1. SITUATION OF THE CANOLA INDUSTRY IN MEXICO SITUATION OF THE CANOLA INDUSTRY IN MEXICO March 22nd 2004

2. CONTENTS HISTORY OF CANOLA PRESENCE IN MEXICO MILLING AND REFINING CAPACITY IN MEXICO DOMESTIC PROD. AND IMPORTS OF SEEDS, OILS AND FATS, CYCLE 2002 LOCATION OF MEXICO’S OIL INDUSTRY CANOLA IMPORTS, 1995 - 2002 NATIONAL PRODUCTION OF OIL SEEDS IN MEXICO, 1980 - 2003 FINAL USES OF DIFFERENT EDIBLE VEGETABLE OILS HISTORIC BEHAVIOR OF EDIBLE OILS AND FATS IN MEXICO, 1996 - 2002 DISTRIBUTION OF CONSUMPTION OF OILS AND FATS, CYCLE 2002 EVOLUTION OF CONSUMPTION OF OILS, FATS AND PROTEINS, 1991 - 2002

3. HISTORY OF CANOLA IN MEXICO Inicio Siguiente In the year 1985, oil companies in Mexico began to work with the canola seed. The first were Exportadora Jalisco and Industrias Ragasa, each importing one vessel during that year. In the year 1985, oil companies in Mexico began to work with the canola seed. The first were Exportadora Jalisco and Industrias Ragasa, each importing one vessel during that year. The third company was Aceitera la Junta in the year 1986, and later other companies, such as Aceites, Grasas y Derivados, Industrial Aceitera, Fábrica de Jabón la Corona, etc. followed suit. The third company was Aceitera la Junta in the year 1986, and later other companies, such as Aceites, Grasas y Derivados, Industrial Aceitera, Fábrica de Jabón la Corona, etc. followed suit. In the year 1988, rapeseed was imported from Australia, Poland, Denmark, England, Germany and France. In the year 1988, rapeseed was imported from Australia, Poland, Denmark, England, Germany and France. In the year 2001, two vessels were imported from France, two from germany and two from Poland. In the year 2001, two vessels were imported from France, two from germany and two from Poland. In the year 1985, oil companies in Mexico began to work with the canola seed. The first were Exportadora Jalisco and Industrias Ragasa, each importing one vessel during that year. In the year 1985, oil companies in Mexico began to work with the canola seed. The first were Exportadora Jalisco and Industrias Ragasa, each importing one vessel during that year. The third company was Aceitera la Junta in the year 1986, and later other companies, such as Aceites, Grasas y Derivados, Industrial Aceitera, Fábrica de Jabón la Corona, etc. followed suit. The third company was Aceitera la Junta in the year 1986, and later other companies, such as Aceites, Grasas y Derivados, Industrial Aceitera, Fábrica de Jabón la Corona, etc. followed suit. In the year 1988, rapeseed was imported from Australia, Poland, Denmark, England, Germany and France. In the year 1988, rapeseed was imported from Australia, Poland, Denmark, England, Germany and France. In the year 2001, two vessels were imported from France, two from germany and two from Poland. In the year 2001, two vessels were imported from France, two from germany and two from Poland.

4. MILLING AND REFINING CAPACITY IN MEXICO Inicio Siguiente PERCENTAGE OVER INSTALLED MILLING AND REFINING CAPACITY BY FEDERAL ENTITY IN TONS PER MONTH No. companies Federal entity Tons/mo Milling Tons/mo Refining % Monthly refining % Monthly Milling Coahuila D.F. Durango Guanajuato Jalisco ** México Michoacán Nuevo León Hidalgo Puebla Sinaloa Sonora Tamaulipas Veracruz Yucatán Coahuila D.F. Durango Guanajuato Jalisco ** México Michoacán Nuevo León Hidalgo Puebla Sinaloa Sonora Tamaulipas Veracruz Yucatán 1 5 1 16 5 2 5 2 3 5 3 1 3 1 5 1 16 5 2 5 2 3 5 3 1 3 - 1.12 4.50 29.69 7.05 0.67 7.64 6.75 4.05 3.51 7.20 6.07 8.25 9.00 - 1.12 4.50 29.69 7.05 0.67 7.64 6.75 4.05 3.51 7.20 6.07 8.25 9.00 - 7,500 30,000 198,000 47,000 4,500 51,000 45,000 27,000 23,400 48,000 40,500 55,000 60,000 - 7,500 30,000 198,000 47,000 4,500 51,000 45,000 27,000 23,400 48,000 40,500 55,000 60,000 2,400 7,800 - 63,600 83,000 12,000 5,700 14,000 3,300 - 10,500 - 20,000 4,000 2,400 7,800 - 63,600 83,000 12,000 5,700 14,000 3,300 - 10,500 - 20,000 4,000 1.06 3.45 - 28.10 36.68 5.30 2.52 6.18 1.46 - 4.64 - 8.84 1.77 1.06 3.45 - 28.10 36.68 5.30 2.52 6.18 1.46 - 4.64 - 8.84 1.77 100.00 ANNUAL TOTAL666,90055226,300 8,002,800 100.00 2,715,600 Enero 31,2002 ** Extension that will be finalized in the second semester of this year

5. LOCATION OF MEXICO’S OIL INDUSTRYL Inicio Siguiente

6. DOMESTIC OIL SEED PRODUCTION IN MEXICO 1980-2003 OIL SEED Thousands of tons YEARSESAMECOTTONSAFFFLOERSOY BEANPALM TREE OIL TOTAL PER YEAR 1980137572480322-1511 198167508339707-1621 198237313239649-1238 198387465277688-1517 198463454209685-1411 198575317152929-1473 198659226161709-1155 198751414219828-1512 198834491247226-998 198946257142992-1437 199060293159575-1087 19913730788725-1157 1992239241594-750 1993223959499-619 19944014064569-813 199538262114135-549 19963232318258-595 199735260200120-615 199829350170118-667 19992521525055-545 2000341078575-301 2001251151106230342 20021868537730246 20032294939532336

7. ( 2) TOTAL SESAMECOTTONSAFFFLOW ER SOY BEANPALM TRESS OIL TOTAL PER HARVEST 1,0966,6824,13310,49292 22,495 ANNUAL AVERAGE 45.6278.4172.2437.230.6 964 Inicio Siguiente Thousands of tons DOMESTIC OILSEED PRODUCTION IN MEXICO 1980-2003

8. DOMESTIC PRODUCTION THOUSANDS OF TONS IMPORTS THOUSANDS OF TONS DOMESTIC PROD. PLUS IMPORTS IN THOUSANDS OF TONS SEEDS OILS AND FATS MEALSSEEDS OILS AND FATS OILS AND FATS MEALS SUBTOTAL OUTPUT OILS AND FATS SUBTOTAL MEAL, FLOUR AND BRAN SUBTOTAL T O T A L 484.6 0 484.6 240.8 23.4 0 264.2 170.7 125.2 0 295.9 5,398.8 0 5,398.8 1,125.7 1,236.6 0 2,362.3 3,902.6 0 1,031.1 4933.7 5,883.4 0 5,883.4 1,296.4 1,361.8 0 2,658.2 4,166.7 0 1,031.1 5,197.8 FOREIGN DEPENDENCE IN SEEDS = 92%OILS AND FATS = 89%MEALS = 95% DOMESTIC PRODUCTION AND IMPORTS OF SEEDS, OILS AND FATS, CYCLE 2002 Inicio Siguiente

9. CANOLA IMPORTS, 1995 - 2003 Inicio Siguiente Canola s imports in the last nine years: Canola s imports in the last nine years: YEARAMOUNT 1995558,101 1996522,094 199752,702 1998682,888 1999866,398 20001'004,230 2001885,280 2002623,900 2003602,260

10. BEHAVIOR OF EDIBLE OILS AND FATS IN MEXICO, 1996 - 2002 Inicio Siguiente PRODUCT1996199719981999200020012002 SOY BEAN652,868721,905737,068763,500825,222906,615997,341 COTTON56,89549,94262,71566,21664,96377,98063,614 COCONUT83,33173,60790,14275,17596,16877,40974,222 SAFFLOWER69,16070,30064,60095,00029,75041,03621,921 CANOLA243,365215,029391,725421,939467,647415,557275,778 SUNFLOWER327,025288,326181,046190,649177,47861,49921,090 CORN36,62052,74956,66857,13678,425113,716140,038 PALM TREE OIL79,31498,03778,42389,119128,003173,953191,993 PALM TREE R.35,76434,95013,9059,31511,639-- PALMISTE------1,181 FISH69,20755,35090857,23279,64716,8507,408 FLAX2,2092,5232,8423,1254,1505,4093,033 OLIVE---2,950-4,4456,6578,641 ALMOND---42,58039,94640,49053,400 SESAME---17,34828,45825,02416,830 PEANUT----45,75946,07150,773 EPOXY----114,316117,822120,319 OTTHER OILS---138843938270 SUBTOTAL1,655,7581,662,7181,680,0421,891,4222,196,8592,127,0262,047,852 CONTINUA... Thousands of Tons

11. Inicio Siguiente 1996199719981999200020012002 DOMESTIC AND IMPORTED TALLOW 235,891230,837320,640360,348357,881365,301417,149 DOMESTIC AND IMPORTED SHORTENING 31,47528,76128,04171,89266,63070,64076,838 SUBTOTAL267,366259,598348,681432,240424,511435,941493,987 OTHER OILS AND FATS 159,366171,971183.68153,18584,96486,212116,388 TOTAL2,082,5042,094,2872,211,7802,376,8472,706,3342,649,1792,658,227 Thousands of Tons BEHAVIOR OF EDIBLE OILS AND FATS IN MEXICO, 1996 – 2002 (2)

12. FINAL UTILIZATION OF DIFFERENT EDIBLE VEGETABLE OILS, CYCLE 2002 Inicio Siguiente PRODUCTTOTAL OILS BOTTLESHORTENI NG BULKEXPORTSBALANCED FOODS SOAPSINDUSTRIAL USE PAINTSOTHER USES NATURAL CONSUMP TION SOY BEAN 997,341421,647277,414113,4943,536131,250--50,000-- SAFFLOW ER 21,9213,430--18,491------ COTTON 63,614-24,506-2139,087----- COCONUT 74,222-23,432-556-44,7652,750-2,719- CORN 140,038139,680--358------ SESAME 16,830---3.377----1,50011,953 CANOLA 275,778275,754--24------ SUNFLOW ER 21,09017,088--3483,654----- PEANUT 50,773---------- PALM TREE OIL 191,993-100,32591,000668------ PALMISTE 1,181----- ---- ALMOND53,400--20,475--32,925---- FISH 7,408- -------- FLAX 3,033------- -- OLIVE 8,6418,574--67------ EPOXY 120,319---672119,647----- OTHER OILS 270-------- - TOTAL 2,047,852866,173433,085224,96928,118293,63878,8712,75053,0334,48962,726 Thousands of Tons

13. CONSUMPTION DISTRIBUTION OF OILS AND FATS, CYCLE 2002 Inicio Siguiente PRODUCTTONSPERCENTAGE BOTTLED OIL866,17332.58 % OIL AND FAT FOR SOAPS AND OTHER USES 467,64317.59 % OIL FOR SHORTENING433,08516.29 % OIL FOR BALANCED FOODS293,63811.05 % OIL AND FAT FOR HUMAN CONSUMPTION 275,48410.36 % OIL IN BULK224,9698.46 % OIL AND FAT FOR EXPORTS97,2353.66 % TOTAL2,658,227100.00 % Miles de Toneladas

14. Inicio Siguiente TOTAL DOMESTIC AND IMPORTED YEARSEEDSOILS AND FATSFLOUR AND MEAL 19913,341,5701,741,0042,792,161 19923,619,8211,848,0653,194,798 19933,476,7411,732,4292,859,576 19943,646,7351,804,5213,152,717 19953,562,0351,808,1652,464,705 19964,681,9992,082,5043,550,434 19974,797,4852,094,2873,555,252 19985,116,0252,211,7803,612,391 19995,518,3622,376,7094,496,842 20005,909,9972,706,3344,637,370 20016,373,4292,649,1795,219,409 20025,883,4002,658,2275,197,887 OVER... Thousands of Tons EVOLUTION IN OIL, FAT AND PROTEIN CONSUMPTION 1991 – 2002

15. EVOLUTION IN OIL, FAT AND PROTEIN CONSUMPTION 1991 – 2002 (2) Inicio Siguiente VARIANCE (%) BASIS 1991 YEARSEEDSOILS AND FATSFLOUR AND MEAL 19928.3270 %6.1494%14.42.3 % 19934.1349 %-0.4925 %2.4144 % 19949.1324 %3.6483 %12.9132 % 19956.5976 %3.8576 %-11.7277 % 199640.1137 %19.6251 %27.1572 % 199743.5698 %20.2919 %27.3298 % 199853.1024 %27.0405 %29.3762 % 199965.1428 %36.5137 %61.0524 % 200076.8629 %55.4467 %66.0853 % 200190.7316 %52.1639 %86.9308 % 200276.0669 %52.6836 %86.1600 % Thousands of Tons