Investor Presentaiton
32
MARKET CONTEXT
Instant noodles consumption by channel
(volume in tons)
2020
2021
17,541 18,469
14,420 13,975
15,544 16,108
6,890 7,150
42,849 43,535
Market
(Cash)
Hypermarket
Large
Supermarket
Traditional
Small
Supermarket
Independent
Market (Retail)
Source: Nielsen Retail Index - T. Brasil 2021
Instant Noodles market in Brazil
recorded a 3% improvement in
consumption, increasing from
145,580 to 149,893 tons; while
the financial amount sold grew
18.7%, from R$ 2.4 to R$ 2.9
billion.
Consumption growth in instant
noodles was seen in both
channels: Retail (2.1%) and
Cash&Carry (4.8%). In terms
of volume, Cash&Carry is less
representative in consumption,
however it shows the best
variation performance when
comparing 2021 versus 2020.
WHEAT
CONAB (Companhia de
Abastecimento Nacional)
estimates that wheat production
in Brazil for 2021/2022 will
reach 7.8 million metric tons
(MMT), representing a 25.28%
increase versus the previous
harvest. Despite this increase,
the quantity and quality of
Brazilian wheat production are
not enough to meet the market
demand of wheat for milling.
In the global scenario, according
to the U.S. Department of
Agriculture (USDA), 2021/2022
harvest is estimated at a 777.89
MMT, pointing out 0.25%
growth versus the previous
period. With world consumption
increasing by 1.57%, inventories
are expected to decrease from
289.64 MTM to 278.18 MTM, a
3.95% drop. According to USDA
data, Argentina is historically the
largest wheat exporter to Brazil,
and for the current harvest it has
an estimated production of 20
MTM.
50,656
48,336
World wheat
production
China
European Union
India
Russia
USA
Other
Source: USDA
35%
17%
2021 INTEGRATED ANNUAL REPORT
Wheat supply and demand balance in Brazil (in thousand tons)
Inventories
Product Harvest Inventories Production Import Supply Consumption
Final
2014
(Aug 01)
2,414.1
Export Inventory
(Jul 31)
2015
1,381.4
5,971.1 5,328.9 13,714.1
5,534.9 5,517.6 12,433.9
2016
1,070.7
6,726.8
2017
WHEAT
2018
2,838.7
2,036.9
4,262.1
7,088.5 14,886.0
6,387.0 13,487.8
10,652.2 1,680.5
10,312.7 1,050.5
11,470.5
11,244.7
1,381.4
1,070.7
576.8
2,838.7
206.2
2,036.9
2019
1,198.9
2020*
627.4
2021**
146.9
7,810.8
5,427.6 6,753.1 14,217.6
5,154.7 6,676.7 13,030.3
6,234.6 6,007.0 12,869.0
6,200.0 14,157.7
12,435.8
582.9
1,198.9
12,060.6
342.3
627.4
11,899.0
823.1
146.9
12,547.8 1,200.0
409.9
Note: Estimate in December/2021. *Estimate **Throughflow Stocks Forecast - Wheat July 31
Source: Companhia Nacional de Abastecimento (Conab)
VEGETABLE OILS
17%
Vegetable oils are used in the
refinery to produce vegetable
shortening and margarines.
Palm oil is the main vegetable
oil, representing 79% of the
company's consumption in
2020. Brazilian production is
not enough to meet the product
demand, so it is necessary
to import this commodity.
According to USDA, 2021/22
harvest will set a new record
in global production reaching
76.56 MMT, a 5.03% increase
World palm oil production and consumption (in MTM)
49,948
52,547
58,206
57,294
55,345
59,284
56,369
58,899
61.75
58.89
61.5
65.3
versus 2020/21 harvest. World
demand has also grown, mainly
because of biofuels. The increase
in consumption reaches 2% in
2021/22 period, compared to
the previous period, and world
stocks reach 12.9 MTM.
74,832
73.5
64.6
71,585
64.8
72.8
72.9
76.5
73.0
70.1
7%
14%
11%
2011
/2012
2012
/2013
2013
2014
2015
2016
2017
/2014
/2015
/2016
/2017
/2018
2018
/2019
2019
/2020
2020
/2021
2021
/2022
Source: USDA - January 2021
Production
ConsumptionView entire presentation