THE CHILEAN FRESH FRUIT INDUSTRY

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CHRISTIAN CARVAJAL

MARKETING MANAGER EUROPE – ASIA

CHILEAN EXPORTERS ASSOCIATION (ASOEX) OCTOBER 2008

WWW.CHILEANFRESHFRUIT.COM WWW.ASOEX.CL

PRESENTATION TO VIETNAMESE TRADE DELEGATION

AGENDA

1. CHILEAN EXPORTERS ASSOCIATION (ASOEX) 2. CHILE A UNIQUE FRESH FRUIT SUPPLY SOURCE 3. FACTS AND FIGURES IN REGARDS TO CHILES EXPORTS 4. CHILES FRESH FRUIT INDUSTRY IN A GLOBAL CONTEXT 5. FINAL COMMENTS

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CHILEAN EXPORTERS ASSOCIATION (ASOEX)

• NON FOR PROFIT PRIVATE ENTITY REPRESENTING GROWERS AND EXPORTERS

• ESTABLISHED IN 1935

• MEMBERS: FRESH FRUIT GROWERS-EXPORTERS AND EXPORT COMPANIES

• ASSOCIATE MEMBERS: 204 COMPANIES

• REPRESENT 92% OF THE TOTAL VOLUME EXPORTED

• REPRESENTS 50% TOTAL PRODUCTION

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• PROMOTIONAL ACTIVITIES

• SUPPORT COUNTRY IMAGE CAMPAIGN

• MAINTAIN PHITOSANITARY AGREEMENTS (INSPECTION SITES)

• RESEARCH & DEVELOPMENT ENTITY

• DEFEND THE SECTOR’S INTERESTS

• INDUSTRY TRAINING

• CONTRIBUTE TO THE TRANSPARENCY OF INFORMATION WITHIN THE SECTOR

• GENERATE REPORTS AND TECHNICAL INFORMATION

• CREATE DOMESTIC AND INTERNATIONAL SYNERGIES.

• ORGANIZATION OF TECHNICAL AND COMMERCIAL SEMINARS

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CHILE:

• LOCATION: SOUTH AMERICA

• CAPITAL CITY: SANTIAGO

• POPULATION: 16.763.470 (2008) VS VIETNAM 87.375.000 (2007)

• AREA: 756,950 KM2 VS VIETNAM 331,690 KM2

• CURRENCY: CHILEAN PESO

• LANGUAGES: SPANISH

• GDP PER CAPITA: USD$14.000 VS VIETNAM USD$3.255

• POPULATION DENSITY: 22,18 HAB/KM2 VS. VIETNAM 246 HAB/KM2

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ATACAMA

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TORRES DEL PAINE

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FACTS AND FIGURES IN REGARDS

TO CHILES EXPORTS

WINES

12%

FRESH FRUIT

24%

OTHER SEA

FOOD

PRODUCTS

12%

SALMON

18%

PROCESSED

FOODS

14%

MEATS

8%

OTHER

12%

CHILE’S LARGEST FOOD INDUSTRY

• THE CHILEAN AGRICULTURAL SECTOR

REPRESENTS 3,5% OF NATIONAL GDP • CHILE’S FRESH FRUITS INDUSTRY IS THE COUNTRY’S LEADING FOOD SECTOR, REPRESENTING 24% OF TOTAL FOOD EXPORTS (USD$8.4 BILLION)

Source: ODEPA / CHILE ALIMENTOS / Asoex – Data prepared by the Chilean Export Association (Asoex) from the inspection records developed by the export companies for submission to the SAG

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CHILES FRESH FRUIT EXPORTS (TONES)

• THE INDUSTRY HAS MORE THAN 7.800 GROWERS OF FRESH FRUIT (OVER 5 HECTARES.)

• 518 EXPORTING COMPANIES

• OVER 1.300 FRUIT IMPORTERS

• 65% OF CHILES FRESH FRUIT PRODUCTION IS EXPORTED

• MORE THAN 100 COUNTRIES IN THE WORLD RECIEVE 75 DIFFERENT SPECIES OF CHILEAN FRUIT DIRECTLY

Source: Agriculture and Livestock Governmental Service (SAG) / Asoex – Data prepared by the Chilean Export Association (Asoex) from the inspection records developed by the export companies for submission to the SAG

YEAR MILLIONS _{US$ FOB} TONES (000)

1970 15 S/I 1975 39 S/I 1980 168 261 1985 356 533 1990 747 1,040 1995 1,162 1,310 1996 1,346 1,439 1997 1,292 1,321 1998 1,363 1,469 1999 1,359 1,549 2000 1,391 1,400 2001 1,398 1,600 2002 1,550 1,752 2003 1,650 1,899 2004 1,750 2,107 2005 1,800 2,143 2006 2,000 2,182 2007 2,350 2,430 2008 2,200 2,346

CHILEAN FRESH FRUIT PRODUCTION AREA

Source:VII Census of Agricultural and Forestry * Source: Bluberries Committee

Fuente: http://www.censoagropecuario.cl/noticias/08/6/10062008.html

• TOTAL AREA PLANTED OF FRESH FRUIT– 261.614 HECTARES

• TABLE GRAPES, AVOCADOS AND APPLES ARE THE MAIN SPECIES PLANTED AND REPRESENT 31% OF TOTAL AREA PLANTED

• MAJOR GROWTH AREAS INCLUDE, BLUEBERRIES, CHERRIES AND AVOCADOES SPECIES HECTARES % TABLE GRAPES 53.050 19% APPLES 32.030 12% AVOCADOES 30.000 11% PEACHES 14.937 7% PLUMS 14.000 7% BLUEBERRIES 13.000 7% KIWIS 13.490 5% NUTS 9.360 5% CHERRIES 9.177 5% ORANGES 7.472 3% LEMONS 6.983 3% PEARS 5.910 2% NECTARINES 4.734 1% OTHERS 47.471 15% TOTAL 261.614 100%

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EVOLUTION OF FRESH FRUIT EXPORTS – TONES

2.430.264 _2.346.255 1.752.714 1.600.109 1.899.244 2.107.430 2.143.785 2.182.952 0 500.000 1.000.000 1.500.000 2.000.000 2.500.000 3.000.000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007 - 2008 SEASON

Fuente: Servicio Gubernamental de Agricultura y Ganadería (SAG) / Asoex – Datos preparados por la Asociación Chilena de Exportación (Asoex) basados en informes de inspección desarrollados por las empresas exportadoras para su presentación al SAG

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Fuente: Servicio Gubernamental de Agricultura y Ganadería (SAG) / Asoex – Datos preparados por la Asociación Chilena de Exportación (Asoex) basados en informes de inspección desarrollados por las empresas exportadoras para su presentación al SAG EUROPE 35% USA 35% LATIN AMERICA 16%

EXPORTED PRODUCTS

Fuente: Servicio Gubernamental de Agricultura y Ganadería (SAG) / Asoex – Datos preparados por la Asociación Chilena de Exportación (Asoex) basados en informes de inspección desarrollados por las empresas exportadoras para su presentación al SAG

%

SPECIES

2006-2007

2007-2008

VAR

TABLE GRAPES

801.024

816.642 1,9%

RED APPLES

640.514

606.022 -5,7%

KIWIS

159.656

157.170 -1,6%

GREEN APPLES

133.850 133128

-0,5%

PEARS

112.441 125.014 10,1%

AVOCADOES

167.820 108.490 -54,7%

PLUMS

105.181 88.403 -19,0%

NECTARINES

55.921

60.389 7,4%

PEACHES

49.606

47.299 -4,9%

CHERRIES

24.150 44.446 45,7%

LEMONS

44.853

43.297 -3,6%

BLUEBERRIES

21.162 30.203 29,9%

OTHERS

114.086 85.752 -33,0%

TOTAL

2.430.264

2.346.255 -3,6%

SEASON

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EVOLUTION OF FRESH FRUIT EXPORTS TO ASIA (TONES)

2,5% 212.882 207.700 203.029 158.566 171.793 0 50.000 100.000 150.000 200.000 250.000 2003-2004 2004-2005 2005-2006 2006-2007 2007 - 2008 TEMPORADAS

SOURCE: Servicio Gubernamental de Agricultura y Ganadería (SAG) / Asoex – Datos preparados por la Asociación Chilena de Exportación (Asoex) basados en informes de inspección desarrollados por las empresas exportadoras para su presentación al SAG

EXPORTS OF FRESH FRUIT TO ASIAN MARKETS (TONES)

% % PART. 2006 - 07 2007 - 08 VAR. TAIWAN 50.982 53.892 6% 25% HONG KONG 42.521 42.901 1% 20% S.KOREA 33.796 33.928 0% 16% JAPAN 36.939 27.907 -24% 13% INDIA 15.443 19.174 24% 9% CHINA 11.467 15.190 32% 7% MALAYSIA 3.706 4.871 31% 2% INDONESIA 1.929 3.454 79% 2% PHILLIPINES 3.323 3.215 -3% 2% NEW ZELAND 3.362 2.924 -13% 1% THAILAND 704 1.743 148% 1% SINGAPORE 1.295 1.660 28% 1%

VIETNAM

1.182 992 -19,3% 0,5%

SRI LANKA 756 382 -49% 0% OTHERS 295 649 120% 0% TOTAL 207.700 212.882 2,5% 100% SEASON MARKET

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RED APPLES 522 219 -138,4% 22,1% KIWIS 0 24 100,0% 2,4% PLUMS 20 0 NA 0,0% GREEN APPLES 20 0 NA 0,0% NUTS 100 0 NA 0,0% TOTAL 1.183 992 -19,3% 100,0%

•USD$22 MILLION IMPORTED IN 2007, MAIN

SUPPLIERS: •CHINA 69% •USA 31,5% •NZ 4,1 % •CHILE 2,2 % TABLE GRAPES

•IMPORTS OF TABLE GRAPES REACHED USD $19

MILLON IN 2007 •USA 38 % •CHINA 28 %, •AUSTRALIA 22% •SOUTH AFRICA 6,5 %, •CHILE 3,1% •PERU 1,9%

CHILES FRESH FRUIT INDUSTRY IN A

GLOBAL CONTEXT

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1964 1970 1980 1990 1998 2001 2003

CHILE 35.225 45.427 266.832 1.016.787 1.616.953 1.781.413 2.070.468 TOTAL S.HEM 601.566 704.459 1.062.586 2.263.724 3.465.542 3.569.109 4.222.968 % CHILE 5,9% 6,4% 25,1% 44,9% 46,7% 49,0% 49,9%

Source: FAO Stats Book 2003

CHILE – LEADING SOUTHERN HEMISPHERE SUPPLIER

CURRENTLY, CHILE REPRESENTS 49% OF THE SOUTHERN HEMISPHERE FRESH FRUIT EXPORTS CONSIDERING: GRAPES, APPLES, KIWIS, AVOCADOS, PLUMS, PEACHES, AND PEARS. THEREFORE, POSITIONING IT AS THE LEADER IN SOUTHERN HEMISPHERE EXPORTS.

RANKING OF SPECIES (EXPORTS)

Source: FAO Stats Book 2005

SPECIES

S. HEMISPHERE WORLD

TABLE GRAPES

N° 1

APPLES

N° 1

N° 5

PEACHES / NECTARINES

N° 1

N° 4

RASPBERRIES

N° 1

N° 3

AVOCADOS

Nº 1

Nº 2

BLUE BERRIES

N° 1

Nº 5

PLUMS

Nº 1

KIWIS

N° 2

N° 3

PEARS

N° 3

N° 9

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FINAL COMMENTS

•CHILE IS RECOGNIZED AS LEADER IN THE EXPORTS OF FRESH FRUIT FROM THE SOUTHERN HEMISPHERE… BUT WE STILL HAVE A LONG WAY TO GO

•VIETNAM REPRESENTS AN INTERESTING OPPORTUNITIY FOR THE FRESH FRUIT EXPORTING SECTOR IN REGARDS TO SPECIFIC PRODUCTS SUCH AS APPLES AND TABLE GRAPES.

•THE CHILEAN FRESH FRUIT INDUSTRY HAS LOW BARRIERS TO ENTRY AND EXIT WHICH GENERATE OPEN AND FREE COMPETITION .

•THE UNIQUE NATURAL GEOGRAPHICAL FEATURES OF CHILE ALLOW FOR A LONGER SUPPLY SEASON, AS WELL AS A STABLE AND RELIABLE EXPORT PROGRAM OF FRUITS BETWEEN A MAJOR PART OF THE YEAR (DECEMBER THROUGH TO SEPTEMBER),WHICH WE BELIEVE COULD PROVE IDEAL FOR VIETNAMESE IMPORTERS AND DISTRIBUTORS ALIKE.

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