Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Global food security and the WTO: The role of Mercosur countries

315 views

Published on

Marcos Sawaya Jank
IFPRI POLICY SEMINAR
Global food security and the WTO: The role of Mercosur countries
FEB 22, 2017 - 12:15 PM TO 01:45 PM EST

Published in: Education
  • Be the first to comment

  • Be the first to like this

Global food security and the WTO: The role of Mercosur countries

  1. 1. Global Food Security and theWTO: the role of Mercosur countries Marcos Jank Vice President,CorporateAffairs & Business Development,BRFAsia-Pacific IFPRI Board Member International Food Policy Research Institute IFPRI – 22 February 2017
  2. 2. 2 BRF from farm to fork: an integrated supply chain for maximum safety Largest Brazilian buyer of corn and soy meal Genetics expertise 14,000 contract farmers Integration: sanitary control and larger productivity 34 units in Brazil 16 units overseas: Europe, Argentina, UAE, Singapore, Thailand, Malaysia, HK, Turkey 2.3 million tons of food annually 27 Distribution Centers 2,300 items (SKUs) Technical Assistance Genetics Feed Processing Distribution Domestic mkt International mkts More than 240,000 points of sales Present in 120 countries in 5 continents Contract Farmers Comprehensive and integrated chain, from farm to fork 8th biggest food company in the world (US$ 12 billion market cap) #1 chicken exporter in the world (14% of the world total) #1 Halal poultry company in the world (by volume) # 1 agri-food company in Brazil (US$ 12 bn net sales in 2014) 4th largest Brazilian exporter 5th largest brazilian employer company (115,000 employees) Top of Mind brands in Brazil, Argentina and Middle East Listed on NYSE and Bovespa BM&F Listed on the 100 most innovative companies in the world by Forbes Superior corporate governance and Investment Grade by Moody’s/S&P/Fitch
  3. 3. 3 -300 -250 -200 -150 -100 -50 0 50 100 150 200 250 South America North America East Europe and Russia Oceania West Europe Least Developed Countries Africa Middle East Asia 1990 1995 2000 2005 2010 2015 2020 2025 Note: “Million tonnes equivalent” for cereals, oilseeds, animal proteins, biofuels and cotton.Source: OCED and FAO Agricultural Outlook 2016-2025 World Food Security (1990-2025) Net intra-regional trade Foodsuplusesand deficits
  4. 4. 4 Uneven distribution of consumption and resources One dot represents 100,000 people 51% of world’s population 19% of GDP 18% of available land 23% of renewable water Consumption (% world) 28% poultry 20% beef 31% dairy 37% sugar SOUTHAND SOUTH-EAST ASIA: Bangladesh, Bhutan, Brunei, Cambodia, China, Honk Kong, India, Indonesia, Lao, Macao, Malaysia, Myanmar, Nepal, Pakistan, Philippines, Singapore, Sri Lanka, Thailand, East Timor, Vietnam
  5. 5. 5 -125 -100 -75 -50 -25 0 25 50 75 (US$ Billion) Source: WTO. Note: China: Mainland China + HongKong + Macau Top global trade surpluses and deficits in the agri-food sector Brazil Argentina Australia USA Korea Japan China
  6. 6. 6 0 5 10 15 20 25 US$ Billion EU (21%) China (24%) Asia ex-China (20%) LAC (9%) Others (5%) Mid East (8%) USA (7%) Africa (7%) Brazilian Agri-Food Export Destinations Source: MAPA (Agrostat).
  7. 7. 7 Food chains: different drivers, different speeds Elaboration: BRF (Marcos Jank). LDC: Least DevelopedCountries. • Labor intensive agriculture • High number of very small farms • Self-sufficiency policy • Social concerns: inflation,urbanization Food Security Safety & Quality Value Added New Trends • Quality • Healthy & safe food • Global players • Value chain coordination • Consolidation • Economies of scale • Traceability • Variety and branding • Differentiation • Taste • Labeling • Speed to market • Convenience • Food service • Infrastructure • Individualized & emotional needs • Environment issues • Animal welfare • “Buy local” • GM/antibiotics free • Organic, veggie, bio • Land use changes Productivity Integrated food chains Segmentation Customization Europe US Japan Singapore Africa India Laos Myanmar Brazil Thailand Malaysia Mexico China Russia LATAM
  8. 8. 8 Market access for animal protein more complex than feed Limited Closed OpenChicken: Access remains an issue in Asia Note: Assessment of market access based on tariffs and NTMs for frozen chicken and soybean meal Soybean: free access Open Limited Closed Sources: 1. USDA reports on Livestock & Poultry, Grains and Oilseeds (2014 data) 2. OECD-FAO Agricultural Outlook 2014. Note: For soybeans, crush volume is approximated for consumption volume. 97 23 21 15 15 3 46 30 14 13 11 6 0 10 20 30 40 50 60 70 80 90 100 Soybeans Soybean meal Beef Corn Chicken Pork World Asia % imports/consumption Value per tonne (USD): • Grains  300 a 500 • Meats  2.000 a 5.000
  9. 9. 9 Top priority issues is a challenging trade-off How to achieve? …with import restrictions and self-sufficiencypolicies? FoodSecurity FoodSafety& Quality Affordability LowInflation Sustainability Trade is still very limited…  New protectionism:tariffs and subsidies  complex non-tariff barriers  Trade:economic efficiency and sustainability Feed (grains) vs.Animal Protein  better carbon/water/energyfootprints
  10. 10. 10 10 Evolution of Agricultural Protectionism
  11. 11. 11 Conclusions OLD AGENDA NEW PARADIGMS Drivers Food security Food safety, quality, value added, new trends Relationship Commodities Spotmarkets Contracts, traceability,certification, private standards sustainability (water & carbon footprint,climatechange), integrated supply chains Geographies Developed countries Emerging economies: Asia, East Europe, Africa, LAC Trade WTO Mega-regionals Bilaterals(spaghetti bowl) and strategicpartnerships “New” mercantilism Protectionism Tariffs and TRQs Domestic Subsidies Complex Non-Tariff Barriers (NTBs): sanitary (SPS), technical (TBT), burocratic (plantapprovals), environmental, privatestandards. From developed and emerging economies (ex. China). The WTO is essential to solvesystemic issues
  12. 12. Thank you marcos@jank.com.br
  13. 13. 13Sources:USDA annual GAIN reports, 2006-2015, TradeMap trade data derived from UN ComTrade 5,52% 6,78% 6,20% 5,87% 3,39% 3,97% 3,85% 4,43% 3,65% 3,20% 0,00% 1,00% 2,00% 3,00% 4,00% 5,00% 6,00% 7,00% 8,00% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 % Import/ ConsumptioninChina(byvolume) Year Soybeans 2006 65.9% 2007 75.9% 2008 71.1% 2009 81.6% 2010 81.1% 2011 72.7% 2012 77.1% 2013 79.6% 2014 81.8% 2015 86.8% Increasing import access into China for soybeans and beef, but decreasing for poultry. Access for meats remain very low. Corn

×