Brazil The Pet Sector - PIJAC Canada...E-mail: commerce.br@international.gc.ca Title CANADA-ITALY...

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Brazil

The Pet Sector

PIJAC Webinar

November 2014

A World within a Country

Countries with nominal GDP over US$ 600 billion

Countries with population over 100

million

Countries with area over 2 million km²

Australia

Russia

USA

Brazil

China Japan

Bangladesh

Nigeria

Pakistan

Indonesia

Canada

France

Germany Italy

Spain

Mexico

South Korea Netherlands

India

U K

Turkey

Algeria

Argentina

Congo

Kazakhstan

Saudi Arabia

Sources: IMF(GDP), UN

3 Sources:

Brazil - Banco Central do Brasil

Brazil

GDP: US$2.4 tri (2011)

GDP per capita: U$12,696

South America’s Powerhouse

Brazil represents 50%

of South America’s

total GDP

Brazil – Territorial Division Divided in 5 different regions (by the Brazilian Institute of Geography and Statistics)

1) North Region 2) Northeast Region 3) Central-West Region 4) Southeast Region 5) South Region

A Country of Contrasts

NORTHEAST

POP – 27,6%

PP – 18%

SOUTHEAST

POP – 42,6%

PP – 51,6% SOUTH

POP – 14,6%

PP – 18,4%

MID-WEST

POP – 7,1%

PP – 6,6%

NORTH

POP – 8,1%

PP – 5,4%

POP=Population

PP=Purchasing Power

Globo presentation to MBAs

Increasing Buying Power

Source: Cetelem BGN Observador Brasil, Fecomercio SP, Data Popular .

C a n a d a

& B r a z i l

Brazil

Canada’s 10th

Largest Export

Market

9

Top 10 Canadian Exports

Source: Statistics Canada

Top 10 Canadian Imports

Source: Statistics Canada

11

Canada-Brazil Bilateral Investments 2011

CDI

C$ 9.8 billion

Sectors:

Agriculture, Mining,

Shopping Centres,

Telecommunications,

Software, Environmental

Ind. Automotive Parts

Brazil is the 12th largest

destination for Canadian

outward investment

FDI

C$ 18.6 billion

Sectors:

Mining,

Steel,

Beverages,

Cement,

Software

Canada is the 6th largest

destination for Brazilian

outward investment

Source: Statistics Canada

Pet Market

• Ranks as the 2nd largest pet market in the world (after the U.S.A.)

• Has the 4th largest pet population in the world

• Growth of 8.2% in 2014

• Revenues of R$16.4 billion (approx US$5.3 billion)

• Monthly expenditure vary from US$50.00 to US$150

• Dog food expenses may represent from 4.5% to 11% and cat food 1.8

and 4.1 of families’ budget (C and D respectively)

• 50% of pet owners are estimated to still feed pets with leftovers.

• High tax structure, representing approx 50% of the price.

Pet Market Highlights

• Production of petfood is expected to reach 2.4 million tons in 2014 (increase

of 4.5% over previous year)

• Half of the production comes form the states of Parana, São Paulo and Minas

Gerais.

• Dog food represent 91.1% of the total volume, the equivalent of 470 thousand

tons,

• São Paulo is the largest market in the country, with an estimated population of

14 million pets and 4.800 petshops.

• 225 thousand direct jobs

Industry

Source: Canadian Consulate Analysis

Strong competition from both local and foreign

Language

Logistics

Tax system (impact on landed cost)

Macroeconomic volatility (exchange rates, monetary)

Transportation and infra-structure (roads, ports, etc)

• Regulatory enviroment

Challenges for Doing Business

Source: World Economic Forum, Morgan Stanley LatAm Economics.

Challenges to Canadian Exporters

Strong competition from both local and foreign

Language

Logistics

Tax system (impact on landed cost)

Macroeconomic volatility (exchange rates, monetary)

Transportation and infra-structure (roads, ports, etc)

Regulatory enviroment

Opportunities

• Large country with an expanding population, rising salaries and a favored

market for foreign investment in the region, Brazil’s medium-term prospects

remain encouraging

• Increasing demand for value-added products

• Increasing exposure of Brazilians to foreign cultures and products

• Shophisticated and expanding retail sector

Pocket guide to understand Brazilians

What Brazilians say: Yes (Sim) What foreigners hear: Yes

What Brazilians mean: Anything from yes through perhaps to no

What Brazilians say: Perhaps (Talvez) What foreigners hear: Perhaps

What Brazilians mean: No

What Brazilians say: No (Não) What foreigners hear (on the very rare occasion a Brazilian says it): No

What Brazilians mean: Absolutely never, not in a million years, this is the craziest thing I've ever been asked

What Brazilians say: I'm nearly there (Tô chegando) What foreigners hear: He's nearly here

What Brazilians mean: I've left

What Brazilians say: I'll show up later (Vou aparecer mais tarde) What foreigners hear: He'll be here later

What Brazilians mean: I won't be coming

What Brazilians say: Let's stay in touch, ok? (vamos combinar, ta?) What foreigners hear: He'd like to stay in

touch (though, puzzlingly, we don't seem to have swapped contact details)

What Brazilians mean: No more than a Briton means by: "Nice weather, isn't it?“

What Brazilians say: A hug! A kiss! (Um abraço! Um beijo!)

What foreigners hear: I've clearly made quite an impression—we've just met but he/she really likes me!

What Brazilians mean: Take care, cheers, bye

What Brazilians say: You speak Portuguese really, really well! (Você fala português super-bem!)

What foreigners hear: How great! My grammar and accent must be coming on a lot better than I thought

What Brazilians mean: How great! A foreigner is trying to learn Portuguese! Admittedly, the grammar and accent

are so awful I can barely understand a word... but anyway! A foreigner is trying to learn Portuguese!

By Brazil-based journalists Andrew Downie and Dom Phillips, who contributed items, and Olivier Teboul, a Frenchman living in Belo

Horizonte whose list of "Brazilian curiosities" (in Portuguese) has generated a huge response from amused, and sometimes

bemused, locals.

21

Thank you!

Merci !

Obrigado!

Consulate General of Canada

Av. Das Nações Unidas, 12901

Torre Norte – 16º Andar

04578-000 São Paulo, SP

Brazil

Web site: www.brazil.gc.ca

E-mail: commerce.br@international.gc.ca

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