A Sugal Group Company ¡¡

Growing Sustainable ¡¡¡

Our Challenge¡¡

World Tomato CongressItaly – June 2014

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Who we are?

• Sugal Chile , since 2012 is part of Sugal Group ( tomato factories in Portugal (2) , Spain (1),Chile

• Our group process annually 1.200.000Mtons of Tomatoes / Sugal Chile 500.000 MTons

• Located in two productive regions (in thecentral area of Chile) – Sugal Chile has 2processing facilities one in Tilcoco and theother in Talca city.

• Tilcoco Plant : 4.000tons daily Tomatoes• 1.000tons daily Fruits

• Talca Plant : 3.500 tons daily

• More than 5.300 has.

• Our tomato season : 90 days…

• 230 farmers (annual contract, Our economicaland technical support)

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Where we are?

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What we do?

Our Production season :• Fruits: from December till July.• Tomato: from January till April

About Tomato Paste, • Different Process: Hot break and Cold break• Different Categories: Baby Food Grade and Conventional.

• We export 95% of our production. Industrial Use ( bins and drums)

• We Sell our products in more than 35 Countries , 5 continents¡¡¡

Chile: Free Trade Agreements Countries :                 60        ,note :  Also average import duty in Chile is 1%....

Market :              4.302 Millions of people

This is World GDP              86%

Source: Chilealimentos A.G. 5

• In 2050 our population will be over 9 billion¡¡

• World Average Income per capita is expected to triple

• To feed this people , farmers have to increase global foodproductions by at least 70% to almost double

• All this grown should be done , thinking also in the followings30 or 50 years more…and more …and

• This is a Big Challenge for all of us¡¡¡¡¡

That’s why Sugal Group, is working every day , with our clients

and farmers in order to be part of a sustainable world!!!6

Sustainability¡¡

Agricultural : WATER – SOIL- RESIDUES ¡¡¡¡¡

• Sustainable Agriculture and also profitable …:

• We have contracts with more than 230 farmers, ( financing and technical)

• Chile still using traditional Irrigation systems in annual crops like tomatoes.• Our average yield per hectare is 95 Mtons• Study trips with our farmers ( USA / Europe) …

• Since 2 years ago we started a program to use drip irrigation : Today 20% of our surface¡¡

•Using 45% less water But Also increasing the yield to 120 MTon/ha. ( with drip)¡¡ only one way to compete with cost

against others crops ,

• Less fertlizer … -> Cost reduction 20%...

• We take care of Biodiversity through monitored pest control, in this way the usage of agro-chemicals is optimizing and applied

in the correct moment and quantity. 25% lcost reduction…

• Also this build Commercial advantages and preferences…Certified by Unilever ¡

Company as a Sustainable supplier.

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What we are doing today ?

Quality of Life / Social concern: “To Satisfy ours families and community needs for health, safety, food and happiness”

Internal / Employees:

Health Insurance as economical support to our employees and their families.

• Scholarships for our employees and their children's.• Safe working areas, adequate Food for our employees, monitored by nutritionists.• Ongoing training for our employees.• Hospitals and Universities : Agreements about education and for the benefit of our workers and their families .• Contributions to kindergarten schools, so this way our employees can use it and work easy knowing their childrenare well and good care.• Recreation and integration among our employees and their families.

External / Our community:

• agreements with universities to offer job options in our company.• contributions to charities in the area where our plants are located.• opening our factories to the community by showing them what, how, with whom and for whom we work for.• We promote human rights : no discrimination, we work with our farmers in order they do not hire childrens in

the fields.

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What we are doing today ?

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Environmental: “To enhance finite soil, water, air and other resources”

• Sustainable Operation on Factories:

• Working together with the Chilean Food Processors Association (

Chilealimentos) in a common project of “clean production”, the industry reduced

water consumption, going from 57m3 to 14 m3 x Ton in the last 9 years.

• Using biomass coming from our own process we achieve to reduce the impact

over the environment avoiding to send some waste out of the factory and

decreasing the consume of oil. So we have a reduction in “Carbon footprint”

• Water treatment plants, which permits us to re-use 65% of the water, and also we

use the organic waste as soil improver.

• reusing package materials of our products (wooden, plastic, drums).

What we are doing today ?

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Economic: “To be profitable”

• We are improving our yields and productivitiesthrough better planning of agricultural and operationalmanagement.

• The last 5 years our yields went from “77” to“95” tons per hectare.• this is 20 % better than 5 years ago.

• Our energetic costs had decreased in 20 % in 3 years

• Working with our main customers in sustainabilitymatters to grow together.

What we are doing today?

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The near Future !!!

OUR NEAR FUTURE PLAN…..: To keep working with our partners, customers and suppliers in the sustainabilityof our bussines,…..because we want to be a competitive company and active part in the life of this bussines.

Our action plan is focused in…

• To create consciousness about the concept in all our environment : showing how developing our own tomato fields to ourfarmers !

• Continue with our improvement of optimizing usage of water, promoting the alliance with the rest of the Chilean industry.

• Improving even more the relationship with our farmers (heart of our business). Giving them support, assistance andknowledge to continue growing together.

• In terms of figures, increase our yields from the current 95Mton to 120 Mton/Ha in 4 years… PROFIT for VOLUME

• Continue looking for better productivity and optimize energy consumption.

As summary:

Always looking for new options to be on line with the mother earth and people needs!!

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THANK YOU¡¡¡

WWW.SUGAL-GROUP.COM