9th IRO Conference City of Fengyang Anhui Provence, China May 12th, 2014 CHILEAN RASPBERRY INDUSTRY Mr. Antonio Dominguez Chilealimentos A.G. Board Member CEO Nevada Chile S.A. CHILEAN RASPBERRY MARKET ANALYSIS FINAL COMMENTS CHARACTERISTICS OF CHILEAN RASPBERRY INDUSRTRY RASPBERRY INDUSTRY STARTED ON THE 80’s FOCUSSED TOWARDS FRESH MARKET. LAST 20 YEARS WITH EYES ON FROZEN RASPBERRY INDUSTRY. SMALL FARMS/MANUALLY HARVESTED. RELATEVLY STABLE WEATHER CONDITIONS. GOOD NATURAL PROTECTION FOR DISEAS. ACTUAL EXPORTS TO MORE THAN 30 COUNTRIES . Source: Chilealimentos A.G. CHARACTERISTICS OF CHILEAN RASPBERRY INDUSRTRY APROX. 20% AS RETAIL PACKING, BALANCE IS BULK AND JUICE. GOOD UNDERSTANDING WITH THE LOCAL AUTHORITIES. HERITAGE IS THE MOST IMPORTANT RASPBERRY VARIETY IN CHILE. A MAYOR EMPLOYER, MORE THAN 120.00 TEMPORARY JOBS PER YEAR. THE UNIQUE FOOD WITH A NATIONAL SYSTEM OF TRACEABILITY (FROM FARM TO THE IMPORTER) THE MAIN FROZEN FRUIT EXPORTED. THE FOURTH JUICE EXPORTED CHILE: BERRIES Surface: 30.300 Hectares Total production: 200 MT Cranberry 2% Chilean Guava 1% Others 1% Strawberry 3% Blueberry 40% Source: Odepa, Chilealimentos A.G. Blackberry 1% Raspberry 52% DISTRIBUTION OF BERRIES IN CHILE DISTRIBUCION OF BERRIES IN CHILE 30.100 ha, equivalent toChilean 10% of chilean Guava Cranberry fruit plantations 2% Murtilla Cranberry 1% Blackberry Other Cultivated 2% 0% Blackberry 1% Strawberry 3% 1% 4% Strawberry 6% Raspberry 48% Blueberry 39% 1.333 km Others 1% Blueberry 40% Cranberry 6% Raspberry 52% Other 1% Blackberry 11% BERRIES REPRESENTS 11% OF CHILEAN FRUIT PLANTATIONS. Blueberry 37% Strawberry 21% 30º Lat. South 41º Lat. South Source: SAG, Chilealimentos A.G. Raspberry 24% RASPBERRY: HECTARES PER VARIETY Hectares 18.000 16.128 16.000 14.000 12.787 12.000 10.000 8.000 6.000 4.000 2.643 2.000 451 0 163 40 15 11 10 Heritage variety is cultivated in 79% of the planted area, followed by Meeker with 16%. 5 3 RASPBERRY INDICATORS Raspberry in Chile 16.128 Hectares / 19.610 Producers / 439 Fruit brokers / 356 103 Collection Points/ Processors Average Performance: 3,9 ton/há Average Surface: 0,8 há Varieties: Heritage: 81% Meeker: 15% Chilliwack: 3% Harvesting : Manual 98% / Machine 2% Source: SAG 103 / Exporters SUPPLY SOURCE OF RAW MATERIAL 56% 30% 8% OWN FRUIT 6% BROKER CONTRACTED DIRECT SUPLY More than 50% of total supply of raspberries is contracted and 30% comes from fruit brokers. Source: Chilealimentos A.G. RASPBERRY: MANUAL HARVEST TOTAL CHILEAN RASPBERRY PRODUCTION Volume: MT. 62.029 59.800 59.331 57.412 63.404 49.535 45.468 44.632 42.072 2005 2006 Source: Odepa, Chilealimentos A.G. 2007 2008 2009 2010 2011 2012 2013 RASPBERRY PRODUCTION DESTINATIONS Product 2009 2010 2011 2012 2013 Frozen 35.165 84% 49.912 84% 50.875 80% 36.507 80% Juice & Pulps 3.696 9% 5.698 10% 8.331 13% 5.887 13% 4.910 11% Fresh 755 2% 569 -1% 361 <1% 257 <1% 274 1% Canned 362 <1% 377 <1% 174 <1% 116 <1% 99 <1% Dehydrated 94 <1% 275 <1% 1.163 2% 144 <1% 69 <1% Local Consumption 2.000 4% 2.500 4% 2.500 4% 2.500 5% 2.500 6% Total 42.072 Juice: 7:1; Deshydrated 6,25:1; Canned 0,65:1 Source: Odepa, Chilealimentos A.G. 59.331 63.404 45.468 36.780 82% 44.632 FROZEN RASPBERRY INDUSTRY EXPORTS Volume and Value 55.000 140.000 MT US$ M 44.000 105.000 33.000 70.000 22.000 35.000 11.000 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Chilealimentos A.G. FROZEN RASPBERRY AVERAGE PRICES USD/ KG. FOB USD 5,0 4,0 3,5 3,6 3,0 2,4 2,0 1,8 1,0 0,0 2007 Source: Chilealimentos A.G. 2008 2009 2010 2011 2012 2013 *2014 JAN-FEB MARKETS OF FROZEN RASPBERY EXPORTS Australia 3% Switzerland 3% Netherlands 4% Others 6% Australia 4% USA 20% Belgium 6% Canadá 9% U. Kingdom 5% Germany 6% France 20% US$ 38 MM Germany 17% N.Zeland 2% Poland 2% Brazil 2% Others 10% France 11% USA 42% Netherlands 2% Belgium 3% USA 44% Australia 7% 2013: US$ 116 MM France 9% Canadá 17% Canadá 13% 2005: US$ 68 MM Japan 2% Source: Chilealimentos A.G. Others 8% Netherlands 7% U.Kingdom 12% 2000: Japan 2% Switzerland 2% RASPBERRY JUICE EXPORTS Ton/ 65° Brix US$ M FOB 2.000 15.000 1.500 10.000 1.000 5.000 500 0 0 2005 Source: Chilealimentos A.G. 2006 2007 2008 2009 2010 2011 2012 2013 FRESH RASPBERRY EXPORTS US$ M FOB MT. 6.000 28.000 4.500 21.000 3.000 14.000 1.500 7.000 0 0 2006 Source: Chilealimentos A.G. 2007 2008 2009 2010 2011 2012 2013 CHILE: RASPBERRY FIELDS CHILE: RASPBERRY FIELDS CHILE: RASPBERRY FIELDS CHILE: RASPBERRY FIELDS CHILE: RASPBERRY FIELDS MATERIAL RAW PRICE V/S FOB PRICE USD/KG . 4,50 4,00 3,50 FOB PRICE 3,00 MAX. RAW MATERIAL PRICE 2,50 MIN. RAW MATERIAL PRICE 2,00 1,50 1,00 0,50 0,00 2009/2010 2010/2011 2011/2012 Fob Price Kg. Source: Chilealimentos A.G. Min. Raw Mat. 2012/2013 Max. Raw. Mat. 2013/2014 FROZEN RASPBERRY EXPORTERS LIST (YEAR 2013) Exporters Alimentos y Frutos S.A. Comercial Frutícola S.A. Fruticola Olmue S A Soc Agroindustrial Valle Frio Ltda Frutícola León Ltda Exportadora Copramar Ltda. Soc Agr.For.Y Ganad.Framberry AGROINDUSTRIAS PINOCHET FUENZALIDA Agroindustrial Niquen S.A. Exportadora Frucol Ltda Berries Chile Uk S.A. BMC INTERNATIONAL CHILE Nevada Export Limitada Otros Total Source: Chilealimentos A.G. Tonelades 4.853 4.072 4.325 2.628 3.832 2.182 1.546 1.215 1.196 1.022 869 1.054 689 7.296 36.780 CHILEAN RASPBERRY CONTROL Regulation SAG 3410/2002 Objectives: Traceability of the product Verification of inocuity through the whole chain of raspberry production (export quality) Controls Registrations of participants Audits the raspberry chain with enphasis on inocuity. Sampling of water for agrochemicals applications. Source: SAG, Chilealimentos A.G. THE CHILEAN RASPBERRY INDUSTRY FINAL COMMENTS FINAL COMMENTS Many small farmers Need more Raspberries Vertical Integration Climate issue Variety improvement Focus on customer needs CHILE THANK YOU!