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

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, NATIONAL PRODUCTION OF OIL SEEDS IN MEXICO, FINAL USES OF DIFFERENT EDIBLE VEGETABLE OILS HISTORIC BEHAVIOR OF EDIBLE OILS AND FATS IN MEXICO, DISTRIBUTION OF CONSUMPTION OF OILS AND FATS, CYCLE 2002 EVOLUTION OF CONSUMPTION OF OILS, FATS AND PROTEINS,

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.

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 ,500 30, ,000 47,000 4,500 51,000 45,000 27,000 23,400 48,000 40,500 55,000 60, ,500 30, ,000 47,000 4,500 51,000 45,000 27,000 23,400 48,000 40,500 55,000 60,000 2,400 7, ,600 83,000 12,000 5,700 14,000 3, , ,000 4,000 2,400 7, ,600 83,000 12,000 5,700 14,000 3, , ,000 4, ANNUAL TOTAL666, ,300 8,002, ,715,600 Enero 31,2002 ** Extension that will be finalized in the second semester of this year

LOCATION OF MEXICO’S OIL INDUSTRYL Inicio Siguiente

DOMESTIC OIL SEED PRODUCTION IN MEXICO OIL SEED Thousands of tons YEARSESAMECOTTONSAFFFLOERSOY BEANPALM TREE OIL TOTAL PER YEAR

( 2) TOTAL SESAMECOTTONSAFFFLOW ER SOY BEANPALM TRESS OIL TOTAL PER HARVEST 1,0966,6824,13310, ,495 ANNUAL AVERAGE Inicio Siguiente Thousands of tons DOMESTIC OILSEED PRODUCTION IN MEXICO

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 , , , , , , , , , , , , , , ,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

CANOLA IMPORTS, Inicio Siguiente Canola s imports in the last nine years: Canola s imports in the last nine years: YEARAMOUNT , , , , , '004, , , ,260

BEHAVIOR OF EDIBLE OILS AND FATS IN MEXICO, Inicio Siguiente PRODUCT 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 ,181 FISH69,20755, ,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 ,316117,822120,319 OTTHER OILS SUBTOTAL1,655,7581,662,7181,680,0421,891,4222,196,8592,127,0262,047,852 CONTINUA... Thousands of Tons

Inicio Siguiente 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, ,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)

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, ,000-- SAFFLOW ER 21,9213, , COTTON 63,614-24, , COCONUT 74,222-23, ,7652,750-2,719- CORN 140,038139, SESAME 16, ,50011,953 CANOLA 275,778275, SUNFLOW ER 21,09017, , PEANUT 50, PALM TREE OIL 191, ,32591, PALMISTE 1, ALMOND53, , , FISH 7, FLAX 3, OLIVE 8,6418, EPOXY 120, , OTHER OILS TOTAL 2,047,852866,173433,085224,96928,118293,63878,8712,75053,0334,48962,726 Thousands of Tons

CONSUMPTION DISTRIBUTION OF OILS AND FATS, CYCLE 2002 Inicio Siguiente PRODUCTTONSPERCENTAGE BOTTLED OIL866, % OIL AND FAT FOR SOAPS AND OTHER USES 467, % OIL FOR SHORTENING433, % OIL FOR BALANCED FOODS293, % OIL AND FAT FOR HUMAN CONSUMPTION 275, % OIL IN BULK224, % OIL AND FAT FOR EXPORTS97, % TOTAL2,658, % Miles de Toneladas

Inicio Siguiente TOTAL DOMESTIC AND IMPORTED YEARSEEDSOILS AND FATSFLOUR AND MEAL 19913,341,5701,741,0042,792, ,619,8211,848,0653,194, ,476,7411,732,4292,859, ,646,7351,804,5213,152, ,562,0351,808,1652,464, ,681,9992,082,5043,550, ,797,4852,094,2873,555, ,116,0252,211,7803,612, ,518,3622,376,7094,496, ,909,9972,706,3344,637, ,373,4292,649,1795,219, ,883,4002,658,2275,197,887 OVER... Thousands of Tons EVOLUTION IN OIL, FAT AND PROTEIN CONSUMPTION 1991 – 2002

EVOLUTION IN OIL, FAT AND PROTEIN CONSUMPTION 1991 – 2002 (2) Inicio Siguiente VARIANCE (%) BASIS 1991 YEARSEEDSOILS AND FATSFLOUR AND MEAL %6.1494% % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % Thousands of Tons