which are internationally accepted and adopted," she said. The Brazilian poultry industry has in fact moved ahead of international market demands in the matter of animal welfare. French company Doux has instituted a wide-ranging program at its aviaries in Brazil, with activities that include genetic selection, handling, the relationship between man and animal, facilities, animal density, transportation and slaughter. "The company is aware of the benefits that can accrue from greater knowledge of a humane culture in the treatment of farm animals," said Moira Pieta Civeira, coordinator of live animal quality at Doux in Brazil and of the company's animal welfare program. In addition to the gain in credibility for the company's image in the eyes of its customers, there is a significant return in terms of productivity. Actions to promote animal welfare result in a better quality of carcass, cuts and meat, which in turn are the result of a better relation between food conversion and weight gain, Civeira said. "Stressed animals eat less and lose weight, implying losses in terms of volume and quality of the final product." As the fourth largest chicken exporter in Brazil, the Doux factories are audited every year by two commissions from KFC, the North American fast food chain. one commission inspects the food security of the processes while the other looks specifically at animal welfare. "This gives an indication of the importance that this question has today," said José Luís Kieling Franco, a veterinarian and specialist in quality management at the company. "When you pay attention to the wellbeing of the bird, it responds with productivity."

Young birds have comfortable access to feed and water.

already include animal welfare. Ricardo Santin, the executive director the Brazilian Chicken Producers and Exporters Association (ABEF), said that for producers "in addition to being a humanitarian obligation, ensuring the well-being of farm animals is a question that is central to economic success, because animals that are inadequately handled suffer from stress and injury, and this increases costs and results in an inferior product." According to Márcio Antônio Portocarrero, an agronomist and secretary of farming and cooperative development at the Ministry of Agriculture, Livestock and Supply (MAPA), "poultry is Brazil's most advanced supply chain in terms of animal welfare, with the chicken meat sector in first place, followed by egg production." he added: "Not only does the sector have protocols ready, but they have already been implemented at many production facilities." In 2000 the ministry introduced the Technical Regulation of Stunning Methods for humanitarian Slaughter of Animals, designed to eliminate poor handling and minimize pain and suffering during slaughter. Today this

regulation is applied at all the country's slaughter houses, and is subject to government inspection. In 2008 the ministry issued a procedural norm with recommendations for Best Practices for Welfare of Farm Animals and Animals of Economic Interest. At the same time it created a Permanent Commission on Animal Welfare, which promotes related research and activities. "The growing activity in the area of animal well-being that's happening in Brazil is beneficial to everybody: for society as a whole, for the government and for the poultry supply chain," said Andréa Parrilla, a zootechnician who coordinates the MAPA commission. Consumer pressure ­ Concern about animal welfare started to gather strength some 10 years ago, when European consumer groups began to put pressure on major retail chains to stop selling meat coming from animals that had been badly treated. For this reason the countries of the European union, and in particular the united Kingdom, were the first to introduce specific legislation to deal with standards of welfare. "The Eu Commission set a deadline of 2012 for all countries

that supply the bloc to fully adapt to the norms," said Portocarrero. In addition to having a poultry sector that figures amongst the most developed in the world, Brazil enjoys various natural advantages that favor animal well-being. According to Sulivan Pereira Alves, a doctorate zootechnician who is technical coordinator at ABEF, these advantages explain why Brazilian chicken production takes place principally in open side aviaries with natural ventilation associate with fans if necessary and natural illumination, abundant feed and water resources and plenty of space. In fact, the average density in Brazil is 34 kilos per square meter ­ roughly 13.6 birds per square meter ­ which is below the Eu recommended limit of 39 kilos per square meter. Moreover, Brazil does not have a severe winter and so has less need of temperature control systems inside the aviaries. This set of factors naturally reduces animal stress and makes it easier to implement the relevant norms. "This is an advantage that the Brazilian poultry sector prizes greatly, but nevertheless the industry continues to invest in research, improvement and

Brazil adheres to international norms for humane slaughter.

increased productivity ­ Last year, the Brazilian office of the WSPA signed an agreement with the MAPA, the ABEF and the uBA to draw up and implement the National Program for humane Slaughter (known as `Steps'). The aim is to disseminate improvements in pre-slaughter handling and in slaughter itself, via the training of federal, state and municipal inspectors as well as producers and agri-industry employees. "Animal suffering results in significant economic losses for agri-business companies and can constitute a sanitary problem," said Charli Ludtke, manager

a program for animal welfare, based on international norms and requirements. "We provide routine training on this subject for internal auditors and inspectors who are involved in working with breeding stock, chickens, transportation companies and processing factories," said Juliana Federici, who is responsible for the area of animal welfare at Perdigão. Aurora, one of Brazil's largest cooperatives in the meats sector, also applies the so-called five animal freedoms, and spreads information about them to its cooperative producers. "We study and develop techniques to improve animal

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FooD secuRItY

rECogNIzEd WorldWIdE for ITS ExpErTISE IN produCINg CHICKEN mEAT, THE BrAzIlIAN poulTry SECTor IS ExpANdINg CApACITy WHIlE INvESTINg IN TECHNology, NEW plANT ANd SANITAry CoNTrol.

STrENgTH ANd TrAdITIoN ENSurE CoNTINuEd groWTH

of 2% - 3% in volume terms," said Ricardo Santin, the executive director of the ABEF. "The effects of the international crisis on the sector have been minimized." As the world's third largest chicken producer behind the united States and China, Brazil has developed a poultry sector that exhibits high technological and sanitary standards and generates enormous social impact. The productive system involves large and mid-sized agri-industries and cooperatives that are integrated with an estimated one million small and mid-sized farmers.

Consolidation and expansion ­ "Brazil has a poultry sector that is capable of increasing its production to guarantee meeting world demand," said Mário Lanznaster, president of Aurora Alimentos, one of the largest cooperatives in the meats sector in Brazil, which groups together 16 associated cooperatives and 70,000 farmers in the South of the country. Aurora exports 20% of its chicken meat production and plans significantly increasing its sales volume to overseas markets. In May of this year, two of the country's largest chicken processors

The Brazilian poultry sector, today the world's largest exporter of chicken meat, is successfully combining consistent and sustainable expansion of production with exceptional levels of quality and sanitary control. It's a strategy designed to meet current and long-term global demand. A reliable production system based on experienced and competitive companies, advanced legislation, strong institutions and trade associations that are committed to excellence in the sector all help make it possible for Brazil to consolidate its position as world leader. Currently the country accounts for 40% of international exports of chicken meat, and meets the requirements of the strictest markets.

The Brazilian chicken supply chain is structured to comply with the challenges of food security, both in terms of sanitary control and in terms of increasing production volume to meet the growing demand for healthy sources of animal protein. Additionally, the Brazilian poultry industry is prepared to meet specific production requirements, with special cuts that are demanded in over 150 markets on five continents. For Francisco Turra, president of the Brazilian Chicken Producers and Exporters Association (ABEF), "the quality and sanitary control of Brazilian chicken constitute differentials that are widely recognized by importing countries." This recognition increases the re-

sponsibilities of Brazilian producers. "It encourages us to respond with continuous improvements to our production systems and with sustainable expansion of our exporting capacity to ensure that our clients can sleep soundly," said Turra, speaking for the ABEF whose member companies account for 93% of Brazilian exports. The country's exporting capacity became clear in 2008. Even as the international crisis worsened at the end of the year, Brazil's foreign sales of chicken jumped by an impressive 40% to uS$6.9 billion, compared with uS$5.0 billion in 2007. Total production was 10.9 million tonnes, an annual expansion of 6%. "In 2009 we should achieve annual export growth

Brazil's poultry sector is highly competitive and sustainable. above, an incubator in southern Brazil; left, a sadia processing plant in Chapecó.

that will probably become the world's biggest meat processor," said Luís Fernando Furlan, co-president of Brasil Foods, speaking at a press conference about the merger. At the same event Nildemar Secches, president of the Perdigão board and the other co-president of Brasil Foods, said that "a great Brazilian multinational in processed foods" was being created. The merger between the two companies still requires approval from the Brazilian government's anti-trust agency. In 2008 Perdigão became Brazilian sector leader with billings of uS$7.2 billion, while Sadia had gross revenue of uS$6.6 billion. Together the companies employ some 120,000 people, split roughly equally between the two, and work with 19,000 integrated producers of chicken and pork. This means that Brasil Foods, which is already one of the world's most efficient processed food companies with headquarters in Brazil, will boost investments for expansion in the sector as a whole, both inside and outside Brazil. major investments ­ The significant investments made in chicken production over the last two years are maturing and will sustain the growth of the Brazilian poultry sector through the short, medium and long term. Perdigão and Sadia alone have spent uS$2.7 billion through the last two years for new plant and expansion of their production and exporting capacity. Sadia invested uS$1.4 billion in new plant and production expansion, with uS$874 million spent in 2008 alone. Among last year's principal projects was the completion and start of operations at a major new Sadia unit at Lucas do Rio Verde in Mato grosso State. Another uS$273 million was to be spent through 2009 to complete projects, upgrade production units, infrastructure and information technology, and invest in breeding stock. When complete, the Lucas do Rio Verde project will include 190 modules for chicken meat production and

and exporters, Sadia and Perdigão, announced a mega-merger to create Brasil Foods (BRF). Right from the start the new company was the world's largest chicken meat processor and the 10th largest food company in the Americas, with annual billings estimated at uS$10 billion. It has 42 processing plants and sells into more than 110 countries. Brasil Foods will be the country's third largest exporter, trailing Petrobras and the Vale mining company. "The project is to build a large company with the muscle to compete globally. We are creating a champion,

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115 for hogs, and should generate additional revenues of around uS$600 million. "The start of operations in new regions like Lucas do Rio Verde, which is the company's biggest factory in Brazil, opens up new prospects for sustainable expansion, in line with the company's strategic objectives," said gilberto Tomazoni, the director-president of Sadia. Perdigão also completed a major two-year investment cycle in 2008, laying the basis for the company's growth

BrazIlIan chIcken exPortS By Product 2008 (volume)

whole Cuts

industrialized Salted

BrazIlIan exPortS of chIcken Meat

In millions of tonnes.

4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0.0 916

3,645

in 2008 to modernize and expand chicken slaughtering capacity at plants in Sidrolândia (Mato grosso do Sul State), Nuporanga (São Paulo State) e Jacarezinho (Paraná State). According to Clever Ávila, a Cargill director, the success of Brazilian chicken meat around the world is directly due to the high level of sanitary control in the sector: "With the support of our government agencies and the competence of our companies, we can ensure our growing participation in the global market." The Brazilian poultry sector receives important support from government agencies and benefits from strict sanitary and environmental legislation. over 170 industrial poultry establishments nationwide are permanently inspected by government technicians. independent certification ­ Brazilian expertise in the production of chicken meat is recognized by traditional importers in the European union (germany, the Netherlands, the united Kingdom, France and so on) and Asia (Japan, honk Kong, Singapore and others). Inspection teams from governments, agri-industry sectors and major retail chains from Europe, North America, Asia and the Middle East visit Brazil regularly and check on Brazilian factories, awarding them certificates of compliance. Among the various obligations that Brazilian exporting plants must comply with is obtaining public health and animal sanitary control certificates. These include requirements to use hazard Analysis and Critical Control Points (hACCP), satisfy microbiological standards, ensure control of waste products from live animals, maintain the production area free from highly pathogenic avian influenza, and comply with common standards for animal protection at slaughter. Bodies such as the British Retail Council, North American chains McDonald's and Yum! Brands (which owns the KFC, Pizza hut and Taco Bell

2000

2001

2002

2003

2004

2005

2006

2007

2008

Average annual growth of 15% p.a. for eight years Source: ABEF

Paranaguá Port: one of the principal export routes for Brazilian chicken meat. a feed factory in Montenegro, southern Brazil.

and profitability through the coming years. Investments reached uS$1.3 billion, of which uS$984 million was for acquisitions in Brazil and abroad. Last year the company announced investments of uS$600 million to expand production capacity at its factories in Jataí, Mineiros and Rio Verde (all in goiás State in the Center-West of the country). "Perdigão will continue to grow, following the path that has transformed it into one of the world's largest food companies," said José Antonio Fay, the company president. Cargill is another sector giant, trading in Brazil with the Seara brand. Shrugging off the crisis, in April of this year Cargill announced plans to invest uS$100 million through 2010 to expand its existing activities in the

largeSt exPorterS of chIcken Meat

Brazil and the US account for 78% of global exports

Brazil USA

UE-27 Tailand

China others

country. uS$55 million will go to building a new factory processing chicken for export; uS$20 million to modernizing existing units; and uS$25 million to new production lines. The company had already invested uS$60 million

brands, among others), the Agricultural Labeling ordinance (oLA) of Switzerland and Tesco have all issued certification to Brazilian producers. The scope of the inspection conducted by these bodies includes all stages of the supply chain: feed, transportation and storage, best production practices, sanitary standards, quality and animal welfare (see box).

The Doux plants in Brazil, for example, have received the certification demanded by the British Retail Council. "This is a certificate demanded by a private body that represents the retail sector in the united Kingdom, but it has gained global acceptance and recognition. In other words, it is now also used by other bodies and other countries," said José Luís Kieling Franco, a specialist in quality management at Doux do Brasil. Producers also comply with religious criteria, for example ha-

lal slaughter for Islamic markets. Brazilian companies that export to Muslim countries must present at the time of shipment a halal Certificate issued by a body that is recognized by Islamic nations as a valid certifier of the production process. The three most important matters are the processes of slaughter, cutting up the meat, and shipment. All stages of production must be supervised by Muslims, and the animal must be cut up by hand, not by a machine. Specialization ­ In fact, the Brazilian poultry industry goes way beyond merely satisfying these basic requirements. The high level of technical specialization achieved allows producers to create lines of production and even entire processing plants for specialized cuts (in terms of size, weight, thickness and/or shape) to supply predetermined markets. Specific plant and equipment were

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ask simply for `Sadia'. Perdix, the international arm of Perdigão, also has a strong presence in the Middle East where it sells whole chickens and cuts, together with processed products like chicken in breadcrumbs for markets such as Saudi Arabia, Iraq, the Yemen and others. "The growth of our brand in the region reflects the work we have done and our concern in meeting the preferences of local customers," said Tatiana de Mello Brammer Arello, marketing manager of Perdix. new markets and protectionism ­ Acting through the ABEF and the government, Brazil is seeking to reduce protectionist barriers in world trade and to introduce new markets to the quality and competitiveness of Brazilian chicken. In July, Brazilian producers resumed shipments to mainland China. The world's largest market started consuming Brazilian chicken after China's general Administration for Quality Supervision, Inspection and Quarantine (AQSIQ) and the Brazilian Ministry of Agriculture, Livestock and Supply signed an export agreement with mutual obligations. The AQSIQ authorized 24 Brazilian meat packers to sell chicken directly in the mainland Chinese market ­ hong Kong was already a traditional market for Brazilian chicken. In addition to China, other new markets are opening up or increasing their purchases of Brazilian chicken. In the last two months, ABEF has taken part in trade missions to six African nations: South Africa, Angola, Mozambique, Senegal, ghana, Nigeria and Equatorial guinea. Brazil is also negotiating with Russia, the world's largest chicken importer, to alter the import quotas imposed by that country. "We want to compete on an equal footing with other players in this market," said Ricardo Santin. And for Clever Ávila, of Cargill, "it is essential to improve international market regulations to eliminate non-tariff barriers, which are constantly expanding."

socIAl sustAInAbIlItY

THE INTEgrATEd produCTIoN SySTEm AdopTEd By THE BrAzIlIAN CHICKEN mEAT INduSTry CrEATES joBS ANd INComE IN THE CouNTrySIdE, So mAKINg AN ESSENTIAl dIffErENCE for THouSANdS of SmAll ANd mEdIum fArmErS.

THE BEST AgrArIAN rEform

international inspection: Brazilian producers receive frequent visits to check full adherence to international standards

developed for Japan, for example, to maximize the yield of chicken when cut into strips and small cubes, a Japanese requirement for use in preparing `Kakugiri' (literally, `square cut'). These cuts go into soup and other meals and are made from boneless thigh. China, on the other hand, prefers feet, thighs, wings and wingtips. In general

the Asian market chooses cuts with a bone, while the European market goes more for boneless cuts and breast. Brazilian chicken expertise has reached such a level of excellence in the Middle East that one brand, Sadia, has become synonymous for the product itself. Rather than asking for chicken, consumers in some Arab countries

InternatIonal certIfIcatIonS requIred of BrazIlIan chIcken ProducerS

Certification Global G.A.P. (Good Agricultural Practices) Certifying body SGS/WQS (Biotrace) Focus Agri-industrial chain · Traceability, good agricultural practices, GMP, HACCP, quality management · The Tesco chain uses this code within Europe and requires equivalence for the products it imports Agri-industrial chain · Residue of anti-Coccidiasis treatment and other medicines; feed production; good farming practices; animal well-being, GMP and HACCP Feed production · In addition to GMP and HACCP, it requires control of transportation of raw materials · Slaughter houses Slaughter house Equivalence with legal norms McDonalds requires third-party auditing for reliable supply to its chain Requirements of the client for his brands Requirement by Islamic clients for Halal slaughter

In 1998, facing debts and difficulties with the production of milk, corn and soy on their 11.4 hectare property, Antônio Maldaner and his wife Ivanir saw little alternative but to leave their land in Pinhalzinho, a rural municipality in the west of Santa Catarina State, Southern Brazil. With two young children, however, Maldaner was reluctant to move. So he sought the help of his regional cooperative. There he learned of ­ and later took part in ­ a program for quality management designed specifically for small farmers. That gave him basic notions of planning and

administration, and helped him get financing to build an aviary in 2002, with capacity for 14,000 chickens. In June of this year the Maldaners opened their second aviary, doubling production to 28,000 birds per batch. Together, these two aviaries will generate around 60% of the property's annual income of R$130,000. The couple, descendants of german immigrants who came to Brazil at the start of the 20th century, work the smallholding by themselves, without hired help. Now that he has a decent income, the 44-year-old Maldaner was able to

pay for his eldest son to study veterinary medicine at university, while the younger boy studies to be an agricultural technician. "Poultry farming is an excellent option for the small farmer," said Maldaner. By creating new opportunities for generating income and giving thousands of small and medium family farmers a way to remain on their land, the Brazilian poultry industry is playing a social role of enormous importance and impacting the country's agricultural and landowning structure. The integrated production system that

Agricultural Labeling Ordinance (ALO) = Swiss Law SR 916.51 UFAS (Universal Feed Assurance Scheme)

Swiss legal requirements BVQI ESIS

BRC (British Retail Council) McDonald's

SGS and WQS SGS

Yum! Brands (KFC, Proprietary Pizza Hut, Taco Bell etc.) HALAL (religious) CIBAL, CDIAL

Source: ABEF ­ Technical Coordination ­ selected examples

the Maldaner family farm in Pinhalzinho, santa Catarina state: prosperity from chicken.

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Share of faMIly farMS In varIouS tyPeS of ProductIon

According to the study, Brazilian poultry farming generates the greatest rural family GDP, of R$7.8 billion in 2005 prices. This reflects the importance of the integration system within the segment

% Division of Sector GDP

hogs Dairy other livestock Poultry Beef cattle Tobacco Cassava Beans wheat Maize Rice Fruit + vegetable Coffe Soy other crops Sugarcane Cotton 59 55 49 48 28 96 82 59 43 43 41 37 31 28 23 13 8 % 25 50 75 41 45 51 52 72 4 18 41 57 57 59 63 69 72 77 87 92 100

Sector GDP of Family Farming

2.6 6.4 3.1 7.8 5.8 2.3 4.3 2.7 1.0 1.3 3.0 7.3 2.3 2.6 1.8 2.0 0.4 0 2.5 5 7.5 10 Billions of reais (2005 prices)

GDP - Families GDP - Companies

Source: Study and paper "The importance of family farming in Brazil and its States", by Joaquim J.M. Guilhoto (FEA/USP; REAL, University of Illinois; CNPq); Silvio M. Ichihara (ESALQ/USP); Fernando Gaiger Silveira: (IPEA) Bernardo P. Campolina Diniz (FIPE-USP); Carlos R. Azzoni (FEA/USP; REAL, University of Illinois; CNPq); and Guilherme R. C. Moreira: (FIPE-USP).

Share of Integrated Poultry farMIng In the net IncoMe of Integrated ProducerS (Santa Catarina)

8.9% 18.4% 72.7%

Chicken and hogs

Milk

Corn

Source: ICEPA-SC , May 2007

unites large and medium agri-industry companies and cooperatives with around one million small and medium farmers generates approximately one million jobs directly, and four million counting indirect employment. "The integrated system has given Brazil the best agrarian reform possible," said Francisco Turra, president of the Brazilian Chicken Producers and Exporters Association (ABEF) and a former min-

ister of agriculture. under the integrated production system, the agri-industry companies and cooperatives that process chicken meat supply the integrated rural producer with chicks, feed, technical and veterinary assistance and the best available technologies. The farmer is responsible for the installations, equipment, labor and handling. This partnership system now accounts for 85% of all raw material supplied to the processors nationwide, reaching 95% in the South of the country. And as it has spread, so the Brazilian poultry industry has become one of the largest and most efficient in the world, ensuring sanitary control, productivity and social sustainability to the chicken meat supply chain. The Maldaners' rural family company is a great example. Maldaner is a member of the Cooperitaipu cooperative, and through that he is an integrat-

ed supplier of Coopercentral Aurora, one of Brazil's largest cooperatives in the meats sector. Coopercentral Aurora has association agreements with 16 cooperatives, totaling 70,000 farmers in the South of the country, and it encourages farmers to become members of cooperatives. "our cooperative system makes it a priority to prepare these producers to become rural businessmen and to conduct their farming activities with greater efficiency," said Mário Lanznaster, president of Aurora. In 2008 Aurora slaughtered some 120 million birds and had operational revenue of R$2.6 billion, counting poultry and other sectors. Coopavel uses a similar system, with its 3,500 members in 17 municipalities in Paraná State. "The cooperative business model, integrated with rural producers, ensures the control and traceability of the production of grains and meat," said Dilvo grolli, the director-president of the company. "The specific nature of the cooperative structure and this guarantee of quality have increased the production of chicken meat, which today accounts for between 30% and 60% of total business of all cooperatives in the West of Paraná," he said. Coopavel has 10 factories for processing meat and producing feed and fertilizer, and it exports half of its food production. Making small farmers profitable, and so ensuring jobs and a decent standard of living in the country, is also a priority goal for the agribusiness firms involved in the sector. Cargill operates in Brazil under the Seara brand, which it bought in 2004, and now has some 3,000 integrated producers. one such is 31-year-old Ronaldo Negri, the thirdgeneration son of Italian immigrants who settled in the South of Brazil. Negri has a six-hectare spread in the municipality of Ermo, in the south of Santa Catarina State, with two aviaries each measuring 24 meters x 150 meters. That's space enough for 108,000 birds per batch. The integrating company, in this case Cargill, helped him secure fi-

a better life: antonio and ivanir Maldaner, integrated poultry producers for the aurora cooperative, have paid their sons through college thanks to chicken.

nancing for his infrastructure. "I could not have built this up without the support of the integrator," he said. Brazil's government-run National Development Bank, the BNDES, has credit lines for rural development, so the role of the integrator was basically to see that this financing actually found its way through the retail banking credit system and got into the hands of the small farmer. "In fact, the integrator created the conditions for me to become a small rural businessman. That's what's different about this kind of integration partnership," Negri said.

Productivity with quality ­ Poultry generates around 80% of Negri's income, and he employs three people. The social sustainability of the Brazilian model over the long term can be explained because it serves convergent interests: productivity and profitability at both points of the supply chain. The producer gains access to production technologies and a no-risk way of selling his product, the live chicken, while the meat processor is guaranteed a supply of high-quality raw material and has control over all stages of the chain: production, slaughter, processing and distribution. This partnership generates jobs and income, makes small farms economically viable and prevents people leaving the land. "What's important is that the better the handling practices in the aviaries, the more the family earns, and this stimulates the adoption of good practices for production, sanitation, animal welfare and the environment," said Lanznaster, of Aurora. The integrating company, be it a cooperative

or an agri-industry firm, monitors the production of each family with technical report sheets which record all the necessary production details, including expenditure with feed, handling, sanitation and so on. The contract between the Maldaner family and the integrating cooperative takes various factors into account when calculating the payment. The starting point is a fixed price per bird, but then there are percentages that adjust this basic price according to the producer's performance with respect to biosecurity norms, for example hygiene and sanitation, bird mortality during production, the ratio between feed consumed and bird size, environmental preservation and so on. The greater the conversion rate of grainbased feed into animal protein, the higher the producer's net margin. This system encourages the producer to be more aware about what he is doing in terms of production, sanitation and the environment, so helping ensure excellence in the system. "In

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the integrated production system improves living standards in the countryside.

the case of Aurora, there is a financial incentive for good performance in terms of biosecurity," Maldaner said. As recognition of having achieved excellence in production and improving living standards without harming the environment, the Maldaners were awarded Aurora's Rural Cooperative Entrepreneur Prize in 2009. The integrated production model first took hold in Brazil in the 1960s, in the chicken sector of Santa Catarina. It was so successful that it was adopted in hog farming and today is used in other Brazilian farming sectors like grapes, tomatoes, heart of palm, fruit, tobacco and others. Perdigão, today the country's biggest chicken processor, received enormous growth stimulus from integrated production. The company started using the system in the middle of the 1960s and today has 8,800 integrated producers spread around the country. The same thing happened with Sadia, which today has over 7,000 integrated producers for poultry, out of a total of 10,500, the rest being hog suppliers. The system accounts for 90% of the company's total production. The poultry sector in the South and Southeast of Brazil is dominated by properties occupying between 10 and 15 hectares, typically using family labor,

whereas in the Center-West most producers are large farms that also have permanent production of crops such as corn, soy and cotton. Integrated production is also important for small and medium agri-industries. Rivelli Alimentos, which has its head office in Barbacena (Minas gerais State, in Southeast Brazil) is supplied by 84 integrated producers. "We are located in a very mountainous region where the properties tend to be small, an average of 10 hectares, but there are aviaries in properties as small as two hectares," said helen Cláudia Ferreira, a veterinarian who is the company's poultry production manager. Poultry tends to be the best option for small, hilly areas where planting crops or breeding cattle is difficult. The fact that Rivelli, a mid-sized producer, is authorized to export to the European union is a demonstration of the high level of production quality that the company achieves. Some 35% of Rivelli's output goes to export, on average. "our technical department conducts presentations, workshops and practical training sessions in the aviaries of producers who are integrated with our company," Ferreira said. Best Production Practices ­ In addition to the training and technical

assistance that integrated cooperatives and agri-industry companies provide for their producers, the representative associations in the sector are active in disseminating productive knowledge throughout the Brazilian chicken supply chain. In July of this year more than 500 chicken producers from Barbacena, Visconde do Rio Branco and São Miguel (all in Minas gerais State) swapped their aviaries for classrooms, where a "Best Production Practices" course offered information on good practices, new techniques and other knowledge. It was part of a program entitled "Quality in the Poultry Production Cycle" sponsored jointly by the ABEF, the Brazilian Poultry union (uBA), and the Secretariat for Farming and Cooperative Development at the Ministry of Agriculture, Livestock and Supply. The program provides training for aviary owners throughout Brazil, with information and practical instruction that includes: adequate physical infrastructure in the production units; purchase and housing of chicks; fowl density; ventilation; illumination; handling; feeding; veterinary medicines; sanitation; stock traceability and environmental management, amongst other subjects. "In this program we are stressing the need for producers to redouble their efforts in practices that have to do with product quality," said Ricardo Santin, the executive director of the ABEF. Ferreira, the Rivelli manager, said that the course helps small poultry producers, who may sometimes live in rather isolated regions, feel that they are part of a very professional and modern industrial sector that supplies dinner tables in Japan, Saudi Arabia, germany, England, China and many other markets. "In addition to the technical content, the course has an important motivational ingredient. The producer feels encouraged to deliver a high-quality product. he sees that globalization extends to his smallholding," said Ferreira.

A SECurE pATH To SuCCESS

In 1976, when the Brazilian Chicken Producers and Exporters Association (ABEF) was created, Brazilian chicken meat exports stood at 20,000 tonnes per year, earning uS$20 million. By 2000 this had grown 15-fold to over 300,000 tonnes, worth uS$329 million, and last year foreign sales reached a record of 3.6 million tonnes, bringing in no less than uS$6.9 billion. The story behind this dramatic growth is the story of the ABEF itself, the association that today represents 29 companies (see profiles) that account for 75% of all Brazil's chicken meat production and no less than 93% of exports. The impressive success of the poultry sector, which in 2004 took Brazil to the top of the world rankings for chicken meat exports, is due to the companies within the ABEF working together to address essential questions such as sanitary control of animals and derived products, the unbeatable quality of these products, the ethical values that guide all phases of the productive process and marketing activities, and the commitment to environmental and social sustainability. Adhering strictly to these principles is the ABEF's main mission. In this way, the association has become established as the unchallenged spokesman for the sector, both for Brazilian government relations and international negotiations seeking to ensure access to foreign markets. The recent opening of the Chinese market to Brazilian fresh chilled chicken meat and the presence of the Brazilian product in 153 national markets on all continents constitute convincing proof that the ABEF has been following the correct path since it was created ­ a path from which the association and its members will never stray.

ad'oro Ad'oro slaughters whole chickens and produces frozen cuts for the domestic and export markets. operating as a closed cycle company, from hatchery to slaughter, Ad'oro has around 1,200 direct workers and 1,000 indirect workers in production facilities at Várzea Paulista, São Carlos and Rio Claro. The company produces 8,500 tonnes per month of finished products. originally the company focused on the Brazilian market but recently it has turned to exports, supplying clients in Asia, Africa, the Caribbean and Eastern Europe. Ad'oro is an innovative company, fundamentally driven to meet its clients' needs. it operates in poultry raising and slaughtering, as well as in frozen cuts, processing and industrialized products. its main products are seasoned and frozen chicken cuts for the domestic and export markets. Social responsibility is a key part of Ad'oro's corporate values, formed and consolidated over the decades. The company practices corporate citizenship based on three pillars: employees' esteem, respect for the environment and contribution to the development of the communities where it operates. it is one of the largest employers in its region. in a continuous search for new markets and qualifications Ad'oro produces and exports in compliance with the highest standards of quality and health. its plants are constantly researching and improving production processes, using hACCP analysis to ensure the strictest health standards. Ad'oro S.A. Estrada de Acesso SP/053-332 Km 4 Bairro Mursa Várzea Paulista - SP CEP 13226-400 Tel: (55) 11 4596-8414 www.adoro.com.br Thiago Bulhões Garcia Export Manager [email protected]

agrovêneto A company involved poultry production and slaughter, Agrovêneto has consolidated its market participation through its variety of products, taking strong action with respect to quality levels, compliance and client satisfaction. it is known for specialty cuts, always seeking to add value for consumers. Ever since starting operations the company has made a strong commitment to excellence, for example a constant search for the highest quality, consumer respect and environmental preservation, respect for the local community and thinking about the future. it also strives to maintain a good work-place atmosphere, providing good quality of life for employees. in order to meet international market demands, the company has its production process certified by ALo916.51 (Switzerland), BRC (British Retail Consortium), Efsis and hACCP standards, so adding safety and quality to the production of safer food. Agrovêneto S.A. - Indústria de Alimentos Rua Alfredo Pessi, 2000 Nova Veneza - SC CEP 88865-000 Tel: (55) 48 3471-2500 Fax: (55) 48 3471-2502 www.agroveneto.com.br João Eraldo Dal Toé Commercial Director [email protected] Gustavo Steck international Sales for Europe [email protected] oliver Marinho international Sales [email protected]

aurora Aurora Alimentos is one of the largest industrial conglomerates in Brazil, one of the country's largest slaughtering companies and a worldwide reference in meat processing technology. it has 17 affiliated cooperative companies, 74,252 associates and more than 13,000 employees. Aurora industrial units are among the most modern in Latin America, all of them fully geared to producing top-quality products. Aurora operations cover a wide range of poultry meat products. Social responsibility is a key corporate value and several programs have been developed to promote employee esteem, engender respect for the environment and contribute to the development of local communities where the company operates. Aurora has an outstanding position in the global food business, complying with international food standards and norms and satisfying consumer preferences all around the world. All units follow standardized procedures to guarantee quality, and the production lines are periodically audited. Food industrialization safety awareness is guaranteed by hACCP, Good Manufacturing Practices and Sanitation Standard operating Procedures, control programs, production norms and processing controls, so complying with importing countries' requirements. Cooperativa Central Oeste Catarinense - Aurora Alimentos Rua José Maurício, 241 Ed. Park Avenue 1° And. Sala 11 Centro, Guarulhos - SP CEP 07011-060 Tel: (55) 11 3545-3313 www.auroraalimentos. com.br Dilvo Casagranda General international Manager dilvoc@auroraalimentos. com.br Ronaldo Agg international Commercial Manager roagg@auroraalimentos. com.br Leomar Luiz Somensi Commercial Director leomar@auroraalimentos. com.br

Big Frango Big Frango is one of the largest and most modern poultry companies worldwide and among the 10 biggest private companies in the poultry sector in Brazil. operating since January 2002, the factory is considered the most modern in the field. it is based in the city of Rolândia in Paraná State and creates more than 4,300 direct jobs, plus another 3,500 indirect ones. investments in new plants in Ubiratã, in Paraná, and Primavera do Leste, in Mato Grosso State, will create hundreds of new jobs and double the export volume. The company is involved in poultry production and slaughtering and has over 150 SKUs destined for the domestic and external markets, in particular frozen and chilled premium cuts. Big Frango maintains control over all the supply chain and ensures full quality, biosafety, hygiene and care for the environment. The company is certified by the European Union and has hACCP process analysis. All the poultry feed used is produced by the company itself, so ensuring quality control and traceability. To guarantee quality the company invests in the production and selection of its own parent chicken. initiatives in social responsibility have also been increased. Besides contributing to an increase in the number of day care centers in the city where it is based, Big Frango supports institutions such as retirement homes and the Cancer hospital of Londrina, in Paraná. Agrícola Jandelle S.A. ­ Big Frango Av. itamaraty, 2020 Pq industrial Rolândia - PR CEP 86600-000 Tel/Fax: (55) 43 2101-8200 www.bigfrango.com.br Evaldo Ulinski Júnior Export Director [email protected]

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BrF ­ Brasil Foods BRF is one of the largest food companies and meat processors in the world, exporting to more than 110 countries. with its registered head office in itajaí (SC), it ranks third in the world in poultry slaughtering capacity and is one of the 10 largest in the hog-slaughtering segment. it is also one of the leading Brazilian companies in milk catchment and production of dairy products, pastas and pizzas. its specialized distribution system for chilled and frozen products is made up of a large and complex structure with 28 distribution centers and 19 outsourced distributors. BRF's sales reach more than 100,000 customer outlets nationwide, counting small, medium and large retailers. Founded in 1934 in Santa Catarina State by descendents of italian immigrants, the company currently emp loys more than 59,000 people and operates 42 industrial units in 11 states. Perdigão has a further three plants in Europe and one in Argentina. BRF - Brasil Foods S.A. Av. Escola Politécnica, 760 São Paulo - SP CEP 05350-901 Tel: (55) 11 3718-5300 Fax: (55) 11 3768-2236 www.perdigao.com.br Antonio Augusto de Toni Brazil - External Market General Director Antonio.de.toni@perdigao. com.br Antonio Carlos Zanella Europe antonio.zanella@perdigao. com.br Luiz Alfredo C. de oliveira Middle East and Africa luiz.oliveira@perdigao. com.br Marta Kiyomi ikeda Asia marta.ikeda@perdigao. com.br Maritza Krauss Eurasia maritza.krauss@perdigao. com.br Edson Laurindo Cavalcante America edson.cavalcante@perdigao. com.br Adriano Frizon Brazil - Administrative Coordinator adriano.frizon@perdigao. com.br

Céu azul Céu Azul Alimentos has been established in the Brazilian market in São Paulo State since 1974. it is a family company, whose main activity is poultry production and slaughter, but it also works with cattle breeding, cattle ration manufacturing and agriculture. it has installed slaughtering capacity for 460,000 birds a day. The company keeps control of the full poultry breeding and production cycle, in charge of all steps including the station breeders, specific ration units for each phase of the poultry life and hatcheries with strict quality control. it has its own farms and also works with the integrated family system. Slaughtering units are prepared and accredited for the Brazilian and foreign markets. By following these procedures Céu Azul Alimentos can guarantee full traceability of all its products. it employs 4,000 workers directly, and almost 30,000 indirectly. The company has systems of control and quality assurance, for example a hACCP plan. it has accreditation for export to countries in the European Union and to other countries where specific accreditation is needed. Céu Azul Alimentos is concerned about the environment and protects natural resources, recognizing their importance for our survival. Each productive unit has a system for treatment of effluents that meets all the requirements of current legislation of each region. Céu Azul Alimentos Ltda. Rodovia Raposo Tavares, km 177 itapetininga - SP CEP 18201-970 Tel: (55) 15 3275-9018 www.ceuazul.ind.br Franke Pavan Director [email protected] Luciane Del Rio Nunes Export Department [email protected]

CooPavel Coopavel was established in 1970 in the city of Cascavel, in the state of Paraná. it is the main raw material processing company in the west of the state. Coopavel has a diversified range of products that include whole chicken and several chicken cuts. one of Coopavel's main goals has been the development of rural properties. it has been investing since the beginning of the 1990s in technological research aimed at improving agriculture and livestock quality and productivity. The results are presented to farmers in an annual technology fair at the Coopavel Rural Show. Additionally, the cooperative has created the Coopavel University to train and develop members and employees, aiming for a more qualified workforce and improvement in the quality of life. Coopavel - Cooperativa Agroindustrial BR 277, Km 582 Cascavel - PR CEP 85818-560 Tel: (55) 45 3218-5000 Fax: (55) 45 3218-5218 www.coopavel.com.br Carlos Alberto Cruz Export Manager [email protected]

CoPaCol Copacol, the Cooperativa Agroindustrial Consolata, is established in Cafelândia, Paraná State. it slaughters more than 300,000 birds per day with 60% of its production sold in the Brazilian market and 40% exported to more than 30 countries. Copacol's technologic investments in the process of egg incubation, advanced technical assistance, slaughter, industrialization and commercialization, together with the company's certificates ­ iSo 9001, BRC-Food Products and hACCP (hazard Analysis and Critical Control Points) ­ testify not only that the company is a competent food producer, but that it is a specialized and secure supplier that can meet requirements from all around the world, including the most demanding markets such as Europe and Asia. The cooperative has sold to the international market for 27 years and can supply products in all five continents. its annual billings are R$980 million. As the leader in this segment in many regions of Brazil, Copacol has sales units in Cafelândia and Curitiba (Paraná), Campo Grande (Mato Grosso do Sul) and Brasília (Federal District). it also has 11 units for stocking and loading grains in the west of Paraná, serving more then 4,500 associates and 6,500 employees. Copacol - Cooperativa Agroindustrial Consolata Rua Des. Munhoz de Mello, 176 Cafelândia - PR CEP 85415-000 Tel: (55) 45 3241-8080 Fax: (55) 45 3241-8181 www.copacol.com.br Valter Pitol President [email protected] Valdemir Paulino dos Santos Commercial Manager [email protected] José Charl Trader [email protected]

CoPagril CoPAGRiL is an agri-industrial cooperative founded in the 1970s by 29 farmers, and after one year of activity it had 352 members and five employees. Today it has 4,000 members and 2,200 direct employees. Poultry is the principal product of the cooperative worldwide. CoPAGRiL activities are located in the west of Paraná State and in Mato Grosso do Sul State. The cooperative's industrial chicken processing unit is currently capable of slaughtering 160,000 birds per day, and the whole production complex was planned as an integrated operation with the goal of better using the potential of the region. The industrial poultry processing unit is licensed to export to a large number of excellent consumer markets for chicken meat around the world. CoPAGRiL's quality products are distributed in Brazil and in the world's principal markets. The cooperative's animal feedstuff factory produces feedstuff and concentrated products for various types of animals. Current production capacity is 40 tonnes per hour for hog breeders, chicken farmers and integrated dairy farmers. in addition the company sells feedstuff and concentrated products for cattle, chicken, pigeons, horses, fish, rabbits and dogs. CoPAGRiL is a cooperative that is concerned with the environment, so it uses resources rationally and carefully to guarantee the quality of life for future generations. Cooperativa Agroindustrial Copagril Rodovia PR 467, KM 26,1 Marechal Cândido Rondon, PR CEP 85960-000 Tel: (55) 45 3284-7500 www.copagril.com.br José de Lima Poultry Sales Manager [email protected]

Cossisa Cossisa Agroindustrial S.A. started operations in 2001, based in the city of Sete Lagoas in the state of Minas Gerais. The company is distinguished by its outstanding track record in the poultry sector. it works in poultry production, slaughtering and marketing, and its main goal is to supply the domestic and external markets, given that the prospects for the Brazilian poultry industry are extremely positive, especially in the international market. The company is constantly striving to do better and spares no expense to preserve employee enthusiasm and consumer trust. Cossisa produces and exports according to the highest standards of quality and health. its plant is covered by a hACCP plan and it follows the strict health standards demanded by the international market. in keeping with its strong commitment to contribute to the reduction of social differences, Cossisa invests in social actions. For example, the company supports the Social Assistance and integration workshop (hoasis), donating products each week to the needy community supported by this institution. Cossisa Agroindustrial S.A. Av. Prefeito Alberto Moura, 8871 Sete Lagoas - MG CEP 35702-383 Tel: (55) 31 3773-4300 Fax: (55) 31 3773-9500 www.cossisa-agro.com.br Mauricio Gontijo Gonzaga Commercial Director mauricio@cossisa-agro. com.br [email protected]

C.vale C.Vale is an agri-industrial cooperative based in the states of Paraná, Santa Catarina, Mato Grosso and Mato Grosso do Sul, and also has operations in Paraguay. it was founded in 1963, in Palotina, western Paraná and today has 8,500 associates and 5,000 employees. The main products are soy, corn, wheat, cassava, milk, pork and poultry. The structure of C.Vale comprises 94 business units including storage units, supermarkets, processing plants and machine sales. The poultry segment is the biggest in the company, slaughtering 300,000 birds per day within an operational capacity of 500,000 birds per day. The chicken meat produced by the cooperative is sold in 16 Brazilian states and exported to more than 35 countries. C.Vale produces chilled and frozen cuts and cooked chicken meat. Client can obtain information about any batch of products commercialized and have access to details about procedures involving the feed production, handling and industrialization. The cooperative is committed to helping improve the living standards in communities where it operates. To that end, it carries out a set of initiatives involving actions to promote personal and professional development, while the Cooperjovem program provides cooperative education for 4th grade students. C.Vale - Cooperativa Agroindustrial Av. Ariosvaldo Bitencourt, 2000 Palotina - PR CEP 85950-000 Tel: (55) 44 3649-8181 www.cvale.com.br Reni Eduardo Girardi Division Manager [email protected] Leandro Régis Cassol Market Analyst [email protected]

diPloMata Diplomata is one of Brazil's 10 largest chicken exporting companies, with about 6,000 employees and 1,500 integrated producers. The company works in poultry slaughtering and processing, and domestic and international trade of frozen and chilled chicken. it produces special exports cuts to meet clients' needs. Most Diplomata units are iSo certified. in order to ensure product quality, Diplomata has laboratories within its plants to conduct the processes analysis required to meet the highest international quality standards such as hACCP analysis and the oiE and European Union health requirements. The Alfredo Kaefer institute handles Diplomata's social responsibility actions. one of its main programs is Young Athlete, which helps more than 2,000 children and provides psychological assistance to 50 families of these participants. Young Athlete works with sports like indoor soccer, volleyball, capoeira (a Brazilian martial and dance art) and soccer. Another distinguished program is heartbeat to help hypertensive patients, monitoring their blood pressure and taking care of serious cases that arise. Diplomata S.A. Industrial e Comercial BR 277, Km 599 Cascavel - PR CEP 85819-000 Tel: (55) 45 3321-3000 Fax: (55) 45 3321-3091 www.diplomata.ind.br Frederico Kaefer Export Director frederico.kaefer@diplomata. com hortência Pasa Export Manager [email protected] Alessandra Kaefer Trader [email protected] Eduardo Almeida Trader [email protected] Rodrigo Ribeiro Trader rodrigo.ribeiro@diplomata. com Julian Carpenedo Trader [email protected]

doux Frangosul one of the largest food companies in Brazil, Doux Frangosul has more than 6,500 employees. Established in 1970 in the rural region of Rio Grande do Sul State, the company now distributes its products nationwide. it is one of Brazil's three biggest chicken exporters, selling to more than 120 countries. Since 1998, it has been part of Group Doux, a European poultry producer and exporter, so increasing its participation in several national markets. The company is involved in poultry production and slaughtering, industrialized products, processed products and frozen meat. Doux Frangosul is committed to the sustainable development of communities where it is located. its social responsibility can be seen in respect for the environment, where it has effective programs and processes, plus support for culture and education. Doux Frangosul is present in the states of Rio Grande do Sul (municipalities of Montenegro, Salvador do Sul, Caxias do Sul, Nova Bassano, Passo Fundo, Vacaria and ipê), Mato Grosso do Sul (Caarapó and Dourados), Santa Catarina (imbituba), São Paulo (Cotia), Rio de Janeiro (Rio de Janeiro), Bahia (Salvador) and Pernambuco (Recife). Doux Frangosul produces and exports in accordance with the highest standards of quality and health. its plants have hACCP analysis processes and follow the strict health standards required by the oiE and the European Union. Doux Frangosul S.A. Agro Avícola Industrial Rua Buarque de Macedo, 3620 Montenegro - RS CEP 95780-000 Tel: (55) 51 3632-0500 Fax: (55) 11 3632-5444 www.doux.com/-The-group-. html olivier Morel Export General Manager [email protected]

Frinal Established in 1973, Frinal is a Brazilian company located in the city of Garibaldi (RS). it is a complex industrial group with a vertically structured production process including hen breeding, production of feed eggs, incubation, broiler breeding, feed milling, a slaughterhouse, a cutting room and processed meat products. The industrial plant for slaughtering and processing chickens is an exceptionally modern structure, with state-of-the-art equipment in a perfect layout. All of this, plus the qualification of its personnel, results in an optimized operating flow with excellent hygiene in operations and equipment and an emphasis on the assurance of safe, high quality products. The mission of Frinal is to meet the food requirements of domestic and international markets, especially for chicken and its by-products, offering excellent quality products at prices that are compatible with customer purchasing power. All this must be done in a manner that meets shareholders' expectations, so ensuring the continuity and expansion of the business. Frinal currently slaughters 90,000 birds a day with around 50% of its production going to export. it has its own green meal production and a halal slaughtering process. The company has been awarded a hACCP Management System Certificate and plan to be qualified for European sales shortly. FRINAL S/A - Frigorífico e Integração Avícola RSC 470, km 225 Garibaldi - RS - Brasil CEP 95720-000 Tel: (55) 54 3388 1588 www.frinal.com.br Luiz Fernando de Pinedo Roman Ross Commercial Director [email protected] Alice Roman Ros Cobalchini Export Manager [email protected]

gloBoaves From a small family business dedicated to producing and selling poultry and pigs, established when new settlers were moving to the promising western region of Parana State, Globoaves grew to be a major player in the revolution that was to transform Brazilian poultry production into one of the most developed and competitive poultry industries in the world. The company's impressive growth began in 1985 when it wisely chose to specialize in poultry genetics by adopting best-of-breed technology. During the past decade, Globoaves became the leading producer and supplier in Brazil and South America of fertile eggs and one-day chicks for broiler chicken and laying hen production. Several quality programs are used in its plants, including Best Manufacturing Practices and hACCP certification. These ensure that plants comply with the strictest sanitary regulations in the market. when the Valesul brand was launched, Globoaves entered the business of poultry, pork, further processed products and ready-to-eat food for snacks, meals, salads and appetizers. Globoaves also owns the Nho Bento Free-Range Chicken and Villa Germania product lines, and is market leader in the special bird meats segment (duck, guinea fowl and free-range chicken) and in rabbit meat. Kaefer Agro Industrial Ltda. Rodovia BR 467 Km 03 CEP 85817-010 Cascavel - Paraná - Brazil Tel: (55) 45 3218-2000 Fax: (55) 45 3218-2008 http://alimentos-en. globoaves.com.br Eduardo Kaefer [email protected]

lar Cooperativa Agroindustrial LAR was founded in 1964 and now has 8,454 associates and 4,250 employees. opened in July, 1999 the industrial Poultry Unit slaughters 137,000 birds/day and produces chicken cuts for the local and international markets, with the focus on the latter where it offers chicken cuts, iQF, layer pack, packages, vacuum packed, matured, tumbled, salted, natural and marinated, among others. Next year (2010) should see the duplication of this unit, while maintaining the current standards of product and process quality. LAR is renowned for the diversity of quality programs it has implemented, including iSo 9001, BRC, hACCP, Traceability Plan and RECALL, GMP, Labor health control and others. in 2004 it set up the Further Processing Plant to produce cooked and roasted chicken cuts destined principally for the European market. it modernized this plant in February of 2008 and implemented a versatile production line for cooked, formed and breaded products based on chicken meat to supply both local and international markets. The cooperative benefits from controlling the entire process, right from the corn and soybean planting and the reception of grains. Using the integration system, LAR has a poultry house for breeders, a hatchery, a feed mill, transportation and technical assistance. Cooperativa Agroindustrial LAR Rodovia BR 277 Km 653 Matelandia PR Tel: (55) 45 3264 8800 Fax: (55) 45 3264 8801 www.lar.ind.br irineo da Costa Rodrigues President [email protected] Jair José Meyer Commercial Manager [email protected] Giovana Rosas Export Manager [email protected]

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MarFrig ­ dagranja DaGranja was established in 1975 in the city of Lapa, Paraná State, and is today one of the largest poultry slaughterhouses in Brazil, ranking among the six most important nationwide. The company's three units in the municipalities of Lapa, Uberaba and Passos (all in Minas Gerais State) currently slaughter 435,000 birds per day. The company is engaged in poultry production and slaughtering, frozen products industrialization including chicken nuggets and hamburgers, sausage products production, and so on. DaGranja has introduced a Quality Management System named Total Qualidade DaGranja, based on the PDCA methodology (Plan Do Check Act), and hACCP. These ensure not only product and process quality but also client and employee satisfaction. DaGranja Agroindustrial Ltda. Rodovia do Xisto, Km 66, BR 476 Lapa - PR CEP 80320-300 Tel: (55) 41 3314- 5848 Fax: (55) 41 3314-5834 www.dagranja.com.br Fredy Rosenstock Foreign Trade Manager [email protected] MarFrig ­ Penasul aliMentos Penasul Alimentos Ltda. operates in the states of Rio Grande do Sul and Santa Catarina and offers fully integrated poultry supply, breeder and broiler farms, hatcheries, feed mills, slaughterhouses and processing plants that employ over 2,700 staff. including its subsidiaries, Penasul slaughters 300,000 chickens per day. operating under the highest standards of quality and animal welfare, Penasul quality controls include: a fully implemented hACCP system; British Retail Consortium (BRC), level "A"; LDV for the Swiss market;

UFAS and GlobalGAP in the agriculture and livestock department. Also, the company's in-house laboratory is certified for iSo 17025. As a result, Penasul considers itself to be a strong player in the export market, serving customers in more than 35 countries around the world. The "Pena Branca" brand is exported to Europe and sold in Southern Brazil, while the "Penasul" brand is exported to other markets. Penasul Alimentos Ltda. RST 470 KM 226 Garibaldi - RS - Brasil CEP 95720-000 Tel: (55) 54 3462-8450 Fax: (55) 54 3462-8451 www.penasul.com.br oscar Pizzato Export Manager [email protected] Leandro ivan Negreiros da Silva European Market Sales Manager [email protected] MarFrig ­ Predileto aliMentos Predileto Alimentos, Pena Branca, started operations in 1943 in the city of Roca Sales, in Rio Grande do Sul State. The company works in poultry production and slaughtering and supplies the domestic and external markets with whole chicken, chicken cuts and processed and seasoned chicken. over recent years, besides investments in industrial plants, the company has invested heavily in quality programs that target food product safety. it has implemented GMP and hACCP systems, ensuring that employees are fully trained and qualified to comply with requirements of all the markets where it operates. Predileto Alimentos Ltda. ­ Pena Branca Rodovia Campinas - Mogi Mirim, Km 131 Jaguariúna - SP CEP 13820-000 Tel: (55) 19 3867-8000 Fax: (55) 19 3867-8088 www.predileto.ind.br Fábio Bonassi [email protected] Reginaldo Ferri reginaldo. [email protected]

Minerva dawn FarMs Minerva Dawn Farms is a joint venture between top Brazilian meat producer Minerva S.A. and the irish meat processor Dawn Farm. The plant at Barretos in São Paulo State is designed as a flexible factory, focusing on food services and food manufacture with development of exclusive products in large and small scale for sale in Brazil or abroad. it can process chicken, turkey and other proteins. The factory has 14,000 square meters of constructed area destined to production, with another 1,400 square meters set aside for innovation, training and laboratories. Total investment was around US$40 million. The plant was designed to respect the environment and incorporates complete waste treatment and packaging recycling, with its own water resources and utilization of solar energy. MDF has implemented a quality system based on hACCP, SSoP and GMP, meeting the requirements of both Brazilian legislation and the major importing markets. The company is able to export to countries of the General List and Europe and is in the process of receiving approval to sell to the United States, Canada, Japan, Russia and South Africa. Minerva Dawn Farms Indústria e Comércio de Proteínas S.A. Rua João Ribeiro do Nascimento, 355 Chácara Minerva Barretos - SP CEP 14781-530 Tel: (55) 17 3321-8000 www.mdfbr.com Roberto Denuzzo CEo [email protected]

PiF PaF Pif Paf Alimentos is the largest poultry slaughtering company in Minas Gerais State, and is responsible for about 4,000 direct and 8,000 indirect jobs. it has some 50,000 clients throughout Brazil and in export markets. The company is involved in poultry production and slaughtering, industrialized products manufacturing, processed and frozen meat, and the segments of ready-to-eat pasta and pizza. Pif Paf received its first quality certificate, iSo 9002, in 1999 from the Bureau Veritas Quality international (BVQi). in 2002 it received the same certification again, so assuring extra qualification for its products. The certificate is applied to `the chicken slaughtering process and distribution of seasoned and fresh products, chicken and frozen cuts'. Pif Paf also internally certified its incubator at São José da Varginha, in Minas Gerais State, for the `day-old chick production process'. in 2003 the company received the recommendation for its Quality Management System for NBR iSo 9001:2000, with the highest qualification. The certifier organization was BVQi. Since 2001 the Quality Control Circle (CCQ) has been operational, with groups of employees from the same areas meeting voluntarily to improve aspects related to their safety, personal and professional motivation and development. Rio Branco Alimentos S.A. PIF PAF Rua Raja Gablagia, 4091 Belo horizonte - MG CEP 30350-577 Tel: (55) 31 3348-3524 www.pifpaf.com.br Edvaldo José Campos Commercial Director [email protected] Gustavo h. D. Untar Export Manager gu[email protected]

rivelli Established in 1985, Rivelli Alimentos enjoys an outstanding position in the Brazilian poultry sector. it is engaged in the day-old chick supply chain as well as chicken production, slaughtering, processing and sale. The company has 1,200 employees at industrial units in six cities in Minas Gerais state, producing and selling whole chicken and special cuts, gizzards and processed meat in several packaging standards, according to clients' needs. Rivelli defines its mission as quality production that respects the environment, using cutting-edge technology and a skilled workforce to win new markets and build a strong brand. To this end its activities are based on three pillars: honesty, work and competence. it reinvests its resources into its own operations, so generating more jobs ­ today about 3,500 throughout the supply chain. The company is engaged in various kinds of social work, mainly connected to sports, culture and juvenile support. Responsible corporate actions and environmental protection constitute a source of company pride and are a strong inducement to preserve its image as a company that is concerned about the community where it is located. Rivelli's production systems ensure the highest standards of poultry production and health quality of its flocks, using hACCP, GMP and SSoP programs. Nogueira Rivelli Irmãos Ltda. Rodovia BR 040, Km700 Barbacena MG CEP 36204-749 Tel: (55) 32 3339-0155 www.rivelli.ind.br Marcelo Assunção de oliveira Sales Director [email protected] Ricardo Nogueira F. de Miranda Sales Manager [email protected]

sadia Sadia is one of the world's leading producers of chilled and frozen foods and is present in many thousands of households in more than 100 countries worldwide. The company is a market leader in all segments where it operates and is one of the largest employers in Brazil, with more than 52,000 workers. Established in Santa Catarina State in 1944, the company now has 14 industrial plants in eight Brazilian states, plus eight distribution centers and 11 international offices. The Sadia brand is widely recognized by consumers worldwide for its high quality, and it ranks among the 20 most valuable brands in Brazil, according to a listing by the British consultancy company Brand Finance. in keeping with the growing importance of social and environmental issues, in 2004 Sadia established a Strategic Sustainability Committee. The company has a quality system based on GMP, SSoP and hACCP, in line with international food safety and quality programs and procedures. Sadia S.A. Rua Fortunato Ferraz, 659 São Paulo - SP CEP 05093-901 Tel: (55) 11 2113-3888 [email protected] www.sadia.com Americas - José Bicaletto [email protected] Africa - Renato Koch [email protected] Japan - Mercedes Dallabona mercedes.dallabona@sadia. com.br China - Celio Cella [email protected] Singapore - Fred Cheng [email protected] Russia - Pamela Bongiovanni pamela.bongiovanni@sadia. com.br Euro Asia - Márcio Lima [email protected] Europe - Ana Maria Costoya [email protected] Middle East - Patrício Rohner [email protected]

seara ­ Cargill Cargill operates in the Brazilian meat market via Seara, which was established in 1956 and is today among the country's main employers with more than 16,000 staff. Seara sells industrialized and thermo processed poultry meat in more than 70 countries. Based in the city of itajaí, in Santa Catarina State, the company owns eight factories and a private port, and is intensifying its operations in the domestic market through a portfolio of more than 250 items. The company is engaged in poultry slaughtering (whole birds and cuts) and thermo processed products production, as well as industrialized products processing. Seara practices the strictest quality standards. it adopts the food safety policies laid down by the hACCP and GMP systems, with their requirements applied throughout the plants, and its Quality Management System is certified under iSo 9001 and iSo 14000. The company also has international certifications such as BRC/EFSiS, UFAS, EurepGAP and Swiss Law. This demonstrates the company's responsible posture regarding food safety and provides assurances of "Farm to Fork" quality. Seara Alimentos S.A. Av. Vereador Abrahão João Francisco, 3655 itajaí - SC - CEP 88307-303 Tel: (55) 47 3344-7700 Fax: (55) 47 3344-7707 www.seara.com.br Middle East - Marcelo Flormésio da Silva [email protected] Africa - Leonardo Ferreira leonardo_ferreira@cargill. com America - Ana Lígia winkelhaus ana_winkelhaus@cargill. com Aregentina, Uuruguay and Venezuela - Pablo Miranda [email protected] Russia - Boris Garanin [email protected] Asia (except Japan) Vincent Lai [email protected] Japan - waldemiro Michels Junior waldemiro_junior@cargill. com

sertanejo The Sertanejo Alimentos group has been operating in the Brazilian poultry production sector for 33 years. it is today responsible for 2,737 direct and 10,000 indirect jobs. Current production capacity of its units is slaughter of 220,000 birds per day and production of 35 tonnes of processed products per day. in addition to poultry production and slaughtering, Sertanejo is engaged in industrialized products manufacturing and frozen meat. it is also involved in the processed products segment with chicken hot dogs, meat hot dogs and mortadella. The focus on poultry production and processing has resulted in the company achieving standards of quality and excellence that have earned its products certification for export to Asia, the European Union, North America and African countries. The company aims to constantly improve and consolidate an operational and organizational structure that is geared to innovation and better meeting the requirements of today's consumer who is constantly better informed and demands more modern products. in addition to working constantly to improve its production of safe and healthy foods, which ensure consumers' health, the company respects the environment and supports social programs in the communities where its units are based. Sertanejo Alimentos seeks to guarantee food safety through the adoption of strict hygiene and efficiency norms in its poultry production and processing, in addition to caring for employees' health and professional performance. The company fully implements the main quality programs: 5S, GMP and hACCP. Sertanejo Alimentos S.A. Rua das Palmeiras, 34 Guapiaçu - SP CEP 15110-000 Tel/Fax: (55) 17 3214-5300 www.gruposertanejo.com.br Vivian Antunes Export Manager [email protected]

suPer Frango Located in itaberaí in Goiás State, Super Frango has become established in the market by offering excellence in the agribusiness segment, and in particular the production of food derived from chicken meat. with 18 years of activity and a current slaughter capacity of 320,000 chickens per day, Super Frango has gained prominence in this sector. Super Frango has an efficient quality control system managed by a group of highly competent workers. This ensures healthy food for consumers. The process of raw material classification is very strict, permitting the company to operate with excellence in the production process and offer customers products of high quality and security. Certifications include SiF 3404, halal and hACCP, so allowing the company to export to several parts of the world. Super Frango is engaged in a constant search to qualify its products and services for sale in all countries. Super Frango conducts its businesses with respect for the environment and natural resources. The company is implementing new practices to save energy in all the operations it performs, reducing the emission of residues that can result in problems for the environment. Through such endeavors, Super Frango makes a positive influence by improving the economic infrastructure and offering technical assistance. in particular it impacts cultural change, improving the quality of life of the population in the region where it operates, offering communities various non-governmental social development projects. Abatedouro São Salvador Ltda ­ Super Frango Rodovia Go, 156, Km 06 itaberaí - Go CEP 76630-000 Tel: (55) 62 3375-7000 www.superfrango.com.br Enoc Mendonça Neto Commercial Exports [email protected]

uniFrango Unifrango started activities in 2001 and currently includes 19 companies in the poultry sector. Together, they occupy the top position in Brazil in terms of daily production of chicks and rank third for poultry slaughtering. The Unifrango group exports to more than 120 countries. Thanks to ongoing excellent results, surpassing targets in production and trading of poultry products, Unifrango has conquered new and demanding markets including Japan ­ accounting for more than 20% of demand ­ followed by Saudi Arabia, holland and Russia. This is the result of professionalism and close attention to the poultry production processes. Unifrango's detailed compliance with sanitary certification and animal well-being is essential to ensure that only the best products reach global markets. As part of its policy of supplying the market with top quality products, Unifrango has been continually investing in the construction of a complex that will represent a logistical advance in the Brazilian poultry sector. The project includes a warehouse, a container terminal and a slaughterhouse. The area will also include a distribution center to allow products to be delivered by rail at Paranaguá Port, the world's sixth largest harbor and the second largest in Brazil. Unifrango Agroindustrial S.A. Av. Duque de Caxias, 882 Ed. New Tower - Sala 403 Maringá - PR CEP 87020-025 Tel: (55) 44 2103-6600 www.unifrango.com Pedro henrique de oliveira Chief Executive officer [email protected] Schyene Ritter Foreign Market [email protected]

vossko Vossko do Brasil was established in February 2003 and has been exporting processed chicken products since May 2004. Today it has 250 employees and monthly production of around 800 tonnes split between two product lines, of which 80% is destined for the company's headquarters in Germany and 20% to European clients. The company works on industrialized products processing, plus processed and frozen chicken. it produces around 50 products of different types, cooked or roasted, according to the client's request. The company is German-owned and the target market is Europe. Vossko do Brasil produces and exports according to the highest quality standards. its plant has hACCP analysis processes and follows the strict hygiene standards required by the European Union. it has also had iFS and BRC high level certification since August 2006. Vossko do Brasil Alimentos Congelados Ltda. Rua Acy Aviano Varela Xavier, s/nº Lages - SC - CEP 88517-580 Tel: (55) 49 3221-2300 Fax: (55) 49 3221-2301 www.vosskodobrasil.com.br Joachim Gerecht Export Manager joachim@vosskodobrasil. com.br

zanChetta Since its creation in 1995, the Zanchetta group has become one of the leading and fastest growing poultry businesses in Brazil. in May of 2008 it proudly inaugurated its newest processing plant in the city of Boituva, in the state of Sao Paulo. incorporating the latest generation of equipment, technology and efficient facility layout, this plant is considered to be one of the most modern and productive in Brazil. with this new facility, the company has entered the international market under the Alliz brand. The Zanchetta group invests continually in training programs that add both professional and personal value to its employees. The result is that all employees are motivated and aware that the fundamental objective at all stages of the process is to guarantee the highest quality product. Thanks to the verticalized production chain the commitment to quality begins at the breeder farms and continues through the hatchery where biosecurity and the health of the broiler breeders and day old chicks are guaranteed by quality control systems implemented by skilled technicians. All production processes have their origins controlled and are identified by a tracking system. The Alliz Plant has hACCP certification, so allowing it to supply domestic and international markets. it is prepared to serve the most demanding markets of the Americas, the Middle East, Europe, Russia, Japan, Singapore, China and Africa. Zanchetta Alimentos Ltda. Rodovia SP 129, km 22 CEP 18550-000 Po Box 216 Boituva - SP Tel: (55) 15 3363-9600 Fax: (55) 15 3363-9609 www.zanchetta.com.br Carlos Augusto Zanchetta Director [email protected] walmor Koller Commercial Manager walmor.koller@zanchetta. com.br

30

31

mAp of BrAzIlIAN CHICKEN ExporTErS

AMAPÁ MARANHÃO PARÁ AMAZONAS PIAUÍ PERNAMBUCO CEARÁ TOCANTINS

BAHIA

Lucas do Rio Verde

SIF: 3515

São Gonçalo dos Campos

SIF: 3720

MATO GROSSO

SIF: 4567

DISTRITO FEDERAL GOIÁS

Palmeiras Itaberaí

SIF: 3404

Nova Mutum

Brasília

SIF: 2423

Várzea Grande

SIF: 3371

Mineiros

SIF: 1010

Rio Verde

SIF: 1001

Buriti Alegre

SIF: 3001

Uberlândia

SIF: 121

MINAS GERAIS

Uberaba

SIF: 2460

Sete Lagoas

SIF: 725

Passos

SIF: 2869

Onda Verde

SIF: 301

Barretos Visconde de Rio Branco

SIF: 926

MATO GROSSO DO SUL

Guapiaçu

SIF: 2022

Nuporanga

SIF: 2485

Amparo

SIF: 1194

Barbacena

SIF: 3571

Sidrolândia

SIF: 3595

SÃO PAULO

Jaguariúna

SIF: 1797

RIO DE JANEIRO

Várzea Paulista

SIF: 414

Dourados

SIF: 18

Jaguapitã Caarapó

SIF: 3482 SIF: 2913 SIF: 2677

Rolândia

SIF: 1215

Jacarezinho

SIF: 2227

Boituva

SIF: 2758

Paranavaí

SIF: 1880

Umuarama

SIF: 2010

Maringá

SIF: 4166

Arapongas

SIF: 270

Londrina

SIF: 1619

Itapetininga

SIF: 4430

Sorocaba

SIF: 2405

Santos 9.25%

Cafelândia

SIF: 516

PARANÁ

Palotina

SIF: 3300

Carambeí

SIF: 424

LEGEND

Cascavel

SIF: 3887

BRAZILIAN EXPORTING PORTS IN 2008

Toledo

SIF: 716

Cascavel

SIF: 1672

source: SECEX

Ponta Grossa

SIF: 928

Dois Vizinhos

SIF: 1985

Paranaguá 33.41%

COMPANY

BRAZILIAN EXPORTING STATES IN 2007 Paraná 26.85 Santa Catarina 26.76 Rio Grande do Sul 21.28 São Paulo 8.91 Goiás 4.43 Mato Grosso do Sul 3.41 Minas Gerais 3.34 Mato Grosso 2.95 Distrito Federal 1.9 Outros com SIF 0.18

City

SIF (Federal Inpection Service)

2009, Vistadivina.com, 3th edition, MAY/2009. 2005, NASA's Earth Observatory

Matelândia

SIF: 4444

SIF: 2518

Francisco Beltrão Pato Branco

SIF: 2212

Lapa

SIF: 530

Capanema

SIF: 2539

Quilombo

SIF: 1798

Jaraguá do Sul Xaxim

SIF: 601 SIF: 2435

Itajaí 35.26%

Others with SIF

0.18% 1.90% 2.95% 3.34% 3.41% 4.43% 8.91%

Outros Japao Hong Kong Arábia Saudita Venezuela Países Baixos Emirados arabes Coveite Russia Africa do Sul Alemanha Cingapura

BRAZILIAN EXPORTING STATES IN 2008

Distrito Federal

Paraná

26.85%

Itapiranga

SIF: 576

Maravilha

SIF: 3125

Concórdia

SIF: 1

Videira

SIF: 87

SANTA CATARINA

Lages

Mato Grosso Minas Gerais Mato Grosso do Sul Goiás São Paulo Rio Grande do Sul Santa Catarina

Chapecó

SIF: 104

Seara

SIF: 490

26.76%

Capinzal

SIF: 466

SIF: 2776

Nova Veneza

SIF: 1155

21.28%

source : SECEX

Passo Fundo

SIF: 922

Serafina Corrêa

SIF: 103

Forquilhinha

SIF: 2172

27 12 11 11 9 7 6 4 4 4 3 2

Marau

SIF: 2014

Caxias do Sul

SIF: 437

MAIN IMPORTERS IN 2008

Singapore

2% 3% 4% 4% 4%

Roca Sales

BRAZILIAN CHICKEN EXPORTERS COVERAGE AREA

SIF: 237

Caxias do Sul

SIF: 544

Germany South Africa

Others

27%

RIO GRANDE DO SUL

Garibaldi

SIF: 981

Russia Kuwait

Japan

12%

N NE CO SE

ABEF associates

Lajeado

SIF: 1449

Montenegro

SIF: 2032

United Arab Emirates

production exports 2001 6,736 1,266 2002 7,285 1,625 2003 7,843 1,961 2004 8,494 2,470 2005 9,297 2,846 2006 9,336 The 2,718 2007 3,287

Hong Kong

11%

10,246 Netherlands10,939

6% 2008

7% 3,645

Saudi Arabia

11%

Porto Alegre

SIF: 2025

Others 7,81%

Venezuela

9%

2001 1,266 2,520 646 488 392 2002 1,625 2,180 765 438 427 2003 1,961 2,232 723 388 485

Brazil United States European Union China Thailand

2004 2,470 source : SECEX 2,170 728 241 200

2005 2,846 2,360 696 331 240

2006 2,718 2,361 690 322 261

2007 3,287 2,480 700 353 315

3 3

S

United States Brazil European Union United States China European Union Thailand China Thailand

Brazil 1,2662003 1,6252004 1,9612005 2,846 2001 2002 BRAZILIAN CHICKEN MEAT PRODUCTION AND EXPORTS Union WORLD CHICKEN MEAT EXPORTS2,4702006 metric 2007 (1,000 646 765 723 728 tons) United StatesEuropean 1,625 2,520 2,180 2,232 2,170 2,360 Brazil 2001 2002 1,266 2003 2004 1,961 2005 2,470 2006 2,846 2007 2,718 2008 3,287 China 488 438 388 241 (1,000 metric tons) European2,520 Union 646 765 723 728 696 10,939 1,961 2,180 2,470 2,232 2,846 2,170 2,718 2,360 3,287 2,361 3,645 2,480 United States Brazil 1,266 1,625 2,520 9,297 Thailand 8,494 646 392 2001 2002 European Union 2,520 1,266 1,625 China 646 2,180 9,336 488 765 392 488 438 China 10,2461,961 646 2,180 2003 Thailand 488 765 2,232 438 392 723 427 388 485 Thailand 2004 2,232 765 2,470 723 438 2,170 388 427 728 485 241 200 2005 488 2,170 723 2,846 392 728 388 2,360 241 485 696 200 331 240 392 2006 438 2,360 728 2,718 427 696 241 2,361 331 200 690 240 322 261 427 2007 388 2,361 696 3,287 485 690 331 2,480 322 240 700 261 353 315 485 2008 241 2,480 690 3,645 200 700 322 3,158 353 261 740 315 285 383 200 331 3,158 700 240 740 353 285 315 383

Brazil United States

2001

2001 1,266 2002 2,520

2002 1,625 2003 2,180

2003 1,961 2004 2,232

2004 2,470 2005 2,170

2005 2,846 2006 2,360 2,7182008 696 2,361 3,645 331 690 3,158 240 322 740 3,6 261 285 383 3,1

2006 2,718 2007 2,361 3,287 690 2,480 322 700 261 353

315

2007 3,287 2008 2,480 3,645 700 3,158 353 740 315 285

2008 3,645 3,158 740 285 383

383

6,736

7,285

7,843

427

2,5

1,266

1,625

1,961

2,470

2,846

2,718

3,287

3,645 1,2 0,6 0,4 0,3 0,7 0,3 0,2 2002 2003 2004 2005 2006 2007 China 2008 Thailand

source: ABEF/USDA

2001

2002

2003

2004

2005

2006

2007

2008

2001 Brazil

Production

Accomplishment:

Exports

source: ABEF/UBA

United States

European Union

32

Rio Grande 14.27%

Information

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