Ing. Agr. Tabaré Aguerre

Ministro de Ganadería, Agricultura y Pesca (Uruguay)

A transformational pathway for

Uruguay’s beef sector

Uruguay´s characteristics

Meat production and production systems

Uruguay as a reliable supplier of

differentiated meat

A transformational pathway for

Uruguay’s beef sector

Ing. Agr. Tabaré Aguerre

Ministro de Ganadería, Agricultura y Pesca (Uruguay)

Uruguay´s

characteristics

Strategic resource: beef cattle per person

Uruguay´s Beef Exports

5% of World* Exports (quantity)

(*) Not including India

Brazil 26%

Australia 20%

USA 14%

New Zealand 7%

Paraguay 6%

Canada 5%

Uruguay 5%

EU 4%

ROW 13%

Uruguay has

negligible EEB risk

and is free of FMD

with vaccination

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Uruguay´s Beef Exports

Almost all the relevant markets (exc. Japan) (quantity)

China 26%

EU 25%

NAFTA 22%

Mercosur 9%

Israel 8%

Russian Fed. 4%

ROW 6%

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Natural grasslands

65%

Improved pastures

13%

Cereals and oilseeds

10%

Forests 10%

Other 2%

Uruguay´s Land use

More than 78% of the land devoted to beef, sheep and dairy

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Minister Agr. Eng. Tabaré Aguerre| 18 ago 2014

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8

1611

2006

1730 1780 1830 1863 1871 1924 1967 1973 2004

Individual Traceability in beef cattle (universal) Eartags and chips placed in all the animals

Minister Agr. Eng. Tabaré Aguerre| 18 ago 2014

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Individual bovine traceability:

As a public good and innovation platform

► First country that develops electronic individual identification of bovines

► Example of inter-institutional coordination

► Traceability as a public good

Health & Food Safety Monitoring Market Access Innovation

Meat production

system

65% Uruguay grasslands

• i

Production Levels at Baseline

Uruguay: Presentation of targets and model 13

Improved Grassland (15.4%)

Native Grassland (84.6%)

Supplementary Feed

19 kg/ha

Area Grazed by Bovines (AGB) = 11.1 million ha

• Weaning rate = 67% • 2-year heifers served = 50% • Steers slaughtered at 38m 9.4 million ha

1.7 million ha

• Farm Production = 102 kg LW/ha • Slaughter = 2.4 million heads/year • Beef production = 580 TMT CW • Beef exports = 400 TMT CW

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CNMPU USDA PVP NEVER EVER 3

• In 2014 the recognition of this scope by USDA was achieved

• Three claims that characterize it

NO GROWTH PROMOTANTS (*) - Never Ever

NO ANIMAL BY-PRODUCTS (*) - Never Ever

NO ANTIBIOTICS (**) - Never Ever

(*) Prohibited by law in Uruguay

(**) Supported by the mandatory individual

traceability system

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Main meat certification programs:

Certified Natural Meat Program of Uruguay (CNMPU)

Scope: CNMPU Basic

Scope: USDA-PVP CNMPU

Scope: USDA-PVP NEVER EVER 3 CNMPU

Certified Animal Welfare Program (CAWP)

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Certified Natural Meat Program of Uruguay (CNMPU)

• Created in 2001 with the main actors related to the meat chain

(agricultural and industrial representatives)

• Certifies the entire production process from field to the packing stage

• The main aspects ensure:

Source verified

Open range-Animals never confined

No animal proteins in feed

Not fed antibiotics

No use of growth promotants

•

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USDA-PVP CNMPU

• Officially recognized by the USDA as a Process Verified Program (PVP) (Since 2002)

• Two categories are distinguished N6 and N5 (According to approved

Claims)

Source verified

No added hormones

Not fed antibiotics

No animal proteins in feed

Open range-Animals never confined

Grass fed

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Certified Animal Welfare Program (CAWP)

• Provides guarantees for good animal management practices at

each stage of the production process (farm, transport and

packing plant)

• Temple Grandin, leader on the matter, participated in the

reviewing process of the protocol

Grass-fed Beef

Meat eaters can get healthier fats by buying from producers that allow ' their animals to pasture feed. These meats are nearly as low in total and

saturated fat as skinless chicken breast, and they're high in omega-3s and vitamin E. Sources include

American Grass Fed Beef (americangrassfedbeef.com)"

Natural Health, Oct. 2003, by D.

Eller Grain-fed beef can have an omega 6:3

ratio higher than 20:1" J. Anim. Sci. 2000. 78:2849-2855

Research: health attributes (recent report)

Factors affecting fat content and fat composition in ruminants

Feed (pastures vs grain)

Animal age

Genetics

Building bridges to take advantage of oportunities

Suplementation in field

Health attributes of beef by production system Intramuscular fat (percentage)

1=Pasture based 2=Pasture + 0,6% grain

3=Pasture + 1,2% grain 4= confined

Poliinsaturated/Saturated

Type of fat content by production system

1=Pasture based 2=Pasture + 0,6% grain

3=Pasture + 1,2% grain 4= confined

Fatty Acid Relations

1,9

2,252,39

3,08

0,0

1,0

2,0

3,0

4,0

P P + S1 P + S2 C

•Omega 6/Omega 3

1=Pastures 2=Pastures + 0,6% suplement

3=Pastures + 1,2% suplement 4= Concentrates

Intra Muscular Fat & Saturated Fat contents

•Difference between 2.3 and 8 grams of fat per 100 grams

• 52 calories below in portion of 100 grams

Source GIM gr AGS gr

Uruguay Montossi y

Sañudo

(2004) 2,3 0,74

USA USDA (2009) 8,0 3,20

Pasture fed animals

• Higher contents of n3 fatty acids (2 - 6 times > grain fed)

Rate n6/n3 : (according to international papers)

Grain 15-20 to 1

Pastures 4 to 1

• Pastures contain 2 times more n3 fatty acids than n6

•Grains contain more n6

Uruguay´s Beef Sector

Mostly grass-fed beef Mandatory individual traceability system

From farm to export

product

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Growth

promoters are

prohibited by

law

Uruguay as a

reliable supplier

of differentiated

meat

Targets: Productivity and Environmental

30 Uruguay: Presentation of pathways

Productivity +25%

128kg/ha

Biodiversity Grassland improve

Climate -25% kg CO2 /

kg LW

Nutrients -27% kg N / kg LW

TARGETS

CHANGES REQUIRED

KEY

VARIABLES

Improve nutrition: • Improve pasture /

Introduce new species (legumes)

• Grazing management

• Strategic use of feed supplements

• Pastures irrigation • Water access

Improve grassland biodiversity Native forest conservation (1981 law)

Manure production Use of nitrogen fertilizers Use of phosphate fertilizers (Nitrification inhibitors use)

Cattle dietary changes Trees for shading Cattle genetics Reduce N2O

I. Pathways from targets: Win – win situations

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Productivity +25%

to 128kg/ha

Biodiversity Grassland improve

Climate -25% kg CO2 /

kg LW

Nutrients -27% kg N / kg LW

Improved pastures (legumes) reduces nitrogen losses

Grassland productivity and biodiversity

Improve nutrition increase reduces carbon footprint

Increase shade trees (double purpose)

Uruguay: Presentation of pathways

• i

Course of Action: Quantity & Quality of Nutrition

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Improved Grassland (15.4%)

Native Grassland (84.6%)

• Weaning rate = 67% • 2-year heifers served = 50% • Steers slaughtered at 38m

Supplementary Feed

19 kg/ha

Course of Action

• Improve management of native grasslands • Reduce stocking rate to avoid overgrazing • Increase fencing (more pens) • Increase water access & shade trees

• Double supplementary feed intake • Privileging young categories • Grain, minerals

Area Grazed by Bovines (AGB) = 11.1 million ha

9.4 million ha

1.7 million ha

• Double area of improved grasslands • Native grassland improved by inclusion

of legumes and phosphate • Winter forage

Uruguay: Presentation of pathways

Production & Environmental Effects at Target Year

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• i Improved Grassland

(30%)

Native Grassland (70%)

7.8 million ha

• Weaning rate = 76% • 2-year heifers mated= 100% • Steers slaughtered at 25m

3.3 million ha

• Carbon Footprint = 15 kg CO2/kg LW • Biodiversity = keep 11.1 million grasslands • Nitrogen = 48 kg N/kg LW

• Farm Production = 128 kg LW/ha • Slaughter = 3.1 million heads/year • Beef production = 730 TMT CW • Beef exports = 540 TMT CW

Supplementary Feed

37 kg/ha

Area Grazed by Bovines (AGB) = 11.1 million ha

Pathways from targets

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II. Pathways & implementation: a bottom up strategy PRODUCTIVITY BIODIVERSITY CLIMATE NUTRIENTS

Targets, Levers and Roadblocks

Target: +25% productivity

at farm gate (128kg/ha)

→ Lever 1: Inter-

institutional framework

& articulation for

technology transfer

→ Roadblocks: Technology transfer R & D Labor skills Entrepreneurial attitude / Risk aversion / Farmers age Farm infrastructure and water access

Target: Native forest conservation + grassland biodiversity

→ Lever 1: Forest law

based on incentives (1987)

→ Lever 2: Grazing

management

→ Lever 3: Stewardship

and environmental values

→ Roadblocks:

R & D

Stakeholders interests

Target: -25% kg CO2 /kg LW

→ Lever 1: Research to

improve feed conversion

efficiency (genetics)

→ Lever 2 Recognition with

higher prices/ new markets

→ Lever 3: Statistical

information about GHG

emissions and carbon

footprint.

→ Roadblocks:

R & D

“Cultural issues”: Breed

preference

Lack of financial incentives

Knowledge / Research

results adoption and diffusion

Skills building

Target: -27% kg N / kg LW

→ Lever 1: Deepen regulation on

water quality standards; soil use

and management practices

(Water and soils law - 1981).

→ Lever 2: Inter-institutional

articulation on water quality at

watershed level.

→ Lever 3: Best management

practices.

→ Lever 4: Incentives for

adoption of new technology.

→ Roadblocks:

R & D

Regulatory framework/

enforcement

Knowledge / Research results

adoption and diffusion

Skills building

Stakeholders interests

Interinstitutional articulation

→ Lever 1: Pathway and implementation design

Strategy for technology transfer on beef production Pathways on technology transfer by region Technology priorities to be promoted Definition of roles and responsibilities of each organization Funding related to action plans within this strategy Targets by organization?

Final remarks

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Beef is a key economic sector

There is an institutional commitment to sustainable

intensification, center of the strategic goals of the MGAP policy

agenda

Natural grasslands + technology + country strategy

Uruguay´s trajectory

From comparative strategy

To Sustainable Competitive Strategy

Ministro Ing. Agr. Tabaré Aguerre| 10 oct 2014

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Base para diferenciar producto

“Envasamos naturaleza y vendemos confianza”

Ing. Agr. Tabaré Aguerre

Ministro de Ganadería, Agricultura y Pesca (Uruguay)

A transformational pathway for

Uruguay’s beef sector