1. 1 German Manzano UNICA – IPCVA IFFA 07-05-2007 Argentine Beef Industry Vision and perspectives

2. 2 Topics Global Beef Production and Trade Future Opportunities and challenges

3. 3 Global Beef Trade

4. 4 Brazil 2004 1,63 2005 1,87 2006 (prov.) 1,87 Australia 2004 1,39 2005 1,41 2006 (prov.) 1,42 India 2004 0,50 2005 0,63 2006 (prov.) 0,75 New Zealand 2004 0,61 2005 0,59 2006 (prov.) 0,54 Argentina 2004 0,62 2005 0,75 2006 (prov.) 0,56 Canada 2004 0,56 2005 0,55 2006 (prov.) 0,46 Uruguay 2004 0,40 2005 0,48 2006 (prov.) 0,52 USA 2004 0,21 2005 0,32 2006 (prov.) 0,52 World beef exporters

5. 5 Russia 2004 0,73 2005 0,99 2006 (prov.) 0,84 Japan 2004 0,65 2005 0,70 2006 (prov.) 0,69 EU 2004 0,58 2005 0,60 2006 (prov.) 0,54 USA 2004 1,67 2005 1,63 2006 (prov.) 1,44 Chile 2004 0,19 2005 0,22 2006 (prov.) 0,14 Hong Kong 2004 0,08 2005 0,09 2006 (prov.) 0,09 México 2004 0,29 2005 0,33 2006 (prov.) 0,37 South Korea 2004 0,22 2005 0,24 2006 (prov.) 0,19 Canadá 2004 0,11 2005 0,13 2006 (prov.) 0,15 World beef importers

6. 6 Changes in Beef Production Region 1990 Slaughter (million heads) 2006 Slaughter (million heads) Change (million heads) % change EU49.8 28.2-21.6-43% N. America47.3 44.9 -2.4-5% S. America45.0 56.6 11.626% Asia38.4 82.3 44114% Russia33.7 8.6-25-74% Oceania10.9 12.6 1.716% TOTAL225.3242.9+84% Source: USDA

7. 7 Mercosur facts FactsBrazilArgentinaUruguayParaguay Cattle (million hd)204 55 1210 Slaughter (million hd)381332 Production (mill tons)8,8003,0000.6500.330 Consumption (kgs pc)33 622625 Exports (million tons)1,9000.6000.5000.200 Total slaughterhouses14004802630 National habilitation750 2602612 Export habilitation480 90226 Steer prices (usdkg)0.830.760.980.81 Source: own estimates

8. 8 Global Beef Trade Top 10

9. 9 2006 World Beef Production – Top 10 RankCountryTotal Production million MT (CWE) 1U.S.11.9 2Brazil8.85 3EU-257.88 4China7.5 5Argentina3.1 6India2.37 7Mexico2.17 8Australia2.15 9Russia1.46 10Canada1.37 Source: USDA

10. 10 2006 World Beef Consumption – Top 10 RankingCountry Total Consumption million tons (CWE) 1U.S.12.8 2EU-258.22 3China7.4 4Brazil6.9 5Argentina2.6 6Mexico2.5 7Russia2.3 8India1.6 9Japan1.2 10Canada1.0 Source: USDA

11. 11 2006 World Beef Exports – Top 10 RankCountryExports 000 MT 1Brazil1,903 2Australia1,140 3U.S.656 4Argentina600 5Uruguay500 6India485 7New Zealand412 8Canada370 9Paraguay202 10Nicaragua52 Source: USDA estimates

12. 12 2006 World Beef Imports- Top 10 RankCountryImports 000 MT 1U.S.1,440 2Russia840 3Japan690 4EU-25540 5Mexico365 6Egypt225 7S. Korea190 8Canada150 9Philippines140 10Taiwan98 Source: USDA

13. 13 Beef Trends Projections

14. 14 World Beef Trends Increasing costs of production Growing focus on attributes of end product Consumer driven production and focus on niche marketing Small but growing demand for natural and organic beef Focus on food safety and animal disease prevention

15. 15 Mercosur potential growth FactsBrazil Argentin a UruguayParaguay Cattle (million hd)204 55 1210 Slaughter (million hd)381332 Production (mill tons)8,8003,0000.6500.330 Consumption (kgs pc)33 622625 Exports (million tons)1,9000.6000.5000.200 Total slaughterhouses14004802630 National habilitation750 2602612 Export habilitation480 90226 Steer prices (usd/kg)0.830.760.980.81 Source: own estimates

16. 16 World Population Growth Historical Projected Double 1980 by 2050

17. 17 Red Meat Consumption – FAO Estimates Source: OECD/FAO +14% +28% % change from 2006 An increase of over 25 million mtons by 2014

18. 18 Growth Trend Projections Source: OECD/FAO

19. 19 Growth Trend Projections Source: OECD/USMEF

20. 20 Growth Trend Projections Beef exports Source: USDA; thousand MT (CWE)

21. 21 Growth Trend Projections Beef Imports Source: USDA; thousand MT (CWE)

22. 22 Foods market trends Product LevelOrganoleptic Time Price % Delicatessen high optimun no no 5-10 medium natural light Standard medium flavour-colour short yes 60-70 taste Commodities low nutritician no much 20-30

23. 23 Consumers driver’s Consumer trust Brands Sophisticated markets Ethical brands Natural and organic production and standards Food safety Nutritional value Industry image

24. 24 Future opportunities and challenges

25. 25 H igh-priority subjects Installed capacity advantage Product development Add value and shell life By-products advantage Quality Food safety Logistic

26. 26 Installed capacity advantage Coordination (Contracts of supplying) Informal slaughter elimination Internal export-market integration Increase capacity of debonning Concentration (Integration) Increase slaughtering weight

27. 27 Add value and shell life Capacity of cold and maturation of beef carcass Portion control and special packing (supermarkets, hotels, etc) News packing materials (fresh pack) Cooked beef Commercial sterilization Cured and smoked products

28. 28 By-products advantage Edible products (offals) Industrial use (tallow, blood, leather and bones) Opoterapics (glands) Pet foods Risk material (marrow, brains)

29. 29 Quality Cattle and cuts evaluation systems Desensitizing methods Tenderness process Quality audits to correct defects Uniform and consistence quality

30. 30 Food safety Control of microorganisms Conservation at low temperatures Alternatives in vacuum packaging Microbiological criteria of food safety Standardized Norms (SSOP, BMP, HACCP, QUACP, ISO)

31. 31 Logistic Cattle trazability Product identification Animal wellfare in the cattle transport Beef cuts transport Efluent treatment

32. 32 Thanks!