Poultry Sector: Present and Prospect Sector Proyect October 18, - PowerPoint PPT Presentation

EPC - CONFERENCE “Poultry Sector: Present and Prospect” Sector Proyect October 18, 2011 Hilton Hotel – Buenos Aires - Argentina Poultry Processing Enterprises Center - Argentina Mr. Roberto Domenech President

IMPORT BALANCED FOOD SELF PRODUCTION Poultry BB GRANDPARENTS Production PRODUCTION FARMS REBREEDING FARMS in OF GRANDPARENTS FOR GRANDPARENTS Argentina PRODUCTION BALANCED FARMS FOOD REBREEDING FARMS INCUBATION PLANT OF PARENTS FACTORY FOR PARENTS FOR PARENTS BROILERS´S BROILERS INCUBATION FARMS PLANTS EXPELLER AND SOY OIL PLANT OTHER PRODUCTS SLAUGHTER PLANTS FUELS PLANTS (fat and mud) OTHER PRODUCTS FINISHED PRODUCT FINISHED RETAILER WHOLESALERS SUPERMARKETS RAW MATERIAL FOR DEALER DIRECT RETAILER EXPORT INDUSTRIES DISTRIBUTION RETAILERS CONSUMERS

Chicken production infrastructure in 80.000 m 2 210.000 grandparents “GRANDPARENTS” are raised every year. INCUBATION (Breeding animal) BREEDING ANIMAL 6,6 millons parents In 1.600.000 m 2 (PARENTS) are raised every year. INCUBATION Every year, 870 millions of chickens are born in (Chickens BB) 600 hatchery machines of 100.000 eggs each. Every year, 840 million chicken are raised in Breeding 4.000 factories (9.400.000 m 2 ). 830 millions of chicken (on average 2.7 kg each) are SLAUGHTER slaughter in 46 facilities. EXPORTA Billing 340.000 TN = 620 millon u$s Estimated production for 2011 3.120 millon u$s 1.860.000 TN INTERNAL MARKET 1.520.000 TN = 2.500 millon u$s

Slaughter evolution SENASA 2002 ‐ 2017 (thousands tons) 3.000 2.529 2.386 2.251 2.500 2.0032.123 1.890 1.783 2.000 1.682 1.529 1.438 1.500 1.176 1.277 1.029 883 1.000 722 680 500 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Srtategic Plan for 2011 - 2017

ARGENTINE POULTRY Grandparents and breeding animals farms. Future developments Chicken meat production zones: ‐ Entre Ríos ‐ Buenos Aires ‐ Santa Fe ‐ Río Negro ‐ Córdoba ‐ Salta ‐ Mendoza

PRODUCTION PARTICIPATION PER PROVINCE

Animal proteins consumption (kg per inhabitant per year) 120 114 cerdo (en kg/hab/año) aves (en kg/hab/año) 105 bovino (en kg/hab/año) 100 Consumo Total Proteína Animal (en kg/hab/año) 89 88 86 80 71 56 69 60 53 50 45 45 41 35 40 39 32 37 39 35 40 33 37 31 30 28 26 24 23 16 22 21 20 16 16 14 15 15 20 15 12 10 10 4 12 5 2 2 0 EE.UU. Argentina Australia Brasil Canadá UE México Rusia China Japón Sudáfrica India Source: Rabobank

Apparent Consumption 2003-2010 / 2011-2017 (kg/inhab/year) 36,5 37,5 38,5 39,5 40,5 41,6 42,8 44,0 45 40 33,0 30,8 35 28,4 29,6 30 25,0 22,3 25 20,0 20 15 10 5 0 2.003 2.004 2.005 2.006 2.007 2.008 2.009 2.010 2011 2012 2013 2014 2015 2016 2017

Exports Evolution 1999-2017 (in thousands of tons) 700 580 601 600 529 500 463 365 392425 400 322 280 290 300 210 165 140 200 93 62 46 100 24 28 34 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Total Exports per destiny (in u$s FOB) Total Exports per destiny (in tons) Source: Elaboration based on data from SENASA

60 Markets Argentina exports chicken meat Suiza Suecia Eslovenia Estonia Alemania Bulgaria Holanda Irlanda Rumania Reino Unido Ucrania Rusia Bélgica Azerbaidzhan Francia Kirguistán Italia Bahrein Malta Japón España China Grecia Emiratos Árabe Armenia Hong Kong Aruba Qatar Macedonia Vietnam Chipre Omán Cuba Maldivas Venezuela Arabia Saudita Guinea Israel Perú Kuwait Mauritania Yemen Togo Brasil Egipto Chile Kenia Liberia Comoras Ghana Gobón R. Congo Mozambique R. D. Congo Sudáfrica Angola Namibia

WHERE WE COME FROM (2003) WHERE WE ARE GOING (2017) 2003 2010 2017 Chicken slaughter per year 320 700 1.100 (millon heads) 760.000 1.750.000 2.546.000 Chicken production (tons) 700.000 1.440.000 1.895.000 Internal Market (tons) 60.000 310.000 651.000 External Market (tons) Warehouses sourface 4.3 9.5 14.1 (millon m2) Balanced food (tons) 3.100.000 7.840.000 9.566.000 (Including broilers and laying hens) 2.100.000 4.800.000 5.900.000 Corn (tons) Chicken consumption 22 37,2 44 (kg/inhabitant/year)

Investment and financing for Growing INFRASTRUCTURE HATCHERY BRALANCED FOOD FACTORY WAREHOUSES SALUGHTER HOUSES • 40 breeding animal farms • Speed : 10.000 heads • 35 hatchery machines (225.000 m2) • To proccess 1440 TN/day per hour. • 800 Broiler warehouses (1.200.000 m2) 6.000.000 u$s 8.000.000 u$s 20.000.000 u$s 18.000.000 u$s 50.000.000 u$s Summary Total Investment • Breeding animals farms u$s 18.000.000 u$s 102.000.000 • Hatchery plants u$s 6.000.000 • Breeding warehouses u$s 50.000.000 • Balanced food factory u$s 8.000.000 • Slaughterhouses u$s 20.000.000

Challenges � High quality corn and soy � Latest technology equipment. � Zooning � health, safety and security. � Road infrastructure � Industry investments � Energy: electricity and gas. � Any country can produce chicken � Fear of food insecurity � Biofuels – Investments Heaven

1970 2010 Genetics Health 1 kg of Chicken 1 kg Chicken 2,8 kg Food 2,0 kg Food Food Management GPD 30 grams GPD 60 grams Age 75 days old Age 46 days old Technology: Equipment y Weight 2,250 kg Weight 2,760 kg machines. Total food per Total food per chicken: 6,300 kg Reserch, Development and chicken 5,520 kg Science. 1 kg chicken 1,7 kg Food GPD 75 grams 2017 Age 38 días old Weight 2,800 kg Total food per chicken 4,760 kg

Private – Public Link � Argentina Reliable Food– Country trademark. � Critical Mass of food ‐ producing sector ‐ Segment Negotiations. Clear Goals and Defined Markets for Negociations. � Goberment areas articulation. � Market research «in situ». � Negotiation and conflict situations follow up. � Export – A no return way. � World speeds up. � Have to be creative.

Today´s uncertainities � Crisis evolution moments � Which way will it take? Protectionism, Market Close, Price raise, quotas? � Type of change. Argentina and MERCOSUR. � Relation with Brazilian Poultry. Risks � Primarization of Exports. � Decreased of add value – Loss of add job. � Loss of dynamic of production chain.

Conclusions � We are optimistic, we are balanced in production, consumption and exports. � We need to work on the harmonization of the production chain. � To be efficient producers and have a competitive product. � We could be witneses of the end of the chep food era. � How much is there behind a chicken?

Industries related to the Poultry Sector Agropecuaria (corn - soy) Oils Molinera Corn refineries 6 millon TNs Chemical and pharmaceutical Paper and y Rice Clothes and shoes 1.400 millon vaccines Cartboard 135.000 TN 36.000 TN Vitamines 120.000 equipments per (packaging) 36.000 TN minerals year 30.000 TNs 50.000 TN sintetic aminoacids Wood Automotive Steel - Metal 45.000 TN Warehouses Oil/Gas (1.1 millones km/day) (Infrastructure) 15.000 TN Packaging 72.000 TN Liquid Gass (Fleet 2.500) 8.800 TN 220.000 lts gas oil per day 14.000 TN Chip Plastics (Cages/feeders/ Slaughter Services Financial drinkers/packaging) 280.000 plastica cages 300.000 containers

Poultry Processing Enterprises Center - Argentina Corrientes 127 Piso 5º Oficina 515/ 516 – Ciudad Autónoma de Buenos Aires 4314-0380 / 4314-1506 / 4311-7314 E-mail: cepa@aviculturaargentina.com.ar url: www.aviculturaargentina.com.ar