Required Report - public distribution

**Date:** 4/28/2006

**GAIN Report Number:** CI6010

CI6010

**Chile**

**Grain and Feed**

**Annual**

**2006**

**Approved by:**

![](media/image1.wmf)Christine M Sloop, Agricultural Attaché

Office of Agricultural Affairs

**Prepared by:**

Luis Hennicke, Agricultural Specialist

**Report Highlights:**

**Smaller wheat production due to a fall in prices and adverse weather
will result in a significant expansion in imports for MY2005. Corn
imports are also forecasted to expand significantly as planted area and
production is estimated to fall and domestic demand will stay strong.**

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Santiago \[CI1\]

\[CI\]

Table of Contents

[Executive Summary 3](#executive-summary)

[Wheat 3](#wheat)

[Production 3](#production)

[Consumption 3](#consumption)

[Prices 4](#prices)

[Trade 4](#trade)

[Price Band 4](#price-band)

[PSD Table 5](#psd-table)

[Import Trade Matrix 6](#import-trade-matrix)

[Prices Table 6](#prices-table)

[Corn 7](#corn)

[Production 7](#production-1)

[Consumption and Trade 7](#consumption-and-trade)

[PSD Table 8](#psd-table-1)

[Import Trade Matrix 9](#import-trade-matrix-1)

[Prices Table 9](#prices-table-1)

# Executive Summary

As a result of a significant fall in wheat prices and adverse weather
conditions, planted area and output fell slightly in MY2005 when
compared to the previous year. Consequently, wheat imports are expected
to expand. For MY2006, initial planting surveys show a slight increase
in planting intentions and production. Therefore imports are forecast to
be slightly less Than in MY2005, but considerable larger than in MY2004.

Chile's corn production for MY 2006 is expected to fall significantly as
low prices discouraged plantings. Forecasts for MY2007 show another
reduction in production; as a result, import requirements are expected
to jump considerably, as consumption is expected to increase due to
growth in the poultry and hog industries.

# Wheat

## Production 

Wheat is politically Chile's most important annual crop. There are an
estimated 89,000 producers, of which a little over 10,000 producers are
in the so-called subsistence group with little or no alternative
production. Just over 70,000 are small farmers, 5,000 are medium size
producers and less than 3,000 are large producers.

Total wheat planted area fell significantly in MY2005, when compared to
the previous marketing year and our last forecast. Adverse weather
conditions during planting time and harvest, together with low prices
obtained by producers for the previous year harvest are the main reasons
for the significant fall in planted area and production. A significant
fall in prices paid to producers during CY2005 is one of the main
reasons for a 25 percent fall in the total planted area. Additionally,
excess rain and bad weather during the fall and winter delayed planting
in the main wheat producing areas. However, the adverse weather
conditions during planting and normal conditions during harvest did not
affect the quality of the production. Yields were actually better than
the previous year. For MY2006, the initial planting survey forecasts an
increase in the total planted area, when compared to MY2005. This
increase is being attributed mainly to higher domestic wheat prices for
CY2006. Domestic prices have been climbing as a result of increasing
international prices and a lower than expected crop last year (MY2005).
International prices reportedly increased in a response to a lower
harvest in Argentina (Chile's main supplier) and the United States.

## 

## Consumption 

Although our PS&D table shows a slight increase in total consumption of
wheat, consumption for human use during the last few years has been
rather stagnant. According to the local bakery association, Chileans
consume an average of close to 100 kilos of bread per capita per year,
making them the second largest consumers of bread in the Western
hemisphere after Germany. Approximately 25,000 persons are employed in
the industry. Domestic feed consumption of wheat has reportedly been
expanding the last few years. A fast growing salmon and trout feed
industry has become an alternative outlet for some wheat producers'
production who have no storage capacity and have to sell their wheat
right after harvest.

The milling industry is Chile's main wheat destination. An estimated 85
percent of total wheat supply (domestic production plus imports) is
milled for flour. An estimated 80 percent of wheat flour is sold
directly and produced by 85 milling facilities nationwide. Industry
sources indicate that the wheat produced in Chile is in general of a
lower quality than that required by the bread and pasta industry. It is
mainly low in protein and the quality varies a lot.

## Prices

Wheat prices paid to farmers by the milling industry fell significantly
in CY2004 (See Price Table) affecting planted area in MY2005. A
significant revaluation of the local currency against the dollar,
together with low prices for Argentinean wheat flour and increased
imports of flour were the main factors cited by the milling industry for
the domestic decline in wheat prices. But an expected fall in total
worldwide production is driving wheat prices up again in Chile's
domestic wheat market. Wheat flour imports from Argentina increased
significantly during CY2004, when compared to the previous year. As a
result, wheat flour millers and wheat producers requested and obtained a
safeguard of 17% on flour imports from Argentina. This safeguard was in
effect during CY2005 and renewed again until December of 2006, but the
rate was lowered form 17 to 14 percent. Argentina unofficial subsidizes
its milling industry by providing a differentiated export tax. The tax
is much higher on wheat than on wheat flour. This subsidy has made the
Argentinean wheat flour industry extremely competitive and prompted both
the Chilean growers and millers to seek the safeguard measures.

## 

## Trade 

New MY2005 import figures are forecasted to be larger than previously
estimated and then in MY2004 due to a smaller harvest. For MY2006, a
slightly smaller amount of imports is forecasted, as production will
expand again in response to better prices paid during this season.

Domestic import decisions are normally driven by price followed by
quality, but sometimes price and/or quality take a back seat when a
shipload needs to be filled. Under these conditions a higher price may
be paid and/or a lower quality accepted for the remaining portion of the
shipment. Consequently, although you would expect importers to get wheat
from a U.S. supplier when a higher quality product is sought, the
supplier in a third country, even with a lower quality product might get
the sale.

Wheat exports shown in the PS&D table correspond to wheat product
exports, mostly uncooked pasta, which is converted to grain equivalent.
Chile's largest markets for these products are countries like Peru and
Venezuela. The United States is also an important export market for
these products.

## Price Band

To settle a dispute presented by Argentina in the WTO about price bands
in November 2003, the Chilean Government modified its system and
published new floor and ceiling prices for wheat. The values for the
floor and ceiling prices are USD\$128 f.o.b. and USD\$148 f.o.b.
respectively. These prices will remain fixed until 2007. Starting 2008,
the floor will be adjusted downward by 2% a year until 2014, when the
price band should disappear as it was agreed in the FTA agreement with
the United States. A Chilean government source indicated that after 2012
price bands probably would be dismantled if other countries eliminate
export subsidies, as recommended in the 2006 Doha preparatory meetings.
The reference price is a fixed amount in US dollar per ton and it is
published six times a year. The reference price is based on an average
of the daily price for the 30 days preceding the date of publication.
For the first semester the relevant market is FOB at Argentinean port
and for the second semester it is soft red winter wheat #2, FOB Gulf of
Mexico. The reference price is determined based on the date of entry of
the goods. For wheat flour imports, an additional 56% is applied to the
values set under the wheat price band.

In early January 2006, Argentina filed a new complaint against Chile's
price band system. Industry sources believe Argentina filed the
complaint because the Chilean Government renewed the safeguard measure
against Argentinean wheat flour, in response to farmer and miller
protests, rescinded an offer for a 10,000 MT quota that would have been
exempt from the safeguard. Argentina argues that Chile has not complied
with the ruling from the previous WTO case (October 2002).

+-------------------+------+------+------+------+-----+------+-------+
| ## PSD Table      |      |      |      |      |     |      |       |
+-------------------+------+------+------+------+-----+------+-------+
| Country           | C    |      |      |      |     |      |       |
|                   | hile |      |      |      |     |      |       |
+-------------------+------+------+------+------+-----+------+-------+
| Commodity         | W    |      |      |      | (1  |      |       |
|                   | heat |      |      |      | 000 |      |       |
|                   |      |      |      |      | HA  |      |       |
|                   |      |      |      |      | )(1 |      |       |
|                   |      |      |      |      | 000 |      |       |
|                   |      |      |      |      | MT) |      |       |
+-------------------+------+------+------+------+-----+------+-------+
|                   | 2004 | Rev  | 2005 | Esti | 2   | Fore | UOM   |
|                   |      | ised |      | mate | 006 | cast |       |
+-------------------+------+------+------+------+-----+------+-------+
|                   | USDA | Post | USDA | Post | U   | Post |       |
|                   | Offi | Est  | Offi | Est  | SDA | Est  |       |
|                   | cial | imat | cial | imat | Of  | imat |       |
|                   | \[O  | e\[N | \[O  | e\[N | fic | e\[N |       |
|                   | ld\] | ew\] | ld\] | ew\] | ial | ew\] |       |
|                   |      |      |      |      | \   |      |       |
|                   |      |      |      |      | [Ol |      |       |
|                   |      |      |      |      | d\] |      |       |
+-------------------+------+------+------+------+-----+------+-------+
| Market Year Begin |      | 12/  |      | 12/  |     | 12/  | MM    |
|                   |      | 2004 |      | 2005 |     | 2006 | /YYYY |
+-------------------+------+------+------+------+-----+------+-------+
| Area Harvested    | 420  | 420  | 360  | 315  | 0   | 346  | (1000 |
|                   |      |      |      |      |     |      | HA)   |
+-------------------+------+------+------+------+-----+------+-------+
| Beginning Stocks  | 449  | 411  | 328  | 221  | 313 | 228  | (1000 |
|                   |      |      |      |      |     |      | MT)   |
+-------------------+------+------+------+------+-----+------+-------+
| Production        | 1860 | 1852 | 1600 | 1492 | 0   | 1526 | (1000 |
|                   |      |      |      |      |     |      | MT)   |
+-------------------+------+------+------+------+-----+------+-------+
| TOTAL Mkt. Yr.    | 234  | 188  | 600  | 765  | 0   | 695  | (1000 |
| Imports           |      |      |      |      |     |      | MT)   |
+-------------------+------+------+------+------+-----+------+-------+
| Jul-Jun Imports   | 321  | 169  | 500  | 450  | 0   | 350  | (1000 |
|                   |      |      |      |      |     |      | MT)   |
+-------------------+------+------+------+------+-----+------+-------+
| Jul-Jun Import    | 20   | 0    | 0    | 0    | 0   | 0    | (1000 |
| U.S.              |      |      |      |      |     |      | MT)   |
+-------------------+------+------+------+------+-----+------+-------+
| TOTAL SUPPLY      | 2543 | 2451 | 2528 | 2478 | 313 | 2449 | (1000 |
|                   |      |      |      |      |     |      | MT)   |
+-------------------+------+------+------+------+-----+------+-------+
| TOTAL Mkt. Yr.    | 15   | 20   | 15   | 20   | 0   | 20   | (1000 |
| Exports           |      |      |      |      |     |      | MT)   |
+-------------------+------+------+------+------+-----+------+-------+
| Jul-Jun Exports   | 19   | 0    | 15   | 0    | 0   | 0    | (1000 |
|                   |      |      |      |      |     |      | MT)   |
+-------------------+------+------+------+------+-----+------+-------+
| Feed Dom.         | 150  | 160  | 150  | 180  | 0   | 230  | (1000 |
| Consumption       |      |      |      |      |     |      | MT)   |
+-------------------+------+------+------+------+-----+------+-------+
| TOTAL Dom.        | 2200 | 2210 | 2200 | 2230 | 0   | 2150 | (1000 |
| Consumption       |      |      |      |      |     |      | MT)   |
+-------------------+------+------+------+------+-----+------+-------+
| Ending Stocks     | 328  | 221  | 313  | 228  | 0   | 279  | (1000 |
|                   |      |      |      |      |     |      | MT)   |
+-------------------+------+------+------+------+-----+------+-------+
| TOTAL             | 2543 | 2451 | 2528 | 2478 | 0   | 2449 | (1000 |
| DISTRIBUTION      |      |      |      |      |     |      | MT)   |
+-------------------+------+------+------+------+-----+------+-------+

+---------------------+--------------+------------------+--------------+
| ##                  |              |                  |              |
| Import Trade Matrix |              |                  |              |
+---------------------+--------------+------------------+--------------+
| Country             | Chile        |                  |              |
+---------------------+--------------+------------------+--------------+
| Commodity           | Wheat        |                  |              |
+---------------------+--------------+------------------+--------------+
| Time Period         | Jan - Dec    | Units:           | M.T.         |
+---------------------+--------------+------------------+--------------+
| Imports for:        | 2004         |                  | 2005         |
+---------------------+--------------+------------------+--------------+
| U.S.                | 39682        | U.S.             | 29596        |
+---------------------+--------------+------------------+--------------+
| Others              |              | Others           |              |
+---------------------+--------------+------------------+--------------+
| Canada              | 120170       | Canada           | 106101       |
+---------------------+--------------+------------------+--------------+
| Argentina           | 61867        | Argentina        | 60616        |
+---------------------+--------------+------------------+--------------+
| Paraguay            | 5856         | Spain            | 26           |
+---------------------+--------------+------------------+--------------+
| France              | 3            | France           | 19           |
+---------------------+--------------+------------------+--------------+
| Mexico              | 2            |                  |              |
+---------------------+--------------+------------------+--------------+
|                     |              |                  |              |
+---------------------+--------------+------------------+--------------+
| Total for Others    | 187898       |                  | 166762       |
+---------------------+--------------+------------------+--------------+
| Others not Listed   |              |                  |              |
+---------------------+--------------+------------------+--------------+
| Grand Total         | 227580       |                  | 196358       |
+---------------------+--------------+------------------+--------------+

+---------------+----------+------+---------+------+------+---------+
| ##            |          |      |         |      |      |         |
|  Prices Table |          |      |         |      |      |         |
+---------------+----------+------+---------+------+------+---------+
| Country       | Chile    |      |         |      |      |         |
+---------------+----------+------+---------+------+------+---------+
| Commodity     | Wheat    |      |         |      |      |         |
+---------------+----------+------+---------+------+------+---------+
| Prices in     | Constant |      | per uom | Kg   |      |         |
|               | pesos    |      |         |      |      |         |
+---------------+----------+------+---------+------+------+---------+
|               |          |      |         |      |      |         |
+---------------+----------+------+---------+------+------+---------+
| Year          | 2004     | 2005 | %Change | 2005 | 2006 | %Change |
+---------------+----------+------+---------+------+------+---------+
| Jan           | 126      | 98   | -22%    | 98   | 107  | 9%      |
+---------------+----------+------+---------+------+------+---------+
| Feb           | 117      | 98   | -16%    | 98   | 109  | 11%     |
+---------------+----------+------+---------+------+------+---------+
| Mar           | 117      | 97   | -17%    | 97   | 110  | 13%     |
+---------------+----------+------+---------+------+------+---------+
| Apr           | 118      | 101  | -14%    | 101  |      | -100%   |
+---------------+----------+------+---------+------+------+---------+
| May           | 119      | 105  | -12%    | 105  |      | -100%   |
+---------------+----------+------+---------+------+------+---------+
| Jun           | 122      | 110  | -10%    | 110  |      | -100%   |
+---------------+----------+------+---------+------+------+---------+
| Jul           | 122      | 109  | -11%    | 109  |      | -100%   |
+---------------+----------+------+---------+------+------+---------+
| Aug           | 123      | 109  | -11%    | 109  |      | -100%   |
+---------------+----------+------+---------+------+------+---------+
| Sep           | 113      | 103  | -9%     | 103  |      | -100%   |
+---------------+----------+------+---------+------+------+---------+
| Oct           | 114      | 102  | -11%    | 102  |      | -100%   |
+---------------+----------+------+---------+------+------+---------+
| Nov           | 103      | 101  | -2%     | 101  |      | -100%   |
+---------------+----------+------+---------+------+------+---------+
| Dec           | 96       | 104  | 8%      | 104  |      | -100%   |
+---------------+----------+------+---------+------+------+---------+
|               |          |      |         |      |      |         |
+---------------+----------+------+---------+------+------+---------+
| Exchange Rate | 528      | L    |         |      |      |         |
|               |          | ocal |         |      |      |         |
|               |          | Cur  |         |      |      |         |
|               |          | renc |         |      |      |         |
|               |          | y/US |         |      |      |         |
|               |          | \$   |         |      |      |         |
+---------------+----------+------+---------+------+------+---------+
| Date of Quote | 3        | MM   |         |      |      |         |
|               | /31/2006 | /DD/ |         |      |      |         |
|               |          | YYYY |         |      |      |         |
+---------------+----------+------+---------+------+------+---------+

# Corn

## Production

In spite of a strong demand due to projected increases in poultry and
hog production, the prices being paid to producers for domestic corn
production have fallen dramatically as international prices for corn
have dropped significantly. High prices stimulated world production of
corn last year bringing stocks back to normal levels and contributing to
the deterioration of world corn prices. As a result of the low global
corn prices, corn plantings and production in MY 2006 fell and it is
forecasted to fall further in MY2007 as domestic corn prices are similar
and follow closely international prices.

Corn plantings in Chile are expected to fall further in the coming years
as costs of production keep rising and mainly small farmers look for
alternative crops. Corn production in Chile is a so-called intensive
production crop - a significant number of farmers plant corn year after
year on the same field. According to a producer contact, approximately
56% of the costs correspond to inputs (seeds, fertilizer, chemicals),
28% machinery, 4% labor and 12% other. As a result of a significant
increase in input prices during the last few years it is estimated that
the production costs for a hectare is an equivalent of 14 MT of corn and
the national average yield is 11.2 MT. A further deterioration of corn
price will most probably result in additional reduction in planted area
and production. Consequently, imports will rise, as there is a strong
demand by the growing poultry and hog industries.

## Consumption and Trade

Corn imports are expected to expand, due to expanded feed use in the hog
and poultry industries and a smaller output expected in MY2006. An
additional expansion is expected in MY2007 as planting and production is
forecasted to fall further, mainly due to a significant fall in domestic
corn prices, an increase in production costs, and a revaluation of the
local currency against the dollar. Imports are expected to jump over 20
percent in MY2007.

Argentina is the largest supplier of bulk corn to Chile. This situation
is not expected to change, as Argentina continues to have cost/quality
advantages. Although as of January 2006 the import duty for Argentinean
and US corn is the same (zero %), office contacts report that most
imports are still expected to come from Argentina. Allegedly there is a
significant cost advantage for Argentinean corn, as the trucks are
loaded directly on the farms and driven across the border to the
consumer's (in Chile) storage facilities, thus avoiding the unloading
and loading of ships at the port and reducing total transportation
costs.

+-------------------+-----+------+-----+------+-----+------+---------+
| ## PSD Table      |     |      |     |      |     |      |         |
+-------------------+-----+------+-----+------+-----+------+---------+
| Country           | Ch  |      |     |      |     |      |         |
|                   | ile |      |     |      |     |      |         |
+-------------------+-----+------+-----+------+-----+------+---------+
| Commodity         | C   |      |     |      | (1  |      |         |
|                   | orn |      |     |      | 000 |      |         |
|                   |     |      |     |      | HA  |      |         |
|                   |     |      |     |      | )(1 |      |         |
|                   |     |      |     |      | 000 |      |         |
|                   |     |      |     |      | MT) |      |         |
+-------------------+-----+------+-----+------+-----+------+---------+
|                   | 2   | Rev  | 2   | Esti | 2   | Fore | UOM     |
|                   | 004 | ised | 005 | mate | 006 | cast |         |
+-------------------+-----+------+-----+------+-----+------+---------+
|                   | U   | Post | U   | Post | U   | Post |         |
|                   | SDA | Est  | SDA | Est  | SDA | Est  |         |
|                   | Of  | imat | Of  | imat | Of  | imat |         |
|                   | fic | e\[N | fic | e\[N | fic | e\[N |         |
|                   | ial | ew\] | ial | ew\] | ial | ew\] |         |
|                   | \   |      | \   |      | \   |      |         |
|                   | [Ol |      | [Ol |      | [Ol |      |         |
|                   | d\] |      | d\] |      | d\] |      |         |
+-------------------+-----+------+-----+------+-----+------+---------+
| Market Year Begin |     | 03/  |     | 03/  |     | 03/  | MM/YYYY |
|                   |     | 2005 |     | 2006 |     | 2007 |         |
+-------------------+-----+------+-----+------+-----+------+---------+
| Area Harvested    | 128 | 134  | 100 | 124  | 0   | 111  | (1000   |
|                   |     |      |     |      |     |      | HA)     |
+-------------------+-----+------+-----+------+-----+------+---------+
| Beginning Stocks  | 349 | 257  | 484 | 450  | 259 | 445  | (1000   |
|                   |     |      |     |      |     |      | MT)     |
+-------------------+-----+------+-----+------+-----+------+---------+
| Production        | 1   | 1508 | 1   | 1410 | 0   | 1258 | (1000   |
|                   | 410 |      | 000 |      |     |      | MT)     |
+-------------------+-----+------+-----+------+-----+------+---------+
| TOTAL Mkt. Yr.    | 1   | 1192 | 1   | 1295 | 0   | 1557 | (1000   |
| Imports           | 100 |      | 100 |      |     |      | MT)     |
+-------------------+-----+------+-----+------+-----+------+---------+
| Oct-Sep Imports   | 1   | 950  | 1   | 1150 | 0   | 1280 | (1000   |
|                   | 081 |      | 100 |      |     |      | MT)     |
+-------------------+-----+------+-----+------+-----+------+---------+
| Oct-Sep Import    | 0   | 0    | 0   | 0    | 0   | 0    | (1000   |
| U.S.              |     |      |     |      |     |      | MT)     |
+-------------------+-----+------+-----+------+-----+------+---------+
| TOTAL SUPPLY      | 2   | 2957 | 2   | 3155 | 259 | 3260 | (1000   |
|                   | 859 |      | 584 |      |     |      | MT)     |
+-------------------+-----+------+-----+------+-----+------+---------+
| TOTAL Mkt. Yr.    | 75  | 57   | 75  | 60   | 0   | 60   | (1000   |
| Exports           |     |      |     |      |     |      | MT)     |
+-------------------+-----+------+-----+------+-----+------+---------+
| Oct-Sep Exports   | 75  | 0    | 75  | 0    | 0   | 0    | (1000   |
|                   |     |      |     |      |     |      | MT)     |
+-------------------+-----+------+-----+------+-----+------+---------+
| Feed Dom.         | 2   | 2150 | 2   | 2350 | 0   | 2450 | (1000   |
| Consumption       | 150 |      | 100 |      |     |      | MT)     |
+-------------------+-----+------+-----+------+-----+------+---------+
| TOTAL Dom.        | 2   | 2450 | 2   | 2650 | 0   | 2750 | (1000   |
| Consumption       | 300 |      | 250 |      |     |      | MT)     |
+-------------------+-----+------+-----+------+-----+------+---------+
| Ending Stocks     | 484 | 450  | 259 | 445  | 0   | 450  | (1000   |
|                   |     |      |     |      |     |      | MT)     |
+-------------------+-----+------+-----+------+-----+------+---------+
| TOTAL             | 2   | 2957 | 2   | 3155 | 0   | 3260 | (1000   |
| DISTRIBUTION      | 859 |      | 584 |      |     |      | MT)     |
+-------------------+-----+------+-----+------+-----+------+---------+

+--------------------+-------------+-----------------+----------------+
| ## I               |             |                 |                |
| mport Trade Matrix |             |                 |                |
+--------------------+-------------+-----------------+----------------+
| Country            | Chile       |                 |                |
+--------------------+-------------+-----------------+----------------+
| Commodity          | Corn        |                 |                |
+--------------------+-------------+-----------------+----------------+
| Time Period        | Jan-Dec     | Units:          | M.T.           |
+--------------------+-------------+-----------------+----------------+
| Imports for:       | 2004        |                 | 2005           |
+--------------------+-------------+-----------------+----------------+
| U.S.               | 0           | U.S.            | 1              |
+--------------------+-------------+-----------------+----------------+
| Others             |             | Others          |                |
+--------------------+-------------+-----------------+----------------+
| Argentina          | 953150      | Argentina       | 1119070        |
+--------------------+-------------+-----------------+----------------+
| Brazil             | 25944       | Peru            | 8              |
+--------------------+-------------+-----------------+----------------+
| Peru               | 16          | Germany         | 2              |
+--------------------+-------------+-----------------+----------------+
| Canada             | 3           | Italy           | 1              |
+--------------------+-------------+-----------------+----------------+
| Mexico             | 1           | Canada          | 1              |
+--------------------+-------------+-----------------+----------------+
|                    |             |                 |                |
+--------------------+-------------+-----------------+----------------+
| Total for Others   | 979114      |                 | 1119082        |
+--------------------+-------------+-----------------+----------------+
| Others not Listed  | 0           |                 |                |
+--------------------+-------------+-----------------+----------------+
| Grand Total        | 979114      |                 | 1119083        |
+--------------------+-------------+-----------------+----------------+

+--------------+------------+-------+---------+------+------+---------+
| ##           |            |       |         |      |      |         |
| Prices Table |            |       |         |      |      |         |
+--------------+------------+-------+---------+------+------+---------+
| Country      |            | Chile |         |      |      |         |
+--------------+------------+-------+---------+------+------+---------+
| Commodity    |            | Corn  |         |      |      |         |
+--------------+------------+-------+---------+------+------+---------+
| Prices in    | Constant   |       | per uom | Kg   |      |         |
|              | pesos      |       |         |      |      |         |
+--------------+------------+-------+---------+------+------+---------+
|              |            |       |         |      |      |         |
+--------------+------------+-------+---------+------+------+---------+
| Year         | 2004       | 2005  | \%      | 2005 | 2006 | \%      |
|              |            |       | Change  |      |      | Change  |
+--------------+------------+-------+---------+------+------+---------+
| Jan          | 99         | 86    | -13%    | 86   | 71   | -17%    |
+--------------+------------+-------+---------+------+------+---------+
| Feb          | 101        | 84    | -17%    | 84   | 73   | -13%    |
+--------------+------------+-------+---------+------+------+---------+
| Mar          | 99         | 79    | -20%    | 79   | 74   | -6%     |
+--------------+------------+-------+---------+------+------+---------+
| Apr          | 97         | 77    | -21%    | 77   |      | -100%   |
+--------------+------------+-------+---------+------+------+---------+
| May          | 99         | 77    | -22%    | 77   |      | -100%   |
+--------------+------------+-------+---------+------+------+---------+
| Jun          | 101        | 76    | -25%    | 76   |      | -100%   |
+--------------+------------+-------+---------+------+------+---------+
| Jul          | 101        | 78    | -23%    | 78   |      | -100%   |
+--------------+------------+-------+---------+------+------+---------+
| Aug          | 98         | 79    | -19%    | 79   |      | -100%   |
+--------------+------------+-------+---------+------+------+---------+
| Sep          | 97         | 76    | -22%    | 76   |      | -100%   |
+--------------+------------+-------+---------+------+------+---------+
| Oct          | 95         | 75    | -21%    | 75   |      | -100%   |
+--------------+------------+-------+---------+------+------+---------+
| Nov          | 93         | 75    | -19%    | 75   |      | -100%   |
+--------------+------------+-------+---------+------+------+---------+
| Dec          | 92         | 72    | -22%    | 72   |      | -100%   |
+--------------+------------+-------+---------+------+------+---------+
|              |            |       |         |      |      |         |
+--------------+------------+-------+---------+------+------+---------+
| Exchange     | 528        | Local |         |      |      |         |
| Rate         |            | C     |         |      |      |         |
|              |            | urren |         |      |      |         |
|              |            | cy/US |         |      |      |         |
|              |            | \$    |         |      |      |         |
+--------------+------------+-------+---------+------+------+---------+
| Date of      | 3/31/2006  | MM/DD |         |      |      |         |
| Quote        |            | /YYYY |         |      |      |         |
+--------------+------------+-------+---------+------+------+---------+