José Antonio Weiffenbach F. Jucosa General Manager Chilealimentos Director Chilean Juice Industry

AGENDA 1.Food Industry in Chile 2.Chilealimentos 3.Chilean Juice Industry

AGENDA 1.Food Industry in Chile 2.Chilealimentos 3.Chilean Juice Industry

Chile: Food Power

Chilean General Food Industry faces a historic moment

Source: ODEPA, Central Bank and Chilealimentos. Projections based on Sofofa, January-July Today it is the Second export US$ Millions leader of the country 7,720 7,111

Source: ODEPA, Central Bank, Business Associations and Chilealimentos (decimal values of approximate %) MM US$ US$ millions We are all part of % 12% 8% Processed Foods Sector: Exports for more than US$2.000 millions by 2010 Others Meats Other sea products Salmons Wines Fresh Fruit Processed Foods

a privileged country: Chile is Factors that help Food Offer

Geographic advantages Mediterranean Weather  Between 30º and 45º of latitude.  West of continents.  Rains in winter and dry summers. 2. “Ecologic Island”  Natural barriers for diseases  North: Desert  South: Antarctic  East:Mountains  West:Ocean

Acquired Advantages... Free trade Agreements: Chile has signed free trade agreements with the 75% of the PIB of the world. 1. Commitment of private sector: Market oriented Stability of our public and private institutions: Chile has the lowest risk of Latin America.

AGENDA 1.Food Industry in Chile 2.Chilealimentos 3.Chilean Juice Production

Chilealimentos, Association of Food producers in Chile We are working since members Products: Fruit and vegetable processing: Canned fruit or vegetable, Dried Fruit, Frozen Fruit, Fruit and vegetable juice Cookies, Chocolates, Fish

Convert Chile in Food Power Mission

AGENDA 1.Food Industry in Chile 2.Chilealimentos 3.Chilean Juice Production

More than 30 years of experience. Exporting juice concentrates since 1975 More than 630 temporary jobs per month (peak at more than 1.000) and 700 permanent jobs. 166 thousands built square meters. Evaporation capacity: 310 ton/hour water. (70% used in AJC) Chilean Juice Concentrate Industry

Technological Improvements in all the production stages = highly competitive quality. More than 98 manufacture products. The 95% of the production is destined to export Since 2000 consolidation in the industry Chilean Juice Concentrate Industry

Regional presence Source: Fepach, Catastro Agroindustria 2001 Juice facilities per Region RegionIVVRMVIVIIX Nº Chilean Juice Concentrate Industry

The industry processes more than tons of raw material every year Chilean Juice Concentrate Industry

The factories produce basically apple and grape juice concentrates. In the last period the processing of berries has grown. Crushing capacity: 200 ton/hr apple basis 430 ton/hr grapes basis 85 ton/hr berries basis The apple juice concentrate processing plants work generally from March until September and crush to tons of raw material. There are a potential to process tons of fresh apples. Chilean Juice Concentrate Industry

Años Source: Chilealimentos Exports of Juice Concentrates

Exports of Juice Concentrates On 2005 concentrated juices of 24 species of fruits and vegetables were exported. Source : Chilealimentos. Participation in terms of value

Exports of Juice Concentrates Chilean juices came to 45 countries during 2005 Source : Chilealimentos. Participation in terms of value

Exports of Apple Juice Concentrates

Chilean AJC Destinations

Total Apple Chilean Production tons of Apple Uses of Apple Fresh Market for Export53% Domestic Fresh Market 7% For Processing40% –Pulp and Dehydrate10% –Juice Concentrate30% Apple Production

Chilean Apple Juice Concentrate Production is base on Fresh Apple Production for Export –No Phytosanitary issues –The availability of raw material is guarantee –Reasonable price of raw material (The growers do not depend on fruit for juice) Apple Juice Concentrate Production

Final Considerations of Chilean Juice Concentrates Chilean juice concentrate industry found a niche in the market, due to its limited production (compare with other countries) Chilean juice concentrate industry is highly reliable supplier in quality and price Chilean apple juice concentrate producers have been able to compete with the heavy growth of China. How? High quality standards Flexibility of costs Efficiency Market defense and opening new markets (FTAs) Consolidation Creativity

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