¿Why invest in Argentina? December 2016

Context that challenges Food and Beverage’s Industry Global opportunity

Reach 9,7 billons people around 2050 Food demand. Expected growth 2000 to 2030 Annual food per capita growth (2000-2030) Reach 9,7 billons people around 2050 means to FAO increasing food production 70% Asia del Sur (incl. India) Africa Asia del Este (incl. China) America Latina Este Medio & Norte de Africa OCDE Southeast Asia, Africa and India are the most important demandants of foods. Source: United Nations, FAO, LDC analysis

Increasing food production 70%... ¿What is our role?

America will dominates food and beverage exports. Food demand. Biggest trade deficits in terms of volume will happen in Asia and Africa. America will dominates food and beverage exports. Argentina is one of the 11 countries around the world that reports trade surplus of PA and MOA.

Magnitude of Food and Beverage’ Industry 52,7% OF MANUFACTURED EXPORTS 25% OF MANUFACTURED GPD 35,1% FROM ARGENTINA’S EXPORTS 40% OF PRODUCTION IS EXPORTED 14.528 F&B COMPANIES– 97% SMALLS AND MEDIUM BUSINESSES IMPORTS BY U$S 1.366 MILLIONS EXPORTS BY U$S 25.437 MILLIONS Modificado Mariano 5 – 7º GLOBAL FOOD PRODUCER 11 – 13º WORLD EXPORTER 500.000 DIRECT JOBS Source: COPAL based on NOSIS dates

14.528 productive establishment throughout the country Production around the country Regional economies 14.528 productive establishment throughout the country

Global reach Argentinian F&B Industry DESTINY 184 DESTINATIONS NOT DESTINY 5 CONTINENTS

Leading exports destination of Argentina’s F&B International Commerce F&B 2015 MAIN COMPETITORS F&B 184 DESTINATIONS Leading exports destination of Argentina’s F&B USA CANADA POLAND GERMANY NETHERLANDS FRANCE SPAIN BELGIUM ITALY GREAT BRITAIN BRAZIL (6,3%) CHILE (4,4%) VENEZUELA (3,2%) SPAIN (4,7%) NETHERLANDS(3,9%) ITALY (3,4%) Modificado Mariano CHINA INDIA (7,6%) VIETNAM (5,3%) CHINA (4,0%) BRAZIL Source: COPAL based on NOSIS dates

Diversification Opportunities ¿What does Argentina export?

EXPORTS BY ITEM OF F&B INDUSTRY % of participation - 2015 Modificado olivia. Bien ahi

Integration to global value chains Improve Argentina s’ participation in the global value chains with higher value -added products.

Opportunities for productive and technological development

Packaging Technology. New sustainable resources. Main technological needs (vertical and transverse) Technology to increase production (handling, processing and storage of products) and to add value in origin. Packaging Technology. New sustainable resources. Technology to the development of alternative energies and enviromental management.

COPAL REPRESENTS THE FOOD AND BEVERAGE INDUSTRY OF ARGENTINA It has 37 associated Chambers representing the following products: Modificado olivia

COPAL vinculates with: Chambers and companies members National Goverment I+D+i institutions Accademic institutions COPAL ecosystem Professional councils Provincial and local goverments Regionals alliance ALAIAB CIPAM NGOs Other institutions Financial Entities International Organisms

A few conclutions… Presence throghout country Add value Export matrix Principal Industry sector Expanding market Smart opening to the world Presence throghout country Add value Export matrix Innovation and Technological development

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