Transcript Agrozzi

CHILEAN TOMATO INDUSTRY

Mr. Cristian Alemparte

AGRICULTURAL BACKGROUND

Natural characteristics of Chile, it’s natural protection against plagues and its favorable Mediterranean weather.

North: Atacama Desert.

South: Antarctic.

East : Andes Mountain West : Pacific Ocean

AGRICULTURAL BACKGROUND

Europe California Chile South Africa Mediterranean Weather Zones Australia     Only some world areas are privileged with

Mediterranean Weather

This weather is present only near the 40 ° latitude, with western coast presence Weather characteristic: Dry & warm summers and rainy & cold winters Temperature Range: more than 15 ° C

WORLD PRODUCTION OF TOMATOES FOR PROCESSING - YEAR 2008

36,034 THOUSAND MT USA: 31 %

NH: 92,6%

ITALY: 13,3% CHINA: 17,2% OTHERS: 31%

SH: 7,4%

CHILE: 1,4% BRAZIL: 3,3% ARGENTINA: 1% SOUTH AFRICA: 0,4% AUSTRALIA: 0,4% OTHERS: 0,9% Production Zone

South America Europe USA China Others

TOTAL

(f) : Forecast

1993

8,7% 30,4% 39,6% N/A 21,2%

100,0% 1998

8,8% 34,0% 34,7% 3,2% 19,4%

100,0% 2003

8,3% 33,2% 31,9% 10,0% 16,6%

100,0% 2008

6,0% 24,6% 31,0% 17,2% 21,2%

100,0% 2009 (f)

5,9% 25,7% 32,0% 17,6% 18,8%

100,0% SOURCE: AMITOM

FRESH TOMATO WORLD PROCESSING

Main World Processing Zones (by Product)

Tomato Paste Canned Tomatoes Chile Turkey China Greece Mexico Argentina Portugal Italy USA Spain Canada Germany Belgium Costa Rica Netherlands Poland Russia Sauces & Ketchup Source: Tomato News

FRESH TOMATO WORLD PRODUCTION

World Production Trend (Metric Tones) 40.000

30.000

20.000

10.000

1993 1998 2003 2008 2009 (f) South America Europe USA China Others

1993~2008 World Fresh Tomato Production  Annual average growth rate: 3,8%  Equivalent to additional 1.000 thousand MT of fresh tomatoes per year 2009 production forecast  Annual growth rate: 7,4% compared with 2008  Equivalent to 1,700 thousand MT of fresh tomatoes Source: Amiton

FRESH TOMATO WORLD PRODUCTION

Consumption v/s World Production

From 2005 year to date the is an increasing gap between World Consumption and Production Year 2009, this gap might slightly decrease World Tomato consumption might reach 40 million MT in 2011 (farm weight equivalent) Source: Tomato News

FRESH TOMATO WORLD PRODUCTION

Regional Distribution of Tomato Consumption in 2007 (34,5 Million of MT) EU 15 23%

(West)

North America 29% Africa 9% Others (Eur) 9% South America 7% Others 12% Middle East Asia EU 12 Australasia 3% 2% 3% 3%

(East) North America and Total Europe concentrate more than 60% Tomato World Consumption Africa in the third place with 9% Source: Tomato News

FRESH TOMATO WORLD PRODUCTION

Regional per capita consumption (Kg/Year) 35,0 30,0 25,0 20,0 15,0 10,0 5,0 32,5 30,1 20,0 22,8 15,8 20,8 6,3 10,1 6,1 10,8 5,6 4,8 3,1 5,0 2,8 North America Australasia EU 15

(West)

Others (Eur) Middle East South America 1997 2007

Biggest per capita consumption growth in the last 10 years  Middle East  Europe

Africa

2007 World average per capita consumption: 5,6 Kg per year 2010 Expected World average per capita consumption 6,1 Kg per year

EU 12

(East)

10,6 0,4 0,3 Asia

Source: Tomato News

USA: 5,6%

NH: 95,5% SH: 4,5%

CHILE: 3,6%

WORLD TOMATO PASTE EXPORTS 2007

2,359,176 MT EU: 53,5% BRAZIL: 0,3 % CHINA: 36% OTHERS : 0,4% OTHERS : 0,6%

Source: Global Trade Information Service

WORLD TOMATO PASTE EXPORTS

Chilean Exports in the World context Thousand of MT 900.000

800.000

700.000

600.000

500.000

400.000

300.000

200.000

100.000

Chile Others Greece Turkey USA Spain Portugal China Italy

Source: Global Trade Information Service

CHILEAN TOMATO PRODUCTS

Chilean Tomato Paste Exports 1997~2008 (MT)

120.000

100.000

80.000

60.000

40.000

20.000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Chilean Exports % of Total 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% Chile: 7th exporter in the World Decreasing participation in the World Market  Chilean production decrease  Other Countries production increase Internal consuption 20.000 tons Source: Global Trade Information Service

CHILE: TOMATO PRODUCTS EXPORTS 2008

67.658 MT USA & CANADA 1,2 % EUROPE 1 % ASIA 13.8 % LATINAMERICA 84 % SOURCE: DICOM

CHILEAN TOMATO PRODUCTS

Chilean Tomato Products Exports Distribution 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Venezuela Argentina Brasil Japan Mexico Colombia Others

Today Venezuela is the biggest market for Chilean Tomato Paste The market is more diversified than 10 years ago Source: Dicom

CHILEAN TOMATO PRODUCTS

1998 Peeled & Diced 6% Sauce 5% Chilean Tomato Products Exports by Type (MT) Type

Tomato Paste Peeled & Diced Sauce

Total 1998

103.987

7.218

5.521

116.726

2003

77.613

3.518

3.350

84.481

Peeled & 2003 Diced Sauce 4% 4% 2008

63.507

683 3.468

67.658

2008 Peeled & Diced 1% Sauce 5% Tomato Paste 89% Tomato Paste 92%

Big increase in Tomato Sauce exports for Food Service Tomato Paste and Pealed Tomato export decrease

Tomato Paste 94%

Source: Dicom

CHILEAN TOMATO INDUSTRY

Chilean Tomato Exports by Company (MT) Company

Aconcagua Iansafrut Nieto Agrozzi Malloa Pentzke Bozzolo Fruveg Others

Total

Aconcagua Agrozzi

1998

13.161

23.636

13.803

25.847

16.048

7.075

2.250

7.179

7.727

116.726

1999

9.889

33.445

11.515

35.125

14.695

10.038

3.353

2.466

5.018

125.546

2000

19 20.351

19.953

26.169

9.831

5.204

1.516

162 12.834

96.039

2001 2002

28.425

16.193

30.317

28.506

4.053

801 703 10.091

119.088

36.575

16.099

38.990

10.916

2.042

957 90 4.677

110.348

2003

28.986

16.417

33.280

33 1.310

1.939

72 2.444

84.481

2004

7.076

11.069

18.602

35.655

2.971

2.491

1.290

79.152

2005

41.410

6.966

39.860

982 1.270

476

90.965

2006

50.307

4.374

38.414

2.837

922 503

97.358

2007

46.860

39.845

2.511

1.239

803

91.258

2008

37.653

26.359

1.963

721 962

67.658

Aconcagua Foods S.A.

 1999: Aconcagua bought Nieto company  2004: Aconcagua bought Iansafrut company Agrozzi  2002: Agrozzi bought Malloa plant

From 8 to 4 companies in 10 Years !!!

Source: Dicom

CHILEAN TRADE AGREEMENTS

Current FTA Negotiating Source: Direcon

CHILEAN TOMATO FACTS & FEATURES

Agricultural  Cultivated Surface: 8.600 Has (Year 2008)  Between 750 ~ 800 farmers  Average yield: 78 MT/Ha  Around 35 % of mechanization (Harvest)  Cultivation Period • Transplant: Sep-20th ~ Nov-15th • Harvest: Jan-25th ~ Apr 4th Industrial  5 Tomato Paste Plants  Installed daily processing capacity: 12.000 Metric Tons (app.)  Located in the main tomato production area

CHILEAN TOMATO FACTS & FEATURES

Main Advantages  Excellent weather  Geographic isolation  Low incidence of insects, pests and plant diseases  Opposite Season (Southern Hemisphere)  Agricultural production oriented to industry  Raw material processed before 24 hours after harvest  Hybrid varieties widely used  High yields and reasonable cost of raw material Pending Tasks  Harvest Mechanization  High Investment  Relatively small areas

THANK YOU !