Argentina: Current and Possible Growth of Oilseed Crushing and Exports

Tivoli, Sao Pablo, 17 September 2014

María Marta RebizoManager of Economic and Business Affairs of CIARA and CEC

mm_rebizo@ciaracec.com.ar

Members of CIARA and CEC

1 ACEITERA GENERAL DEHEZA S.A. 27 GRANELES DE ARGENTINA S.A.2 ACSA S.A. 28 ISAURA S.A.3 ADECO AGROPECUARIA S.A. 29 L.D.C. ARGENTINA S.A4 ADM ARGENTINA S.A. 30 LA OLEAGINOSA DE HUANGUELEN S.A5 AGRICULTORES FEDERADOS ARG 31 LA PROVIDENCIA AGRICOLA GANADERA SRL6 AGRO URANGA S.A. 32 LARTIRIGOYEN Y CIA S.A.7 AGROTECNOLOGIA Y SERVICIOS S.A. 33 LIAG ARGENTINA S.A.8 ALEA Y CIA S.A. 34 LOS GROBO AGROPECUARIA S.A.9 ALFRED C. TOEPFER INTERNATIONAL ARG. SRL 35 MAN AGRO S.A.

10 AMAGGI ARGENTINA S.A. 36 MOLINO CAÑUELAS S.A.11 ANDREOLI S.A. 37 MOLINOS RIO DE LA PLATA S.A.12 ASOCIACION COOPERATIVAS ARGENTINAS 38 MSU S.A.13 BUNGE ARGENTINA S.A. 39 MULTIGRAIN ARGENTINA S.A.14 BUYATTI S.A. 40 NIDERA S.A.15 CANTABRIA S.A. 41 NOBLE ARGENTINA S.A.16 CARGILL S.A. 42 OLEAGINOSA MORENO HNOS.17 CGG TRADING ARGENTINA S.A. 43 PRODUCTOS SUDAMERICANOS18 CHS DE ARGENTINA S.A. 44 QUEBRACHITO GRANOS S.A19 CIA ARGENTINA DE GRANOS 45 SEDA20 CRESUD SACIFYA 46 TANONI HNOS S.A21 CURCIJA S.A. 47 TILO PAMPA S.A.22 E.R.ZENI Y CIA S.A. 48 TOMAS HNOS Y CIA SA23 E-GRAIN S.A. 49 UNIVERSAL GRAIN ARGENTINA S.A.24 EL TEJAR SA 50 VICENTIN S.A.

25 GEAR S.A.26 GLENCORE S.A.

Content

1. Argentina World Leader in important commodities

2. The export and processing cluster of “Big Rosario”

3. Big Investments in crushing facilities and ports

4. Current crushing capacity and used capacity

5. Projection of crushing of oilseed in next years

6. Projection of exports of grain and oilseed products in next years

7. Port capacity

8. Some challenges to increase production and exports

World Market Share 2013 (%)

Argentina Position

Leader Country

SOYBEAN OIL 68% 1st. Argentina

SOYBEAN MEAL 52% 1st. Argentina

SUNFLOWER OIL 9% 3rd Ukraine

SUNFLOWER MEAL 9% 3rd. Ukraine

PEANUT OIL 28% 2nd. Brazil

PEANUT MEAL 12% 2nd. Senegal

SOYBEAN 9% 3rd. USA

WHEAT 5% 8th USA

CORN 20% 3rd. Brazil

SORGHUM 46% 1st Argentina

BARLEY 17% 2nd Australia

Source: Oil World and IGC

Argentina, World Leaderin important commodities

Fuente: CIARA

The Export and processing cluster of “Big Rosario”

The world

biggest

industrial

concentration

and the most

efficient close

near production area.

In a radius of 300 Km from Rosario

Corn 35% of production

wheat 35% of production

Soybean 50% of production

Crushing Capacity 80% of National Total

Ports 90% of oils and meal

proteins exports

Fuente: CIARA

Exports by ports(Grains, Protein Meals and Veg. Oils – 2013)

GRAINS EXPORTED BY PORTS - 2013 (Metric Tons)

WHEAT CORN SOYBEAN OTHERS TOTAL

Big Rosario 1.205.628 16.190.945 1.778.177 2.652.482 21.827.232

Total Arg. 2.444.179 19.500.458 7.630.471 5.553.893 35.129.001

PROTEINS MEALS EXPORTED BY PORTS - 2013 (Metris Tons)

SOYBEAN MEAL

SUNFLOWER MEAL MALT OTHERS TOTAL

Big Rosario 23.168.121 289.077 215.380 2.852 23.675.430

Total Arg. 24.026.096 324.259 519.620 2.852 24.872.827

VEGETABLE OILS EXPORTED BY PORTS - 2013 (Metric Tons)

-SUNFLOWER

OILSOYBEAN

OILPEANUT

OIL OTHERS TOTAL

Big Rosario 178.946 4.204.561 29.800 32.678 4.445.985

Total Arg. 284.364 4.491.148 29.800 40.178 4.845.490

62%

95%

92%

Fuente: CIARA

USD 700 MM

USD 770 MM

USD 2700 MM

1994 -1998 2003-2006Investment

Stock

USD 1230 MM

2007 -2012

Big Investments in crushing facilities and ports

(in millions USD)

In 2014 the daily crush capacity reaches 196.381 ton, near equiv. to 59 MM ton/year

10 MAIN COMPANIES (DAILY CRUSH CAPACITY IN TONS)

MOLINOS RIO DE LA PLATA 21.500 ACEITERA GRAL. DEHEZA 20.000San Lorenzo 20.000 T6 10.000

Rosario 1.500 Aceitera Chabás 4.000

VICENTIN 20.500 Gral Deheza 6.000

Oleaginosa San Lorenzo 10.000 NOBLE 9.500Pto San Lorenzo 6.500 Timbúes 9.500

San Lorenzo 4.000 BUNGE ARGENTINA 24.200

LOUIS DREYFUS COMPANY 20.000 Ramallo 3.000

Gral Lagos 12.000 T6 10.000

Timbúes 8.000 Pto San Martín 8.000

NIDERA 11.000 San Jerónimo Sur 2.200

Saforcada-Junin 4.500 Tancacha 1.000

Pto. San Martín 6.500 CARGILL 26.200

GLENCORE 5.150 Pto Quequen 2.000

Daireaux 1.800 Ing. White 2.200

General Villegas 2.000 Pto. Quebracho 9.000

Quequen 1.350 V. Gob. Gálvez 13.000

RENOVA 20.000 TOTAL 178.050

26 plants

represent the

91% of Total

Crushing Cap.

and 16 are in

the “Big

Rosario”

cluster (77%)

58,914,300 58,914,300

36,921,070

54,546,000

54,430,032

69,371,000

0

10,000,000

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Installed Capacity

Crushing

Grain Production

Fuente: CIARA

Crushing: Projection for the next years (in MT)

Source: Projection of grain production and crushing from ERAMA 2022, Fundación INAI

37% Idle Cap.

9% Idle Cap.

Additionally, the crushing can increase nearly 3 MM tons if it allow to use the

temporary addition system.

+ 48%

Crushing

Exports: Projection for the next years

Source: ERAMA 2022, Fundación INAI

+ 23 % in

grains and

meals

+ 47 % in

oils

68,729

84,568

40,254

46,857

2,383

7,480

19,917 17,852

7,743 11,354

4,0996,028

21,763

37,036

1,355 1,9630

10,000

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Grains + Meals GrainsWheat CornSoybean Soybean OilSoybean Meal Biodiesel

+ 16 % in

grains

+ 70 % in

soy meal

Fuente: CIARA

Port capacity

– The average speed loading capacity is good ( 1.765 ton/hr in grains; 1229 ton/hr in meals and 668 ton/hr in oils).

– Taking into account the maximum load verified per month during last years and extending this during 12 month, Argentina can export 100 MM tones of grains and meals and 8MM tons of oils. Nearly 8,5 MM of grains and meals and 700 M of veg. oils. per month.

– The theoretical port loading capacity is bigger (20 MMT/month in grain and meals and more than 4 MMT/month in veg.oil.)

– To take advantages of the theoretical port capacity is necessary to increase the numbers of download platform to receive grains and improve the access to the plants and ports.

Fuente: CIARA

Some Challenges to increase production and exports

– Improve the “Belgrano Cargas” Train for the Argentine North-West and North-East production.

– Increase the Parana River draught to 36 feet from Timbues, in the North of Rosario, to River Plate. Maintain the draught in 10 feet in the North of the Hidrovía Paraná-Paraguay.

– Improve the energy supply.

– Improve the road network.

Thank you!María Marta Rebizo

mm_rebizo@ciaracec.com.ar