hjh

THE CHILEAN FRESH FRUIT INDUSTRY

CHRISTIAN CARVAJALMARKETING MANAGER EUROPE – ASIA

CHILEAN EXPORTERS ASSOCIATION (ASOEX)OCTOBER 2008

WWW.CHILEANFRESHFRUIT.COMWWW.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

hjh

CHILEAN EXPORTERS ASSOCIATION (ASOEX)

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

• BOARD REPRESENTED BY EXPORTERS, EXPORTERS / PRODUCERS AND TRADERS

hjh

CHILEAN EXPORTERS ASSOCIATION (ASOEX)

• FACILITATE THE EXPORT PROCESS

• OPEN NEW MARKETS

• 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

CHILE A UNIQUE FRESH FRUIT SUPPLY SOURCE

hjh

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

hjh

ATACAMA

VIÑA DEL MAR

hjh

TORRES DEL PAINE

ANTARCTICA

hjh

FACTS AND FIGURES IN REGARDS TO CHILES EXPORTS

WINES12%

FRESH FRUIT24%

OTHER SEA FOOD

PRODUCTS 12%

SALMON18%

PROCESSED FOODS

14%MEATS

8%

OTHER12%

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

hjh

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/I1975 39 S/I1980 168 2611985 356 5331990 747 1,0401995 1,162 1,3101996 1,346 1,4391997 1,292 1,3211998 1,363 1,4691999 1,359 1,5492000 1,391 1,4002001 1,398 1,6002002 1,550 1,7522003 1,650 1,8992004 1,750 2,1072005 1,800 2,1432006 2,000 2,1822007 2,350 2,4302008 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%

hjh

hjh

EVOLUTION OF FRESH FRUIT EXPORTS – TONES

2.430.264 2.346.255

1.752.714

1.600.109

1.899.2442.107.430 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

SEASONFuente: 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

-3,6%

hjh

MAIN MARKETS - 2007 / 2008 (TONES)

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

EUROPE35%

USA35%

LATIN AMERICA16%

ASIA9%

MIDDLE EAST5%

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 VARTABLE 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

hjh

EVOLUTION OF FRESH FRUIT EXPORTS TO ASIA (TONES)

2,5%

212.882207.700203.029

158.566

171.793

0

50.000

100.000

150.000

200.000

250.000

2003-2004 2004-2005 2005-2006 2006-2007 2007 - 2008TEMPORADAS

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%

SEASONMARKET

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

hjh

MAIN SPECIES EXPORTED TO VIETNAM (TONES)

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

% % SPECIES 2006-2007 2007-2008 VAR PARTABLE GRAPES 521 749 30,4% 75,5%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%

SEASONMAIN OPPORTUNITIES IN VIETNAM (SOURCE PROCHILE OFFICE IN VIETNAM)

•APPLE IMPORTS•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

hjh

1964 1970 1980 1990 1998 2001 2003CHILE 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 WORLDTABLE GRAPES N° 1 N° 1APPLES N° 1 N° 5PEACHES / NECTARINES N° 1 N° 4RASPBERRIES N° 1 N° 3AVOCADOS Nº 1 Nº 2BLUE BERRIES N° 1 Nº 5PLUMS Nº 1 Nº 1KIWIS N° 2 N° 3PEARS N° 3 N° 9

hjh

FINAL COMMENTS

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.

hjh

THANK YOU