EDGE OF A CLIFF Poultry Farmers in Brazil Southern HIGHLIGHTS - - PowerPoint PPT Presentation

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EDGE OF A CLIFF Poultry Farmers in Brazil Southern HIGHLIGHTS - - PowerPoint PPT Presentation

Apr 23, 2023 98 likes •193 views

EDGE OF A CLIFF Poultry Farmers in Brazil Southern HIGHLIGHTS Brazil is the worlds largest poultry exporter. Only in 2014, exports totaled US$ 8 billion. There are 180,000 poultry farmers in Brazil Southern. INTEGRATION CONTRACT

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SLIDE 1

EDGE OF A CLIFF

Poultry Farmers in Brazil Southern

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SLIDE 2

HIGHLIGHTS

Brazil is the world’s largest poultry exporter. Only in 2014, exports totaled US$ 8 billion. There are 180,000 poultry farmers in Brazil Southern.

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SLIDE 3

INTEGRATION CONTRACT

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SLIDE 4

INTEGRATION CONTRACT

Basically, meatpacking companies provide chicks, feed and drugs. Industries also provide technical support, and besides buying chickens, they pick them up at the properties of contracted farmers. After discounting the costs, the industry pays farmers.

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INTEGRATION CONTRACT

Chickens’ weight and the amount of feed they consume are the main factors in a complex formula used to calculate farmers’ payment. The number of dead animals and the volume of drugs used also enter the equation. Some contracts have two and a half pages of formulas. Farmers don’t take part in that math.

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SLIDE 6

BRAZILIAN MEAT COMPANIES

Brazilian meat industry market is highly

  • concentrated. The most important meat

companies are JBS and BRF - responsible for 70% of Brazilian chicken exports.

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SLIDE 7

GOVERNMENT PUSH

The second largest shareholder of JBS (31.4%

  • f capital) is BNDES - the Brazilian State

development bank. In September, Moy Park - one of the 15 biggest food companies of the UK - was acquired by

  • JBS. Moy Park supplies retailers and fast food

restaurant chains.

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SLIDE 8

GOVERNMENT PUSH

BRF’s capital is pulverized, including Brazil’s main pension funds, linked to State companies. Since 2007, Brasil Foods is the owner of Plusfood - a poultry processor with industrial facilities in the Netherlands and UK, as well as sales offices in countries like Italy, the Netherlands, and UK.