CBI Tailored

Intelligence:
Chia from
Bolivia
‘A modern super seed in a
classic pork cycle?’
Introduction

Bolivia has become one of the main exporters of chia. Chia suppliers are facing a growing but volatile market. The future
position of Bolivian chia suppliers depends on how they will manage production, processing, quality management and trade
relations in comparison to their competitors. Market information will be very important to get these aspects right.

CBI was requested by the Bolivian Chia Platform to develop a benchmark study on the international position of Bolivian
chia. For this tailored intelligence we compared the Bolivian market position to the other main supplying countries,
including the following components: production, export, quality, market segments, requirement compliance and
sustainability.

In Europe, chia (Salvia Hispanica) was officially authorized in 2009 as a novel food ingredient for bakery products. January
2013 the authorisation was extended to the use of chia up to 10% in certain food products as well as pre-packed chia with
a maximum recommended consumption of 15g per day. In a few years’ time chia has become an international hit as a
health ingredient and a ‘superfood’.

Please note that the figures in this study are not always accurate, due to the fact that chia was a fairly unknown product
until recent years. It does not have its own code in the Harmonized Code System (HS) and the sub-codes vary between
countries.

Production

Until a few years back the commercial production of chia was low and concentrated in specific areas. During the last
decade especially Mexico, Australia and Argentina have gained experience in cultivating chia. Last year’s speculation and
the dramatic price increase triggered a rapid production growth of chia in Bolivia, among many other countries. Bolivia has
become one of the top producers of chia.

There are still many discrepancies in the reported production, both in acreage and yield per hectare. The expanded
production and fictive volumes have led to an unknown global surplus of chia.

2013 2014
Acreage (Ha) Production (t) Acreage (Ha) Production (t)
Bolivia 50,000 18,000 80,000 30,000
Paraguay 30,000 25,000 100,000 30,000
Argentina 40,000 <10,000 120,000 40,000
Mexico 18,000 8,400 50,000 25,000
Australia n.a. <10,000 n.a. <10,000
Central America 15,000 10,000 17,000 11,500
Peru n.a. n.a. n.a. <5,000
Ecuador n.a. n.a. n.a. <1,000
Colombia n.a. n.a. n.a. <1,000
Note: figures are based on calculations and estimates from news publications, key stakeholders and export organisations.

Bolivia accounts for an estimated 3,000 to 4,000 chia farmers. Their production is estimated to have grown from around
18,000 tons in 2013 to a volume between 27,500 and 35,000 tons in 2014. To put these numbers in perspective; the total
consumption in the USA and Europe combined does not exceed 20,000 tons. According to ANAPO in Bolivia, the association
of oilseed and grain producers, the recent production growth is due to the arrival of foreign buyers that have placed
Bolivian quality of chia in a high rank.

Competition

Paraguay and Argentina are considered the largest competitors for Bolivia. Paraguay is characterized as a commodity
producer with an emphasis on volume and low cost production. Argentina is a relatively experienced producer of chia and
has a dominant position in the international market. Although being one of the top producers, Argentina has faced
unfavourable weather conditions (prolonged drought) in 2013 resulting in an almost complete loss of its harvest. Plant
diseases are also being reported, but this is not unique to Argentina. It is one of the important reasons for Argentinian
producers to start cultivation of chia in the Santa Cruz region of Bolivia.

Yield

The yield per hectare depends on the region, climatic situation, cultivation techniques and equipment. Bolivia was able to
improve its yield from 0,35 ton per hectare in 2013 to 0,65 ton per hectare in 2014, but is still low compared to Argentina
and Paraguay that can reach 0,8 to 0,9 ton per hectare if the circumstances are well.

CBI | Market Intelligence Tailored Intelligence Chia from Bolivia | 2

Price

The trading price (FOB) for chia reached 8,000 to 12,000 US dollars per ton in 2013 but dropped to 3,000 USD in the third
quarter of 2014. In October 2014, Peruvian buyers were buying chia in Santa Cruz for as little as US$1.20, indicating the
difficulty of some farmers to find outlets for their produce. Bolivian prices are also under pressure from competitors
particularly in Paraguay, where prices can be as low as 50% of the Bolivian price.

In general chia prices fluctuate according to quality, demand and the production volume. It lacks the continuous price
feedback of a stock market commodity such as coffee or cacao, which makes it a highly speculative crop. Reliable market
information would be a great asset for producers to assess market developments.

Trends and forecast in CHIA supply/demand

Production trend line Export trend line Demand

Fictive speculation

Overproduction

Stabilization
Exponential production
growth
Low volume

Note: This graphic is a visualisation of the situation of the chia trade until the end of 2014 and its forecast, based on the current estimates
and export data.

Future production

With the current developments of overproduction and dropping prices, farmers will not be keen on expanding their chia
acreage. Buyers that have stocked chia earlier for high prices are not in the market to buy new stock. With a shelve life up
to 3 years this should not be a major problem, but it is a serious concern for exporters in tropical areas that lack properly
cooled storage facilities.
The acreage of chia in Bolivia is able to expand to 150,000 ha in the next 4 to 5 years, although it would not be
recommendable without closely monitoring the development in demand. The expansion in acreage can be achieved by crop
rotation, land reforms and the extension of the agricultural frontier through deforestation. Unused land or new fertile soil
offers the best possibility for a clean production of chia.

Bolivia is not the only country that has potential to increase the production of chia. Neighbouring countries Paraguay and
Argentina are also able to expand their chia acreage. And at the same time Ecuador and Peru are increasing their
production and are likely to become stronger competitors for Bolivia. Especially Peru shows a fast growth in the export of
chia, although details about production volumes are not available.

CBI | Market Intelligence Tailored Intelligence Chia from Bolivia | 3

International trade

Although trade statistics for chia are not accurate due to the reasons already described, a trend for specific oil seeds is
evident. Especially Bolivia and Paraguay profited from a strong export growth. About a third of the international demand
was fulfilled by Bolivian export.

Export development (tons)

30,000
Nicaragua
25,000 Peru

20,000 Australia

15,000 Mexico

Argentina
10,000
Paraguay
5,000
Bolivia
-
[2009] [2010] [2011] 2012 2013 2014 est.

Source: ITC Trademap & Comext

*Until 2013 HS code 120799 is used - Chia is a main product within this code for these countries. Quantities before 2012 are higher because
other products are included (e.g. safflower seeds, melon seeds and castor oil seeds.) 2014 is an estimate and calculated based on the
growth in a selection of importing countries until November.

Total chia export from the main exporting countries was little over 25,000 tons and is expected to grow close to 27,000
tons in 2014. Bolivian chia exports increased significantly in 2013 with an overall growth of 550%. The US market
accounted for 50% of the Bolivian exports of chia. Germany, Denmark and the UK were the main trading partners of
Bolivia in Europe. According to IBCE the main markets in the first semester of 2014 were USA (40%), Chile (20%), Peru
(16%), Denmark (5%) and Ireland (4%).

There is also a notable amount of trade between neighbouring and

chia producing countries. Chile, Paraguay and Australia are three of the five largest importers of Bolivian chia.
International sourcing companies in these countries collect and redistribute the chia imported from Bolivia. Moreover, Chile
(port of Arica) is an important logistical hub for Bolivian products. In some cases chia is imported to supplement the local
production, especially when harvest has been poor.

Bolivian exports (tons)

Undefined
12,000
UK

10,000 Peru

8,000 Denmark

Paraguay
6,000
Germany

4,000 Australia

2,000 Chile

USA
-
2009 2010 2011 2012 2013 2014 Est. Total export
according to INE/IBCE

Sources: ITC Trademap (HS 120799), INE/IBCE

Before the price dropped in the third quarter of 2014, the USA and Europe were assumed to absorb up to 30,000 tons and
10,000 tons respectively. According to current trade statistics this reality is still far away, as can be seen in the table
below.

CBI | Market Intelligence Tailored Intelligence Chia from Bolivia | 4

 Import from:
Bolivia, Paraguay, Argentina, Peru, Mexico, Australia, Chile, Nicaragua, Ecuador
2012 2013 2014 (est.)
ton Main trading ton Main trading ton Main trading partner
partner partner
USA 4,105 ARG 14,180 BOL 15,689 BOL
Australia 68 BOL 595 BOL 1,200 BOL
EU (countries below) 3,650 BOL / (PE) 3,849 BOL / (PE) 4,292 PGY / (PE)
- Germany 659 BOL 1,265 BOL 1,785 PGY
- Denmark* 248 EC 531 BOL 602 EC
- UK 222 AU 407 BOL 291 PGY
- France 56 BOL 151 BOL 184 PGY
- Netherlands 36 AU 259 PGY 503 PGY
- Spain** 2,429 PE 1,290 PE 926 PE
Source: ITC Trademap - 2014 is an estimate and calculated based on the growth in a selection of importing countries until November 2014.
*Import figures for Denmark are not available - For Denmark export statistics are used from the selected exporting countries, except of
Bolivia. Bolivian export figures for 2014 were not available at the time of writing.
**Trade figures for Spain are likely to be inaccurate - The Spanish import figures do not correspond with Peruvian export figures.

USA

 With an estimated import of 15,000 tons the USA is the largest market for chia.
 Bolivia is the main supplier to the USA (4,000+ tons).
 The US market stagnated in 2014 while buyers still had much high priced stock to sell. Last statistical data (nov.
2014) show a sign of a possible uptrend.

Tips:
 On the website https://panjiva.com/trends/chia+seed you can monitor the development of chia shipments to the
USA per exporting country.

USA imports (ton)

Chile
18,000

16,000 Ecuador

14,000 Nicaragua

12,000
Australia
10,000
Mexico
8,000
Peru
6,000

4,000 Paraguay

2,000 Argentina

-
Bolivia
2011 2012 2013 2014 est.

Source: ITC Trademap

EU

 Chia in Europe (around 4,000 tons) is several years behind compared to the USA, but is expected to continue to grow.
 North-western Europe has been the main target market for chia with Germany in the lead (almost 1,800 tons).
 The main importers can be found in Germany, the UK, the Netherlands, Denmark, Spain and France.
 Central and eastern European countries have little import from origin, but are growing in consumption.
 Paraguay became the largest supplier to Europe in the end of 2014.

CBI | Market Intelligence Tailored Intelligence Chia from Bolivia | 5

 Estimated EU imports 2014 (ton)
2,000

1,800 Chile

1,600 Ecuador

1,400 Nicaragua

1,200 Australia

1,000 Mexico
800 Peru
600
Paraguay
400
Argentina
200
Bolivia
-
Duitsland Spain* Denmark** Netherlands UK France

Source: ITC Trademap, INE/IBCE

2014 is an estimate and calculated based on the growth in a selection of importing countries until November 2014.
*The Spanish import figures do not correspond with Peruvian export figures.
**Import figures for Denmark are based on export statistics from the selected countries, except of Bolivia, which were not available at the
time of writing.

Australia

 Australia is both an important producer and consumer of chia.

 A strong domestic marketing campaign has led to a substantial increase in demand.
 Of the 1,250 tons import from South America in 2014, Bolivia is leading with nearly 800 tons.
 Australian produced chia is most dominant in the Asian-Pacific markets and the Commonwealth countries (UK,
Canada, New Zealand).

Other countries

 Chia is also consumed in several Latin American countries, Canada and Japan. Asia and the Middle East are identified
as upcoming markets.

Future demand

Importers with a significant experience in chia are convinced that the demand will continue to grow in the years to come.
European countries in particular offer opportunities as chia is a relatively new, but popular product. Chia has reached the
main sales channels, such as supermarkets, and large food production companies are showing interest. However,
specialized companies in the bakery sector that are new in the chia trade are cautious about the fast hype chia has
become. They are less familiar with chia and therefore more careful with sudden fluctuations in price and demand. For the
same reason they avoid the risk of keeping stock.

Novel Food

As a new product on the European market, chia is subjected to the Novel Food legislation. This formal procedure initially
limited the amount of authorized importers to early adaptors and international sourcing companies such as the Chia
Company (Australia), Original Chia (Denmark), Naturkost Übelhör (Germany/Mexico) and Benexia (Chile).

After the extended authorization in January 2013 the amount of companies with a novel food notification for chia increased
fivefold to a total of 25 (last updated list: Sept. 2014). Nine of these companies are known to work with Bolivian suppliers,
of which at least three have an exclusive or integrated cooperation in Bolivia. These new applicants explain the recent
increase of chia in Europe, but also suggest a future growth as all these companies have an interest in trading chia. The
extended authorization permits a usage up to 10% of chia in certain food products as well as pre-packed chia with a
maximum recommended consumption of 15g per day.

Tips:
 For Novel Food legislations, see: http://ec.europa.eu/food/food/biotechnology/novelfood

CBI | Market Intelligence Tailored Intelligence Chia from Bolivia | 6

Quality

The chia seed type, quality and omega3 levels depend on the production region and its temperature, rainfall and altitude.
It is extremely complicated to produce organic or high quality, non-contaminated chia due to the tropical climate.

Bolivia has a good reputation for its quality chia thanks to fertile, toxic free soils and traditional production methods. On
the other hand, the Bolivian crop is primarily ‘rain fed’, making it more difficult to control the quality and nutritional value.
Climate is a determining influence on the final quality of the crop, resulting in a different competitive position each year.

 Nicaragua produces a different seed type than that is smaller, darker and higher in omega3 fatty acids than Bolivian
chia.
 Mexico has a similar seed type to South America but has been argued to contain higher fatty acids.
 In South America, the fatty acids in the Great Chaco (Humid, Arid, and Semiarid) and the Atacama Desert are
higher than in the Andean Valley and Yungas.
 Australia uses its dry season with irrigation to ensure consistent yields, quality and omega3 levels. They have better
crop control than Bolivia.

Source: http://www.solostocks.com/img/black-chia-seeds-7960679z0.png

Quality vs. Volume

Specific quality standards for chia are not yet in place and there is an international lack of knowledge about seed quality and purity levels
with some international buyers. The market has been driven by volume, downgrading the quality aspects of chia. Now that larger
quantities are being produced buyers will become more selective and differentiate in quality levels. According to one of the chia producers,
producers have to choose whether to focus on volume (price) or quality, suggesting that a market exists for both. Bolivian producers can
decide to follow a strategy of quality and identity such as in Nicaragua or push on with a volume and price driven strategy similar to that of
general suppliers in Paraguay.

Marketing & promotion

Chia is promoted as a health food product, both as a supplement and as an ingredient. The health aspect and nutritional
value are the main reasons for a consumer to purchase chia. A well defined trend in health food also creates a unique
selling point for organic chia.

Organic

Experienced importers identify organic chia as an interesting segment and estimate the current market share between
20% and 30%. Practically all producing countries claim to cultivate a percentage of certified organic chia, but there are no
official records. However, there are strong indications that organic certifications in some countries are being forged.
Bolivian farmers that manage to grow ‘real’ organic chia will only be able to compete if all producing countries have a
reliable and transparent certification scheme for organically cultivated chia.

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Origin and fair trade

Bolivian chia is not promoted in Europe for its origin or social value (fair trade). In fact, most of the time the origin of the
product is not clear to the consumer. Origin is less of importance, although reputation of regions or local producers can
influence the buyer.

Product usage

Chia is used as (health) food, animal feed and for cosmetics. Food has become the dominant segment for chia, especially
after the extended novel food authorization in 2013 that allows pre-packed chia. As a foodstuff it is promoted as a pre-
packed superfood (mostly raw seeds), supplement or in (health) food products such as bakery products or cereals.

Product type

Supplements Seeds
Powder

Oil / capsules

Super food Seeds

Powder

Food ingredient Muesli bars, cereals

Crisps, Drinks, Peanut butter

(not in EU)

Bakery products

Bread, Bread mix, cookies

Future product:
Chia oil as an ingredient

Cosmetics (niche) Skin cleaner

Watery eye essence

Skin cream

Animal feed Pet food, Animal feed

(mainly horses, birds)

In the USA, Canada and Australia there are many more chia products and brands than in Europe. In Europe the raw chia
seeds are most popular: It is often used to add to muesli, shakes, desserts or homemade bakery products. The interest of
the food industry in Europe is increasing, indicating a potential growth market for chia as an ingredient. At this moment,
the use of chia seeds in Europe as a food product is limited to:

CBI | Market Intelligence Tailored Intelligence Chia from Bolivia | 8

  100% Packaged Chia seed (max. recommended use of 15g per day);
 Baked goods (muffins, cookies, crackers, biscuits) up to 10%;
 Breakfast cereal up to 10%;
 Fruit, nut, and seed mixes up to 10%.

Several Bolivian companies offer milled chia seeds or pressed chia oil. Actual export figures of these semi-processed seeds
are hard to retrieve. In Europe chia oil was not permitted for consumption until very recently. The end of November 2014
the French company Ingredia Nutritional announced the first approval for the nutritional use of chia oil under the Benexia
brand. Within this new approval chia oil can be used in dietary supplements (2g/day) and replace up to 10% of plant oil in
food and drinks.

Market segments & sales channels

Most chia in Europe is handled by the package companies and brand owners. A smaller percentage reaches the processing
industry, mostly bakery and cereal companies.

In Europe chia has not only found its entrance in the health shops and speciality stores, but also in the major
supermarkets such as Tesco (UK), El Corte Ingles (ES) and Albert Heijn (NL). It is also sold as food supplement in drug
stores. It reflects a growing interest of the main public in health food and ‘superfood’.

Chia can be bought as a private label brand in several larger retail chains, indicating there is confidence in the product.
These large food retailers will use their size to negotiate competitive prices and demand a quality system of its suppliers,
such as ISO 22000/HACCP, IFS and BRC. Food safety, reliable supply and stable prices are essential in the future. Only in
these conditions the larger industrial buyers will step in.

Examples of private labels in the Netherlands (nov. 2014)

Kruidvat Albert Heijn G&W
Drugstore Supermarket Health store

250g – €4,29 175g - €3,09 250g – €4,95

http://www.kruidvat.nl http://www.ah.nl www.gezondheidswinkel.nl

The Bolivian-European trade of chia comprises a variation of actors: Local exporters, international sourcing companies and
importers. In the marketing of Bolivian chia in Europe, either the exporter or importer must have a novel food approval for
chia in place.

Type of company (Dis)advantage Example

(sept 2014)
Bolivian export company - Depends on EU importers with novel food approval Potenza, Saite
Bolivian export company with novel +Is allowed to export to any independent EU importer
food approval
International sourcing company +Is able to spread risks in different production countries ChiaCorp

-Depends on EU importers with novel food approval

International sourcing company +Is able to spread risks in different production countries Benexia
with novel food approval
+Is allowed to export to any independent EU importer
Integrated sourcing company with +Has a steady position in the EU market AgroBolivia
office in EU and novel food approval
+Is allowed to export to any independent EU importer

European importer with novel food +Is allowed to import from any supplier Original Chia
approval
European importer -Depends on a supplier with novel food approval

CBI | Market Intelligence Tailored Intelligence Chia from Bolivia | 9

Compliance with EU legal requirements

European buyers have difficulties in finding suitable suppliers of chia. There are mixed experiences with Bolivian chia and
the compliance with the European requirements depends much on the specific supplier. The exponential production growth
in Bolivia has not been favourable for its crop management and compliance.

Food safety / Pesticide residue

There have been numerous reports of high pesticide residues, also in Bolivia and certified organic chia. Importers are alert
of specific pesticides and residue levels (MRL) such as paraquat and glyphosate. The latter has been introduced recently in
European quality tests. Paraquat, of which the use was banned in Europe, and glyphosate are typically used in the
production of soy bean, sesame and cotton – common crops in the region of Bolivia, Argentina and Paraguay. Not
coinciding in harvest time, chia offers an excellent rotation for these crops, but at the same time they pose a genuine
threat for the production of clean chia. Chia is also sensitive to mould, and contamination with mycotoxins can also be a
problem.

Organic

In the case of organic chia, there is a similar problem. European buyers have reported traces of pesticides in organically
produced chia, making it unfit for the EU organic market. Because of the relatively low levels that were measured in most
samples from Bolivia it is assumed to be caused by cross contamination or drift.

Novel food

There are no independent Bolivian exporters that have applied for the novel food notification for chia, although there are a
few novel food approved joint ventures between Bolivia and Europe. Most Bolivian exporters typically depend on
international sourcing companies and European importers that are approved to market chia in the EU.

Mixed experiences are not unique to Bolivian suppliers. The popularity of chia has attracted many opportunistic farmers,
resulting in quality issues all around the continent. Just recently in mid 2014 chia was connected with an outbreak of
salmonella in North America. Finding a quality supplier is more decisive for a correct product and handling than selecting
the production country.

For the current legal requirements, see: CBI product fact sheet Chia

Compliance with EU private sector requirements

In Bolivia there are a few established exporters and many smaller suppliers and start-ups. Some lack a professional level
of international trading. Companies without food safety systems and certificates diminish their chances on the EU market.

Quality

Importers in Europe value long term relationships that are able to ensure a consistent high quality product and a
competitive price. The technical development of cultivation, cleaning and storage in Bolivia has not everywhere kept up
with the increased production volumes of chia. With at least two treatment plants that meet European standards, there is
enough capacity to process chia for export. Unfortunately not all chia is processed by these facilities. As a consequence not
all suppliers are able to meet the same quality and purity levels.
European importers reacted positively, although hesitantly on the news of a newly developed quality standard for Bolivian
chia by the National Institute of Agricultural and Forestry Innovation (INIAF) and the Bolivian Institute of Standardization
and Quality (Ibnorca). They argue that new certification and quality standards are only valuable when they proof to be
reliable and well maintained.

Progress

Bolivian companies have made progress in their compliance with European standards. There have been recent investments
in the treatment and storage facilities as well as the implementation of HACCP and ISO 22000. Several of these initiatives
can be ascribed to local subsidiaries of multinational companies or foreign investments. Unfortunately, not all companies in
Bolivia have the financial power, knowledge and resources to invest in modern plants and complex certifications schemes.
They depend on the capacity and quality of external facilities.

CBI | Market Intelligence Tailored Intelligence Chia from Bolivia | 10

Reliability

Some buyers prefer local exporters over large sourcing companies. However, local traders do not have the advantage of
spreading their risks by sourcing in different countries and sometimes offer chia on the basis of availability. Therefore a
reliable supply, traceability and a consistent quality cannot be taken for granted.

Professionalism

European buyers urge Bolivian suppliers to think long term and maintain a pro-active attitude. They expect good
communication and follow up on previous sales. Some buyers argue that suppliers in surrounding countries such as Peru
and Argentina seem to have a better understanding on what is expected from them.

Sustainability of the Bolivian market position

Overproduction has temporarily paralyzed the supply market, but the demand for chia is expected to continue growing.
This external demand secures a continuation for important producing countries such as Bolivia. In Europe this growth will
be maintained within its niche of a novel health ingredient.

Buyers are in the position to be selective and the emphasis in the next years will be on quality. The future position of
Bolivia will depend on how product quality and reputation are managed and to what extent international business relations
can be formalized. In this respect, farmers and exporters face different challenges.

Consolidation towards quality

“In 2014 quality aspects will become more important in the chia business; and this will strengthen the position of the formal players
against the informal players who try to get their bit of the business speculating with prices and fictive volumes. The large buyers already
know who the serious players are in the game – let´s hope that 2014 will be a year of consolidation in that regards, it would be an
important step to get to a more mature industry,”

- Mr. Taubert of Organic Sierra & Selva in http://organicwellnessnews.com

Quality, traceability and certifications

“Competition will be strong. Quality, traceability and certifications, will be factors to define who stays in business. (...) It is estimated that
the market may absorb up to 40 thousand tones of chia, 30 thousand in North America and 10 thousand in Europe. What will happen with
the surplus will be interesting to see”.

- Mr. Palacio of Naturkost de Mexico in http://organicwellnessnews.com

Position of farmers

Bolivian farmers are expected to deliver a high quality product and will need to improve their skills to produce more
efficiently; building experience instead of producing erratically. By cooperating with experienced exporters and
international sourcing companies, they can profit from their knowledge and commercial network and indirectly improve the
international market position of Bolivian chia.

Position of exporters

Exporters that work exclusively with Bolivian farmers have a higher interest in the success and the promotion of Bolivian
produced chia. While origin is less important to the European buyer, their reputation as a reliable and formal player
depends on the level of organisation and the consistent quality of their product.

International sourcing companies

Much of the export is still dominated by a few strong sourcing companies that cooperate with local farmers, often in
several producing countries (ChiaCorp, Benexia). These companies have invested in Bolivian production and contributed to
the export of Bolivian chia.

Competition

Bolivian chia seeds are very similar to those of its main competitors Argentina and Paraguay. However, Bolivia has the
advantage of relatively good soil and climatic circumstances, whereas Argentina and Paraguay have dealt with climatic
difficulties. Furthermore, Paraguay generally has a lower reputation, presenting itself as a low cost producer and using

CBI | Market Intelligence Tailored Intelligence Chia from Bolivia | 11

much of the same soil and production techniques as for soy bean. If Bolivia can successfully exploit these nuanced
differences, their position will be easier to maintain in the future.

Comparison of Bolivian EU Threat Opportunity

market position
Argentina More experienced producer Climatic difficulties
Paraguay Larger volumes Reputation of low cost producer / less sustainable
Mexico More experienced producer Main focus market is USA
Central America Higher quality seed Smaller production capacity
Australia Better controlled production and more consistent Large distant supplier; better positioned for Asian
crop Pacific markets
Peru, Ecuador, Colombia Increasing chia production Not yet large producers

The cultivation of chia is not bound to specific countries. In the future chia can be produced in different parts of the world.
Several African countries have ideal growing conditions for chia and there have been experiences and positive trials in
Kenya and Tanzania by the Chia Company and in Ghana by Original Chia. With the current situation of overproduction,
traditional growers should not be worried, but it could undermine the future position of Bolivian chia.

Conclusions and recommendations

Despite the surplus production, the chia market shows future opportunities with an increasing consumption and product
diversification. The competition is expected to remain strong and Bolivia will have to give priority to its quality control and
positioning. Regular market intelligence will help to match offer and demand. Being one of the larger production countries,
Bolivia could optimize its potential by combining volume and quality in a long term strategy.

Strong competition and professionalization

The market for chia will continue to mature and the international awareness for quality standards will grow. Buyers can
become more selective in their purchasing. The success of the future suppliers depends on the degree of their
professionalism.

Many Bolivian suppliers are not distinctive in their commercial attitude or professional reputation. Also, the production has
developed faster than the growth in technology.

Recommendations:
For exporters:
 Include a pro-active sales strategy, build long term relationships with buyers and consider contracted supply
 Invest in quality cleaning and storage facilities
 Increase visibility and buyer awareness for Bolivian quality
 Improve nutritional value through innovation

Opportunities in growing market

Chia has not yet reached its maximum potential in Europe.

Large retail channels have adopted chia and there is interest from the food industry. However, chia is not a commodity and
in Europe restricted to the novel food legislation. The current production volumes are much too high.

Bolivian chia is not unique in its kind and its cultivation depends much on rainfall instead of controlled agriculture. Despite
of this, Bolivia has been able to secure a strong position as a large volume producer of chia. Their position can be
strengthened by striving for a balanced combination of volume and quality. Crop efficiency will underline Bolivian’s
competitiveness. Crop consistency and quality will help keep EU buyers interested.

CBI | Market Intelligence Tailored Intelligence Chia from Bolivia | 12

 Recommendations:
For exporters:
 Increase the amount of potential clients in Europe by applying for a Novel Food approval for chia
 Intensify trade relations with buyers

For producers:
 Cooperate or integrate with experienced sourcing companies and use their knowledge and marketing position
 Focus on improving yield and harvest techniques instead of extending agricultural frontier
 Protect the genetics of quality chia seeds

Usage and sales channels will diversify

Countries, such as the USA, already have a great amount of product types and brands that use chia as an ingredient. In
Europe new applications are expected to increase as well, especially when the novel food approval for chia as an ingredient
is extended. An approval for chia oil, for example, will create new sales channels. With this diversification in the food
industry, food safety and reliability will be a necessity.
Bolivian suppliers are progressively involved with food safety certifications. If they are able to meet specific buyer
requirements or develop a leading position in basic processing, they can become an important link in the food processing
industry.

Recommendations:
For processors:
 Anticipate new opportunities (eg. Chia oil) and improve process facilities
 Implement food safety systems (HACCP, BRC, IFS, ISO 22000)

Organic production as a unique selling point

Chia is considered a health food and is therefore attractive for the organic trade. The production of organic chia is
complicated and there are strong indications of conventional chia being sold with an organic certification.
Bolivia has relatively good conditions for organic cultivation, but it requires knowledge and it includes more risks. As long
as organic certificates are not well managed on an international level, it will be difficult to justify the higher costs of ‘real’
organic chia.

Recommendations:
For producers:
 Acquire knowledge about organic production, pest control and crop management
 Watch out for the ease of rotating crops and the nearby use of pesticides
 For support organizations:
 Help improve a transparent organic certification scheme throughout the region

Market intelligence is a crucial asset

The lack of information makes it very difficult to forecast the market developments for chia. Access to information about
cultivated area, production and international demand is needed for decision making and optimizing profits.

Recommendations:
For support organizations:
 Organize farmers and inform them about market developments

For producers:
 Stay informed and communicate regularly with buyers and support organizations

CBI | Market Intelligence Tailored Intelligence Chia from Bolivia | 13

Attachment 1 – HS codes

Country Type / HS Code Description

time
EU Untill 12079997 OIL SEEDS AND OLEAGINOUS FRUITS, WHETHER OR NOT BROKEN (EXCL. FOR SOWING AND
2011 EDIBLE NUTS, OLIVES, SOYA BEANS, GROUNDNUTS, COPRA, LINSEED, RAPE OR COLZA
SEEDS, SUNFLOWER SEEDS, COTTON, SESAMUM, MUSTARD, POPPY AND HEMP SEEDS)
From 12079996 Oil seeds and oleaginous fruits, whether or not broken (excl. for sowing and edible nuts,
2012 olives, soya beans, groundnuts, copra, linseed, rape or colza seeds, sunflower seeds, palm
nuts and kernels, cotton, castor oil, sesamum, mustard, safflower, melon, poppy and hemp
seeds)
USA Untill 1207990291 OTHER OIL SEEDS AND OLEAGINOUS FRUITS, WHETHER OR NOT BROKEN, NESOI
2011
From 1207990391 Other oil seeds and oleaginous fruits, whether or not broken, nesoi
2012
Argentina Untill 12079999 Las demás semillas y frutos oleaginosos, incluso quebrantados : Los demás : Los demás
2011 (descripcion detallada no disponible)
From 12079990 Las demás semillas y frutos oleaginosos, incluso quebrantados : los demás : los demás: las
2012 demás
Australia Import 1207990048 Oil seeds & oleaginous fruits (excl. soya beans, groundnuts, copra, linseed, rape or colza
Untill seed, sunflower, cotton, sesamum, mustard, poppy, palm nut, castor oil & safflower seeds)
2011 whether or not broken
Import 1207990060 Oil seeds and oleaginous fruits, whether or not broken (excl. soya beans; ground-nuts; copra;
From linseed; rape or colza seeds; sunflower seeds; palm nuts and kernels; and cotton, castor oil,
2012 sesamum, mus
Export 12079990 Oil seeds & oleaginous fruits (excl. soya beans, groundnuts, copra, linseed, rape or colza
Untill seed, sunflower, cotton, sesamum, mustard, poppy, palm nut, castor oil & safflower seeds)
2011 whether or not broken
Export 12079991 Oil seeds and oleaginous fruits, whether or not broken (excl. soya beans; ground-nuts; copra;
From linseed; rape or colza seeds; sunflower seeds; palm nuts and kernels; and cotton, castor oil,
2012 sesamum, mus
Bolivia 1207999900 Las demás, semillas y frutos oleaginosos, incluso quebrantados
Chili Untill 12079990 Las demás semillas y frutos oleaginosos, incluso quebrantados: Los demás: Los demás: Las
2011 demás
From 12079900 Las demás semillas y frutos oleaginosos, incluso quebrantados.: Los demás Los demás
2012
Mexico 12079999 Las demás semillas y frutos oleaginosos, incluso quebrantados : los demás : los demás: los
dem s.
Paraguay Untill 12079999000 Las demás semillas y frutos oleaginosos, incluso quebrantados : los demás : los demás:
2011 granos de saflor
From 12079990000 Las demás semillas y frutos oleaginosos, incluso quebrantados : los demás : los demás: las
2012 demás
Peru 1207999900 Las demás semillas y frutos oleaginosos, incluso quebrantados: Los demás: Los demás: Los
demás: Los demás
Ecuador 1207999900 Semillas y frutos oleaginosos, los demás

CBI | Market Intelligence Tailored Intelligence Chia from Bolivia | 14

Attachment 2 – Novel food approved companies for chia

company with novel food approval for chia HQ Type Date Origin of chia

1 R Craig&Son / Columbus Paradigm Institute authorisation oct-09

2 Original Chia DK notification dec-09 S. America: PE/BO (org), PY, AR, EC

3 Naturkost Übelhör GmbH & Co DE notification jun-10 MX (GT, BO, PE)

4 The Chia Co AU notification oct-10 AU (Central America, Africa)

5 Chiasa2F, S.L. (Chiasa Group) ES notification mar-11 ?

6 Benexia CL notification dec-11 S. America (BO, AR)

# The Chia Co AU ext. authorisation jan-13 AU (Central America, Africa)

# Benexia (Chile) CL notification mar-13 S. America (BO, AR)

7 Nutrience International Ltd (Infoods) UK notification jun-13 no origin specified

8 Elmadie FR notification jun-13 ?

# Original Chia DK notification aug-13 S. America: PE/BO (org), PY, AR, EC

9 Primaria Premium Raw Materials ES notification sep-13 MX (AR, BO, PE)

# Naturkost Überlhör GmbH & Co DE notification oct-13 ?

10 Axe Fruit FR notification oct-13 S. America

11 Chia Booster Distribution Ltd IR notification nov-13 Central and S. America

12 Nutrisure Ltd (Supernutrients) UK notification jan-14 S. America (AR, EC, BO, PY)

13 Duque de Ayuso S.L. ES notification feb-14 MX, BO, AR (org)

14 Delphi Organic GmbH DE notification feb-14 ?

15 A.V. Sørensen DK notification mar-14 ?

16 ACHANCHIA UG & CO.KG DE notification mar-14 ?

17 AMERICA LATINA ORGANCHIA SA EC notification apr-14 EC

18 Tradin Organic Agriculture B.V. NL notification may-14 PY

19 VM Trading GmbH DE notification may-14 PY, BO

20 Doens Food Ingredients B.V NL notification jul-14 PY

UK (&
21 Negocios Europa Ltd / AGROBOLIVIA BO) notification aug-14 BO

22 Voicevale Ltd. UK notification aug-14 ?

23 Nature's Path Organic UK UK notification sep-14 ?

24 Duria Global GmbH / Medina Vasquez SRL DE & BO notification sep-14 BO

AR (&
25 Andean Grain Products Ltd. UK) notification oct-14 S. America (BO, AR)

26 Ingredia Nutritional (& Benexia) FR authorisation - oil nov-14

CBI | Market Intelligence Tailored Intelligence Chia from Bolivia | 15

CBI Market Intelligence

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2509 AC The Hague
The Netherlands

www.cbi.eu/market-information

[email protected]

This survey was compiled for CBI by Michel Peperkamp | ICI Business

Disclaimer CBI market information tools:

http://www.cbi.eu/disclaimer

November 2014 (updated January 2015)