Meat Importers Council of the Americas

2016 MICA CONFERENCE

26-28 th September

San Francisco, CA

SUPPLY OUTLOOK PRESENTATIONS:

URUGUAY30/09/2016 1

INAC – National Meat Institute

• Non profit organization – Budget from % of meat sales

• Not involved in commercial issues

• Improvement of conditions of meat sector + Advise toGovernment. Involves all meats

– Marketing and Promotion

– Quality control

– Certification

– Statistics

– Food safety in local supply chain from packer to consumer

– Promote Research30/09/2016 2

National Meat Institute (1967)INAC

2 DELEGATES OF GOVERNMENT

PresidentSecretary of Agriculture

Vice-presidentSecretary of Industry

3 D

ELEG

ATE

S O

F FA

RM

ERS

3 D

ELEGA

TES OF PA

CK

ERS

APFMI

Uruguay: general information

•Per capita Income: 16.000 USD

•Currency: ??

•Inflation: 10% (slowly down)

•Unemployment: 7,5% (2015)

•Meat consumption: 100

kg/year16,000

50 kg

100 kg

•GDP: 53 billion USD

•Population: 3.300.000

•Life expectancy: 77 years

•Literacy: 97%

Yearly Average GDP Growth

30/09/2016 GIF - Gerencia de Información 5

Top Export Products

30/09/2016 GIF - Gerencia de Información 6

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1 2 3

EXPORTS 2014 (Millions USD)

Soybeans

Beef and beefproducts

Cellulose Pulp

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1 2 3

EXPORTS 2015 (Millions USD)

Beef and beef products

Soybeans

Cellulose Pulp

TOTAL BEEF PRODUCTION (CW)

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2014 2015

Exports 365,000 67% 387,000 68%

Local Consumption

182,000 33% 179,000 32%

TOTAL 547,000 566,000

Uruguay: meat consumption (kg) and self-sufficiency (%)

TOTAL- 100 KG

Poultry- 20 kg (100%)

Sheep meat- 5 kg (100%)

Pigmeat- 20 kg (40 %)

Beef- 55 kg (100%)

Total Herd (thousands of heads)

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0

2000

4000

6000

8000

10000

12000

14000

2007 2008 2009 2010 2011 2012 2013 2014 2015

OVINE

BOVINE

Females thousands of heads - Bovine

30/09/2016 10

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2007 2008 2009 2010 2011 2012 2013 2014 2015

Breeding cows

Total females

Land use other than cattle raising in natural grasslands (thousands of hectares)

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-

500

1,000

1,500

2,000

2,500

2000 2011 2012 2013 2014 2015

Crops

Forestry

2.3 million hectares15 % of land “lost” for cattle production !!

SUSTAINABILITY!

Total heads slaughtered

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-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2012 2013 2014 2015 2016

Bovine

Ovine

Slaughter/Packer Ownership 2016

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5,8%

6,0%

39,3%

8,0%

2016 (% of slaughter )

ORIGIN

41,9%Marfrig

21,4%

Minerva

11,9%

JBS -

Canelones6,0%BPU

8,0%San

Jacinto5,8%

Foresun

6,0%

Uruguayan

41,9%

BEEF EXPORTS

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2014 = 365.000 MTONS

24% NAFTA

25% CHINA

15% EU

9% ISRAEL

9% MERCOSUR

17% ALL OTHERS

2015 = 387.000 MTONS + 6%

21% NAFTA

44% CHINA

13% EU

8% ISRAEL

4% MERCOSUR

12% ALL OTHERS

USA – 2016 vs 2015 – by August 31 stMTONS CW

2015 2016 % CHANGE

NAFTA 61,965 60,337 -3 %

USA 54,937 46,266 -16%

CANADA 6,592 13,794 +109%

MEXICO 436 277 -36%

TOTAL FOR URUGUAY 255,500 272,500 +7%

30/09/2016 GIF - Gerencia de Información 15

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8

2015 2016

2015 - 2016 MONTHLY EXPORTS

USA TRQ BY AUGUST 31 – MTONS (SW)

2015 2016

13,978 (70%) 14,344 (72%)

SHORT/MID TERM ISSUES

• Cattle herd and production: Slow increase under actual conditions– Small changes in available land. No deforestation/Positive forestation

– Stable herd

– Gradual improvement in production efficiency

– Increase in production goes to international market

30/09/2016 16

SHORT/MID TERM ISSUES

• Give value to differential attributes:– INSTITUTIONAL

Sector proactive GOVERNANCE

INTEGRITY ENHANCEMENT (Consumer Trust)

– PRODUCTION SYSTEM• 90 % British Beef Breeds (Hereford/Angus)

• 100% life long individual traceability for cattle. Consumer trust, enhancedmonitoring and specialized certifications (Never Ever 3; USDA Process Verified)

• Open field production, mainly grass fed. USDA annual audits

• Fatty acid quantity, quality and balance Omega 3/Omega 6

• Hormones and antibiotics in food prohibited by law

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SHORT/MID TERM ISSUES

» United Nations General Assembly Elevates Antibiotic Resistance to Crisis Level…Sept 2016…

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SHORT/MID TERM ISSUES

– OTHER CONCERNS• Sustainability

• Animal Welfare

• Bone in lamb approval to USA

30/09/2016 19

TIME FOR GOOD NEWS!!

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SHORT/MID TERM ISSUES

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THANK YOU !!

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