Ferrero Group – Agricultural Initiatives

Hazelnut Business Development (HBD)

Milano, May 29th 2012

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II Ferrero HBD approach

III Ferrero agricultural activities

I Hazelnut market and geographic areas

Agenda

IV Opportunities for development in Canada

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Hazelnut market – main producing countries at worldwide level (in shell)

AZERBAIJAN 30.000 tons (3 %)

GEORGIA 25.000 tons (3 %)

US (Oregon) 34.000 tons (4 %)

ITALY 120.000 tons (13%)

SPAIN 25.000 tons (3 %)

TURKEY 650.000 tons (70 %)

4 % OTHERS

■ Around 70-75% of actual worlwide production is done in Turkey, followed by Italy with 12-15%

■ Chile and Georgia are the main emerging countries which has experienced a major increase in hazelnut cultivation during last 5 years

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Land Harvest

Storing Drying

Traditional hazelnut cultivation (Turkey)

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Actual producers

Potential producers

35° - 45°

30° - 45°

Hazelnut – climatic areas suitable for hazelnut production

Suitable climatic conditions for

hazelnut cultivation

■ The most suitable climatic conditions for hazelnut production are between 35°-45° latitudes in the Northern Hemisphere and between 30°-45° latitudes in the Southern Hemisphere

■ In those areas it is necessary to check in details the pedoIogical/climatic conditions (microclimate, altitude) which allow for a rational cultivation/mechanization

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II Ferrero HBD approach

III Ferrero agricultural activities

I Hazelnut market and geographic areas

Agenda

IV Opportunities for development in Canada

7

HBD - hazelnut cultivation (Chile)

Land

Harvest Drying

Storing

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HBD – hazelnut value chain

Planting Drying Cracking Processing Harvesting

Land preparation

Planting

Fertilizing

Irrigating

Pruning

Harvest preparation

Mechanical harvest

Manual harvest

Collecting

Storing

Selecting

Destoning

Drying

Calibrating in-shell

Sending to cracking

Sorting

Cracking

Calibrating shelled

Packing (big-bag)

Shipping

Quality check

Receiving / storing

Roasting

Processing

Final product

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II Ferrero HBD approach

III Ferrero agricultural activities

I Hazelnut market and geographic areas

Agenda

IV Opportunities for development in Canada

10

Hazelnut Business Development (HBD)

CHILE: 3.000 ha Ferrero 9.000 ha planted

by local growers

SOUTH AFRICA: 1.000 ha in progress

(Ferrero + local growers)

ITALY: On-going projects

GEORGIA: 3.000 ha already planted Nursery for developments

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HBD Initiatives – CHILE

- Location -

Los Niches

Camarico

San Sebastian Caracas

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Agrichile (Camarico)

The biggest hazelnut orchard in the world (1.400 ha in one block)

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Agrichile (San Sebastian)

The 2nd biggest hazelnut orchard (1.000 ha in one block)

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HBD Initiatives – CHILE

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HBD Initiatives – CHILE

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HBD Initiatives – CHILE (local growers between VII and IX Region)

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CHILE (local growers – Curicò – VII Region)

40 ha, first planting 2004

Varieties: Giffoni, Barcelona

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CHILE (local growers – Camarico – VII Region)

100 ha, first planting during 2007

Varieties: Giffoni, Barcelona

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CHILE (local growers - Villarica – IX Region)

120 ha, first planting during 2005-2006

Varieties: Giffoni, Barcelona, TGL

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CHILE (local growers - Freire – IX Region)

45 ha, first planting during 2005-2006

Varieties: Barcelona, Giffoni

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CHILE (local growers - Freire – IX Region)

85 ha, first planting during 2005-2006

Varieties: Barcelona, Giffoni

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CHILE (local growers - Freire – IX Region)

100 ha, first planting during 2006

Varieties: Giffoni, Barcelona

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CHILE (local growers - Temuco – IX Region)

30 ha, first planting during 2005

Varieties: Barcelona

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CHILE (local growers - Temuco – IX Region)

240 ha, first planting during 2005

Varieties: Barcelona, Giffoni

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- Posizione -

Tsalenjika

Vediktari- Martvili

Chitaskari

Akhali Khibula

Gejeti

Agrigeorgia

25km

5km

35km

30km

Iniziative HBD - GEORGIA

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HBD Initiatives – Georgia

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Iniziative HBD - Sudafrica

Springvallei

Camballan

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HBD Initiatives – South Africa

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II Ferrero HBD approach

III Ferrero agricultural activities

I Hazelnut market and geographic areas

Agenda

IV Opportunities for development in Canada

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Chilling: Chill units (<7°C) between 700 and 900 hours

Max Temp: Highest maximum temperatures below 40°C (preferably below 35°C) Min Temp: Lowest minimum temperature above -10°C

Frost: No frost in late spring (April). Lowest minimum temperatures not below -1 to - 2°C in spring Wind/Hail: low wind/hail area are preferable

Humidity: Average humidity 60-70% from March to October

Rain: Ideally 800-1000 mm per annum. Low rainfall in August and September (harvesting time) Rainfall can be replaced by irrigation.

Canada – Hazelnut climatic conditions

The potential areas and

microclimatic situations have to be

analyzed on a case to case basis

potential areas for hazelnut cultivation

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Why investing in an hazelnut project?

Attractive return in long term (agricultural investment)

Opportunity to diversify (cereals, fruits) for local farmers

Reduced amount of work needed for orchard management (easy to mechanize) compared to other fruit crops

Crop can be stored for a long period compared to other agricultural fresh fruits and it’s easy to transport

1)Plants from Ferrero nursery at discounted price (best varieties developed in our nurseries)

2)Full availability in sharing technical information and experiences on the field

3)Safe end-market (Ferrero has a strong interest in buying the production)

- Good reasons to invest - - What Ferrero is offering -

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The support from Ferrero

Know-how and sharing of experiences

Technical support and expertise

Purchasing power in the long-term

Common interest to the development of hazelnut cultivation

THANK YOU!