Pine Nuts & Peanuts Round Table Presentation Agenda

Antitrust Statement: The fundamental purpose of this session is for the participants to discuss 1. Introduce team members different aspects of the nut and dried fruit industry. It is the policy and practice of the INC Foundation to 2. Pine nuts team members introduce the situation conduct all its meetings and activities in strict of current market compliance with antitrust and competition laws. There shall be no discussions of competitively 3. Discuss present problems of the pine nuts sensitive information, including but not limited to prices, rates, coverage, market practices, claims 4. Question and answer settlement practices, customers or any other 5. Peanut team members introduce the situation of competitive aspect of an individual company’s operation. INC participants to this meeting commit peanut market not to enter into any agreements between undertakings, decisions by associations or 6. Discuss the main problems of peanut industry undertakings and concerted practices which may affect trade and which have as their object or effect 7. Question and answer the prevention, restriction or distortion of competition within the internal market. Each participant is obligated to prevent any discussion from falling outside these bounds.

Copyright Notice: All images used in this presentation are for educational purposes only. They are either in the public domain and not subject to copyright, or have been purchased. All images used in this presentation are the property of their respective copyright owners. 2 ESTIMATED WORLD PINE NUT PRODUCTION

XXXVII World Nut and Dried Fruit Congress. Sevilla, May 21-23, 2018 ESTIMATED WORLD PINE NUT PRODUCTION In-shell Basis · Metric Tons 2017/2018 2018/2019 BEG. TOTAL ENDING BEG. TOTAL ENDING COUNTRY CROP CROP STOCK SUPPLY STOCK STOCK SUPPLY STOCK FAR EAST RUSSIA 240 8,000 8,240 1,200 1,200 18,000 19,200 10,000 CHINA 20,000 10,000 30,000 27,500 27,500 10,000 37,500 7,500 NORTH KOREA 2,400 32,000 34,400 4,000 4,000 16,000 20,000 2,000 AFGHANISTAN 400 12,000 12,400 400 400 6,000 6,400 1,000 PAKISTAN 400 12,000 12,400 400 400 6,000 6,400 1,000 MONGOLIA 0 16,000 16,000 3,200 3,200 8,000 11,200 800 SUBTOTAL 23,440 90,000 113,440 36,700 36,700 64,000 100,700 22,300 MEDITERRANEAN (Pinus pinea) TURKEY 400 2,800 3,200 400 400 7,500 7,900 n/a ITALY 400 3,600 4,000 200 200 7,200 7,400 n/a PORTUGAL 400 1,000 1,400 200 200 3,500 3,700 n/a SPAIN 1,200 400 1,600 320 320 1,500 1,820 n/a OTHERS 0 400 400 0 0 160 160 n/a SUBTOTAL 2,400 8,200 10,600 1,120 1,120 19,860 20,980 0 WORLD TOTAL 25,840 98,200 124,040 37,820 37,820 83,860 121,680 22,300

WORLD CONSUMPTION (T. Supply - End. Stock) 86,220 99,380

Source: China Chamber of Commerce for Import and Export of Foodstuff abd other INC sources. 3 ESTIMATED WORLD PINE NUT PRODUCTION

XXXVII World Nut and Dried Fruit Congress. Sevilla, May 21-23, 2018 ESTIMATED WORLD PINE NUT PRODUCTION Kernel Basis · Metric Tons 2017/2018 2018/2019 BEG. TOTAL ENDING BEG. TOTAL ENDING COUNTRY CROP CROP STOCK SUPPLY STOCK STOCK SUPPLY STOCK FAR EAST RUSSIA 60 2,000 2,060 300 300 5,400 5,700 3,000 CHINA 8,000 4,000 12,000 11,000 11,000 4,000 15,000 3,000 NORTH KOREA 600 8,000 8,600 1,000 1,000 4,000 5,000 500 AFGHANISTAN 200 6,000 6,200 200 200 3,000 3,200 500 PAKISTAN 200 6,000 6,200 200 200 3,000 3,200 500 MONGOLIA 0 4,000 4,000 800 800 2,000 2,800 200 SUBTOTAL 9,060 30,000 39,060 13,500 13,500 21,400 34,900 7,700 MEDITERRANEAN (Pinus pinea) TURKEY 100 700 800 100 100 1,200 1,300 ITALY 100 900 1,000 50 50 1,440 1,490 PORTUGAL 100 250 350 50 50 700 750 SPAIN 300 100 400 80 80 300 380 OTHERS 0 100 100 0 0 40 40 SUBTOTAL 600 2,050 2,650 280 280 3,680 3,960 0 WORLD TOTAL 9,660 32,050 41,710 13,780 13,780 25,080 38,860 7,700

WORLD CONSUMPTION (T. Supply - End. Stock) 27,930 31,160

Source: China Chamber of Commerce for Import and Export of Foodstuff abd other INC sources. 4 CHINESE PINE NUT EXPORT IN LAST 10 YEARS CHINESE PINE NUT EXPORT IN LAST 10 YEARS

18.000 300 16.153 16.000 272,1 258,1 250 13.771 243,3 14.000 234,1 13.444 212,3 12.000 11.579 11.428 200 10.683 174,7 10.000 9.633 159,3 153,9 150 7.873 7.862142,9 8.000 7.027

6.000 100 81,5 4.194 4.000 48 50 2.000

0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Volume 7.873 4.194 7.862 7.027 9.633 11.579 10.683 11.428 13.444 13.771 16.153 Value 81,5 48 142,9 159,3 153,9 174,7 212,3 234,1 258,1 272,1 243,3

Volume Value Source: Chinese Customs 5 Unit: Tons; Millions CHINA PINE NUT EXPORTING COUNTRIES IN 2017

Others 10% France 3% Spain 3% German U.K 33% 5% German U.S. Nehterlands Australia 5% Italy Israel Australia Israel U.K 5% Spain France Others Italy 6%

Nehterlands 8% U.S. 22%

6 The Average Price of Chinese Pine nuts THE AVERAGE PRICE OF CHINESE PINE NUTS

PRICE Average

25.000

20.000

15.000

10.000

5.000

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 PRICE 10.358 11.458 18.189 22.668 15.976 15.085 19.875 20.481 19.201 19.761 15.059 Average 17.101 17.101 17.101 17.101 17.101 17.101 17.101 17.101 17.101 17.101 17.101

Unit: US Dollar per Ton Source: Chinese Customs 7 Chinese Import of Pine Nuts in 2017 Chinese Import of Pine Nuts in 2017

8 Outlook on Pine Nuts Production 2018

Regions Species Estimated Volume (Tons)

Red Pine Kernels 12,000

CHINA Japanese Stone Pine Kernels Mediocre Yunan Pine Kernels

Red Pine Kernels 12,000 Far East Region in Russia Cedar kernels comparatively small

DPRK Red Pine Kernels 4,000

Mongolia Siberian Stone Pine 2,000

9 Outlook on Pine Nuts Production 2018

 Yield of Chinese Red Pine pine nut price in 2018 will Kernels in the year 2018 will remain at a high level. be medium. The international and Chinese Far East Region in Russia domestic demand will shrink will witness a harvest year of and demand/supply will be Red Pine Kernels in 2018 balanced Red Pine kernels originated from DPRK are expected to reach 4,000 tons in 2018.

10 Outlook on Pine Nuts Production 2018

 The domestic need in Pine nut kernels price will Russian market are also remain at a high level which increasing in last several years, will lead to reduction of so the majority of Russian demand for Pine Nut and Pine nut are used for Pine nut kernels domestic, few of them export internationally and to China. domestically.

11 PEANUTS

12 ESTIMATED WORLD PEANUT PRODUCTION

XXXVII World Nut and Dried Fruit Congress. Sevilla, May 21-23, 2018 ESTIMATED WORLD PEANUT PRODUCTION In-shell Basis · 1000 Metric Tons 2017/2018 2018/2019 BEG. TOTAL ENDING BEG. TOTAL ENDING COUNTRY CROP CROP STOCK SUPPLY STOCK STOCK SUPPLY STOCK CHINA 868 18,500 19,368 27 27 16,500 16,527 43 INDIA 769 5,500 6,269 219 219 4,500 4,719 200 USA 654 3,530 4,184 1,219 1,219 3,000 4,219 800 NIGERIA 0 3,000 3,000 0 0 2,800 2,800 23 ARGENTINA 223 1,160 1,383 178 178 1,100 1,278 230 INDONESIA 80 1,130 1,210 85 85 1,100 1,185 45 SENEGAL 35 1,000 1,035 47 47 1,100 1,147 32 BRAZIL 102 457 559 104 104 617 721 98 VIETNAM 50 490 540 48 48 420 468 33 GHANA 0 440 440 0 0 320 320 2 NICARAGUA 20 200 220 26 26 200 226 21 MEXICO 23 110 133 23 23 100 123 20 SOUTH AFRICA 1 100 101 23 23 100 123 21 COTE D'IVOIRE 0 90 90 0 0 90 90 2 OTHERS 120 7,000 7,120 0 0 6,800 6,800 231 WORLD TOTAL 2,945 42,707 45,652 1,999 1,999 38,747 40,746 1,801

WORLD CONSUMPTION (T. Supply - End. Stock) 43,653 38,945

Source: China Chamber of Commerce for Import and Export Foodstuff and other INC sources. 13 Chinese Peanut Import Volume

14 Market Share of Major Peanut Producing Countries

15 Outlook on Chinese Peanut demand

With the Chinese economy transformation, domestic consumer will pay more attention to food’s nutrition and healthiness. Chinese Peanut enterprises should focus on developing and promoting new and healthy peanut products to better meet the demand of consumers.

16 Outlook on Chinese Peanut Trade

Decrease on domestic supply and Increase on domestic demand While continuing to be one of the world’s major peanut exporters, China will become a major peanut importer for many years.

17 Thank you !

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