Latin America

German DavalosNRA Convention

Santa Barbara, CA October 26, 2017

National Renderers Association

Fat Imports from USA (TMT)

Jan-Dec 2016 Latin America Jan-Aug 2016 & 2017

Mexico,

314, 82%

Central

A. 67,

17%

South A.,

3, 1%

384 TMT

Mexico Central A. South A.

199

39

3

216

3014

MEXICO CENTRAL A. SOUTH A.

Jan-Aug 16 Jan-Aug 17

Jan-Dec 2016 Jan-Aug 2017Animal Proteins TMT

Mexico

80

61%

Central A

11

8%

South A

40

31%

131 TMT Total

Mexico

100

61%

Central A.

20

12%

South A.

45

27%

165 TMT TOTAL

Central America U.S. Protein Meal Imports (TMT)Jan – Aug 2015 to 2017

5.6

14

11

0

2

4

6

8

10

12

14

16

Jan-Aug 2015 Jan-Aug 2016 Jan-Aug 2017

South America

40

86

29 30

2014 2015 2016 JAN-AUG 2017

2014, 2015, 2016, Jan-Aug 2017 (TMT) Chile - Imports from the U.S. – Animal Proteins

Jan – Aug 2017 Chile’s Imports of Animal Protein

64

39

3035

21

29

85

132

0

20

40

60

80

100

120

140

EU Mercosur USA World

TMT US$ Million

Ecuador Imports of U.S. Animal ProteinsJan-Dec 2014, 2015, 2016

Jan-Aug 2017

U.S. market share 96%

10.3

8.5

11.5

9.2

10.1

8.4

9.4

7.6

0

2

4

6

8

10

12

14

2014 2015 2016 Jan-Aug 2017

Volume TMT US$ Million

Colombia Protein Imports 2014 to 2016 and Jan – Jul 2017 (TMT)

U.S. Market share 14%

11

13

30

21

5

10

24

16

0.41.8

5

3

5

1.4

11.5

1.6

0

5

10

15

20

25

30

35

2014 2015 2016 Jan-Jul 2017

World Total Mercosur USA Spain

Peru Protein Imports 2014 to 2016 and Jan – Jul 2017 (TMT)

U.S. Market Share 58%

5.6

7.6

10.3

6

4.75.3

7.5

2.4

0.8

2.32.8

3.5

0

2

4

6

8

10

12

2014 2015 2016 Jan-Aug 2017

World Total Mercosur USA

Aquaculture

El Niño 2016 – Fish meal Production

Global fishmeal production reached its lowest level in forty years: 4 MMT

Peruvian production dropped to its second lowest level on record to reach 631 TMT - down 27% from 2015

Chilean production dropped by approximately 100 TMT to reach 214 TMT.

During the last 25 years, global fishmeal production has oscillated between 5 and 7 MMT per year

Estimate of total worldwide fishmeal supply (000 MT)

Global Aquaculture Alliance GOAL meeting in Dublin Oct. 3 to 6, 2017

Kevin Fitzsimmons from the University of Arizona, who heads up the F3 (Fish-Free Feed) Challenge:

“For the aquaculture industry to develop further, there is an urgent need to find alternative sources of protein... IFFO, the Marine Ingredients Organization, is reforming the fishmeal and fish oil industry by cutting out overfishing, illegal, unreported and unregulated (IUU) catch, forced labor and unsafe working practices, but these things serve to push up the cost of the product and ultimately to reduce the volume available.”

Main Aquaculture Producers in Latin America

Mexico

2017: shrimp production to reach almost 140,000 MT

2016: 128,000 MT

2013: production was 48,000 MT due to the effects of the early mortality syndrome.

The increase of 100,000 MT in four years was due to a change in genetic material imported from Ecuador.

Production is expected to continue to grow rapidly to reach 200,000 MT by 2020.

Chile

Salmon production in process of recovering the 100,000 MT lost as a result of the algae bloom in Q1 2016.

The algae destroyed 100,000 MT of salmon production capacity.

Approximately 60,000 MT were supposed to be harvested in 2016 and approximately 40,000 in 2017.

Full recovery expected in 2018

Worldwide Fish in:Fish out ratio (FIFO) Below 1 for salmonids for the first time in 2015

Ecuador shrimp production 2017 May reach a record 450 TMT

Skretting Owns three plants with 350 TMT capacity Fourth plant to start in 2018 with 470 TMT capacity to supply

Ecuador, Peru, Central A/Caribbean and the Middle East.

BioMar Purchased 70% of a local shrimp feed manufacturer $121 M. The plant’s current capacity of 120,000 MT will grow by 40 TMT in the next four or five years

Cargill Formed a joint venture with Ecuador’s second largest shrimp producer to build a $60 M feed facility to be finished in 2018 with capacity of 165 TMT

Zeigler In March 2016 launched a feed partnership with a local feed manufacturer. The operation has a production capacity of approximately 80 TMT of feed.

Petfood

Petfood

Between 2011 and 2016 Latin America’s pet care industry grew at average rate of 6%

Mexico is the second largest producer of petfood after Brazil with 930 TMT per year.

Petfood production grew by 11% in volume and 10% in value during 2016

As the Mexican petfood market matures, “premiumization” will accelerate, increasing demand for high quality ingredients

Currently, Mexico imports 50 TMT premium and super premium products, mainly from the U.S.

Thank you

297

41 54

413

87

48

MEXICO CENTRAL A. SOUTH A.

Jan-Aug 17 Jan-Dec 2016

Jan-Aug 2017 & Jan-Dec 2016 (TMT) Imports from the U.S. – All Rendered Products