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

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

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

4. Chile: Food Power

5. Chilean General Food Industry faces a historic moment

6. 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

7. Source: ODEPA, Central Bank, Business Associations and Chilealimentos (decimal values of approximate %) MM US$ US$ 8.120 millions We are all part of 2005 26% 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

8. a privileged country: Chile is Factors that help Food Offer

9. Geographic advantages... 1. 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

10. 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. 2. 3. Stability of our public and private institutions: Chile has the lowest risk of Latin America.

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

12. Chilealimentos, Association of Food producers in Chile We are working since 1943 50 members Products: Fruit and vegetable processing: Canned fruit or vegetable, Dried Fruit, Frozen Fruit, Fruit and vegetable juice Cookies, Chocolates, Fish

13. Convert Chile in Food Power Mission

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

15. 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

16. 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

17. Regional presence Source: Fepach, Catastro Agroindustria 2001 Juice facilities per Region RegionIVVRMVIVIIX Nº223242 Chilean Juice Concentrate Industry

18. The industry processes more than 600.000 tons of raw material every year Chilean Juice Concentrate Industry

19. 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 350.000 to 430.000 tons of raw material. There are a potential to process 650.000 tons of fresh apples. Chilean Juice Concentrate Industry

20. Años Source: Chilealimentos Exports of Juice Concentrates 1981 - 2005

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

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

23. Exports of Apple Juice Concentrates

24. Chilean AJC Destinations

25. Total Apple Chilean Production 1.300.000 tons of Apple Uses of Apple Fresh Market for Export53% Domestic Fresh Market 7% For Processing40% –Pulp and Dehydrate10% –Juice Concentrate30% Apple Production

26. 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

27. 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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