WALNUT PROJECT - LATAM
EXECUTIVE SUMMARY

We are searching for a Partner/Investor willing to
Finance in a JV figure an outstanding and profitable
project in Agricultural sector to supply the strong demand
from Asia.
Considering the previous points, we want to share what
we believe to be a very exciting opportunity in
Agribusiness sector in LATAM. This project is framed into
geographic ideal conditions, climate, economic policy in
the region.
Executive Summary and preliminary Cash Flow, where
investor may change Variables in the box as of Sale Px,
Cost, Kg by Has, Number of Has and TAX.
We introduce a P& L to illustrate financial INDEX as of
ROI, Pay-Back and Yield per Ha.
Chile is currently one of the world’s top dried fruit and nut
exporters, and is the largest producer and exporter in the
Southern Hemisphere. The country trades 95% of its
production abroad

Chilean walnut industry growing
rapidly
As the leading producer and exporter of walnuts in the
Southern Hemisphere, Chile is also one of the largest
exporters of walnuts in the world. Additionally, their crops
consistently fetch good prices, and growers anticipate a
vigorous growth in the production of the next few years.
“We have increasing production every year,” Chile
currently produces about 40,000 MT of walnuts per year,
but that figure will likely rise to 60,000 MT in the next three
years. New plantings as the major reason for the increase,
and those plantings have been driven by the good
conditions to grow walnuts and the profitability that
Chilean walnuts can garner.

We have the case where some growers have moved from
dried fruit and other nuts to walnuts due to they're looking
for a profitable crop,”. “And today, walnuts are one of the
most profitable crops in Chile.” One of the reasons is the
quality coming from Chile is so high, due to taste and
quality are valued highly, there is willingness to buy
Chilean walnuts.
Chilean product has also a better colour. The walnuts here
have a lighter and brighter colour, and that makes for a
very attractive product.” The flavour profile also has very
little bitterness, and that, along with good oil content,
which enhances flavour and shelf life, makes for a
premium product.

WALNUT FIGURES
The growth in this area have been soaring every year.
There are already about 25,000 hectares planted, this
year, will lead to a greater than 44,000 tons, 95% of which
are for export production.
Projections indicate that in the course of the next five
years will reach 80,000 tons, which presents a
tremendous challenge for the export sector.
Such measures are becoming increasingly important as
new alternatives are opened to diversify the destinations
that are locally produced. This 2011 Korean market
opened, and on the horizon the possible opening of
China, a fact that would be a great news is observed,
since the country is both the largest producer in the world
and one of the largest consumers, still largely part
supplied by California walnut (which buys about 50,000
tons, ie, more than the entire Chilean production).

Also there are great opportunities in the Middle East,
such as the Arab-Emirates and North Africa, areas
where the nut is deeply rooted in the culinary culture.
However, this depends on the quality and variety of nut
and price range in the market place. While there is
currently indicated values ​​of US$ 4.60 per kilo to net
producer, earlier this year the figure was US$ 3.80. These
values ​​form a very good deal: Based on the observations
of an agricultural advisor, producers usually get around 5
tonnes of nuts per hectare, which means that an
average of $ 4 per kilo, obtaining about US$ 20,000 for
this production. Discounting costs, the final profit is US$
15.000. This shows that, overall, the nut farmer receives a
fairly high return, unlike other fruits.
Ten companies in Turkey which are supplied by Chile,
virtually the only country in the region that offers
alternative to source the product, except for Argentina,
where production, however, is still less relevant. California
is the other big market on this side of the world.

The market of walnuts is moving around US$ 200 million
per year (from the total of US$ 275 million exports totaling
nuts in 2011), a figure dwarfed soon, since projects
shipments in 2015 to double the current levels
Although there are variations in the prices paid to
producers, depending on the quality or type of buyer is
usually accepted in the season just past returns to
producers were around US$ 4.5 per kilo.
For a point of comparison, it is assumed that starting from
the US$ 2 per kilo the farmer begins to get blue figures .
In recent seasons the income of the producers have
reached no less than US$ 14,000 per Ha with an orchard
that produces four tons per hectare, considering obtaining
an average price in the last five years of US$ 3.5 per kilo .
The walnut orchards which can be harvested
mechanically require more than 40 hectares to justify the
investment

Tripling shipments
By now the nuts have a promising future. Chile is still a
minor player in the world, despite its growth. It is
estimated that last season produced 46 thousand tons,
China reached 700 thousand tons and USA to 440
thousand. "Experts say prices will stay four to six years,"
The explanation is that demand has grown stronger than
supply. In addition, the Chilean nut and was positioned as
a premium segment where there are few competitors.
Estimates are for a seven-year horizon, given the current
rate of plantations, Chilean exports will be about 100
thousand tons.

INDUSTRY GROWTH STATS
Chile is currently one of the world’s top dried fruit and nut
exporters, and is the largest producer and exporter in the
Southern Hemisphere. The country trades 95% of its
production abroad.
Looking forward the industry will continue to experience
sustained growth, with 2015 sales estimated at a total of
US$1 billion FOB, considering the entire dried fruit and nut
industry (walnuts, prunes, almonds, hazelnut and
raisins),according to numbers from the Chilean Walnut
Commission (ChWC).
In the case of walnuts, the Latin American country
occupies the second spot in the global export ranking.
With the increase in production that the industry has
experienced in the last few years, exports rose from
20,000 MT (in-shell basis) in 2007 to 37,000 MT in 2011.
For 2012 projections put exports at 40,000 and in 2014
that number should rise to 60,000 MT.

With an estimated total of 25,000 hectares of planted
walnut orchards, Chile’s production is concentrated in the
central regions from the IV Region north of the capital to
the VIII Region some 700KM to the south. This spread of
land accounts for 87% of national production.
Due to this growth, which comes hand in hand with the
opening of new markets and an active marketing strategy,
the industry has opted for greater mechanization.
From the harvest through to processing plants, the
percentage of the industry using machinery has increased
to complement manual labor.
The 2008/09 season saw exports of more than 20,000
metric tons (MT) of in-shell walnuts, a number than in
2011/12 grew to 34,700 MT, marking a new record for
international shipments.
Expordata-ASOEX.

Considering a season from week 14 until week 13 of the
following year SEASON EXPORT VOLUMES (figures in
metric tons for in-shell walnuts) STATISTICS SHIPMENTS
ABROAD PRODUCTION REGIONS Turkey, Italy and
Brazil are the principal markets for the Chilean walnut,
whose participation has been increasing year after year.
In regional terms, Europe (including Turkey) concentrates
the highest quantity of imports, which up to week 35 of
season 2012/13 (April-March) were 14,434 MT (in-shell
basis) as of a total 23,218 MT. Following is Latin America
with 4,004 MT (in-shell basis) and the Middle East with
3,868 MT (in-shell basis).
During the 2011/12 season Europe accounted for a total
of 22,797 MT, followed by Latin America (8,544 MT) and
the Middle East (3,269 MT).

During the last four seasons these three markets have
experienced continual growth, while North America has
remained an insignificant market for Chile’s walnut
exports.
This year the difference has been marketed by a presence
in the Far East, whose shipments have grown from 25 MT
in 2011/12 to 3,868 MT in the 2012/13 season so far. This
is explained mainly by the opening of the South Korean
market for shelled walnuts, which was confirmed in the
beginning of the year.
Best Regards,
Luis O. Benavente
CEO
CORPORATE ITC
Phone/WhatsAPP: +56 9 71572892
www.corporateitc.com