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Outlook of Brazilian AgricultureOutlook of Brazilian Agriculture

XVI Joint Meeting of the BRAZIL – JAPAN Economic Cooperation CommitteeXVI Joint Meeting of the BRAZIL – JAPAN Economic Cooperation Committee

September 23September 23rdrd, 2013 Belo Horizonte – Minas Gerais, Brazil, 2013 Belo Horizonte – Minas Gerais, Brazil

Data sources: USDA, FAO, CIA, UN, CONAB, MAFF

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Agrex do Brasil Agrex do Brasil (former “Los Grobo Ceagro do Brasil”)(former “Los Grobo Ceagro do Brasil”) 2

Mitsubishi Corporation has acquired a Brazilian grain company.

“Agrex do Brasil S/A” (former “Los Grobo Ceagro do Brasil”)

WHY ???WHY ???

MA

PI

TO

GO

BAMT

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World Demand for Grain Will Further IncreaseWorld Demand for Grain Will Further Increase 3

20132013( 95 million tons )

20232023( 144 million tons )

Asia72mil (76%) Asia

117mil (81%)

EU12mil (13%)

EU 11mil (8%)

Others

Others

In the next decade, the world will need to import soybeans49 million tons MORE, or 52% INCREASE.

Most of the incremental comes from Asia.

Example: Soybeans World Import Forecast

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World Demand for Grain Will Further IncreaseWorld Demand for Grain Will Further Increase 4

World Population:

Now: 7.1 billions

2023: 7.9 billions

(2050: 10.0 billions)

Improvement of Living Standard (Change of Dietary):

1kg of Egg = 3kg of grain

1kg of Poultry = 4kg of grain

1kg of Pork = 7kg of grain

1kg of Beef = 11kg of grain

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Who Can Supply This Demand Incremental ?Who Can Supply This Demand Incremental ? 5

Used

Available

Land Availability (million HA) Available Land in Brazil

Expansion into Northeast and North

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6Who Can Supply This Demand Incremental ?Who Can Supply This Demand Incremental ?

Historical Soybeans Yield (tons / ha)

Among Brazil, Argentine and USA (the 3 major export countries), Brazil shows the least volatility.

This proves that Brazil has the most stable / favorable conditions: Precipitation, Temperature, Solar Radiation, Soil, Crop Management, etc.

Brazil Argentine USA

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7

Sufficient Land Availability Favorable Weather Condition Plans for Logistics Developments

Brazil Will Supply This Demand IncrementalBrazil Will Supply This Demand Incremental

Example: Soybeans World Export Forecast

20132013( 95 million tons )

20232023( 144 million tons )

Brazil41mil (43%)

Brazil64mil (44%)

USA36mil (38%) USA

44mil (30%)

Argentine6mil (7%)

Argentine18mil (12%)

OthersOthers

These Make Brazil the furtherimportant grain supplier for the world

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Other Agricultural Products Also Rely on BrazilOther Agricultural Products Also Rely on Brazil 8

Coffee Export

Brazil 32%

(World No.1)

Sugar Export

Brazil 46%

(World No.1)

Poultry Export

Brazil 36%

(World No.1)

Orange Juice Export

Brazil 81%

(World No.1)

Pork Export Beef Export

Brazil 9%

(World No.4)

Brazil 17%

(World No.2)

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【【 RefRef 】 】 Value ChainValue Chain 9

“From Farm to Consumer”: Participate in every segment of the whole chain

Overview the various markets as one ⇒ Define the markets needs / situation

Grain Origination Logistics Export Import

ProcessingLivestock FarmsMeet PackingConsumer Retail