al12016 developing export markets for australian almondsal12016 developing export markets for...

AL12016 Developing export markets for Australian almonds

The Almond Board of Australia is charged with implementing the Industry Strategic Plan. The aim of the Plan is to profitably grow the industry.

$

Quality & price

Sales volume

Managing risk

Costs

Yield

Operating environment

• The ABA Board of Directors directly represents over 75% of production and therefore almond R&D levy paid. • If the grower co-operative Almondco’s representation by

their Managing Director is counted then this figure increases to 97%.• The ABA raises a voluntary market development levy on

99% of production totalling $1.5 million in 2015.• The ABA also claims Export Market Development Grant

funding of approximately $100,000 that is reinvested in export markets.• In 2014/15, the ABA invested $850,000 in export market

development.•Of this amount, HIA contributed $35,577 via AL12016.

Australian Almond Production• Production in 2015 is estimated to be

75,000 metric tonnes of kernel weight

• Tonnage available for export is 50,000+ tonnes

• Australian production from existing orchards will continue to increase to 90,000 tonnes

• The current orchard area is 30,000 Ha’s• Further major plantings are underway

that will increase the area to 45,000 Ha’s • Production will be 135,000 tonnes with a

farmgate value of $1.6 billion at current prices

2,500

5,000

7,500

10,000

12,500

15,000

17,500

20,000

22,500

25,000

27,500

30,000

32,500

Orchard Hectares Planted

Current orchard plantings total 30,000 ha.

80% have been planted in past 12 years.

Industry PlantingsAustralian Almond Production

Australian Almond Production

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Annual Production

500% increase in production in last 10 years

Tonnes

Global Almond Supply / Demand

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Carry-out 79, 48, 36, 73, 67, 62, 50, 60, 104 187 145 115 152 143 159 159 45, 45, 45,

Global Production 295 491 414 476 528 504 592 682 796 910 854 920 1,1 1,0 1,1 1,0 1,1 1,1 1,1

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Ton

nes

World Almond Supply

World production increased 600,000 tonnes in 7 years doubling the global crop.

Australian Almond Production

US85%

Australia6%

Spain5%

Turkey1%

Chile1%

Other2%

2014 World Production Share

Californian production is nearly 900,000 tonnes.Market access and development funding is US$50 million.

Global Almond Supply / Demand

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 -

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

To

nn

es

World Almond Supply vs DemandCarry-out Global Production Consumption

Growing Australian Demand

2014: 22,000 tonnes

2009: 13,600 tonnes

Domestic sales have

increased 61% over

the past 5 years

Over to the Marketers now.Export Market Development

Export sales in 2014 totalled $445 million and in 2015 sales should exceed $600 million. May 2015 exports totalled $90 million.

$-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$450,000,000

$500,000,000

Almond Export Value Cumulative by Month

2013 2014 2015

Over to the Marketers now.

The Almond Export Market Development Plan is based on gaining an understanding of our established and potential markets, developing key relationships, and increasing the nut trades awareness of brand Australia almonds in established and potential new markets of value.

Export Market Development

This ABA’s Market Development Committee develops the market development strategies and in the past has provided guidance on the R&D projects required to assist implement the Plan.


Asia Pacific Oceania

33%

Europe42%

Middle East & Africa14%

Americas11%

Exports by Region (2014)


• The project is aimed at ensuring that the industry has the capacity to visit, study and learn first hand from interaction with the importers, trade officials, market analysts / researchers, and build key relationships.

• It aims to ensure that the most favourable market access conditions are in place and Australian almond products are tailored to the market opportunities in key export countries.



• Also to enhance Australia’s ability to further develop exports into both existing and emerging markets, a suite of market development activities are undertaken by the Almond Board of Australia with direct involvement from Australia’s five almond exporters: Select Harvests, Olam International, Almondco, Nut Producers Australia, and Bright Light Almonds.

• The Almond Market Development Committee, oversees the project and analyses the information gathered from the project activities and from the members’ own commercial interaction with the markets.




$-

$50,000

$100,000

$150,000

$200,000

$250,000

2012/13 2013/14 2014/15 2015/16 2016/17

VC Project Funding Total $492,160

HAL / HIA $ ABA VC $$203,548 $288,612

To date, $350,717 has been invested in the project. During this period the value of almond exports has increased $319 million (279%).



Contracted Project Outputs:

• Trade delegation visits to and from India

• Market Development Forum held annually in New Delhi

• Strategic Market Development Plan updated for India

• Trade delegation visits to and from Indonesia, Thailand and Malaysia

• Strategic Market Development Plans developed for Indonesia, Thailand and Malaysia resulting from facilitated workshop

• Preparation of industry information pack for emerging markets

Central & West Asia

India

UAE

Europe

North-East Asia – 3 FTA markets

Korea

Japan

China

South-East Asia

Indonesia

West Europe

Established Markets Emerging Markets

Export Market DevelopmentAL12016 Developing export markets for Australian almonds


India SpainUnited

States ofAmerica

United ArabEmirates

Germany ItalyNetherland

sNew

ZealandThailand France

Kernel 2349275 60341560 43820193 42232119 28605818 20831510 18186040 12831703 11295005 10501536

$- $5

$10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 $75 $80 $85 $90 $95

$100 $105 Top 10 Export Destinations by Value (2014)Million


Free Trade Agreements have recently been signed with Korea and Japan. FTA’s are being negotiated with China and India, The USA’s and Australia’s biggest customers respectively.

An FTA with India is hoped to be signed during 2015 which will reduce the tariff on inshell almonds to nil Rupee. An estimated 30,000 people are involved in hand shelling almonds in India.The Australian harvest early in the calendar year suits the Religious festivals in India.

Old Delhi Market


• Controlling insect damage: carob and carpophilus.

• Food safety issues: Bacterial and mycotoxin contamination.

Market development - product quality issues

Almond InsightsAustralian Almond Research


Over to the Marketers now.Export Market DevelopmentAL12016 Developing export markets for Australian almonds

The major outcome sought from this project is the clearance of Australian production at a farmgate return above $5.00 a kilogram.

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$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

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May

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Jul-

12

Sep

-12

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Jan

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Mar

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-15

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-15

Average Export Price

Central & West Asia

India

UAE

Europe

North-East Asia – 3 FTA markets

Korea

Japan

China

South-East Asia

Indonesia

West Europe

Established Markets Emerging Markets

Export Market DevelopmentTrade Exhibitions attended by ABA and Exporters

Gulfoods in Dubai is the world’s largest annual food exhibition.The Australian almond industry has been exhibiting at Gulfoods for the last 7 years, consistently growing our trade relationships.

Trade Exhibitions attended by ABA and Exporters

An Industry / Season Update and Networking Seminar is conducted during the exhibition


Sial Paris ran from October 19 to 23 in 2014. SialParis is a biennial exhibition alternating with Anuga in Cologne.


The Australian almond industry exhibited at Food Week Korea in November 2014 in anticipation of the Free Trade Agreement which came into force in time for our 2015 season.


An Australian Almond Seminar held at the exhibition centre during Food Week Korea. More than 50 customers attended this seminar.


Japan

The ABA exhibited at Foodex in Tokyo for the second time in March 2015.

An Australian Almond Seminar was held at the exhibition centre during Foodex.More than 40 Japanese nut industry traders / retailers attended the seminar.


China

The Australian almond industry exhibited at Sial China in Shanghai which ran from May 6 to 8, 2015.


The Australian almond industry exhibited for the first time at Asia Fruit Logistica in Hong Kong in September 3-5, 2014.The ABA believes Australian almonds represent a significant growth opportunity for the Fresh Produce categories throughout Asia.


China

Indonesia

The Australian almond industry exhibited for the second time at Food & Hotel Indonesia, a biennial exhibition, that ran from March 15 to 18, 2015.


Thank You

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