This presentation summarizes the export opportunities for fresh U.S. blueberries and strawberries globally.

1. Joe Barsi, VP Business Development
April 2011
Fresh berries move into new markets
Global Berry Congress 2011
© 2011 California Giant

2. Agenda
Background
What the export berry numbers tell us
What the export berry numbers don’t tell us
Export Opportunities & Challenges
Summary
Page 2 © 2011 California Giant

3. Introduction
Watsonville, CA native
Worked in the produce
industry for 18 years
Worked for California Giant
Berry Farms for 6 years
Help develop global berry
Joe Barsi supply
VP Business Development
California Giant Berry Farms
jbarsi@calgiant.com
twitter.com/BerryGiant
http://berrygiant.wordpress.com
Page 3 © 2011 California Giant

4. California Giant Berry Farms
One of the largest berry Vertically Integrated
companies in the U.S. – Market Full Line of Berries
– Founded in 1970 – Plant Nursery
– Privately held by four owners – Berry Grower- Packer - Shipper
– Market ~25 million cases per year – Sales & Marketing
Page 4 © 2011 California Giant

5. What the numbers tell us
Statistics
Trends
Page 5 © 2011 California Giant

6. North America is the dominate
exporter of berries worldwide
Fresh Blueberries, 2010
Page 6 © 2011 California Giant

7. U.S. berry exports
continue to grow
Strawberry Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics, Product Group : BICO-HS10.
Blueberry Data Source: United States Export Statistics, Commodity: 0810400028
Page 7 © 2011 California Giant

8. Top Markets for Fresh U.S. berries
show strong volume increases
Average Annual Growth
Country Export ($k) since 2008
Canada $353,904 17%
Japan $30,100 85%
Mexico $17,943 -67%
United Kingdom $7,949 -79%
Hong Kong $3,470 241%
France $1,926 55%
United Arab Emirates $1,570 180%
Taiwan $1,327 99%
Australia $1,124 -88%
South Korea $661 37%
Saudi Arabia $652 15%
Singapore $514 460%
Bahamas $513 24%
Strawberry Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics, Product Group : BICO-HS10.
Blueberry Data Source: United States Export Statistics, Commodity: 0810400028
Page 8 © 2011 California Giant

9. Asia is the fastest growing region
outside of North America
Strawberry Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics, Product Group : BICO-HS10.
Blueberry Data Source: United States Export Statistics, Commodity: 0810400028
Page 9 © 2011 California Giant

10. The Strawberry Market
Page 10 © 2011 California Giant

11. U.S. Strawberry Exports
are steadily increasing
Strawberry Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics, Product Group : BICO-HS10.
Page 11 © 2011 California Giant

12. Canada is the largest market for
fresh U.S. strawberries
Strawberry Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics, Product Group : BICO-HS10.
Page 12 © 2011 California Giant

13. Fresh Strawberry Exports
since 2008
Canada United Arab
Up ~15% Emirates Hong Kong
Up ~180% Up ~270%
Japan
~50%
UK
Taiwan
down
Up ~110%
Mexico
down
Australia
down
Page 13 © 2011 California Giant

14. The Blueberry Market
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15. Fresh U.S. blueberry exports
increased 32% but revenue softened
Blueberry Data Source: United States Export Statistics, Commodity: 0810400028
Page 15 © 2011 California Giant

16. Canada is the largest market for
fresh U.S. blueberries too
Top Export Markets for Fresh U.S. Blueberries
(Ave Annual Exports $k)
United Kingdom
5%
Japan
5%
Hong Kong
Others 1%
Canada 2%
87%
Blueberry Data Source: United States Export Statistics, Commodity: 0810400028
Page 16 © 2011 California Giant

17. Fresh Blueberry Exports
since 2008
Canada
Up ~30% Hong Kong Japan
Up ~150% Up ~100%
UK
Singapore
down
Up ~680%
Mexico Taiwan
Up ~500% Up ~56%
Australia
down
Blueberry Data Source: United States Export Statistics, Commodity: 0810400028
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18. What the numbers
don’t tell us
Statistics
Trends
Page 18 © 2011 California Giant

19. Improving standards of living
Global growth of middle class in
emerging economies – BRIC
Increase in discretionary income
in emerging markets
Cultural traditions focused on
health & beauty
Awareness of nutritional value of
blueberries has grown
worldwide
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20. New berry-related products are
being introduced around the globe
Blueberry products
Blueberry data source: Thomas J. Payne Market Development
Page 20 © 2011 California Giant

21. Pet Food Products
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22. Opportunities & Challenges
Page 22 © 2011 California Giant

23. China: Net Importer?
Hong Kong is the gateway
USDA indicates Strawberries on
the list for approval ~24 months
Blueberry transshipments
through Hong Kong, Macau and
Japan
Demand is highest in large
coastal cities
Increase in freezer shipments
Western Retailers: Wal*Mart &
Carrefour, Tesco
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24. India is “red hot” despite stats…
USHBC & Thomas J. Payne M.D.
Oregon, B.C. & California are all
shipping
Duty Free Shipments through Sri
Lanka & Bangladesh
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25. Challenges
Natural disasters
Pests
Government
Page 25 © 2011 California Giant

26. Strawberry Exports to Mexico down
40,000
Quantity lbs. (000)
Value ($000s)
35,000
$29,218
30,000
25,000
$22,021
20,000 $17,046
Lb. or $(000)
15,000 $12,747 $11,437
10,000
26,550 20,430 35,921 15,675 11,735
5,000
0
2006 2007 2008 2009 2010
Source: USDA Census Bureau Data
Page 26 © 2011 California Giant

27. Strawberry exports to Japan
30,000 Quantity ‐ lbs. (000)
Value ($000s)
25,000 $26,136
$24,411
$23,261
$22,025
$21,173
20,000
Lb. or $(000)
15,000
10,000
8,750 8,152 7,995 10,853 12,361
5,000
0
2006 2007 2008 2009 2010
Page 27 Source: USDA Census Bureau Data © 2011 California Giant

28. Strawberries
Country Opportunities Challenges
Mexico 2nd Largest Export Market NAFTA Trucking Dispute
Middle East Surpassed France as 5th largest market Logistics
Hong Kong Gateway to China Grey market
Japan Established and growing market Natural Disaster
Australia Pre-Clearance Program SWD & Angular Leaf Spot
Page 28 © 2011 California Giant

29. Blueberries
Country Opportunities Challenges
India Population/Fresh promotions/Positive Media Distribution & Cold Chain
China Increased demand/Retailers & Distribution Phytosanitary restrictions
South Korea Increase in freezer shipments/50% chance Phytosanitary restrictions
“Overseas Chinese"
Taiwan Growing fresh imports/Retail Promotions controlled
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30. Summary
Berry production is increasing worldwide
Consumers in existing & new markets are discovering berries
Berry demand is increasing globally, especially in Asia
Companies need to be flexible and opportunistic to capitalize on
export opportunities
“Technology and social networks are driving equality globally — creating
a more informed customer than ever — and it’s all happening at light
speed,” Lee Scott, Former CEO of Wal*Mart Stores
Page 30 © 2011 California Giant

31. Thank You
www.calgiant.com
www.facebook/calgiant.com
@californiagiant
Page 31 © 2011 California Giant