Foreign Investment Opportunities in the Animal Breeding Sector

Foreign Investment Opportunities in the Animal Breeding Sector

The Brazil meat industry exports approximate one million tons of beef products, which accounts for 32% of world beef exports. The government of Brazil has taken concrete steps to eradicate Foot-and-mouth disease from its source, and donates technology and vaccinations in a giant project that aims to clear the South American continent of FMD within a period of seven years. In fact, the results are already being seen as the World Health Organization has announced Brazil to be free from FMD in the year 2008.

The expansion of cattle breeding has recorded a significant growth. The Brazilian meat quality attributed to good health of swine, cattle and poultry has resulted in a growing demand for Brazilian meat products. The production of animal meat (cattle, poultry, and swine) has increased from 7.42 million tons in 1990 to 18.36 million tons in 2003, which is growth of over 147%. This has resulted in an increase of meat exports of over 31% in comparison to 2002. To ensure the continuous growth and high standards in products and byproducts, the production has adopted a tracking program and certification of meat products.

Brazil investment services of meat products are in great demand in markets such as the European Union, Japan, Argentina, Chile, Saudi Arabia, Russia and many other countries. The veterinarian committee considers Brazil as a region with negligible risk regarding occurrence of mad-cow disease. Brazil is also free from classic swine pest and aviary poultry influenza diseases. Brazil is known to have the largest commercial cattle herd in the world.

Facts about Meat Exports:

Cattle:

Brazil's volume sales have already reached 1.4 billion tons in heads, which has made Brazil the world leader in the field of cattle herd exports. These meat sector earnings have already surpassed US $1.5 billion.

Poultry:

Brazil is also the second-largest poultry meat producer, exporting over 1.9 million tons of poultry meat in a year. The export of poultry meat accounts for an income of US$1.8 billion. Brazil has registered significant growth in poultry breeding in recent years. The Brazilian poultry production crossed 7.87 million tons in the year 2003, which is a 234% increase from 2.35 million tons in 1990. It is estimated that the poultry meat industry grows at 16.7 % per year. Brazil exports poultry to 122 countries on continents such as Africa, Middle East, Europe and Russia. The sector projects a significant increase in volume of exports in coming years.

Swine:

Brazil is ranked the fourth largest producer of swine meat and one of the most competitive and modern industries in the world. Brazilian swine production meat has already crossed 2.87 million tons and exports have already touched US$526 million.

Out of all the meat produced by Brazil's meat industry, the country's population consumes approximate 72%. The Animal Breeding is further diversified into leather and dairy products, which also shows high growth potential. Brazil domestic consumption is on rise as there is demand for meat from low socio-economic groups in Brazil.

There are various investing opportunities in the animal breeding sector. The rise in commercial animal breeding will lead to demand for animal feed and feed additives. With growth in population having disposable income, the demand for meat products will substantially rise. The government encourages foreign investment and multinationals to invest in development of integrated supply chains that link to commodity production and distribution.

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