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Brazilian Roundtable on Sustainable Livestock

Brazilian Roundtable on Sustainable Livestock. AGENDA. BRAZIL & BRAZILIAN BEEF WHY GTPS? COMMITMENTS + ACTIONS & RESULTS SO FAR. Brazil  ~850 million ha (300 arable lands ). Land Use in Brazil 2011 ~850 million ha (8,53 MM km2). 554 milllion ha of native vegetation (> 60% )

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Brazilian Roundtable on Sustainable Livestock

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  1. Brazilian Roundtable on Sustainable Livestock DRAFT

  2. AGENDA • BRAZIL & BRAZILIAN BEEF • WHY GTPS? • COMMITMENTS + ACTIONS & RESULTS SO FAR DRAFT

  3. Brazil  ~850 million ha (300 arable lands) DRAFT

  4. Land Use in Brazil 2011 ~850 million ha (8,53 MM km2) 554 milllionha of native vegetation (> 60% ) • 107 million ha ofConservationUnits • 103.5 million ha ofIndigenousLandSettlements • 274 million ha ofnativevegetation in privateproperties (PPAsriparianandhills+ Legal Reserve) • 69.5 nativeremainingvegetation in PPAs 60 million ha of productive land (crops, fruits, and planted forest) 38 million ha ofurbanizationandother uses 189 million ha of pastureland (at least 90 degraded) Sources: minister of environment- MMA; IBGE – PAM (2010) and agricultural census (2006); INPE – terraclass; agricultural land use and expansion model brazil - aglue-br (gerd sparovek, ESALQ-USP). Notes:1) the data on conservation units exclude the areas called environmental protection areas (apas); 2) the ppas data include natural vegetation along rivers, hills and top of hills; 3) the data for other natural vegetation areas include quilombola´s areas, public forests non settled and other remaining natural vegetation areas

  5. Cattleproduction (1960-2010) BEEF PRODUCTION 3.36%/year PASTURELAND AREA 21% PRODUCTIVITY 79% ANIMAL PERFORMANCE 38% OCUPATION RATES 62% “LAND SAVING EFFECT” 525 Million ha Source: G.B.Martha Jr., E. Alves, E. Contini Em revisão (EMBRAPA) DRAFT

  6. BrazilianBeef 2012 171 milhões de hectares de pasto Taxa de Lotação: 1,2 cab./ha Rebanho 212 milhões de cabeças Peso Médio de Carcaça: 234 kg RendimentoMédioCarcaça: (zebu): 51%-55% Desfrute: 19,5% Confinamentos: 4,08 mihões de cabeças (10% do abate total) Abate 40,4 milhões de cabeças Produção de carne 9,4 milhões TEC Mercado Interno (82%) 7,7 millhões TEC Consumo per capita : 40kg/ano EXPORTAÇÃO (18%) 1,69 milhões TEC 73% In Natura 1,2 milhões TEC Rússia: 27% Egito: 14% Hong Kong: 11% Outros: 49% 92 países 16% Industrializada 272 mil TEC UE-27: 49% EUA: 16% Outros: 35% 106 países 11% Miúdos e outros 190 mil TEC Hong Kong: 64% Angola: 4%Outros: 31% DRAFT 71 países

  7. Global pressure… DRAFT

  8. RELEASING 56 millions ha Challengeforthenext 10 years 2012 2022 LIVESTOCK 133 mi/ha(NIT) 227 mi/cab (Fiesp/Icone) LIVESTOCK 189 mi ha -- 212 mi head (IBGE-2011) LIVESTOCK INTENSIFICATION 1,1 para 1,7 Head/ha ou 3,2 para 5 @/ha/yr GRAINS 50,86 mi/ha (Conab) GRAINS 58,5 mi/ha (Fiesp/Icone) SUGARCANE 8,5 mi/ha (Conab) CANA 13,1 mi/ha (Fiesp/Icone) SILVICULTURE 7 mi/ha (SAE) SILVICULTURE 14 mi/ha (SAE) OTHERS ~16 mi/ha OTHERS ~ 16 mi/ha (IBGE) FOREST LAW ENFORCEMENT Elaborado por: DRAFT

  9. WHO WE ARE • set up in late 2007, formally constituted in June 2009; • made up of representatives from different segments from the value chain; • debates and formulates principles, standards and common practices to be adopted by the sector which contribute to the development of sustainable beef production in the triple bottom line; • members of the RT plan to be proactive given these challenges, leading dialogue and creating agreements to work towards sustainable cattle farming, aware of the social and environmental responsibility held by all those involved ; • committed to zero deforestation, with the creation of the conditions and forms of compensation to make it viable. DRAFT

  10. BRSL Principles • Continuous improvement for sustainability • Transparency and ethics • Good agricultural andlivestock management practices • Legal compliance DRAFT

  11. MEMBERS DRAFT

  12. MEMBERS (56) • FINANCIAL INSTITUTIONS (3) • IFC • Rabobank Brazil • Santander • PRODUCERS (8) • ABPO – Brazilian Association of Organic Beef Cattle • ACRIMAT – Mato Grosso Cattle Breeders Association • ACRIOESTE – Western Bahia Cattle Raisers Association • ASSOCON – Brazil Cattle Feeders Association • APPASA - Novo Santo Antônio Small-Scale Farmers Association • FAMASUL – Federation of Mato Grosso do Sul Cattle Raising and Agriculture • Nossa Senhora das Graças Farm – André Bartocci • Lagoa Bonita Farm – Sérgio Rocha • INDUSTRY (7) • ABIEC • Association of Brazilian • beef exporters • BRF • CICB – • Centre for the Brazilian  • Tanning Industry • Gelita • JBS • Marfrig • Minerva • CIVIL SOCIETY ORGANIZATION (14) • Aliança da Terra • APPS – Association of Sustainable Beef Professionals • BVRio - Bolsa Verde do Rio de Janeiro • GRSB - Global Roundtable for Sustainable Beef • Fundação Espaço Eco - FEE • ICV – Instituto Centro de Vida • IIS - International Institute for Sustainability • IMAFLORA - Institute for Agricultural and Forest Management and Certification • IPAM The Amazon Environmental Research Institute • Parceiros da Terra Institute – Geobrother • NWF - National Wildlife Federation • Solidaridad • The Nature Conservancy • WWF Brasil • GOVERNMENT (9) • SAE – Secretariat of Strategic Affairs of the Presidency of the Republic • MMA – Ministry of the Environment • Embassy of the Kingdom of the Netherlands • UFMS - Federal University of Mato Grosso do Sul • UFRGS - Universidade Federal de Rio Grande do Sul - Faculdade de Agronomia (Depto de Zootecnia • SALSA Project - Federal University of Viçosa • The Agribusiness Intelligence Center – PENSA • New Zealand Consulate General • Francisco Vila (individual) RETAIL & SERVICES (14) Agrotools Allflex Arcos Dourados Carrefour Dow Agro Sciences Elanco IBD Certificações McDonald’s Corporation MSD Saúde Animal Nutreco Pão de Açucar Stoller Syngenta Wal Mart DRAFT

  13. OBSERVERS (11) • PRODUCERS (2) • ARCA S/A AGROPECUÁRIA • Associação Brasileira de Angus • INDUSTRY • RETAIL & SERVICES (6) • Agri63 Consultoria em Agronegócios Ltda • Biofílica Environmental Investments • DSM/Tortuga • Rural Monitoramentos Ltda • Via Verde Consultoria Agropecuária em Sistemas Tropicais • VIS Insurance Broker and Benefits • FINANCIAL INSTITUTIONS • CIVIL SOCIETY ORGANIZATION & RESEARCH INSTITUTIONS 3 • Amigos da Terra • Center for Environmental Economics – NESA/ University of São Paulo • CI - International Conservation - Brasil • GOVERNMENT DRAFT

  14. GOVERNANCE General Assembly DRAFT

  15. GOVERNANCE Executive Committee 2012-2015 President Eduardo Bastos (Dow) Vice President Maurício Campiolo (Acrimat) Treasurer Fernando Sampaio (ABIEC) DRAFT

  16. GOVERNANCE BoardofDirector • Financial Institucions • IFC – Deborah Batista • Santander – Christopher Wells • Rabobank – Luiz Amaral • Civil Society • Aliança da Terra – Marcos Reis • TNC – Francisco Fonseca • WWF Brasil – Ivens Teixeira • Producers • ACRIMAT – Maurício Campiolo • ABPO – Leonardo Leite de Barros • FAMASUL – Eduardo Riedel • Industry • JBS – Márcio Nappo • Marfrig – Mathias Almeida • ABIEC – Fernando Sampaio • Retail and Services • Dow – Eduardo Bastos • Stoller – Rodrigo Ferreira • Wal Mart – Felipe Antunes DRAFT

  17. GOVERNANCE • To find technical alternatives for better efficiency in: • Pasture and land conservation • Nutrition • Health • Genetics • Welfare • Traceability • Management • Agreement to legislation • Indicators – define performance criteria and indicators MRV (Measurable, Reportable and Verifiable) • Scientific - GHG emissions, water database • To finance the development of sustainable production • Improving Credit Management for sustainable cattle farming, reducing the demands in processes and making financial management of rural businesses one of the requirements for credit to be approved • Promoting environmental and agrarian upgrading of farms, creating social and environmental incentives such as paying for environmental services • Development of public policy on long-term financing for sustainable cattle farming and the training of financial agents for this differentiated credit to be approved • To disseminate solutions: • Scientific knowledge management –(e.g.: Sustainable Cattle Farming Guide) • Reorganization of education and training and the creation of demonstration units • Adoption of model farms (public and private) to be benchmarks in sustainable production • Improvement of communications with the media and better articulation between representative bodies in the sector DRAFT

  18. National Climate Change Policy (PNMC) DECREE No 7,390, DECEMBER 9, 2010 Regulates articles 6, 11 and 12 of Law no 12,187, of December 29, 2009, which establishes the National Climate Change Policy – PNMC – and takes other measures.  THE PRESIDENT OF THE REPUBLIC, in the use of the powers conferred on him by article 84, subsection IV, of the Constitution, and considering the provision in articles 6, 11 and 12 of Law no 12,187, of December 29, 2009,   DECREEES: Article 5. The forecast for national greenhouse gas emissions for the year 2020 in the sole paragraph of article 12 of Law no 12,187, 2009, is 3.236 billion tonCO2eq according to the methodological detailing described in the Annex to this Decree, composed of the forecast for the following sectors: I – Change in Land Use: 1.404 billion tonCO2eq II - Energy: 868 million tonCO2eq III – Livestock farming: 730 million tonCO2eq, and IV – Industrial Processes and Waste Treatment: 234 million tonCO2eq  Article 6 § 1  To comply with the provision in the main section, the following action contained in the plans referred to in article 3 of this Decree will initially be considered: IV – recovery of 15 million hectares of degraded pastureland; DRAFT

  19. Federal GovernmentNational Climate Change Policy ABC Plan (alternatives to reduce emissions from agriculture and livestock) ABC Program (credit lines to promote low carbon agriculture) - R$ 4,5 billion (Jun/13 to Jul/14) - R$ 1 million max. credit per producer - 5 % interest rate DRAFT

  20. Protocol of Intentions On the 4th of May 2012, GTPS signed a Protocol of Intentions with the Brazilian Ministry of Agriculture to cooperate with the Federal Government to achieve the goal of restoring 15 million ha of degraded pastures. DRAFT

  21. Cooperation Agreement • MMA – Ministry of the Environment Promoting and Supporting environmental compliance of rural properties  Focused ON CAR – Rural Environmental Registry The new Forestry Code (Federal Law No. 12.651/2012) DRAFT

  22. A PROJECT TO PUT IN PLACE • Close the efficiency gap and promote pasture restoration by increasing the use of technology in livestock production • Increase the use of technology by building capacity in multiplier agents (public outreachers) DRAFT

  23. Funding raising • FSP (Farmer Support Programm) • Implement good management practices (covering social, environmental and business management) in pilot-farms and develop a step-by-step user friendly guide on best practices • Establish demonstration units in a few pilot-farms for practical training of multipliers of rural extension and technical assistance. Multipliers will be trained to diagnose issues and identify solutions at farm level, using the guide as reference rather than prescriptive guidance. • Develop and test criteria and indicators throughout the pilots to ensure they are applicable and adequate to monitor continuous improvement. To develop guidance for producers and GTPS members to apply the indicators themselves. • Increase GTPS’ internal capacity on management and administration, in preparation for the scale-up phase. DRAFT

  24. Project to put in place... 856 ranchers 777.480 ha DRAFT

  25. Some other initiatives • GRSB & GTPS Global Forum • 2nd Sustainable Livestock Global Forum in Brazil (1st semester 2014) • Traceability with McDonald’s, JBS, BRF and others • Amazon biome • Sustainable menu for the games • RJ  Milk  600 MM l to 1,2 BN l until 2016 • Salsa Project (beef, milk and soy) • MS and MG • NWF + Consumer Goods Forum • Meeting in Brazil (Nov, 26) DRAFT

  26. White Paper – deforestation x cattle Source: IPAM DRAFT

  27. White Paper – pastureland x cattle DRAFT

  28. http://www.youtube.com/watch?v=mGuhaYV2JKI DRAFT

  29. THANK YOUMERCIGRACIASOBRIGADOEduardo Brito Bastos – Presidentsecretariado@pecuariasustentavel.net www.pecuariasustentavel.org.br DRAFT

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