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.
Over to the Marketers now.Export Market Development
Asia Pacific Oceania
33%
Europe42%
Middle East & Africa14%
Americas11%
Exports by Region (2014)
AL12016 Developing export markets for Australian almonds
• 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.
Export Market Development
AL12016 Developing export markets for Australian almonds
• 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.
Export Market Development
AL12016 Developing export markets for Australian almonds
Export Market Development
$-
$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%).
AL12016 Developing export markets for Australian almonds
Export Market Development
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
Over to the Marketers now.Export Market Development
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
Over to the Marketers now.Export Market Development
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
AL12016 Developing export markets for Australian almonds
• Controlling insect damage: carob and carpophilus.
• Food safety issues: Bacterial and mycotoxin contamination.
Market development - product quality issues
Almond InsightsAustralian Almond Research
AL12016 Developing export markets for Australian almonds
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.
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
Mar
-12
May
-12
Jul-
12
Sep
-12
No
v-1
2
Jan
-13
Mar
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May
-13
Jul-
13
Sep
-13
No
v-1
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Jan
-14
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Jan
-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
Trade Exhibitions attended by ABA and Exporters
Sial Paris ran from October 19 to 23 in 2014. SialParis is a biennial exhibition alternating with Anuga in Cologne.
Trade Exhibitions attended by ABA and Exporters
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.
Trade Exhibitions attended by ABA and Exporters
An Australian Almond Seminar held at the exhibition centre during Food Week Korea. More than 50 customers attended this seminar.
Trade Exhibitions attended by ABA and Exporters
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.
Trade Exhibitions attended by ABA and Exporters
China
The Australian almond industry exhibited at Sial China in Shanghai which ran from May 6 to 8, 2015.
Trade Exhibitions attended by ABA and Exporters
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.
Trade Exhibitions attended by ABA and Exporters
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.
Trade Exhibitions attended by ABA and Exporters
Thank You