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 South Africa Chile Australia Mediterranean Weather Zones 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 % ITALY: 13,3% CHINA: 17,2% OTHERS: 31% NH: 92,6% SH: 7,4% BRAZIL: 3,3% AUSTRALIA: 0,4% SOUTH AFRICA: 0,4% CHILE: 1,4% ARGENTINA: 1% OTHERS: 0,9% SOURCE: AMITOM (f) : Forecast

FRESH TOMATO WORLD PROCESSING Main World Processing Zones (by Product) Tomato Paste Canned Tomatoes Chile Turkey China Greece Mexico Argentina Italy USA Spain Canada Germany Portugal Belgium Costa Rica Netherlands Poland Russia Sauces & Ketchup Source: Tomato News

FRESH TOMATO WORLD PRODUCTION World Production Trend (Metric Tones) 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) (West) (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) (West) (East) 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

WORLD TOMATO PASTE EXPORTS 2007 2,359,176 MT USA: 5,6% EU: 53,5% CHINA: 36% NH: 95,5% OTHERS : 0,4% SH: 4,5% BRAZIL: 0,3 % CHILE: 3,6% OTHERS : 0,6% Source: Global Trade Information Service

WORLD TOMATO PASTE EXPORTS Chilean Exports in the World context 900.000 800.000 Chile 700.000 Others Thousand of MT 600.000 500.000 Greece 400.000 Turkey 300.000 USA 200.000 100.000 Spain - Portugal 1996 1997 Italy 1998 1999 China China 2000 2001 Spain Portugal 2002 USA Year 2003 2004 Turkey Italy 2005 Greece 2006 Others 2007 Chile Source: Global Trade Information Service

CHILEAN TOMATO PRODUCTS Chilean Tomato Paste Exports 1997~2008 (MT) 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 % ASIA 13.8 % EUROPE 1 % 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 Chilean Tomato Products Exports by Type (MT) Type 1998 2003 2008 Tomato Paste 103.987 77.613 63.507 Peeled & Diced 7.218 3.518 683 Sauce 5.521 3.350 3.468 Total 116.726 84.481 67.658 1998 2003 2008 Peeled & Peeled & Peeled & Sauce Sauce Diced Diced Sauce Diced 5% 5% 4% 6% 4% 1% Tomato Paste Tomato Paste Tomato Paste 89% 92% 94% Big increase in Tomato Sauce exports for Food Service Tomato Paste and Pealed Tomato export decrease Source: Dicom

CHILEAN TOMATO INDUSTRY Chilean Tomato Exports by Company (MT) Aconcagua Agrozzi 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 Source: Direcon Current FTA 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 Investment Relatively small areas

THANK YOU !