June 2021

The Tomato Production and

Market in China

World production estimate of tomatoes for processing The estimated global processing

volume in 2021 will be 3892 million tons an increase of 13 compared with 384 million

tons in 2020

China production estimate of tomatoes for processing The total processing volume in

2021 is 48 million tons accounting for 12 of the global processing volume down 172

from 58 million tons in 2020

Data SourcesWPTC2

133 of Global Tomato Processing in Last 5 Years

Unit 10000 MT

866621 679

323 385

630 560515 594 380

460 580 480

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E

Evolution and Distribution of Global processing

AMITOM California China Other

3

Global trade situation

Unit 10000 MT

0

50

100

150

200

250

300

350

CHINA ITALY SPAIN USA PORTUGAL TURKEY IRAN CHILE UKRAINE OTHERS

In the past 10 years Chinas trade volume accounted for 25 of the

global trade volume

Data SourcesWPTC

4

2021 sharp increase in the cost of tomatoes as raw material

The price of raw materials in China is

still the lowest among the three major

production areas but it has been rising

continuously since 2019

Data SourcesWPTC

The average price of global Processing tomatoes are now 7 more expensive than during three previous seasons

5

2021 Sea freight soared by 300-1000

Since October 2020 the sea freight has

been rising continuously and some

routes have skyrocketed to 10 times The

high sea freight greatly reduces the profit

margin of tomato products Ocean

freight has become an important factor

restricting tomato trade

6

Westbound Logistics Development Shows Big Potential

With the rapid rise of sea freight a large number of goods began to be

transported by rail Since August 2020 China Europe train has operated 19 trains in

Italy 4 trains in Russia and 13 trains in other European directions with a total of 36

trains Each train carries 1000-1600 tons of goods with a total of more than 40000

tons of goods The stable operation of China Europe train greatly shortens the

transportation time and reduces the logistics cost of Chinese tomato production

7

China trade situation

In the past five years Chinarsquos Tomato export volume and sales price have

remained stable and Chinarsquos tomato industry has entered into a stage of

balanced and stable developmentbut prices are expected to rise in 2021-2022

due to cost rising raw materials packaging materials and sea freight

1048590 Unit 10000 MTUSDMT

Data SourcesWPTC Cofco

$0

$200

$400

$600

$800

$1000

$1200

$1400

$1600

0000

2000

4000

6000

8000

10000

12000

14000

Mar

-11

Jun

-11

Sep

-11

Dec

-11

Mar

-12

Jun

-12

Sep

-12

Dec

-12

Mar

-13

Jun

-13

Sep

-13

Dec

-13

Mar

-14

Jun

-14

Sep

-14

Dec

-14

Mar

-15

Jun

-15

Sep

-15

Dec

-15

Mar

-16

Jun

-16

Sep

-16

Dec

-16

Mar

-17

Jun

-17

Sep

-17

Dec

-17

Mar

-18

Jun

-18

Sep

-18

Dec

-18

Mar

-19

Jun

-19

Sep

-19

Dec

-19

Mar

-20

Jun

-20

Sep

-20

Dec

-20

Mar

-21

China Exports of Tomato Paste

Bulk Can Bulk Price Can Price

8

By August 01 2021 We will hold 172000 metric tons tomato paste stock on hand but the

inventory will be basically finished in the middle and late October2021

In 2021 Chinas total processing volume is estimated to be 48 million tons including 265 million

tons in Northern Xinjiang 099 million tons in southern Xinjiang 006 million tons in Gansu and 11

million tons in Inner Mongolia The accumulated temperature during transplanting was low and the

whole transplanting was delayed for 5-7 days The price rise of other crops and the shortage of water

resources have led to a significant decrease of 1 million tons of processed tomatoes compared with

2020

2021 Chinas regional production and inventory

Data SourcesCofco

0

20

40

60

80

100

120

140

0

100

200

300

400

500

600

700

2017 2018 2019 2020 2021

China production estimate of tomatoes for processing

Total procesing Total factories

Unit 10000 MT

00

50

100

150

200

250

300

350

2017 2018 2019 2020 2021

Inventory Unit 10000 MT

9

Mechanization North Xinjiang nearly 100 South Xinjiang 70 mechanical

harvest The mechanical harvesting area in Inner Mongolia will reach 43000 mu in

2021 With the implementation of Chinas large-scale land integration strategy

mechanical harvesting area is expanding year by year and the stability of raw

material supply is further enhanced

Automation and digitization non-stop upgrading

COFCO Keeps Piloting Mechanization and Efficiency Improving

Inner Mongolia Central control

10

Exchange Rate

EURUSD

USDCNY

64

121

Data Sources

In the past year the RMB exchange rate has risen from 71 to 64 The appreciation of RMB against the US dollar has reduced the profits of export enterprises due to production costs are locked in RMB

11

150K tons of bulk paste to repack for sauces repack paste for domestic market drinks powder lycopene products etc

Direct filling canned paste 65K tons mainly for catering

Dicedwhole peeled 15K tons

Amazing and Impressive Local Standard Market Development

150 65

65 28

15 7

12

World production estimate of tomatoes for processing The estimated global processing

volume in 2021 will be 3892 million tons an increase of 13 compared with 384 million

tons in 2020

China production estimate of tomatoes for processing The total processing volume in

2021 is 48 million tons accounting for 12 of the global processing volume down 172

from 58 million tons in 2020

Data SourcesWPTC2

133 of Global Tomato Processing in Last 5 Years

Unit 10000 MT

866621 679

323 385

630 560515 594 380

460 580 480

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E

Evolution and Distribution of Global processing

AMITOM California China Other

3

Global trade situation

Unit 10000 MT

0

50

100

150

200

250

300

350

CHINA ITALY SPAIN USA PORTUGAL TURKEY IRAN CHILE UKRAINE OTHERS

In the past 10 years Chinas trade volume accounted for 25 of the

global trade volume

Data SourcesWPTC

4

2021 sharp increase in the cost of tomatoes as raw material

The price of raw materials in China is

still the lowest among the three major

production areas but it has been rising

continuously since 2019

Data SourcesWPTC

The average price of global Processing tomatoes are now 7 more expensive than during three previous seasons

5

2021 Sea freight soared by 300-1000

Since October 2020 the sea freight has

been rising continuously and some

routes have skyrocketed to 10 times The

high sea freight greatly reduces the profit

margin of tomato products Ocean

freight has become an important factor

restricting tomato trade

6

Westbound Logistics Development Shows Big Potential

With the rapid rise of sea freight a large number of goods began to be

transported by rail Since August 2020 China Europe train has operated 19 trains in

Italy 4 trains in Russia and 13 trains in other European directions with a total of 36

trains Each train carries 1000-1600 tons of goods with a total of more than 40000

tons of goods The stable operation of China Europe train greatly shortens the

transportation time and reduces the logistics cost of Chinese tomato production

7

China trade situation

In the past five years Chinarsquos Tomato export volume and sales price have

remained stable and Chinarsquos tomato industry has entered into a stage of

balanced and stable developmentbut prices are expected to rise in 2021-2022

due to cost rising raw materials packaging materials and sea freight

1048590 Unit 10000 MTUSDMT

Data SourcesWPTC Cofco

$0

$200

$400

$600

$800

$1000

$1200

$1400

$1600

0000

2000

4000

6000

8000

10000

12000

14000

Mar

-11

Jun

-11

Sep

-11

Dec

-11

Mar

-12

Jun

-12

Sep

-12

Dec

-12

Mar

-13

Jun

-13

Sep

-13

Dec

-13

Mar

-14

Jun

-14

Sep

-14

Dec

-14

Mar

-15

Jun

-15

Sep

-15

Dec

-15

Mar

-16

Jun

-16

Sep

-16

Dec

-16

Mar

-17

Jun

-17

Sep

-17

Dec

-17

Mar

-18

Jun

-18

Sep

-18

Dec

-18

Mar

-19

Jun

-19

Sep

-19

Dec

-19

Mar

-20

Jun

-20

Sep

-20

Dec

-20

Mar

-21

China Exports of Tomato Paste

Bulk Can Bulk Price Can Price

8

By August 01 2021 We will hold 172000 metric tons tomato paste stock on hand but the

inventory will be basically finished in the middle and late October2021

In 2021 Chinas total processing volume is estimated to be 48 million tons including 265 million

tons in Northern Xinjiang 099 million tons in southern Xinjiang 006 million tons in Gansu and 11

million tons in Inner Mongolia The accumulated temperature during transplanting was low and the

whole transplanting was delayed for 5-7 days The price rise of other crops and the shortage of water

resources have led to a significant decrease of 1 million tons of processed tomatoes compared with

2020

2021 Chinas regional production and inventory

Data SourcesCofco

0

20

40

60

80

100

120

140

0

100

200

300

400

500

600

700

2017 2018 2019 2020 2021

China production estimate of tomatoes for processing

Total procesing Total factories

Unit 10000 MT

00

50

100

150

200

250

300

350

2017 2018 2019 2020 2021

Inventory Unit 10000 MT

9

Mechanization North Xinjiang nearly 100 South Xinjiang 70 mechanical

harvest The mechanical harvesting area in Inner Mongolia will reach 43000 mu in

2021 With the implementation of Chinas large-scale land integration strategy

mechanical harvesting area is expanding year by year and the stability of raw

material supply is further enhanced

Automation and digitization non-stop upgrading

COFCO Keeps Piloting Mechanization and Efficiency Improving

Inner Mongolia Central control

10

Exchange Rate

EURUSD

USDCNY

64

121

Data Sources

In the past year the RMB exchange rate has risen from 71 to 64 The appreciation of RMB against the US dollar has reduced the profits of export enterprises due to production costs are locked in RMB

11

150K tons of bulk paste to repack for sauces repack paste for domestic market drinks powder lycopene products etc

Direct filling canned paste 65K tons mainly for catering

Dicedwhole peeled 15K tons

Amazing and Impressive Local Standard Market Development

150 65

65 28

15 7

12

3

Global trade situation

Unit 10000 MT

0

50

100

150

200

250

300

350

CHINA ITALY SPAIN USA PORTUGAL TURKEY IRAN CHILE UKRAINE OTHERS

In the past 10 years Chinas trade volume accounted for 25 of the

global trade volume

Data SourcesWPTC

4

2021 sharp increase in the cost of tomatoes as raw material

The price of raw materials in China is

still the lowest among the three major

production areas but it has been rising

continuously since 2019

Data SourcesWPTC

The average price of global Processing tomatoes are now 7 more expensive than during three previous seasons

5

2021 Sea freight soared by 300-1000

Since October 2020 the sea freight has

been rising continuously and some

routes have skyrocketed to 10 times The

high sea freight greatly reduces the profit

margin of tomato products Ocean

freight has become an important factor

restricting tomato trade

6

Westbound Logistics Development Shows Big Potential

With the rapid rise of sea freight a large number of goods began to be

transported by rail Since August 2020 China Europe train has operated 19 trains in

Italy 4 trains in Russia and 13 trains in other European directions with a total of 36

trains Each train carries 1000-1600 tons of goods with a total of more than 40000

tons of goods The stable operation of China Europe train greatly shortens the

transportation time and reduces the logistics cost of Chinese tomato production

7

China trade situation

In the past five years Chinarsquos Tomato export volume and sales price have

remained stable and Chinarsquos tomato industry has entered into a stage of

balanced and stable developmentbut prices are expected to rise in 2021-2022

due to cost rising raw materials packaging materials and sea freight

1048590 Unit 10000 MTUSDMT

Data SourcesWPTC Cofco

$0

$200

$400

$600

$800

$1000

$1200

$1400

$1600

0000

2000

4000

6000

8000

10000

12000

14000

Mar

-11

Jun

-11

Sep

-11

Dec

-11

Mar

-12

Jun

-12

Sep

-12

Dec

-12

Mar

-13

Jun

-13

Sep

-13

Dec

-13

Mar

-14

Jun

-14

Sep

-14

Dec

-14

Mar

-15

Jun

-15

Sep

-15

Dec

-15

Mar

-16

Jun

-16

Sep

-16

Dec

-16

Mar

-17

Jun

-17

Sep

-17

Dec

-17

Mar

-18

Jun

-18

Sep

-18

Dec

-18

Mar

-19

Jun

-19

Sep

-19

Dec

-19

Mar

-20

Jun

-20

Sep

-20

Dec

-20

Mar

-21

China Exports of Tomato Paste

Bulk Can Bulk Price Can Price

8

By August 01 2021 We will hold 172000 metric tons tomato paste stock on hand but the

inventory will be basically finished in the middle and late October2021

In 2021 Chinas total processing volume is estimated to be 48 million tons including 265 million

tons in Northern Xinjiang 099 million tons in southern Xinjiang 006 million tons in Gansu and 11

million tons in Inner Mongolia The accumulated temperature during transplanting was low and the

whole transplanting was delayed for 5-7 days The price rise of other crops and the shortage of water

resources have led to a significant decrease of 1 million tons of processed tomatoes compared with

2020

2021 Chinas regional production and inventory

Data SourcesCofco

0

20

40

60

80

100

120

140

0

100

200

300

400

500

600

700

2017 2018 2019 2020 2021

China production estimate of tomatoes for processing

Total procesing Total factories

Unit 10000 MT

00

50

100

150

200

250

300

350

2017 2018 2019 2020 2021

Inventory Unit 10000 MT

9

Mechanization North Xinjiang nearly 100 South Xinjiang 70 mechanical

harvest The mechanical harvesting area in Inner Mongolia will reach 43000 mu in

2021 With the implementation of Chinas large-scale land integration strategy

mechanical harvesting area is expanding year by year and the stability of raw

material supply is further enhanced

Automation and digitization non-stop upgrading

COFCO Keeps Piloting Mechanization and Efficiency Improving

Inner Mongolia Central control

10

Exchange Rate

EURUSD

USDCNY

64

121

Data Sources

In the past year the RMB exchange rate has risen from 71 to 64 The appreciation of RMB against the US dollar has reduced the profits of export enterprises due to production costs are locked in RMB

11

150K tons of bulk paste to repack for sauces repack paste for domestic market drinks powder lycopene products etc

Direct filling canned paste 65K tons mainly for catering

Dicedwhole peeled 15K tons

Amazing and Impressive Local Standard Market Development

150 65

65 28

15 7

12

4

2021 sharp increase in the cost of tomatoes as raw material

The price of raw materials in China is

still the lowest among the three major

production areas but it has been rising

continuously since 2019

Data SourcesWPTC

The average price of global Processing tomatoes are now 7 more expensive than during three previous seasons

5

2021 Sea freight soared by 300-1000

Since October 2020 the sea freight has

been rising continuously and some

routes have skyrocketed to 10 times The

high sea freight greatly reduces the profit

margin of tomato products Ocean

freight has become an important factor

restricting tomato trade

6

Westbound Logistics Development Shows Big Potential

With the rapid rise of sea freight a large number of goods began to be

transported by rail Since August 2020 China Europe train has operated 19 trains in

Italy 4 trains in Russia and 13 trains in other European directions with a total of 36

trains Each train carries 1000-1600 tons of goods with a total of more than 40000

tons of goods The stable operation of China Europe train greatly shortens the

transportation time and reduces the logistics cost of Chinese tomato production

7

China trade situation

In the past five years Chinarsquos Tomato export volume and sales price have

remained stable and Chinarsquos tomato industry has entered into a stage of

balanced and stable developmentbut prices are expected to rise in 2021-2022

due to cost rising raw materials packaging materials and sea freight

1048590 Unit 10000 MTUSDMT

Data SourcesWPTC Cofco

$0

$200

$400

$600

$800

$1000

$1200

$1400

$1600

0000

2000

4000

6000

8000

10000

12000

14000

Mar

-11

Jun

-11

Sep

-11

Dec

-11

Mar

-12

Jun

-12

Sep

-12

Dec

-12

Mar

-13

Jun

-13

Sep

-13

Dec

-13

Mar

-14

Jun

-14

Sep

-14

Dec

-14

Mar

-15

Jun

-15

Sep

-15

Dec

-15

Mar

-16

Jun

-16

Sep

-16

Dec

-16

Mar

-17

Jun

-17

Sep

-17

Dec

-17

Mar

-18

Jun

-18

Sep

-18

Dec

-18

Mar

-19

Jun

-19

Sep

-19

Dec

-19

Mar

-20

Jun

-20

Sep

-20

Dec

-20

Mar

-21

China Exports of Tomato Paste

Bulk Can Bulk Price Can Price

8

By August 01 2021 We will hold 172000 metric tons tomato paste stock on hand but the

inventory will be basically finished in the middle and late October2021

In 2021 Chinas total processing volume is estimated to be 48 million tons including 265 million

tons in Northern Xinjiang 099 million tons in southern Xinjiang 006 million tons in Gansu and 11

million tons in Inner Mongolia The accumulated temperature during transplanting was low and the

whole transplanting was delayed for 5-7 days The price rise of other crops and the shortage of water

resources have led to a significant decrease of 1 million tons of processed tomatoes compared with

2020

2021 Chinas regional production and inventory

Data SourcesCofco

0

20

40

60

80

100

120

140

0

100

200

300

400

500

600

700

2017 2018 2019 2020 2021

China production estimate of tomatoes for processing

Total procesing Total factories

Unit 10000 MT

00

50

100

150

200

250

300

350

2017 2018 2019 2020 2021

Inventory Unit 10000 MT

9

Mechanization North Xinjiang nearly 100 South Xinjiang 70 mechanical

harvest The mechanical harvesting area in Inner Mongolia will reach 43000 mu in

2021 With the implementation of Chinas large-scale land integration strategy

mechanical harvesting area is expanding year by year and the stability of raw

material supply is further enhanced

Automation and digitization non-stop upgrading

COFCO Keeps Piloting Mechanization and Efficiency Improving

Inner Mongolia Central control

10

Exchange Rate

EURUSD

USDCNY

64

121

Data Sources

In the past year the RMB exchange rate has risen from 71 to 64 The appreciation of RMB against the US dollar has reduced the profits of export enterprises due to production costs are locked in RMB

11

150K tons of bulk paste to repack for sauces repack paste for domestic market drinks powder lycopene products etc

Direct filling canned paste 65K tons mainly for catering

Dicedwhole peeled 15K tons

Amazing and Impressive Local Standard Market Development

150 65

65 28

15 7

12

5

2021 Sea freight soared by 300-1000

Since October 2020 the sea freight has

been rising continuously and some

routes have skyrocketed to 10 times The

high sea freight greatly reduces the profit

margin of tomato products Ocean

freight has become an important factor

restricting tomato trade

6

Westbound Logistics Development Shows Big Potential

With the rapid rise of sea freight a large number of goods began to be

transported by rail Since August 2020 China Europe train has operated 19 trains in

Italy 4 trains in Russia and 13 trains in other European directions with a total of 36

trains Each train carries 1000-1600 tons of goods with a total of more than 40000

tons of goods The stable operation of China Europe train greatly shortens the

transportation time and reduces the logistics cost of Chinese tomato production

7

China trade situation

In the past five years Chinarsquos Tomato export volume and sales price have

remained stable and Chinarsquos tomato industry has entered into a stage of

balanced and stable developmentbut prices are expected to rise in 2021-2022

due to cost rising raw materials packaging materials and sea freight

1048590 Unit 10000 MTUSDMT

Data SourcesWPTC Cofco

$0

$200

$400

$600

$800

$1000

$1200

$1400

$1600

0000

2000

4000

6000

8000

10000

12000

14000

Mar

-11

Jun

-11

Sep

-11

Dec

-11

Mar

-12

Jun

-12

Sep

-12

Dec

-12

Mar

-13

Jun

-13

Sep

-13

Dec

-13

Mar

-14

Jun

-14

Sep

-14

Dec

-14

Mar

-15

Jun

-15

Sep

-15

Dec

-15

Mar

-16

Jun

-16

Sep

-16

Dec

-16

Mar

-17

Jun

-17

Sep

-17

Dec

-17

Mar

-18

Jun

-18

Sep

-18

Dec

-18

Mar

-19

Jun

-19

Sep

-19

Dec

-19

Mar

-20

Jun

-20

Sep

-20

Dec

-20

Mar

-21

China Exports of Tomato Paste

Bulk Can Bulk Price Can Price

8

By August 01 2021 We will hold 172000 metric tons tomato paste stock on hand but the

inventory will be basically finished in the middle and late October2021

In 2021 Chinas total processing volume is estimated to be 48 million tons including 265 million

tons in Northern Xinjiang 099 million tons in southern Xinjiang 006 million tons in Gansu and 11

million tons in Inner Mongolia The accumulated temperature during transplanting was low and the

whole transplanting was delayed for 5-7 days The price rise of other crops and the shortage of water

resources have led to a significant decrease of 1 million tons of processed tomatoes compared with

2020

2021 Chinas regional production and inventory

Data SourcesCofco

0

20

40

60

80

100

120

140

0

100

200

300

400

500

600

700

2017 2018 2019 2020 2021

China production estimate of tomatoes for processing

Total procesing Total factories

Unit 10000 MT

00

50

100

150

200

250

300

350

2017 2018 2019 2020 2021

Inventory Unit 10000 MT

9

Mechanization North Xinjiang nearly 100 South Xinjiang 70 mechanical

harvest The mechanical harvesting area in Inner Mongolia will reach 43000 mu in

2021 With the implementation of Chinas large-scale land integration strategy

mechanical harvesting area is expanding year by year and the stability of raw

material supply is further enhanced

Automation and digitization non-stop upgrading

COFCO Keeps Piloting Mechanization and Efficiency Improving

Inner Mongolia Central control

10

Exchange Rate

EURUSD

USDCNY

64

121

Data Sources

In the past year the RMB exchange rate has risen from 71 to 64 The appreciation of RMB against the US dollar has reduced the profits of export enterprises due to production costs are locked in RMB

11

150K tons of bulk paste to repack for sauces repack paste for domestic market drinks powder lycopene products etc

Direct filling canned paste 65K tons mainly for catering

Dicedwhole peeled 15K tons

Amazing and Impressive Local Standard Market Development

150 65

65 28

15 7

12

6

Westbound Logistics Development Shows Big Potential

With the rapid rise of sea freight a large number of goods began to be

transported by rail Since August 2020 China Europe train has operated 19 trains in

Italy 4 trains in Russia and 13 trains in other European directions with a total of 36

trains Each train carries 1000-1600 tons of goods with a total of more than 40000

tons of goods The stable operation of China Europe train greatly shortens the

transportation time and reduces the logistics cost of Chinese tomato production

7

China trade situation

In the past five years Chinarsquos Tomato export volume and sales price have

remained stable and Chinarsquos tomato industry has entered into a stage of

balanced and stable developmentbut prices are expected to rise in 2021-2022

due to cost rising raw materials packaging materials and sea freight

1048590 Unit 10000 MTUSDMT

Data SourcesWPTC Cofco

$0

$200

$400

$600

$800

$1000

$1200

$1400

$1600

0000

2000

4000

6000

8000

10000

12000

14000

Mar

-11

Jun

-11

Sep

-11

Dec

-11

Mar

-12

Jun

-12

Sep

-12

Dec

-12

Mar

-13

Jun

-13

Sep

-13

Dec

-13

Mar

-14

Jun

-14

Sep

-14

Dec

-14

Mar

-15

Jun

-15

Sep

-15

Dec

-15

Mar

-16

Jun

-16

Sep

-16

Dec

-16

Mar

-17

Jun

-17

Sep

-17

Dec

-17

Mar

-18

Jun

-18

Sep

-18

Dec

-18

Mar

-19

Jun

-19

Sep

-19

Dec

-19

Mar

-20

Jun

-20

Sep

-20

Dec

-20

Mar

-21

China Exports of Tomato Paste

Bulk Can Bulk Price Can Price

8

By August 01 2021 We will hold 172000 metric tons tomato paste stock on hand but the

inventory will be basically finished in the middle and late October2021

In 2021 Chinas total processing volume is estimated to be 48 million tons including 265 million

tons in Northern Xinjiang 099 million tons in southern Xinjiang 006 million tons in Gansu and 11

million tons in Inner Mongolia The accumulated temperature during transplanting was low and the

whole transplanting was delayed for 5-7 days The price rise of other crops and the shortage of water

resources have led to a significant decrease of 1 million tons of processed tomatoes compared with

2020

2021 Chinas regional production and inventory

Data SourcesCofco

0

20

40

60

80

100

120

140

0

100

200

300

400

500

600

700

2017 2018 2019 2020 2021

China production estimate of tomatoes for processing

Total procesing Total factories

Unit 10000 MT

00

50

100

150

200

250

300

350

2017 2018 2019 2020 2021

Inventory Unit 10000 MT

9

Mechanization North Xinjiang nearly 100 South Xinjiang 70 mechanical

harvest The mechanical harvesting area in Inner Mongolia will reach 43000 mu in

2021 With the implementation of Chinas large-scale land integration strategy

mechanical harvesting area is expanding year by year and the stability of raw

material supply is further enhanced

Automation and digitization non-stop upgrading

COFCO Keeps Piloting Mechanization and Efficiency Improving

Inner Mongolia Central control

10

Exchange Rate

EURUSD

USDCNY

64

121

Data Sources

In the past year the RMB exchange rate has risen from 71 to 64 The appreciation of RMB against the US dollar has reduced the profits of export enterprises due to production costs are locked in RMB

11

150K tons of bulk paste to repack for sauces repack paste for domestic market drinks powder lycopene products etc

Direct filling canned paste 65K tons mainly for catering

Dicedwhole peeled 15K tons

Amazing and Impressive Local Standard Market Development

150 65

65 28

15 7

12

7

China trade situation

In the past five years Chinarsquos Tomato export volume and sales price have

remained stable and Chinarsquos tomato industry has entered into a stage of

balanced and stable developmentbut prices are expected to rise in 2021-2022

due to cost rising raw materials packaging materials and sea freight

1048590 Unit 10000 MTUSDMT

Data SourcesWPTC Cofco

$0

$200

$400

$600

$800

$1000

$1200

$1400

$1600

0000

2000

4000

6000

8000

10000

12000

14000

Mar

-11

Jun

-11

Sep

-11

Dec

-11

Mar

-12

Jun

-12

Sep

-12

Dec

-12

Mar

-13

Jun

-13

Sep

-13

Dec

-13

Mar

-14

Jun

-14

Sep

-14

Dec

-14

Mar

-15

Jun

-15

Sep

-15

Dec

-15

Mar

-16

Jun

-16

Sep

-16

Dec

-16

Mar

-17

Jun

-17

Sep

-17

Dec

-17

Mar

-18

Jun

-18

Sep

-18

Dec

-18

Mar

-19

Jun

-19

Sep

-19

Dec

-19

Mar

-20

Jun

-20

Sep

-20

Dec

-20

Mar

-21

China Exports of Tomato Paste

Bulk Can Bulk Price Can Price

8

By August 01 2021 We will hold 172000 metric tons tomato paste stock on hand but the

inventory will be basically finished in the middle and late October2021

In 2021 Chinas total processing volume is estimated to be 48 million tons including 265 million

tons in Northern Xinjiang 099 million tons in southern Xinjiang 006 million tons in Gansu and 11

million tons in Inner Mongolia The accumulated temperature during transplanting was low and the

whole transplanting was delayed for 5-7 days The price rise of other crops and the shortage of water

resources have led to a significant decrease of 1 million tons of processed tomatoes compared with

2020

2021 Chinas regional production and inventory

Data SourcesCofco

0

20

40

60

80

100

120

140

0

100

200

300

400

500

600

700

2017 2018 2019 2020 2021

China production estimate of tomatoes for processing

Total procesing Total factories

Unit 10000 MT

00

50

100

150

200

250

300

350

2017 2018 2019 2020 2021

Inventory Unit 10000 MT

9

Mechanization North Xinjiang nearly 100 South Xinjiang 70 mechanical

harvest The mechanical harvesting area in Inner Mongolia will reach 43000 mu in

2021 With the implementation of Chinas large-scale land integration strategy

mechanical harvesting area is expanding year by year and the stability of raw

material supply is further enhanced

Automation and digitization non-stop upgrading

COFCO Keeps Piloting Mechanization and Efficiency Improving

Inner Mongolia Central control

10

Exchange Rate

EURUSD

USDCNY

64

121

Data Sources

In the past year the RMB exchange rate has risen from 71 to 64 The appreciation of RMB against the US dollar has reduced the profits of export enterprises due to production costs are locked in RMB

11

150K tons of bulk paste to repack for sauces repack paste for domestic market drinks powder lycopene products etc

Direct filling canned paste 65K tons mainly for catering

Dicedwhole peeled 15K tons

Amazing and Impressive Local Standard Market Development

150 65

65 28

15 7

12

8

By August 01 2021 We will hold 172000 metric tons tomato paste stock on hand but the

inventory will be basically finished in the middle and late October2021

In 2021 Chinas total processing volume is estimated to be 48 million tons including 265 million

tons in Northern Xinjiang 099 million tons in southern Xinjiang 006 million tons in Gansu and 11

million tons in Inner Mongolia The accumulated temperature during transplanting was low and the

whole transplanting was delayed for 5-7 days The price rise of other crops and the shortage of water

resources have led to a significant decrease of 1 million tons of processed tomatoes compared with

2020

2021 Chinas regional production and inventory

Data SourcesCofco

0

20

40

60

80

100

120

140

0

100

200

300

400

500

600

700

2017 2018 2019 2020 2021

China production estimate of tomatoes for processing

Total procesing Total factories

Unit 10000 MT

00

50

100

150

200

250

300

350

2017 2018 2019 2020 2021

Inventory Unit 10000 MT

9

Mechanization North Xinjiang nearly 100 South Xinjiang 70 mechanical

harvest The mechanical harvesting area in Inner Mongolia will reach 43000 mu in

2021 With the implementation of Chinas large-scale land integration strategy

mechanical harvesting area is expanding year by year and the stability of raw

material supply is further enhanced

Automation and digitization non-stop upgrading

COFCO Keeps Piloting Mechanization and Efficiency Improving

Inner Mongolia Central control

10

Exchange Rate

EURUSD

USDCNY

64

121

Data Sources

In the past year the RMB exchange rate has risen from 71 to 64 The appreciation of RMB against the US dollar has reduced the profits of export enterprises due to production costs are locked in RMB

11

150K tons of bulk paste to repack for sauces repack paste for domestic market drinks powder lycopene products etc

Direct filling canned paste 65K tons mainly for catering

Dicedwhole peeled 15K tons

Amazing and Impressive Local Standard Market Development

150 65

65 28

15 7

12

9

Mechanization North Xinjiang nearly 100 South Xinjiang 70 mechanical

harvest The mechanical harvesting area in Inner Mongolia will reach 43000 mu in

2021 With the implementation of Chinas large-scale land integration strategy

mechanical harvesting area is expanding year by year and the stability of raw

material supply is further enhanced

Automation and digitization non-stop upgrading

COFCO Keeps Piloting Mechanization and Efficiency Improving

Inner Mongolia Central control

10

Exchange Rate

EURUSD

USDCNY

64

121

Data Sources

In the past year the RMB exchange rate has risen from 71 to 64 The appreciation of RMB against the US dollar has reduced the profits of export enterprises due to production costs are locked in RMB

11

150K tons of bulk paste to repack for sauces repack paste for domestic market drinks powder lycopene products etc

Direct filling canned paste 65K tons mainly for catering

Dicedwhole peeled 15K tons

Amazing and Impressive Local Standard Market Development

150 65

65 28

15 7

12

10

Exchange Rate

EURUSD

USDCNY

64

121

Data Sources

In the past year the RMB exchange rate has risen from 71 to 64 The appreciation of RMB against the US dollar has reduced the profits of export enterprises due to production costs are locked in RMB

11

150K tons of bulk paste to repack for sauces repack paste for domestic market drinks powder lycopene products etc

Direct filling canned paste 65K tons mainly for catering

Dicedwhole peeled 15K tons

Amazing and Impressive Local Standard Market Development

150 65

65 28

15 7

12

11

150K tons of bulk paste to repack for sauces repack paste for domestic market drinks powder lycopene products etc

Direct filling canned paste 65K tons mainly for catering

Dicedwhole peeled 15K tons

Amazing and Impressive Local Standard Market Development

150 65

65 28

15 7

12

12