[Cork Information Bureau 2010] [CORK SECTOR IN NUMBERS]

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[[[[

Cork Information Bureau 2010

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[CORK SECTOR

IN NUMBERS]

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[CORK STATISTICS]

[Cork Information Bureau 2010] [Cork Information Bureau 2010] [Cork Information Bureau 2010] [Cork Information Bureau 2010]

Index

The Montado The Montado The Montado The Montado ... 3333 Area of Montado ... 3 Cork Production ... 5 Cork Prices ... 6 Industry Industry Industry Industry ... 7..777 Characterization of the sector ... 7

Main activities ... 7

Cork Products' Destination... 8

Exports ... 8

Imports ... 15

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[CORK STATISTICS]

The Montado

The cork forest is responsible for making a very important contribution to the economy and the ecology of several Mediterranean countries, occupying a worldwide area of 2,277,700 hectares (chart 1). Based on geographic distribution, Portugal concentrates about 32% of the world's acreage, which corresponds to an area larger than 730,000 hectares, around 23% of the country’s woodlands (chart 2), thus the cork oak represents the dominant species in Portugal.

Area of Montado

Chart 1 Chart 1 Chart 1

Chart 1 ––– Area of Montado–Area of MontadoArea of Montado Area of Montado

Country Country Country

Country Area (hectares)Area (hectares)Area (hectares)Area (hectares) PercentagePercentagePercentage Percentage

Portugal 736,700 32 Spain 506,000 22 Algeria 414,000 18 Morocco 345,000 15 France 92,000 4 Tunisia 92,000 4 Italy 92,000 4 Total 2,277,700 100

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[CORK STATISTICS]

Chart 2 –––– Forest Species PortugalForest Species PortugalForest Species PortugalForest Species Portugal Distribution of Forest Acreages by Species (1000 ha)

Distribution of Forest Acreages by Species (1000 ha) Distribution of Forest Acreages by Species (1000 ha) Distribution of Forest Acreages by Species (1000 ha)

Year 1995/8 2005/6 Pine-tree 976,1 710,6 Eucalyptus 672,1 646,7 Cork oak Cork oak Cork oak Cork oak 712,8712,8712,8712,8 736,7736,7736,7736,7 Holm oak 461,6 388,3 Oak 130,9 117,9 Stone Pine 77,6 83,9 Chestnut tree 40,5 28,2

Various deciduous woods 102,0 96,8

Various resinous trees 27,3 14,2

Other wooden formations and miscellaneous

- 18,0

Young forest stands - 295,5

Total Total Total

Total 3200,93200,93200,93200,9 3136,83136,83136,83136,8

Source: National Forestry Resources Department (DGRF) – National Forestry Inventory (IFN) Year: 2006

In Portugal, the largest concentration of cork oak forestland can be found in the Alentejo (72%), whereas Lisbon and the Tagus Valley hold the second position at 21 per cent (chart 3).

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[CORK STATISTICS]

Source: DGRF Year: 2006

Cork Production

At a global production level, (with cork values rising up close to 300 thousand Tonnes annually), 52% of cork originates from Portugal (more than 150 thousand Tonnes a year – chart 4), reinforcing the Portuguese sector’s leadership.

Chart 4 –––– Cork ProductionCork ProductionCork ProductionCork Production

Country Country Country

Country Average annual productionAverage annual productionAverage annual productionAverage annual production (ton)*(ton)*(ton)* Percentage(ton)* PercentagePercentage Percentage

Portugal 157,000 52,5

Spain 88,400 29,5

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[CORK STATISTICS]

Algeria 15,000 5,2

Morocco 11,000 3,7

Tunisia 7,500 2,5

France 3,400 1,1

Total 299, 300 100

Source: APCOR Year: 2007

Cork Prices

According to the National Forestry Product Prices Information System (SICOP), the prices for piled cork (in the forest) have decreased since 2003, with the current price amounting to 31, 00 € per arroba (Table 1).

Table 1 - Evolution of the Selling and Extraction Price of Reproduction Cork (per arroba = 15 kg) – Estimated Values

2000 2001 2002 2003 2004 2005 2006 2007 2008

Selling Price of Cork on Tree * 34,94 € 36,54 € 38,80 € 42,89 € 36,24 € 30,51 € 33,13 € 31,80 € 31,40 €

Selling Price of Piled Cork * 43,29 € 44,06 € 41,98 € 44,80 € 39,87 € 36,02 € 33,50 € 32,80 € 31,00 €

Extraction Cost of Cork 2,99 € 3,71 € 4,01 € 4,03 € 4,17 € 4,23 € 4,00 € 4,30 € 4,00 €

Virgin Cork --- --- --- --- 4,50 € 5,50 € 6,50 € 6,50 € 6,50 €

Burnt Cork --- --- --- --- 0,10 € 0,50 € 1,75 € 1,75 € 1,75 €

Pieces --- --- --- 4,00 € 4,50 € 4,50 € 5,00 € 5,50 € 4,50 €

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[CORK STATISTICS]

Industry

Characterization of the sector

According to the data of the Portuguese Statistics Institute, the Cork Industry is distributed over twelve districts. However, it is only in the Aveiro (municipality of Santa Maria da Feira) and SetúbalSetúbalSetúbal districts that Setúbal the industry’s concentration is significant, being responsible, respectively, for about 75%75%75% and 12%75% 12%12%12% of the sector.

There are approximately 700 companies operating in the Portuguese cork sector, responsible for producing approximately 40 million stoppers a day (35 million of which in the North of Portugal) and employing around ten thousand workers (Source: Ministry of Work and Social Solidarity – 2008).

Main activities

The main production activities are Preparation, Manufacture, Agglomeration and Granulation.

It is estimated that the cork arriving to the production process has in average the following applications:

Distribution of cork by the various applications (at the moment it enters the production process)

Average values 30 % Thin Cork Bark 40 % Disks 60 % Blocks 25 % By-product 5 % Pieces 40 % Stoppers Source: APCOR

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[CORK STATISTICS]

Cork Products' Destination

The main destination sector for cork products is the Wine Industry, which absorbs 66 per cent of all production, followed by the Building Industry with 21 per cent (chart 5).

Source: APCOR Year: 2009

Exports

Portugal is world leader in cork exports. According to the United Nations Statistics Division data, Portugal holds first place with 60% in 2005 (chart 6).

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[CORK STATISTICS]

Chart 6 –––– Main Cork Exporters in the WorldMain Cork Exporters in the WorldMain Cork Exporters in the WorldMain Cork Exporters in the World

Euros % 2004 2005 2004 2005 World Total 1480123960 1399075090 100 100 Portugal 875144905 839375777 59,13 60 Spain 262623211 254821055 17,74 18,21 France 51482518 46888466 3,48 3,35 Italy 46238348 43661753 3,12 3,12 USA 36405437 40991753 2,46 2,93 Germany 35403226 33829032 2,39 2,42 Morocco 20826936 27281477 1,41 1,12 Tunisia 20826936 - 1,27 - Switzerland 16509837 15746399 1,12 1,13 Mexico 13646412 16824853 0,92 1,2 Austria 13069472 12625964 0,88 0,9 Continental China 11114657 16300443 0,75 0,94 Algeria 9641214 - 0,65 - Saudi Arabia 9036640 4870220 0,61 0,35 Hong Kong 8390515 8174381 0,57 0,58 Canada 6022966 5604051 0,41 0,4 Belgium 5816183 6022440 0,39 0,43 Australia 5769127 4499165 0,39 0,32 United Kingdom 6570662 6298295 0,36 0,36 Netherlands 5278874 6660642 0,36 0,48

Source: United Nations Statistics Division – UN Commodity Trade Statistics Database

Note: The difference between the total values and the sum of the chapters has to do with confidentiality, for there are countries that do not disclose disaggregate information for natural cork and processed cork. The 2005 data for Tunisia and Algeria are not yet available.

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[CORK STATISTICS]

As far as the Portuguese exports are concerned, approximately 90% of the cork processed nationally is destined for the international market. This results in an important source of income for Portugal; reaching 698,3 million Euros in 2009, corresponding to 144,8 thousand Tonnes of exported products (chart 7).

Source: INE

The value generated by Portuguese cork exports demonstrates its significance, standing at approximately 0,7% of the GDP (market prices), 2,2% of the Portuguese exports’ total value and about 30% of the Portuguese forestry product exports.

In terms of representability of cork Portuguese exports combined, it is noteworthy that for Argentina and Chile, cork represents over 40% of the exported value for Australia, South Africa and Russia, the value surpasses 18 per cent (chart 8).

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[CORK STATISTICS]

Source: INE Year: 2009

Europe is the main destination for Portuguese cork exports absorbing 61, 25 per cent of the total (in value). The main destinations are France (20, 2%), USA (15, 5%), Spain (10, 9%), Germany (10, 9%) and Italy (9, 2%) - percentages in value (chart 9).

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[CORK STATISTICS]

Source: INE

Cork stoppers continue to lead the Portuguese cork exports, at 457 million Euros, followed by cork for building purposes at 161 million Euros (chart 10).

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[CORK STATISTICS]

Source: INE

Within the cork stopper segment, natural cork stoppers rise in first place, with 298 million Euros, followed by agglomerated stoppers with 84 million and champagne stoppers (74 million Euros) (chart 11).

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[CORK STATISTICS]

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[CORK STATISTICS]

Imports

Portugal is also the world’s greatest importer of cork used for processing to be later exported as a final consumer product.

In 2009, imports reached 83 million Euros and 41 thousand tonnes (chart 12).

Source: INE

The imports for the cork industry in 2009 originated essentially from Spain (72 per cent - value in Euros) (chart 13).

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[CORK STATISTICS]

Source: INE

In the same year, natural cork imports reached approximately 47, 2 million Euros, representing about 57% of the total Portuguese cork imports (chart 14).

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[CORK STATISTICS]