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Analysis and General Vision ofAnalysis and General Vision of

the Raspberry in North Americathe Raspberry in North America

2005 Chile Export AssociationBerries SeminarSantiago, Chile

June 21-22, 2005

Presented byJohn Shelford

President Global Berry Farms

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2

PERISHABLESGROUP

OutlineOutline

Fresh Raspberries

Recent Production History

Changing Production Origins

Growth

Outline

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PERISHABLESGROUP

NA Processed RaspberriesNA Processed Raspberries

North American Red Raspberries Production

0

20

40

60

80

100

120

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

Pounds(Million

Processed Fresh

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PERISHABLESGROUP

NA Processed RaspberriesNA Processed Raspberries

North American Processed

Red Raspberries Production

0

20

40

60

80

100

120

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Years

Pounds(Mi

lliion

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PERISHABLESGROUP

California Raspberry ProductionCalifornia Raspberry Production

20,880,00011,60001,8001999

21,600,00010,8002,0002000

25,070,00010,9002,3002001

29,280,00012,2002,4002002

61,500,00020,5003,0002003

66,560,00020,8003,2002004

TotalYieldAcres

Source: USDA

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PERISHABLESGROUP

Fresh Raspberries Weekly ShipmentsFresh Raspberries Weekly Shipments

Raspberry US Industry Supply in Cases

Source: USDA National Berry Repor t

-

100

200

300

400

500

600

44 45 4647 4849505152 1 2 3 4 5 6 7 8 9 101112 1314 151617 1819202122232425262728293031323334353637383940 41 4243

Thousand

Weeks

Cases

2002-2003 Industry 2003-2004 Total Industry 2004-2005 Industry

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PERISHABLESGROUP

Weekly FOB PriceWeekly FOB Price

Raspberry US Industry Average Price Per Case

Source: USDA National Berry Report

$-

$5

$10

$15

$20

$25

$30

$35

44 46 48 50 52 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42

Weeks

Price

perCase

2003 2004 2005

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PERISHABLESGROUP

Market ShareMarket Share

Raspberry Weeks 44-52,1-20 Analysis

Past 3 Seasons -- Source: USDA

WITH SUPPLY SHARE by ORIGIN %

0

1

2

3

4

5

6

7

2003 2004 2005

Millions

Cases

Califor nia Mexico Chile

48%

19%

33%

40%

24%

37%

35%

23%

42%

Growth: 15%

Growth: 18%

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PERISHABLESGROUP

Berry Category in SupermarketsBerry Category in Supermarkets

National Berry Dollar Sales - Convent ional & Organic

Combined by Berry Type

(average per week per store)

$147

$47$28$89

$846

$175

$39

$123

$242

$914

$310

$1,120

$64

$1,327

$165

$343

$84$165

$395

$1,297

Strawberries Blueberries Raspberries Blackberries

2000 2001 2002 2003 2004

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PERISHABLESGROUP

Berry Category in SupermarketsBerry Category in Supermarkets

National Berry Category Dollar Share

Conventional & Organic Combined by Berry Type

(average per week per store)

9.0%

2.9%

15.2%

73.3%

7.7%

2.4%

69.0%

18.3%

9.3%

2.9%

68.8%

19.0%18.0%

8.7%

69.7%

3.4%

66.7%

20.3%

8.5%4.3%

Strawberries Blueberries Raspberries Blackberries

2000 2001 2002 2003 2004

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PERISHABLESGROUP

Berry Category in SupermarketsBerry Category in Supermarkets

National Berry Category Contribution to Total Produce DollarsConventional & Organic Combined by Berry Type

(average per week per store)

4.5%4.4%

5.2%

5.7%6.0%

4.0%

3.2%

3.1%

3.6%4.0%

1.0%1.0%0.7%

0.8%

1.2%

0.5%0.4%0.5%

0.3%0.5%

0.1% 0.1% 0.2%0.2% 0.3%

0.0%0.0%0.0%0.0%0.1%

2000 2001 2002 2003 2004

Total Berry Category Strawberries Blueberries Raspberries Blackberries Specialty & Other Berries

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PERISHABLESGROUP

Raspberry DemandRaspberry Demand

Good and increasing

Retail excellent! Great for special occasions,

every day demand increasing

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PERISHABLESGROUP

Raspberry DemandRaspberry Demand

Improved quality

Flavor

Consistency in appearance

Availability

Demand drivers

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PERISHABLESGROUP

Food ServiceFood Service

Demand is second to strawberries

Raspberries add value to menus

Restaurant luxury perception

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PERISHABLESGROUP

ChallengesChallenges

Fresh Market Growers

Variety development forappearance, taste, size, and

productivity

Development of competitive

varieties that are

economically viable

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PERISHABLESGROUP

ChallengesChallenges

Chilean Growers

Transportation cost

Mexico and California supplies

growth will continue

Climate modification technology

advancing in Mexico and California

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PERISHABLESGROUP

SummarySummary

All raspberries growers for

North American markets must

aggressively develop varieties

delivering superior fruit and

competitive yields to meet the

challenge of the market leader.

There is great opportunity for

the successful achievement ofthis challenge.

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When they dont disappoint

When they are consistent

When they increase consumption

When consumers ask for them by name

When consumers switch stores to get those berries When they build store loyalty

When price does not matter

When competitor retail ads dont drive the business

When shrink is in single digits

When they come with no rejections and 99.9% service levels!

When Are RaspberriesWhen Are RaspberriesNotNot Just Raspberries?Just Raspberries?