Grand HyattGrand HyattGoa, IndiaGoa, India

February 20 2014February 20 2014Peter WilsonPeter Wilson

Chief Executive Officer – Australia Milling GroupChief Executive Officer – Australia Milling GroupChairman – Pulse Australia LimitedChairman – Pulse Australia Limited

The Pulses Conclave 2014

“The Australian Story”

Australian pulse industry snapshotAustralian pulse industry snapshot Where have we come from?Where have we come from? Where are we now?Where are we now? Where do we need to be? Where do we need to be? What’s missing?What’s missing?

Discussion

Where have we come from?Where have we come from? Poor agronomy and harvest outcomesPoor agronomy and harvest outcomes Ad Hoc but “dedicated” state/regional breeding Ad Hoc but “dedicated” state/regional breeding

with poor commercialisation strategieswith poor commercialisation strategies ““Special” cropsSpecial” crops

Statutory marketing and bulk handling….Statutory marketing and bulk handling…. Crop shaping responsibilities…..gone?Crop shaping responsibilities…..gone?

Volatile and unstructured markets – high riskVolatile and unstructured markets – high risk Few playersFew players ““Grain trade is naturally out of sync with science”Grain trade is naturally out of sync with science”

Discussion

Relative Australian Pulse Area, Relative Australian Pulse Area, Production and ValueProduction and Value

ABS/ABARE/Pulse Australia Limited/Australia Milling Group

Where are we now?Where are we now? National and International Industry structureNational and International Industry structure

Market access, contract execution, supply chain Market access, contract execution, supply chain support and quality standardssupport and quality standards

Focused national breeding and commercialisation Focused national breeding and commercialisation strategiesstrategies

Commercial is the keyCommercial is the key Integrated agronomy and supply chain focusIntegrated agronomy and supply chain focus

Pulse Australia increasing applied science collaboration…in Pulse Australia increasing applied science collaboration…in partnership with GRDC and the AOFpartnership with GRDC and the AOF

This is in contrast with the broader grain industryThis is in contrast with the broader grain industry Structured markets developing…Structured markets developing…

But slowly!But slowly! Attracting significant public/private investmentAttracting significant public/private investment

Discussion

Indian Pulse Production, Consumption Indian Pulse Production, Consumption and Gapand Gap

FX a key Indian price driver.FX a key Indian price driver.

Price relativity!Price relativity!

Top 5 Producing Chickpea Nations. Top 5 Producing Chickpea Nations. (source StatPub)(source StatPub)

Australian Chickpea Exports (top 10 Australian Chickpea Exports (top 10 Destinations)Destinations) (source ABS/Stat Pub) (source ABS/Stat Pub)

Australian Supply SnapshotAustralian Supply Snapshot

The Real Story!The Real Story!

Issues and OpportunitiesIssues and Opportunities Market integrityMarket integrity

Moral hazardsMoral hazards Market StructureMarket Structure Forward Contracts – at what cost?Forward Contracts – at what cost? Defaults, Defaulters and BrokersDefaults, Defaulters and Brokers The role of futures marketsThe role of futures markets

Market direction on quality and food technologyMarket direction on quality and food technology Australian market will pursue food innovation to improve market Australian market will pursue food innovation to improve market

opportunities.opportunities. ““Quality” Provides “flexibility” – Canning, crushing or feed?Quality” Provides “flexibility” – Canning, crushing or feed?

Supply Chain integration, cost and industry leadership is our absolute Supply Chain integration, cost and industry leadership is our absolute best growth and risk management path.best growth and risk management path. GeneticsGenetics HusbandryHusbandry Food Technology applicationsFood Technology applications LogisticsLogistics Market access and supportMarket access and support