SITUATION OF THE CANOLAINDUSTRY IN MEXICO

SITUATION OF THE CANOLAINDUSTRY IN MEXICO

March 22nd 2004March 22nd 2004

CONTENTS

HISTORY OF CANOLA PRESENCE IN MEXICO

MILLING AND REFINING CAPACITY IN MEXICO

DOMESTIC PROD. AND IMPORTS OF SEEDS, OILS AND FATS, CYCLE 2002

LOCATION OF MEXICO’S OIL INDUSTRY

CANOLA IMPORTS, 1995 - 2002

NATIONAL PRODUCTION OF OIL SEEDS IN MEXICO, 1980 - 2003

FINAL USES OF DIFFERENT EDIBLE VEGETABLE OILS

HISTORIC BEHAVIOR OF EDIBLE OILS AND FATS IN MEXICO, 1996 - 2002

DISTRIBUTION OF CONSUMPTION OF OILS AND FATS, CYCLE 2002

EVOLUTION OF CONSUMPTION OF OILS, FATS AND PROTEINS, 1991 - 2002

HISTORY OF CANOLA IN MEXICOHISTORY OF CANOLA IN MEXICO

Inicio Siguiente

• In the year 1985, oil companies in Mexico began to work In the year 1985, oil companies in Mexico began to work with the canola seed. The first were Exportadora Jalisco and with the canola seed. The first were Exportadora Jalisco and Industrias Ragasa, each importing one vessel during that Industrias Ragasa, each importing one vessel during that year. year.   

• The third company was Aceitera la Junta in the year 1986, The third company was Aceitera la Junta in the year 1986, and later other companies, such as and later other companies, such as Aceites, Grasas y Aceites, Grasas y Derivados, Industrial Aceitera, Fábrica de Jabón la Corona, Derivados, Industrial Aceitera, Fábrica de Jabón la Corona, etc. followed suit.etc. followed suit.  

• In the year 1988, rapeseed was imported from In the year 1988, rapeseed was imported from Australia, Australia, Poland, Denmark, England, Germany and France.Poland, Denmark, England, Germany and France.  

• In the yearIn the year 2001, two vessels were imported from France, 2001, two vessels were imported from France, two from germany and two from Poland.two from germany and two from Poland.  

• In the year 1985, oil companies in Mexico began to work In the year 1985, oil companies in Mexico began to work with the canola seed. The first were Exportadora Jalisco and with the canola seed. The first were Exportadora Jalisco and Industrias Ragasa, each importing one vessel during that Industrias Ragasa, each importing one vessel during that year. year.   

• The third company was Aceitera la Junta in the year 1986, The third company was Aceitera la Junta in the year 1986, and later other companies, such as and later other companies, such as Aceites, Grasas y Aceites, Grasas y Derivados, Industrial Aceitera, Fábrica de Jabón la Corona, Derivados, Industrial Aceitera, Fábrica de Jabón la Corona, etc. followed suit.etc. followed suit.  

• In the year 1988, rapeseed was imported from In the year 1988, rapeseed was imported from Australia, Australia, Poland, Denmark, England, Germany and France.Poland, Denmark, England, Germany and France.  

• In the yearIn the year 2001, two vessels were imported from France, 2001, two vessels were imported from France, two from germany and two from Poland.two from germany and two from Poland.  

MILLING AND REFINING CAPACITY IN MEXICOMILLING AND REFINING CAPACITY IN MEXICO

Inicio Siguiente

PERCENTAGE OVER INSTALLED MILLING AND REFINING CAPACITY BY FEDERAL ENTITY IN TONS PER MONTH

No. companies

Federal entity

Tons/mo Milling

Tons/mo Refining

% Monthly refining

% Monthly Milling

Coahuila

D.F.

Durango

Guanajuato

Jalisco **

México

Michoacán

Nuevo León

Hidalgo

Puebla

Sinaloa

Sonora

Tamaulipas

Veracruz

Yucatán

Coahuila

D.F.

Durango

Guanajuato

Jalisco **

México

Michoacán

Nuevo León

Hidalgo

Puebla

Sinaloa

Sonora

Tamaulipas

Veracruz

Yucatán

1

5

1

1

16

5

2

5

2

2

3

5

3

1

3

1

5

1

1

16

5

2

5

2

2

3

5

3

1

3

-

1.12

4.50

4.50

29.69

7.05

0.67

7.64

6.75

4.05

3.51

7.20

6.07

8.25

9.00

-

1.12

4.50

4.50

29.69

7.05

0.67

7.64

6.75

4.05

3.51

7.20

6.07

8.25

9.00

-

7,500

30,000

30,000

198,000

47,000

4,500

51,000

45,000

27,000

23,400

48,000

40,500

55,000

60,000

-

7,500

30,000

30,000

198,000

47,000

4,500

51,000

45,000

27,000

23,400

48,000

40,500

55,000

60,000

2,400

7,800

-

-

63,600

83,000

12,000

5,700

14,000

3,300

-

10,500

-

20,000

4,000

2,400

7,800

-

-

63,600

83,000

12,000

5,700

14,000

3,300

-

10,500

-

20,000

4,000

1.06

3.45

-

-

28.10

36.68

5.30

2.52

6.18

1.46

-

4.64

-

8.84

1.77

1.06

3.45

-

-

28.10

36.68

5.30

2.52

6.18

1.46

-

4.64

-

8.84

1.77

100.00

ANNUAL

TOTAL 666,90055 226,300

8,002,800

100.00

2,715,600

Enero 31,2002

** Extension that will be finalized in the second semester of this year

LOCATION OF MEXICO’S OIL INDUSTRYLLOCATION OF MEXICO’S OIL INDUSTRYL

Inicio Siguiente

DOMESTIC OIL SEED PRODUCTION IN MEXICO 1980-2003DOMESTIC OIL SEED PRODUCTION IN MEXICO 1980-2003

OIL SEED Thousands of tons

YEAR

SESAME COTTON SAFFFLOER

SOY BEAN PALM TREE OIL

TOTAL PER YEAR

19801980 137137 572572 480480 322322 -- 15111511

19811981 6767 508508 339339 707707 -- 16211621

19821982 3737 313313 239239 649649 -- 12381238

19831983 8787 465465 277277 688688 -- 15171517

19841984 6363 454454 209209 685685 -- 14111411

19851985 7575 317317 152152 929929 -- 14731473

19861986 5959 226226 161161 709709 -- 11551155

19871987 5151 414414 219219 828828 -- 15121512

19881988 3434 491491 247247 226226 -- 998998

19891989 4646 257257 142142 992992 -- 14371437

19901990 6060 293293 159159 575575 -- 10871087

19911991 3737 307307 8888 725725 -- 11571157

19921992 2323 9292 4141 594594 -- 750750

19931993 2222 3939 5959 499499 -- 619619

19941994 4040 140140 6464 569569 -- 813813

19951995 3838 262262 114114 135135 -- 549549

19961996 3232 323323 182182 5858 -- 595595

19971997 3535 260260 200200 120120 -- 615615

19981998 2929 350350 170170 118118 -- 667667

19991999 2525 215215 250250 5555 -- 545545

20002000 3434 107107 8585 7575 -- 301301

20012001 2525 115115 110110 6262 3030 342342

20022002 1818 6868 5353 7777 3030 246246

20032003 2222 9494 9393 9595 3232 336336

( 2) TOTAL ( 2) TOTAL

SESAME COTTON SAFFFLOWER

SOY BEAN PALM TRESS OIL

TOTAL PER HARVEST

1,096 6,682 4,133 10,492 92 22,495

ANNUAL AVERAGE

45.6 278.4 172.2 437.2 30.6 964

Inicio Siguiente

Thousands of tonsThousands of tons

DOMESTIC OILSEED PRODUCTION IN MEXICO 1980-2003DOMESTIC OILSEED PRODUCTION IN MEXICO 1980-2003

DOMESTIC PRODUCTION THOUSANDS OF TONS

IMPORTSTHOUSANDS OF TONS

DOMESTIC PROD. PLUSIMPORTS IN THOUSANDS

OF TONS

SEEDSOILS

AND FATSMEALS SEEDSSEEDS

OILSAND FATS

OILS AND FATS

MEALS MEALS

SUBTOTAL

OUTPUT

OILS AND FATS

SUBTOTAL

MEAL, FLOUR AND BRAN

SUBTOTAL

T O T A L

484.6

0

0

484.6

240.8

23.4

0

264.2

170.7

125.2

0

295.9

5,398.8

0

0

5,398.8

1,125.7

1,236.6

0

2,362.3

3,902.6

0

1,031.1

4933.7

5,883.4

0

0

5,883.4

1,296.4

1,361.8

0

2,658.2

4,166.7

0

1,031.1

5,197.8

FOREIGN DEPENDENCEIN SEEDS = 92% OILS AND FATS = 89% MEALS = 95%

DOMESTIC PRODUCTION AND IMPORTS OF SEEDS, OILS AND FATS, CYCLE 2002

DOMESTIC PRODUCTION AND IMPORTS OF SEEDS, OILS AND FATS, CYCLE 2002

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CANOLA IMPORTS, 1995 - 2003CANOLA IMPORTS, 1995 - 2003

Inicio Siguiente

Canola s imports in the last nine years:Canola s imports in the last nine years:  

YEAR AMOUNT 1995 558,101558,101

1996 522,094522,094

1997 52,70252,702

1998 682,888682,888

1999 866,398866,398

2000 1'004,2301'004,230

2001 885,280885,280

2002 623,900623,900

2003 602,260602,260

BEHAVIOR OF EDIBLE OILS AND FATS IN MEXICO, 1996 - 2002BEHAVIOR OF EDIBLE OILS AND FATS IN MEXICO, 1996 - 2002

Inicio Siguiente

PRODUCT 1996 1997 1998 1999 2000 2001 2002

SOY BEAN 652,868652,868 721,905721,905 737,068737,068 763,500763,500 825,222825,222 906,615906,615 997,341997,341

COTTON 56,89556,895 49,94249,942 62,71562,715 66,21666,216 64,96364,963 77,98077,980 63,61463,614

COCONUT 83,33183,331 73,60773,607 90,14290,142 75,17575,175 96,16896,168 77,40977,409 74,22274,222

SAFFLOWER 69,16069,160 70,30070,300 64,60064,600 95,00095,000 29,75029,750 41,03641,036 21,92121,921

CANOLA 243,365243,365 215,029215,029 391,725391,725 421,939421,939 467,647467,647 415,557415,557 275,778275,778

SUNFLOWER 327,025327,025 288,326288,326 181,046181,046 190,649190,649 177,478177,478 61,49961,499 21,09021,090

CORN 36,62036,620 52,74952,749 56,66856,668 57,13657,136 78,42578,425 113,716113,716 140,038140,038

PALM TREE OIL

79,31479,314 98,03798,037 78,42378,423 89,11989,119 128,003128,003 173,953173,953 191,993191,993

PALM TREE R.

35,76435,764 34,95034,950 13,90513,905 9,3159,315 11,63911,639 -- --

PALMISTE -- -- -- -- -- -- 1,1811,181

FISH 69,20769,207 55,35055,350 908908 57,23257,232 79,64779,647 16,85016,850 7,4087,408

FLAX 2,2092,209 2,5232,523 2,8422,842 3,1253,125 4,1504,150 5,4095,409 3,0333,033

OLIVE -- -- -- 2,950-2,950- 4,4454,445 6,6576,657 8,6418,641

ALMOND -- -- -- 42,58042,580 39,94639,946 40,49040,490 53,40053,400

SESAME -- -- -- 17,34817,348 28,45828,458 25,02425,024 16,83016,830

PEANUT -- -- -- -- 45,75945,759 46,07146,071 50,77350,773

EPOXY -- -- -- -- 114,316114,316 117,822117,822 120,319120,319

OTTHER OILS

-- -- -- 138138 843843 938938 270270

SUBTOTAL 1,655,758 1,662,718 1,680,042 1,891,422 2,196,859 2,127,026 2,047,852CONTINUA...

Thousands of TonsThousands of Tons

Inicio Siguiente

1996 1997 1998 1999 2000 2001 2002

DOMESTIC AND IMPORTEDTALLOW

235,891 230,837 320,640 360,348 357,881 365,301 417,149

DOMESTIC AND IMPORTED SHORTENING

31,475 28,761 28,041 71,892 66,630 70,640 76,838

SUBTOTAL 267,366267,366 259,598259,598 348,681348,681 432,240432,240 424,511424,511 435,941435,941 493,987493,987

OTHER OILS AND FATS

159,366 171,971 183.681 53,185 84,964 86,212 116,388

TOTAL 2,082,502,082,5044

2,094,282,094,2877

2,211,7802,211,780 2,376,8472,376,847 2,706,332,706,3344

2,649,1792,649,179 2,658,2272,658,227

Thousands of TonsThousands of Tons

BEHAVIOR OF EDIBLE OILS AND FATS IN MEXICO, 1996 – 2002 (2)BEHAVIOR OF EDIBLE OILS AND FATS IN MEXICO, 1996 – 2002 (2)

FINAL UTILIZATION OF DIFFERENT EDIBLE VEGETABLE OILS, CYCLE 2002

FINAL UTILIZATION OF DIFFERENT EDIBLE VEGETABLE OILS, CYCLE 2002

Inicio Siguiente

PRODUCT TOTAL OILS

BOTTLE SHORTENING

BULK EXPORTS BALANCED FOODS

SOAPS INDUSTRIAL

USE

PAINTS OTHER USES

NATURALCONSUMP

TION

SOY BEAN

997,341 421,647

277,414 113,494

3,536 131,250 - - 50,000 - -

SAFFLOWER

21,921 3,430 - - 18,491 - - - - - -

COTTON 63,614 - 24,506 - 21 39,087 - - - - -

COCONUT

74,222 - 23,432 - 556 - 44,765 2,750 - 2,719 -

CORN 140,038 139,680

- - 358 - - - - - -

SESAME 16,830 - - - 3.377 - - - - 1,500 11,953

CANOLA 275,778 275,754

- - 24 - - - - - -

SUNFLOWER

21,090 17,088 - - 348 3,654 - - - - -

PEANUT 50,773 - - - - - - - - - -

PALM TREE OIL

191,993 - 100,325 91,000 668 - - - - - -

PALMISTE

1,181 - - - - - 1,181 - - - -

ALMOND 53,400 - - 20,475 - - 32,925 - - - -

FISH 7,408 - 7,408 - - - - - - - -

FLAX 3,033 - - - - - - - 3,033 - -

OLIVE 8,641 8,574 - - 67 - - - - - -

EPOXY 120,319 - - - 672 119,647 - - - - -

OTHER OILS

270 - - - - - - - - 270 -

TOTAL 2,047,852 866,173

433,085 224,969

28,118 293,638 78,871 2,750 53,033 4,489 62,726

Thousands of TonsThousands of Tons

CONSUMPTION DISTRIBUTION OF OILS AND FATS, CYCLE 2002CONSUMPTION DISTRIBUTION OF OILS AND FATS, CYCLE 2002

Inicio Siguiente

PRODUCT TONS PERCENTAGE

BOTTLED OIL 866,173 32.58 %

OIL AND FAT FOR SOAPS AND OTHER USES

467,643 17.59 %

OIL FOR SHORTENING 433,085 16.29 %

OIL FOR BALANCED FOODS 293,638 11.05 %

OIL AND FAT FOR HUMAN CONSUMPTION

275,484 10.36 %

OIL IN BULK 224,969 8.46 %

OIL AND FAT FOR EXPORTS 97,235 3.66 %

TOTAL 2,658,227 100.00 %

Miles de ToneladasMiles de Toneladas

Inicio Siguiente

TOTAL DOMESTIC AND IMPORTED

YEAR SEEDS OILS AND FATS FLOUR AND MEAL

1991 3,341,570 1,741,004 2,792,161

1992 3,619,821 1,848,065 3,194,798

1993 3,476,741 1,732,429 2,859,576

1994 3,646,735 1,804,521 3,152,717

1995 3,562,035 1,808,165 2,464,705

1996 4,681,999 2,082,504 3,550,434

1997 4,797,485 2,094,287 3,555,252

1998 5,116,025 2,211,780 3,612,391

1999 5,518,362 2,376,709 4,496,842

2000 5,909,997 2,706,334 4,637,370

2001 6,373,429 2,649,179 5,219,409

2002 5,883,400 2,658,227 5,197,887

OVER...

Thousands of TonsThousands of Tons

EVOLUTION IN OIL, FAT AND PROTEIN CONSUMPTION 1991 – 2002 EVOLUTION IN OIL, FAT AND PROTEIN CONSUMPTION 1991 – 2002

EVOLUTION IN OIL, FAT AND PROTEIN CONSUMPTION 1991 – 2002 (2)EVOLUTION IN OIL, FAT AND PROTEIN CONSUMPTION 1991 – 2002 (2)

Inicio Siguiente

VARIANCE (%) BASIS 1991

YEAR SEEDS OILS AND FATS FLOUR AND MEAL

1992 8.3270 % 6.1494% 14.42.3 %

1993 4.1349 % -0.4925 % 2.4144 %

1994 9.1324 % 3.6483 % 12.9132 %

1995 6.5976 % 3.8576 % -11.7277 %

1996 40.1137 % 19.6251 % 27.1572 %

1997 43.5698 % 20.2919 % 27.3298 %

1998 53.1024 % 27.0405 % 29.3762 %

1999 65.1428 % 36.5137 % 61.0524 %

2000 76.8629 % 55.4467 % 66.0853 %

2001 90.7316 % 52.1639 % 86.9308 %

2002 76.0669 % 52.6836 % 86.1600 %

Thousands of TonsThousands of Tons