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

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

AGRICULTURAL BACKGROUND

California

ChileSouth Africa

Europe

Australia

Mediterranean Weather Zones

WORLD PRODUCTION OF TOMATOES FOR PROCESSING - YEAR 2008

36,034 THOUSAND MT

NH: 92,6%NH: 92,6%

SH: 7,4%SH: 7,4%

CHILE: 1,4%CHILE: 1,4%ARGENTINA: 1%ARGENTINA: 1%

BRAZIL: BRAZIL: 3,3%3,3%

AUSTRALIA: AUSTRALIA: 0,4%0,4%

SOUTH AFRICA: SOUTH AFRICA: 0,4%0,4%

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

OTHERS: 0,9%OTHERS: 0,9%

OTHERS: 31%OTHERS: 31%

SOURCE: AMITOM

Production Zone 1993 1998 2003 2008 2009 (f)South America 8,7% 8,8% 8,3% 6,0% 5,9%Europe 30,4% 34,0% 33,2% 24,6% 25,7%USA 39,6% 34,7% 31,9% 31,0% 32,0%China N/A 3,2% 10,0% 17,2% 17,6%Others 21,2% 19,4% 16,6% 21,2% 18,8%TOTAL 100,0% 100,0% 100,0% 100,0% 100,0%(f) : Forecast

FRESH TOMATO WORLD PROCESSING

Main World Processing Zones (by Product)

ChileTurkey

ItalyUSASpain

ChinaGreece

CanadaGermany

MexicoArgentina

Portugal

Belgium Costa Rica Netherlands Poland Russia

Tomato Paste Canned Tomatoes

Sauces & Ketchup

Source: Tomato News

FRESH TOMATO WORLD PRODUCTION

World Production Trend (Metric Tones)

-

10.000

20.000

30.000

40.000

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)

North America and Total Europe concentrate more than 60% Tomato World Consumption

Africa in the third place with 9% Source: Tomato News

EU 1523%

North America29%

Others12%

Others (Eur)9%

Africa9%

South America7%

Middle East3% EU 12

3%

Asia3%Australasia

2%

(West)

(East)

FRESH TOMATO WORLD PRODUCTION

Regional per capita consumption (Kg/Year)

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

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

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

Source: Tomato News

32,530,1

20,022,8

15,8

20,8

6,3

10,1

6,1

10,8

5,6 4,8

3,1

5,0

2,8

10,6

0,4 0,3

-

5,0

10,0

15,0

20,0

25,0

30,0

35,0

North America Australasia EU 15 Others (Eur) Middle East South America Africa EU 12 Asia

1997 2007(West) (East)

WORLD TOMATO PASTE EXPORTS 2007

2,359,176 MT

NH: 95,5%NH: 95,5%

SH: 4,5%SH: 4,5%

CHILE: 3,6%CHILE: 3,6%

USA: 5,6%USA: 5,6% EU: 53,5%EU: 53,5%

CHINA: 36%CHINA: 36%

BRAZIL: 0,3 %BRAZIL: 0,3 %

OTHERS : 0,4%OTHERS : 0,4%

Source: Global Trade Information Service

OTHERS : 0,6%OTHERS : 0,6%

WORLD TOMATO PASTE EXPORTS

Chilean Exports in the World context

Source: Global Trade Information Service

Thousandof MT

Year

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07C

hil

e

Oth

ers

Gre

ec

e

Tu

rke

y

US

A

Sp

ain

Po

rtu

ga

l

Ch

ina Ita

ly

-

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

900.000

Chile

Others

Greece

Turkey

USA

Spain

Portugal

China

Italy

CHILEAN TOMATO PRODUCTS

Chile: 7th exporter in the World

Decreasing participation in the World Market Chilean production decrease Other Countries production increase

Internal consuption 20.000 tons

Chilean Tomato Paste Exports 1997~2008 (MT)

Source: Global Trade Information Service

-

20.000

40.000

60.000

80.000

100.000

120.000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

Chilean Exports % of Total

ASIA 13.8 %

CHILE: TOMATO PRODUCTS EXPORTS2008

67.658 MT

USA & CANADA USA & CANADA 1,2 %1,2 %

LATINAMERICA LATINAMERICA 84 % 84 %

EUROPE EUROPE 1 %1 %

SOURCE: DICOM

Today Venezuela is the biggest market for Chilean Tomato Paste

The market is more diversified than 10 years ago

Chilean Tomato Products Exports Distribution

Source: Dicom

CHILEAN TOMATO PRODUCTS

0%10%20%30%40%50%60%70%80%90%

100%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Venezuela Argentina Brasil Japan Mexico Colombia Others

Big increase in Tomato Sauce exports for Food Service

Tomato Paste and Pealed Tomato export decrease

Chilean Tomato Products Exports by Type (MT)

Source: Dicom

CHILEAN TOMATO PRODUCTS

1998 2003 2008

Tomato Paste92%

Peeled & Diced

4%Sauce

4%

Tomato Paste89%

Peeled & Diced

6%

Sauce5%

Tomato Paste94%

Peeled & Diced

1%

Sauce5%

Type 1998 2003 2008Tomato Paste 103.987 77.613 63.507

Peeled & Diced 7.218 3.518 683Sauce 5.521 3.350 3.468Total 116.726 84.481 67.658

Aconcagua Foods S.A. 1999: Aconcagua bought Nieto company 2004: Aconcagua bought Iansafrut company

Agrozzi 2002: Agrozzi bought Malloa plant

Chilean Tomato Exports by Company (MT)

Source: Dicom

CHILEAN TOMATO INDUSTRY

From 8 to 4 companies in 10 Years !!!

Company 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Aconcagua 13.161 9.889 19 7.076 41.410 50.307 46.860 37.653Iansafrut 23.636 33.445 20.351 28.425 36.575 28.986 11.069 6.966 4.374Nieto 13.803 11.515 19.953 16.193 16.099 16.417 18.602Agrozzi 25.847 35.125 26.169 30.317 38.990 33.280 35.655 39.860 38.414 39.845 26.359Malloa 16.048 14.695 9.831 28.506 10.916 33Pentzke 7.075 10.038 5.204 4.053 2.042 1.310 2.971 982 2.837 2.511 1.963Bozzolo 2.250 3.353 1.516 801 957 1.939 2.491 1.270 922 1.239 721Fruveg 7.179 2.466 162 703 90 72Others 7.727 5.018 12.834 10.091 4.677 2.444 1.290 476 503 803 962Total 116.726 125.546 96.039 119.088 110.348 84.481 79.152 90.965 97.358 91.258 67.658

Aconcagua Agrozzi

CHILEAN TRADE AGREEMENTS

Current FTASource: Direcon

Negotiating

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 InvestmentRelatively small areas

THANK YOU !