Chilean Food IndustryChilean Food Industry

3ChilealimentosChilealimentos

4

Chilealimentos…Since 1943 gather theChilean food processing companies.

5

Chilealimentos’ mission is to make Chile a leading food power a competitive and responsible food supplier.

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Our members

Direct associates: 70 companies, which include Direct associates: 70 companies, which include manufacturing, service, raw materials and manufacturing, service, raw materials and machinery suppliers for the processed food machinery suppliers for the processed food industryindustry

Indirect associates: 160 companies participate in Indirect associates: 160 companies participate in the projects led by Chilealimentosthe projects led by Chilealimentos

7

Chilealimentos…It is guarantee of the best Chilean foods companies.

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Represented Industries Fruit and Vegetable: canned, dried, frozen and pulps

Cookies, candies, chocolates, desserts and drinks

Canned seafood

Prepared cereals, flour, pasta, semolina, cornstarch

Soups, broths and creams

Tea, coffee and Infusions

Oils, margarine, butter

Dairy products

Juices, nectars, soft drinks

Snacks, nuts

Baby food

Catering, machinery, services

9

General Chilean IndicatorsGeneral Chilean Indicators

Population 17.6 millionsPopulation 17.6 millions

Employed Employed 7.7 millions7.7 millions

Unployement 6,2%Unployement 6,2%

10

General Chilean IndicatorsGeneral Chilean Indicators

GDP USD 285.703 millons (+4,1%)GDP USD 285.703 millons (+4,1%)

Inflation (annual) 3,0% Inflation (annual) 3,0%

Export s USD 78.551 millonsExport s USD 78.551 millons

Import s USD 79.621 millonsImport s USD 79.621 millons

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Chile: exports (USD millions)

Products 2000 2001 2002 2003 2004 2005 2006 2012 2008 2009 2010 2011 2012 2013

Copper 7,285 6,537 6,323 7,995 15,397 19,923 34,069 39,204 31,755 29,695 40,257 44,438 42,184 36,499

Foods 4,868 5,068 5,283 6,151 7,280 8,226 9,340 10,533 12,355 11,425 12,157 14,739 14,943 16,510

Forestry 2,391 2,206 2,301 2,552 3,407 3,511 3,959 5,065 5,440 4,196 4,982 5,914 5,428 5,934

Others 4,667 4,460 4,272 4,953 6,941 10,314 12,012 13,759 14,959 10,147 13,633 16,320 15,722 19,658

Total 19,210 18,271 18,179 21,651 33,025 41,974 59,380 68,561 64,510 55,463 71,029 81,411 78,277 78,551

Foods2000 – 2013: + 339% + 9,9% annual2004 – 2013: + 226% + 9,5% annual

Copper 46%

Foods 21%

Forestry 8%

Others 25%

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Food Sales in Chile (millions)

13

14

0

3.000

6.000

9.000

12.000

15.000

18.000

1960 1970 1980 1990 2000 2010

Chilean Foods Exports

16.510

1960-2013 - USD millions

15

Processed foods expotsUDS millions

Fuente/Source: Chilealimenos A.G.

901

2.103

2.915

2.471

3.140 3.2023.453

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

F. y hortalizas Conservas del Mar Preparaciones Molinería Oleaginosas y edulcorantes.

16

Fresh fruit exportsUSD Millions

Fuente/Source: Chilealimentos A.G.

1.351

4.070

0

1.000

2.000

3.000

4.000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Otras

Paltas

Kiwis

Arándanos

Manzanas

Uvas

17

Salmon and trout exportsUSD millions

Fuente/Source: Chilealimentos A.G.

953

2.873

3.525

0

700

1.400

2.100

2.800

3.500

4.200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

18

Wine exportsUSD Millions

Fuente/Source: Chilealimentos A.G.

580

1.897

0

350

700

1.050

1.400

1.750

2.100

20002001200220032004200520062007200820092010201120122013

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Meat and dairy exportsUSD millions

161

1.193

0

200

400

600

800

1000

1200

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Otros

Lácteos

C. Ave

C. Cerdo

Fuente/Source: Chilealimentos A.G.

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Chile is a Chile is a reliable source reliable source of safe food productsof safe food products

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Chilean Total Food Chilean Total Food Exports by SectorExports by Sector

USD 14,943 millions(2012)

USD 16,510 millions(2013)

Fresh fruits26%

Processed foods21%Salmond and

trouts19%

Wines 12%

Meat and preparation

meats8%

Others14% Fresh fruits

25%

Processed foods21%Salmond and

trouts21%

Wines 12%

Meat and preparation

meats7%

Others14%

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Chilean Total Food Chilean Total Food Exports by SectorExports by Sector

Products 2012 2013 VariationFresh fruits 3.826 4.070 6%Processed foods 3.202 3.452 8%Salmond and trouts 2.873 3.525 23%Wines 1.808 1.897 5%Meat and preparation meats 1.216 1.193 -2%Others 2.018 2.373 18%

Total (USD millions) 14.943 16.510 10%

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Geographic Geographic Advantages...Advantages...

Source: U.S. National Park Service

Mediterranean Weather Between 30º and 45º latitude At west from other continents. Wet winters and dry summers.

Med Weather Areas

California

Chile Sudáfrica

Europa

Australia

0º

45º

30º

30º

45º

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Natural Advantages...Natural Advantages...

North: Atacama Desert

South: Antarctic

East: The Andes Mountains

West: Pacific Ocean

All these points form a natural barricade against plague and illness, which had caused strong damage in other countries.

Natural isolation against plagues and illness

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Acquired Acquired Advantages...Advantages...Free Trade Agreement:

FTA with countries representing 90% of world GDP.

Relevant Fruit EXPORTERChile ships over 75 kinds of fruit and products to 95 different country destinations.

1.

2.

3.

Public and Private Institution Stability: Chile is a low risk country.

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86% World GDP

62% World Population 93% Chilean

export markets

Existing agreements

Negotiated agreements

Bargaining agreements

Chile open to the world: 22 commercial

agreements with 60 countries

Chilean Commercial Agreements

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We export to the world…

more than 95 Countries…

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0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

2004 2007 2010 2011 2012

221.915 237.660267.491 278.462 294.865

128.350 89.177

88.04690.298

85.904

Vegetables Fruits

Chilean SurfaceChilean SurfaceTotal Fruits and VegetablesTotal Fruits and Vegetables

HectaresHectares

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Chilean SurfaceChilean SurfaceTotal FruitsTotal Fruits

Table Grape18%

Apple12%

Avocado12%

Plum7%

Walnut6%

Olive6%

Raspberry6%

Cherrie5%

Peach5%

Blueberry4%

Others19%

294,865 hectares

0%

20%

40%

60%

80%

100%

Fresh

Processing

Fruit Surface for Fresh and Processing Fruit Surface for Fresh and Processing

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Chilean SurfaceChilean SurfaceTotal VegetablesTotal Vegetables

Corn16%

Tomato15%

Lettuce9%

Onion8%

Squash5%

Carrot5%

Melon4%

Bean7%

Artickoke3%

Watermelon3%

Others25%

85,904 ha

31Source: Chilealimentos

Chilean Processed Food ExportsChilean Processed Food Exports

0

500

1.000

1.500

2.000

2.500

3.000

3.500USD million

+ 9.3%annual average

Note: All Chilean industry. Included members and no members of Chilealimentos.

32Source: Chilealimentos

USD 3,182 millions (2012)

Chilean Processed Food ExportsChilean Processed Food Exports

Processed Fruit & Vegetable

56%Prepared Foods & Beverages

13%

Canned Fish & Shell, 10%

Mills & Grains9%

Fats, Oils & Others

9%

Biscuits & Confectionery

2%

Sweeteners, Coffe, Tea &

Spices1%

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0

200

400

600

800

1.000

1.200

1.400

1.600

1.800USD million

Source: Chilealimentos

Chilean Processed Fruit & Chilean Processed Fruit & Vegetable Vegetable ExportsExports

+ 9.34annual average

Note: All Chilean industry. Included members and no members of Chilealimentos.

34Source: Chilealimentos

Chilean Processed Fruits & Chilean Processed Fruits & Vegetables ExportsVegetables Exports

Dried & Dehydrated

40%

Canned & Pulp27%

Frozen19%

Concentrated Juice14%

USD 1,791 millions (2012)

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More than 453 exporters… …196 processing companies… …246 factories and 8.000 farms

36Source: Chilealimentos

Canned Fruits & Vegetable ExportsCanned Fruits & Vegetable Exports

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

450.000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

0

100

200

300

400

500

600

TonnesUSD Million

Others pulps24%

Tomato paste21%

Peach18%

Peach pulp13%

Cocktail4%

Cherrie3%

Others17%

USD 482 millions

(2012)

Note: All Chilean industry. Included members and no members of Chilealimentos.

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Exports Global Ranking…

Source: Comtrade

Share in world exports (value)

38

0

50.000

100.000

150.000

200.000

250.000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

0

100

200

300

400

500

600

700

800

Tonnes

Million USD

Dehydrated Fruits & Vegetable ExportsDehydrated Fruits & Vegetable Exports

Walnut27%

Raisin25%

Prune20%

Almond8%

Apple6%

Rose hip3%

Hazelnut3% Others

8%

USD 713 millions

(2012)

Note: All Chilean industry. Included members and no members of Chilealimentos.

39Fuente: Comtrade

Exports Global Ranking…

Share in world exports (value)

40

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

0

50

100

150

200

250

300

350

400

TonnesUSD Million

Frozen Fruits & Vegetable ExportsFrozen Fruits & Vegetable Exports

Blueberry27%

Raspberry24%Strawberry

9%

Blackberry12%

Asparagus8%

Others20%

USD 346 millions

(2012)

Note: All Chilean industry. Included members and no members of Chilealimentos.

41Fuente: Comtrade

Exports Global Ranking…

Share in world exports (value)

42

Fruit & Vegetable Juices ExportsFruit & Vegetable Juices Exports

0

20.000

40.000

60.000

80.000

100.000

120.000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

0

50

100

150

200

250

300

Tonnes

USD Million

Apple43%

Grape30%

Plum4%

Cranberry4%

Raspberry3%

Bell Pepper1%

Others15%

USD 250 millions

(2012)

Note: All Chilean industry. Included members and no members of Chilealimentos.

43Fuente: Comtrade

Exports Global Ranking…

Share in world exports (value)

44

2009 – 2013: + 21,3 % annual2004 – 2013: + 15,6 % annual

Chilean Foods Exports to RussiaChilean Foods Exports to RussiaProcessed Fruits and VegetablesProcessed Fruits and Vegetables

Note: All Chilean industry. Included members and no members of Chilealimentos.

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

100.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

USD Thousands

186

89.257

41.12324.105

45

Relative Importance of Russia in Chilean Relative Importance of Russia in Chilean Exports of Processed Fruits and VegetablesExports of Processed Fruits and Vegetables

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

5°

53°

8° 7° 6°

46

Share in Exports of Chilean Exports of Share in Exports of Chilean Exports of Processed Fruits and VegetablesProcessed Fruits and Vegetables

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

4,50

5,00

5,50

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

%5,3%

4,7%

0,04%

47

Chilean Exports to RussiaChilean Exports to RussiaProcessed Fruits and VegetablesProcessed Fruits and Vegetables

Dried&Dehydrated

65%

Canned&Puree31%

ConcentratedJuice3%

Frozen1%

USD89.3 millionsUSD89.3 millions

Year 2013

48

Prune41%

Raisins41%

Walnuts shelled

15%

Rose Hip2%

Others1%

USD 57,9 millionsUSD 57,9 millions

Chilean Exports to RussiaChilean Exports to RussiaDried & Dehidrated Fruits and VegetablesDried & Dehidrated Fruits and Vegetables

Year 2013

49

Mushrooms49%

Blackberries25%

Blueberries20%

Raspberries6%

USD 1,36 millionUSD 1,36 million

Chilean Exports to RussiaChilean Exports to RussiaFrozen Fruits and VegetablesFrozen Fruits and Vegetables

Year 2013

50

ApplePuree59%

OthersPuree &

Jam30%

PechPuree

6%

TomatoPaste

4%

Others1%

USD 27,5 millionsUSD 27,5 millions

Chilean Exports to RussiaChilean Exports to RussiaPulp & Canned Fruits and VegetablesPulp & Canned Fruits and Vegetables

Year 2013

51

Grape72%

Cranberry14%

Unspecified8%

Raspberry4%

Others2%

USD 2,5 millionsUSD 2,5 millions

Chilean Exports to RussiaChilean Exports to RussiaConcentrated Juice of Fruits and VegetablesConcentrated Juice of Fruits and Vegetables

Year 2013