Natalia Gobbee :ngobbee@exportaog.com www.exportaog.com www.ciasasa.com.ar

1. ARGENTINA:
BORN TO BE EXTRA VIRGIN
by Frankie Gobbee
ARGENTINIAN EXTRA VIRGIN OLIVE OIL
NASFT Seminar January 16th. California

2. Index
 Why Argentinian EVOO ?
 Quantitative potential
 Qualitative outstanding presence
 The AOG ( Argentina Olive Group) case
 Conclusions

3. Index
 Why choose Argentinian EVOO ?
 Quantitative potential
 Qualitative outstanding present
 The AOG case
 Conclusions

4. World Areas for Olive Production

5. EU’s increasing problems to be the main
supplier of Extra Virgin Olive Oil
 As probes of EU Extra Virgin fraude are increasing
 California OOC Report on imported EVOO
 Tom Mueller’s book “Extra Virginity”
 80% of EU is not prepared for EVOO logistics. It was
designed for high volume of non EVOO.
 With financial crisis the new PAC will decrease subsidies
for olive production.
 In counterseason, the acidity cannot be better than southern
hemisphere oils.

6. Why do we ignore the statistics about
Extra Virgin production in the EU ??
 IOC divides categories in Olive Oil and Virgin Olive oil but
not Extra Virgin. Why ??
 There is no reference
or price benchmark
for southern hemisphere
EVOO (i.e. Poolred, Bari)

7. Producers in the Southern Hemisphere
Argentina is the
Very few largest
countries produce producer of
EVOO in EVOO both in
counterseason. the Southern
Hemisphere
and in America

8. Australia
 Altough supply has increased it will
never match the domestic demand.
 Australia imports 30,000 ton from Spain
every year.
 Only very expensive and small exports.
 Limits to growth due to water
restriction.

9. Australia: Boundary Bend Case

10. Chile
 Argentina has five times the planted
acres of Chile. (46k acres vs 240k acres).
 Argentina can double current planted
acreage.
 Argentina exports 10 times more than
Chile (2,000 ton vs 20,000 ton).
 Chile does not have the capacity to
export large quantities of bulk EVOO.

11. Argentina

12. Index
 Why Argentinian EVOO ?
 Quantitative potential
 Qualitative outstanding present
 The AOG case
 Conclusions

13. Argentina: Land Availability at Most
Competitive Prices in Best Areas
 Best areas to produce olive oil from USD 1,000 per
acre with unlimited underground water
Can you find this in any other country ??

14. Argentina: the Largest Water Availability
 Due to the Andes mountain range, a ¨water factory¨ 200
miles long, which melts snow to underground mineral and
natural water every year.
Can you find this in
any other country ??

15. Production and Processing Capacity
 Excellent capacity of oil mills built during the last
fifteen years with state-of-the-art technology.
 As plantations are still young, there is still an
overcapacity of 30% remaining to press EVOO in
most of the top EVOO regions.

16. Index
 Why Argentinian EVOO ?
 Quantitative potential
 Qualitative outstanding present
 The AOG case
 Conclusions

17. Qualitative Outstanding Present
 90% of Argentinian olive oil is Extra Virgin.
 Every year Argentina sells all the oil that it produces.
 First producer and exporter of EVOO in America and the
Southern Hemisphere.
 First exporter of vegetable oils worldwide.
 Number one olive oil bottler in the Southern Hemisphere.
 Largest quantity of young plants planted with new genetic.

18. Best Logistics to Produce EVOO
All new factories are
inside the groves so there
is a short distance from
the olive trees to the press
Less than 24 hours from
the olive tree to the
Chilecito Valley. La Rioja, Argentina AOG All Pack mill
facilities

19. Process Designed for High Quality EVOO
HIGH QUALITY EVOO

20. State-of-the-art Technology in
Production, Processing and Conservation
High and medium density A 3-year old olive tree
orchards with drip irrigation and
mechanical harvest
Chilecito Valley. La Rioja, Argentina AOG All
Pack S.A. facilities

21. State-of-the-art Technology in
Production, Processing and Conservation
Drip fertilizer applications with sensors in
fruit and leaves
Chilecito Valley. La Rioja, Argentina AOG All Pack
facilities

22. State-of-the-art Technology in Production,
Processing and Conservation

23. Highly-recognized Experts, Human Resources
and Research Support
 The first Olive International Symposium to be held outside EU will be in
Argentina this year.
 Experts have postgraduate titles from most recognized olive related
universities in Spain, Italy and Israel.
 The only country in the Southern Hemisphere approved as a full and active
member of IOC (International Olive Oil Council).
 Active in IOC chemistry panels with recognized chemistry researchers as Marta
Melgarejo, Susana Mattar and Ariel Boedo.
 Argentine experts as Leandro Ravetti are leading the development of the new
Australian olive oil standards.
 Mechanical researchers with Argentine companies as Maqtec have developed
one of the most succesful olive mechanical harvesters (Colossus) selling more
than 120 machines in Australia, Europe and America.

24. Argentina: Olive Supply Chain Model
Harvest done with maturity index.
Organized harvest in different months due to different
varieties.
Less than 24 hours from tree to press.
Total national harvest takes 2 to 3 months (vs EU 5 to 6
months).
Almost NO rain during harvest season.
Ideal model to produce the best
EVOO. 90% of Argentinian oil
produce is EVOO

25. As a consequence, Argentina has increased
market share world wide.
Argentina: total exports Argentina: world market share
Source CIASA
Does anybody know the current
World market shares for EVOO
category?

26. Argentina has also rapidly increased market
share in the USA.
In only five
years
Argentina
grew 17X
from less
than 1% to
near 5%
becoming
the 4th
player after
Italy, Spain
and Tunisia
Source CIASA

27. The USA has rapidly become the first client to
Argentinian EVOO.
Argentinian Olive oil export markets
Chile Spain
1,7% 1,1% Others
3%
Uruguay
2% USA
60%
Brasil
31%
Source CIASA

28. Most olive oil multinational companies have started
investments in Argentina.
 Camacho: Leading spanish table olive group. Acquisition of company in Mendoza.
 Boundary Bend Australia: Greenfield investment in San Juan 4k acres.
 Sovena & Overseas Group: Sourcing offices in Argentina.
 Argenceres: Spanish group greenfield investment of 6k hectares.
 Borges group agreement with CIASA in Argentina.
 Chinese acquisition of 800 olive hectares in La Rioja.
 Almayate Spanish group acquired 4.5k acres olive hectares in San Juan.
 Musco Olives: US company of table olives. Major buyer of Argentinian table olives.
 Olive Ranch, an American investment group headed by Ralph Rybacki, invested $12
million in acquisition of a 2471 acre olive plantation in San Juan, Argentina.

29. Argentinian EVOO is well recognized in the
most quality demanding markets.
 Argentinian EVOOs have won quality prizes at
most international EVOO contests (Gold medals).
 Italy. Verona. Sol Óro High Quality Olive
Competition.
 Israel. Terraolivo Contest.
 California. Los Angeles Extra Virgin Olive Oil
Competition.
 Mendoza. Olivinus Extra Virgin Competition.
 Expolivo. Jaen, Spain.

30. Availability of broad mix of varieties to create
taylor-made blends for US customers.
Source CIASA

31. Argentina presents an opportunity for US EVOO
quality searchers.
 Argentina has demonstrated to have the quantity and the
quality to supply EVOO to demanding
customers.
 Still lacking awareness and
marketing investment.
 Opportunities for partnerships
in new markets.

32. Index
 Why Argentinian EVOO ?
 Quantitative potential
 Qualitative outstanding present
 The AOG case
 Conclusions

33. Argentina Olive Group (AOG)
 The largest EVOO group producer in the American continent.
 Founded in 2009, to supply major markets.
Owned by different producers.
 More than 24,420 acres.
 More than 10,080 acres of high density modern plantation.
 Coordinated by one person. Frankie Gobbee

34. AOG group has the capacity to process more
than 280 tons of EVOO per day.
80 + 80
ton/day
World class
technology
70 + 50 from
ton/day
Pieralisi
TOTAL ®, Alfa
280 Laval® and
ton/day Amenduni®

35. AOG group owns more than 2,000 ton of
capacity storage in the groves.
400 ton
HACCP
300 ton
Global Gap
Kosher
700 ton
T-CPAT
600 ton
ISSO
CODEX
2,000
ton

36. In 2011 AOG group more than doubled Chilean
exports. AOG expects a 3x growth for 2015.
AOG evolution of exports Chilean evolu on of exports
7000
7000
6000
6000
5000
5000
4000
4000
3000
3000
2000
2000
1000 1000
0 0
2010 2011 2012 2013 2014 2015 2016 2005 2006 2007 2008 2009 2010 2011

37. AOG offers a wide variety of flavours and
blends depending on each client.
Maurino Changlot Arbossana
Barnea
Arbequina
Picual
Hojiblanca Frantoio
Manzanilla
Coratina

40. What makes AOG a success?
 Quantity in order to  One-year contracts to
satisfy high-volume ensure EVOO volume
customers. for bottling plants in the
US.
 Possibility to make  Simplicity: only one
different premium person to deal with.
blends.

41. Index
 Why Argentinian EVOO ?
 Quantitative potential
 Qualitative outstanding present
 The AOG case
 Conclusions

42. WHY BORN TO BE EXTRA VIRGIN?
 90% of Argentinian olive oil is Extra Virgin
 # 1 producer and exporter of EVOO in America
and the Southern Hemisphere
 # 1 exporter of vegetable oils worldwide
 # 1 olive oil bottler in the Southern Hemisphere
 # 4 supplier to US & increasing
 Largest quantity of young plants planted
 New genetics & state of the art technology
ARGENTINA will be one of the main
EVOO suppliers to the USA.

43. Frankie Gobbee
General Coordinator of AOG
Director Comercial CIASA
:fgobbee@exportaog.com