CHILE A RELIABLE FRESH FRUIT SUPPLY PARTNER TO THE WORLD

JUNE 2010

RONALD BOWN CHAIRMAN OF THE BOARD CHILEAN EXPORTERS ASSOCIATION (ASOEX)

AGENDA
1. CHILE AS A FOOD SUPPLY SOURCE 2. THE ROLE OF THE CHILEAN EXPORTERS ASSOCIATION (ASOEX) 3. BACKGROUND OF THE FRESH FRUIT INDUSTRY 4. INTERNATIONAL POSITION OF THE FRESH FRUIT INDUSTRY 5. FOREIGN DIRECT INVESTMENT IN THE CHILEAN AGRICULTURE SECTOR 6. INVESTMENT OPPORTUNITIES IN THE CHILEAN FRESH FRUIT SECTOR 7. FINAL COMMENTS

CHILE AS A FOOD SUPPLY SOURCE

CHILE: ON THE WAY TO BECOMING A WORLD CLASS FOOD AND BEVERAGE SUPPLIER

FRESH FRUIT: CHILES LARGEST FOOD INDUSTRY

AGRICULTURAL AND FORESTRY EXPORTS REACHED US$12 BILLION IN 2009 FRESH FRUIT IS THE LARGEST FOOD EXPORTING SECTOR (26%)

Source: Chilean Ministry of Agriculture Data prepared by the Chilean Exporters Association (Asoex) - 2009

CHILE PHYTOSANITARY ISLAND

NORTH - ATACAMA DESERT

PACIFIC OCEAN

ANDES MOUNTAINS

ANTARCTICA

CHILE ONE OF ONLY SIX MEDITERRANEAN CLIMATE COUNTRIES

THE ROLE OF THE CHILEAN EXPORTERS ASSOCIATION (ASOEX)

CHILEAN EXPORTERS ASSOCIATION (ASOEX)

NON PROFIT PRIVATE ENTITY REPRESENTING GROWERS AND EXPORTERS ESTABLISHED IN 1935 MEMBERS: FRESH FRUIT GROWERS-EXPORTERS AND EXPORT COMPANIES ASSOCIATE MEMBERS: 204 COMPANIES REPRESENTS 92% OF THE TOTAL VOLUME EXPORTED REPRESENTS 50% TOTAL PRODUCTION BOARD REPRESENTED BY EXPORTERS, EXPORTERS / GROWERS AND TRADERS CERTIFIED ISO 9001 - 2008

OBJECTIVES OF THE CHILEAN EXPORTERS ASSOCIATION (ASOEX)

FACILITATE THE EXPORT PROCESS OPEN NEW MARKETS PROMOTIONAL ACTIVITIES SUPPORT COUNTRY IMAGE CAMPAIGN MANAGEMENT PHYTOSANITARY AGREEMENTS ADMINISTRATION OF PRIVATE INSPECTION SITES STIMULATE INDEPENDENT RESEARCH & DEVELOPMENT, THROUGH SEPARATE ENTITY (FDF) DEFEND THE SECTORS INTERESTS ENCOURAGE INDUSTRY TRAINING PROGRAMS THROUGH SEPARATE ENTITY (AGROCAP) 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 CONTRIBUTE TOWARDS INTERNATIONAL HARMONIZATION OF STANDARDS

BACKGROUND OF THE FRESH FRUIT INDUSTRY

CHILES FRESH FRUIT EXPORTS (TONS)

YEAR 1970 1975 1980 1985 1990 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 MILLIONS US$ FOB 15 39 168 356 747 1,162 1,346 1,292 1,363 1,359 1,391 1,398 1,550 1,650 1,750 1,800 2,000 2,601 2,704 2,834 TONS (000) S/I S/I 261 533 1.040 1.310 1.439 1.321 1.469 1.549 1.400 1.600 1.752 1.899 2.107 2.143 2.182 2.430 2.363 2.394

THE INDUSTRY HAS MORE THAN 7.800 GROWERS OF FRESH FRUIT (OVER 5 HEC. OR 10 ACRES.)

630 EXPORTING COMPANIES (SEASON 2008-2009) OVER 1.686 FRUIT IMPORTERS (SEASON 2008-2009) ON AVERAGE 65% OF CHILES FRESH FRUIT PRODUCTION IS EXPORTED

MORE THAN 100 COUNTRIES IN THE WORLD RECEIVE 75 DIFFERENT SPECIES OF CHILEAN FRUIT DIRECTLY, COMING FROM AN ARRAY OF DIFFERENT CLIMATES AND REGIONS

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

PLANTED AREA OF FRESH FRUIT

1997 SPECIES TABLE GRAPES AVOCADOS APPLES PLUMS PEACHES WALNUTS CHERRIES BLUEBERRIES KIWIS ORANGES LEMONS RASPBERRIES ALMONDS PEARS OTHER TOTAL HECTARES 43,865 17,061 39,979 12,416 11,841 7,642 5,006 1,475 7,714 7,297 7,766 7,255 5,893 11,887 26,481 213,518 2007 HECTARES 61,316 39,842 36,245 17,536 16,240 14,200 13,095 9,975 9,455 8,850 7,645 7,196 7,124 6,050 55,497 310,266 VAR. % 39,8 133,5 -9,3 41,2 37,2 85,8 161,6 576,3 22,6 21,3 -1,6 -0,8 20,9 -49,1 109,5 45,3 PART. % 20 13 12 6 5 5 4 3 3 3 2 2 2 2 18 100,0

TOTAL PLANTED AREA 310.266 HECTARES (INCLUDES SPECIES IN PRODUCTION, FORMATION AND NEW PLANTATIONS)

TABLE GRAPES, AVOCADOS AND APPLES ARE THE MAIN SPECIES PLANTED (45% SHARE)

MAJOR GROWTH AREAS, BLUEBERRIES, AVOCADOS AND CHERRIES.

Source: Agricultural and Forestry Census 1997 and 2007. ODEPA

MAIN MARKETS - 2008 / 2009

(4%) (10%) (35%)

(16%)

(INCLUDING CANADA)
(35%) *2007-08 season stats.
Source: Agriculture and Livestock Governmental Service (SAG) / Asoex Data prepared by the Chilean Exporters Association (Asoex) from the inspection records developed by the export companies for submission to the SAG

EVOLUTION OF FRESH FRUIT EXPORTS TONS

3.000.000 2.500.000 2.107.430 2.000.000 1.600.109 1.500.000 1.000.000 500.000 0 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 1.752.714 1.899.244 2.143.785 2.406.706 2.192.766 2.363.235

+1,3%
*JUNE 3RD 2010
2.394.658

-0,9%
1.970.746

2008-2009

2009-2010*

SEASONS
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

MAIN PRODUCTS EXPORTED TO THE WORLD (SEASON) - TONS

SPECIES TABLE GRAPES APPLES KIWIS PEARS AVOCADOS PLUMS NECTARINES PEACHES LEMONS CHERRIES ORANGES BLUEBERRIES CLEMENTINES OTHERS TOTAL
export companies for submission to the SAG

2007-2008 820.895 750.982 158.405 126.848 106.138 88.709 60.558 47.357 43.256 44.503 27.072 30.315 19.395 38.802 2.363.235

2008-2009 849.375 698.026 179.686 126.771 115.589 96.097 57.762 43.746 30.680 38.540 41.145 41.534 27.723 47.984 2.394.658

VAR. % 3,5 -7,1 13,4 -0,1 8,9 8,3 -4,6 -7,6 -29,1 -13,4 52,0 37,0 42,9 23,7 1,3

PART. % 35,5 29,1 7,5 5,3 4,8 4,0 2,4 1,8 1,3 1,6 1,7 1,7 1,2 2,0 100,0

Source: Agriculture and Livestock Governmental Service (SAG) / Asoex Data prepared by the Chilean Exporters Association (Asoex) from the inspection records developed by the

MAIN PRODUCTS EXPORTED TO THE WORLD USD$FOB

SPECIES TABLE GRAPES APPLES AVOCADOS BLUEBERRIES KIWIS PEARS CHERRIES PEACHES PLUMS LEMONS RASPBERRIES OTHERS TOTAL YEAR 2008 1.271,80 677,3 155,3 218,2 179,1 139 208,8 128,5 110,9 39,6 14,5 206,8 3.349,80 YEAR 2009 1.162,30 499,3 260,9 177,6 163,3 109,4 103,6 95,2 94,4 25,8 7,5 196,8 2.896,00 Part.% 2009 Var.% 2008/2009 40,1 -8,6 17,2 -26,3 9 68 6,1 -18,6 5,6 -8,8 3,8 -21,3 3,6 -50,4 3,3 -25,9 3,3 -14,9 0,9 -34,8 0,3 -48,2 6,8 -4,9 100 -13,5

Fuente: Declaraciones de exportacin con IVV ajustados a la fecha de la declaracin de la exportacin asociada/ Informe Indicadores de Comercio Exterior Cuarto Trimestre 2009 Banco Central de Chile

INTERNATIONAL POSITION OF THE FRESH FRUIT INDUSTRY

CHILE LEADING SOUTHERN HEMISPHERE SUPPLIER

CURRENTLY, CHILE REPRESENTS 59,3% OF THE SOUTHERN HEMISPHERE FRESH FRUIT EXPORTS CONSIDERING: GRAPES, APPLES, KIWIS, AVOCADOS, PLUMS, PEACHES, PEARS, CHERRIES AND BLUEBERRIES. THEREFORE, POSITIONING IT AS THE LEADER IN SOUTHERN HEMISPHERE EXPORTS.

CHILE TOTAL S.HEM % CHILE

1961 18.452 468.915 3,9%

1964 35.225 601.566 5,9%

1970 45.427 704.459 6,4%

1980 266.832 1.062.586 25,1%

1990 1.016.787 2.263.724 44,9%

1998 1.616.953 3.465.542 46,7%

2001 1.781.413 3.569.109 49,0%

2003 2.070.468 4.222.968 49,9%

2007 3.866.859 6.517.560 59,3%

Source: FAO Stats 2007 Figures in Tones

POSITION OF CHILE IN FRESH FRUIT EXPORTS (TONS)

TABLE GRAPES
RANK COUNTRY QUANTITY (TONS) 1 CHILE 1.552.741 2 ITALY 447.282 3 USA 386.677 4 SOUTH AFRICA 286.895 5 NETHERLANDS 194.265 6 MEXICO 176.885 7 TURKEY 170.250 8 UZBEKISTAN 110.871 9 SPAIN 106.410 10 CHINA - HONG KONG 101.071
Source: FAO Stats Book 2007

PLUMS
RANK COUNTRY QUANTITY (TONS) 1 CHILE 105.055 2 SPAIN 82.221 3 USA 48.368 4 SOUTH AFRICA 43.742 5 ITALY 38.712 6 NETHERLANDS 34.567 7 SERBIA 30.552 8 FRANCE 23.903 9 ARGENTINA 18.621 10 CHINA - HONG KONG 17.863
Source: FAO Stats Book 2007

POSITION OF CHILE IN FRESH FRUIT EXPORTS (TONS)

BLUEBERRIES
RANK COUNTRY 1 CHILE 2 USA 3 CANADA 4 POLAND 5 SWEDEN 6 NETHERLANDS 7 FRANCE 8 LATVIA 9 NEW ZEALAND 10 GERMANY QUANTITY (TONS) 30.000 29.033 12.780 3.409 2.755 1.791 931 820 793 576

APPLES
QUANTITY (TONS) RANK COUNTRY 1 CHILE 1.549.269 2 CHINA - HONG KONG 1.020.315 3 ITALY 784.886 4 FRANCE 685.339 5 USA 663.465 6 POLAND 434.506 7 NETHERLANDS 395.218 8 BELGIUM 344.289 9 SOUTH AFRICA 334.336 10 NEW ZEALAND 292.413
Source: FAO Stats Book 2007

Source: FAO Stats Book 2007 / Asoex Data prepared by the Chilean Exporters Association (Asoex) from the inspection records developed by the export companies for submission to the Agriculture and Livestock Governmental Service (SAG)

POSITION OF CHILE IN FRESH FRUIT EXPORTS (TONS)

AVOCADOS
RANK 1 2 3 4 5 6 7 8 9 10 COUNTRY MEXICO CHILE NETHERLANDS SPAIN ISRAEL PERU SOUTH AFRICA FRANCE DOMINICAN REP. NEW ZEALAND QUANTITY (TONS) 310.260 292.793 50.136 45.861 43.988 37.521 36.962 26.555 18.624 11.848
RANK 1 2 3 4 5 6 7 8 9 10

CHERRIES
COUNTRY QUANTITY (TONS) TURKEY 57.019 USA 54.935 CHILE 26.885 AUSTRIA 18.509 SPAIN 8.401 ITALY 8.216 GERMANY 7.418 GREECE 6.439 NETHERLANDS 5.383 CANADA 4.763

Source: FAO Stats Book 2007

Source: FAO Stats Book 2007

POSITION OF CHILE IN FRESH FRUIT EXPORTS (TONS)

KIWIS
RANK COUNTRY QUANTITY (TONS) 1 NEW ZEALAND 347.916 2 ITALY 333.965 3 CHILE 160.186 4 BELGIUM 100.599 5 GREECE 36.785 6 NETHERLANDS 27.351 7 FRANCE 26.843 8 USA 13.946 9 IRAN 12.637 10 POLAND 10.545
Source: FAO Stats Book 2007

PEACHES & NECTARINES

RANK 1 2 3 4 5 6 7 8 9 10 COUNTRY SPAIN ITALY USA CHILE GREECE FRANCE POLAND CHINA - HONG KONG BELGIUM NETHERLANDS QUANTITY (TONS) 472.634 369.982 117.327 97.565 82.728 59.164 26.084 24.399 20.541 19.322

Source: FAO Stats Book 2007

POSITION OF CHILE IN FRESH FRUIT EXPORTS (TONS)

RASPBERRIES
RANK 1 2 3 4 5 6 7 8 9 10 COUNTRY MEXICO POLAND SPAIN CHILE SERBIA AUSTRIA CANADA FRANCE NETHERLANDS BULGARIA QUANTITY (TONS) 35.162 24.016 10.009 8.314 6.794 3.711 2.369 1.383 1.079 957

PEARS
RANK COUNTRY QUANTITY (TONS) 1 ARGENTINA 454.424 2 CHINA - HONG KONG 405.330 3 NETHERLANDS 328.643 4 BELGIUM 282.593 5 CHILE 239.021 6 SOUTH AFRICA 174.948 7 ITALY 171.040 8 USA 155.070 9 SPAIN 90.634 10 PORTUGAL 49.344
Source: FAO Stats Book 2007

Source: FAO Stats Book 2007

FOREIGN DIRECT INVESTMENT IN THE CHILEAN AGRICULTURE SECTOR

FOREING DIRECT INVESTMENT IN AGRICULTURE BY SUBSECTOR (1974-2008)

TOTAL: US$269 MILLONS
SEED PRODUCTION 5%

OTHER AGRICULTURAL CROPS 45,5%

FRUIT FARMING, VINEYARDS AND GRAPE GROWING 45,6%

US$122,7 MILLONS

AGRICULTURAL SERVICES 1,3%

CATTLE FARMING 2,6%

Source: Foreign Investment Committee (www.foreigninvestment.cl)

FOREIGN DIRECT INVESTMENT IN AGRICULTURE BY INVESTOR COUNTRY (1974-2008)

18,7% USA LUXEMBOURG 33,1% 3,1% 3,4% GERMANY NEW ZEALAND UNITED KINGDOM PANAMA 6,2% CANADA SWITZERLAND OTHERS 6,2% 12,5% 8,3% 10,2%
Source: Foreign Investment Committee (www.foreigninvestment.cl) Source: Foreign Investment Committee (www.foreigninvestment.cl)

UNITED STATES IS THE PRINCIPAL FDI SOURCE IN THE AGRICULTURE SECTOR, ACCOUNTING FOR 33,1%

INVESTMENT OPPORTUNITIES IN THE CHILEAN FRESH FRUIT SECTOR

R&D

CERTIFICATIONS MARKET

STRATEGIC ALLIANCES

INVESTMENT OPPORTUNITIES IN THE NATIONAL FRESH FRUIT SECTOR*

INFRAESTRUCTURE

TRAINING PROGRAMS LOGISTIC AREA

AGRO FINANCE IMPROVEMENTS

*EXCLUDING FOREIGN DEICRET INVESTMENT IN THE SECTOR: DOLE, UNIFRUTTI, DELMONTE, CHIQUITA, DRISCOLLS, ETC., AS ALSO REPRESENTATIVE OF IMPORTERS AND FOREIGN SUPERMARKETS

DESCRIPTION OF INVESTMENT OPPORTUNITIES IN THE NATIONAL FRESH FRUIT SECTOR (1)

RESEARCH & DEVELOPMENT DEVELOPMENT AND IMPROVEMENTS OF SPECIES OF OUR FRUIT, FOR EXAMPLE THROUGH TECNOLOGICAL CONSORTIUMS IMPROVEMENTS IN DATA SYSTEMS FOR EXAMPLE WWW.AGROCLIMA.CL AWARENESS AND ANTICIPATION CLIMATE SYSTEM EXTEND CERTIFICATION SERVICES OFFERS BY, FOR EXAMPLE GOOD AGRICULTURAL PRACTICES PROGRAMS AS CHILEGAP INFRAESTRUCTURE ADVANCES, INCLUDING NEW IRRIGATION PROJECTS AND NEW STORAGE PROJECTS

DESCRIPTION OF INVESTMENT OPPORTUNITIES IN THE NATIONAL FRESH FRUIT SECTOR (2)

AGRO FINANCE IMPROVEMENTS TO ENABLE GROWERS AND EXPORTERS EXPAND ITS LINE OF FINANCE, THROUGH SEED CAPITAL PROGRAM, CREDIT AVAILABILITY, OFFER OF LEASING ASSETS, AMONG OTHERS INVESTMENT IN NEW LOGISTICS PROJECTS - PORT - AIRPORTS - ROADS, JOINING FORCES TO EXPEDITE THE SUBMISSION OF FRUIT TO VARIOUS DESTINATIONS EXPANDING OPPORTUNITIES FOR FURTHER IMPROVING THROUGH AGREEMENTS WITH UNIVERSITIES AND TECHNICAL CENTRES TO IMPROVE THE TRAINING PROGRAMS OF THE SECTOR CREATION OF STRATEGIC ALLIANCES IN VARIOUS AREAS SUCH AS APPLIED RESEARCH THAT ALLOWS TO VENTURE IN NEW SCENARIOS, REDUCING RISKS, ACHIEVES OF SCALE ECONOMIES SUCH AS IN THE CASE OF THE SECTOR WITH LANDCARE RESEARCH (NZ), IN THE FIELD OF REDUCING CARBON EMISSIONS

FINAL COMMENTS
UNDER THE WORLD INVESTMENT REPORT FOR 2009, THE PARTICIPATION OF FOREIGN CAPITAL IN THE COUNTRY CAN PLAY AN IMPORTANT ROLE IN AGRICULTURAL PRODUCTION WHICH CAN ALSO INCREASE THE PRODUCTIVITY, ECONOMIC DEVELOPMENT AND SUPPORT MODERNIZATION" FRESH FRUIT INDUSTRY OF CHILE OWN LOW ENTRY AND EXIT BARRIERS WHICH GENERATES THE FULLEST EXTENT FREE AND OPEN COMPETITION, KEY FACTORS OF OUR SUCCESS NEW TENDECIES THAT POINTS HEALTHY WAY OF EATING, OPEN NEW OPPORTUNITIES FOR INVESTING IN THE AREA OF PRODUCTION AND EXPORT OF FRESH FRUIT THE UNIQUE GEOGRAPHICAL CHARACTERISTICS OF CHILE ALLOWED TO PROVIDE A LONG, STABLE AND RELIABLE SEASON OF FRUIT EXPORTS PROGRAM FROM SEPTEMBER TO DECEMBER WE ARE COMMITTED TO THE FREE MARKET, INVITING ALL FOREIGN INVESTORS TO BE PART OF CHILES FRESH FRUIT RELIABLE SUPPLY PARTNER TO THE WORLD