World population has increased 133% since 1960 while food production has increased 237% due to factors like rural to urban migration, improved life expectancy, and rising incomes. However, inefficiencies remain in the supply chain between producers and consumers. China is now the largest meat producer in the world while the US and Brazil have grains to feed their animals. Brazil accounts for 11% of global meat production with less than 3% of the world's population. Growth in Brazilian agricultural production will come from converting degraded pastures, intensifying livestock production, and using new technologies. This will help meet rising demand from China's social inclusion plan to lift 440 million people out of poverty by 2022.

2. World population: Development & Consequences
World population has increased by133%since 1960, while food production has gone up237%in the same period.Main reasons:
Rural migration tourbanareas;
Improved Life expectancy;
Arise in Income;
Inefficiencies/waste in Supply chain between producer andconsumer:
Source: FAO-FoodOutlook (2014)
World Production of select Basic Foodstuffs (mmt)
Commodity Avg 61-63 Avg 09-11 % Growth
Wheat 253.3 678.8 188
Maze 210.0 853.1 306
Rice 225.8 705.0 212
Soybean 27.4 250.3 814

3. Source: USDA
0
20
40
60
80
100
1960
1967
1974
1981
1988
1995
2002
2009
2016
0
20
40
60
80
100
120
1960
1967
1974
1981
1988
1995
2002
2009
2016
0
20
40
60
80
1960
1967
1974
1981
1988
1995
2002
2009
2016
Global Meat Production - million tons
Ranking2016 Mt
1º USA 18,5
2º Brazil 13,6
3º China 12,7
4º
EuropeanUnion
10,8
5º India 4,2
Ranking2016 Mt
1º China 53,5
2º EuropeanUnion 23,2
3º USA 11,3
4º Brazil 3,6
5º Russia 2,7
Ranking2016 Mt
1º USA 11,3
2º Brazil 9,6
3º EuropeanUnion 7,7
4º China 6,8
5º India 4,3
CAGR (1960-2016)3,1%
CAGR (1960-2016)7,1%
CAGR (1960-2016)1,6%
2016
109,3 MT
2016
89,7 MT
2016
59,0 MT
Economics & Data Science
Economics & Data Science
Economics & Data Science
Source: USDA
Source: USDA
Pork (263g)
Chicken (575g)
Bovine (173g)
Source: Hostle and Boihuls
Quantity(ingrams)ofSoybean
usedper Kgofmeat:
• Chinais the biggest meat producer in the
world
• USA&Brazil have grains tofeed their
animals;
• China& European Union need toimport
grains;
• IMPORTANT: With less than 3% ofthe
World’s population, Brazil accounts for 11%
ofmeat production!
How the world consumes soybean?

4. Economics & Data Science
8,9%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
Estados Unidos
Outros
Argentina
Paraguai
Brasil
Soybeans: Main Exporters
0
20
40
60
80
100
120
140
160
180
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
Japão
Outros
EU
México
China
3,2%
Soybeans : Main Importers
Soybean Supply & Demand
Source: USDA
Source: USDA
Economics & Data Science
4,5% 1,9%
13% 2,7%
The Chinese government’s social inclusion plan intends to lift 440
million people out of poverty by 2022, which will lead for instance
to an additional production of 785,774 bovine per year if each of
this new consumers eat 1kg ofmeat per year.

5. 554
60
38
198
This growth in production will come from the:
Convertion of degradedpastures into cropland;
Intensification of landuse in livestock; (Bovine feedlot and
supplementing pasture);
Integration of Crop-Livestock-Planted Forest;
Useof new technologies: seeds, fertilizers andequipment for planting
andcropping.
Land use in Brazil: we have it all!

6. Infrastructure neededto meet Chinese demand
North Arch
New highwaysprojeted/in construction
Newrailways projeted/in construction
New waterways projeted/in construction
Existing highways
Exisiting railways
Existing waterways
New agricultural frontiers

7. CAGR1995-2015
TOTAL 7,9%
• Deep Sea 6,8%
• Cabotage 13,3%
Mkt Share 2010/ 2015
•Deep Sea 84%/ 74%
•Cabotage 16%/ 26%
Moviment of containers in Brazil (Boxes)
Elaboratedby SOLVE|Source:Antaq

8. The exchange rate is boosting manufactured exports
Exchange rate (R$/US$)
(Monthly average)
Source: MDIC-5,000
0
5,000
10,000
15,000
20,000
25,000
Aug-01
May-02
Feb-03
Nov-03
Aug-04
May-05
Feb-06
Nov-06
Aug-07
May-08
Feb-09
Nov-09
Aug-10
May-11
Feb-12
Nov-12
Aug-13
May-14
Feb-15
Nov-15
Aug-16
Exportações Importações Saldo Comercial
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Aug-01
May-02
Feb-03
Nov-03
Aug-04
May-05
Feb-06
Nov-06
Aug-07
May-08
Feb-09
Nov-09
Aug-10
May-11
Feb-12
Nov-12
Aug-13
May-14
Feb-15
Nov-15
Aug-16
TradeBalance
Source: BCB
Due to a favorable exchangerate, segmentssuch
as Pulp& Paper,Plywood, Autoparts, Textiles,
Footwearetc, have recordedsignifcant growth
and this has ledto the a changein our Trade
Balancesince Feb.15, takingit backto its
position beforethe 2008International Crisis.
Economics & Data Science
Economics & Data Science

9. Brazil is also an important global suplier of:
WorldwideExport Leadership
OrangeJuice Coffee Sugar Ethanol
Source:CNA
82% ofexports
57%ofGlobalProduction
28% ofexports
37%ofGlobalProduction
45% ofexports
2%ofGlobalProduction
17% ofexports
26%ofGlobalProduction

10. New patterns in the shipping industry -Brazil
Santa Class / 7.100teu
Aliança Santos / 2.500teu
Biggest Vessel
# Regular Services
CABOTAGE+FEEDER
+MERCOSUL
7
Nominal Capacity 10.000
DEEPSEA
37
112.000
New Cap San / 9.600teu
Vicente Pinzon / 4.800teu
7
15.200
21
111.000
Whilethe DeepSea services have
remainedstablein termsofcapacity,
Cabotageservices havegrown,
especially asa Feeder service.
Biggest Vessel
# Regular Services
Nominal Capacity
Source:SOLVE
In addition,withless calls per week,
competitionincontainer
terminals hasintensified

11. 12.2
10.5
11.0
11.3
12.7
14.3
12.5
13.9
16.4
14.5
17.0
17.0
20.0
16.5
17.0
18.0
10
12
14
16
18
20
22
Draft limitation for vessels over 300m of LOA (≈9.000teu)
Source:SOLVE

12. New challenges are affecting current performance
Elaboratedby SOLVE|Source:Antaq
Terminalsincreasing volumes areinvariablytheonescapableofhandlingthe biggest vessels, while others
arejust struggling tosurvive!!!

13. Brazil: Bigpicture!
International Trade Ranking2015
•25thposition onworldwide Export ranking(1,2%)
•25thposition onworldwide Import ranking(1,1%)
International Trade Growth 2014x 2015
•World: -13%
•Brazil Export: -15,1%
•Brazil Import: -25,2%

14. When analyzing exportin volumes
• Contraryto what is depicted, Brazilian Maritime Export
volume grewby11% in the 1H/16;
•Grains pulled the average upwith its growth of 31%in the
1H/16;
• Accordingto a recent information fromWTO, Brazil recorded
the highest export growth in terms of volume in the 1H/16;
… and at the end of the day, volume is what really matters for
investments in logistics!!!

15. Opportunities aboundin:
Grain terminalsin the
north
Railways
Waterways
Modern Container terminalsin the
South/Southeast
Highways
Fertilizerterminals
Grain Warehouses
Reefer Warehouses
Cabotage
Etc etc etc
Dredging

16. Summing up