chinese investment in australian citrus - a case study

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Chinese investment in the Australian citrus industry - a case study

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Page 1: Chinese Investment in Australian Citrus - A Case Study

Chinese investment in the Australian citrus industry - a case study

Page 2: Chinese Investment in Australian Citrus - A Case Study

National Issues Forum

201328-29 October

Melbourne

China Trade Mission 201327 November – 6 December

Marketing Forum & Exporter Workshops

February 2014

Pilot Intern

program

Page 3: Chinese Investment in Australian Citrus - A Case Study
Page 4: Chinese Investment in Australian Citrus - A Case Study

Excellent product range

Page 5: Chinese Investment in Australian Citrus - A Case Study

Australia’s reputation for safety, quality & reliability

Page 6: Chinese Investment in Australian Citrus - A Case Study

Freshness

Excellent flavour

Beautiful colour

Good storage & shelf life

Food safety & traceability

When you buy Australian citrus you get:

Page 7: Chinese Investment in Australian Citrus - A Case Study

Concerns in China over safetyof local food

MARCH 2013

Plague of 3,000 dead pigs dumped in river threatens Shanghai water supply

Page 8: Chinese Investment in Australian Citrus - A Case Study

• Traditional wet markets

• Supermarkets

• Premium stores

• On-line selling

Market opportunities

Page 9: Chinese Investment in Australian Citrus - A Case Study

Oranges• South Africa (Valencias)

• USA (late season navels)

• Domestic (early navels)

Mandarins• South Africa (Nova, Murcott)

• Argentina (Murcott)

• Domestic

The Competition

Page 10: Chinese Investment in Australian Citrus - A Case Study

Taste is our biggest point of difference

Page 11: Chinese Investment in Australian Citrus - A Case Study

Promoting Australian citrus in China

• Trade missions

• Trade fairs

• Generic on-line orin-store promotions

Page 12: Chinese Investment in Australian Citrus - A Case Study
Page 13: Chinese Investment in Australian Citrus - A Case Study
Page 14: Chinese Investment in Australian Citrus - A Case Study

Australian citrus exports to China(metric tonnes)

2010 2011 2012 2013 20140

2,000

4,000

6,000

8,000

10,000

12,000Mandarins Oranges

Page 15: Chinese Investment in Australian Citrus - A Case Study
Page 16: Chinese Investment in Australian Citrus - A Case Study
Page 17: Chinese Investment in Australian Citrus - A Case Study

• Lack of succession

• High debt levels

• Need to innovate

Why do Australian citrus businesses need investment?

Page 18: Chinese Investment in Australian Citrus - A Case Study

Compliant and well developed supply chain• KCT orchard registration• Packing shed registration & inspections• MRL compliance – spray diary checks and residue tests• Minimum pricing regulation• Strong environmental safeguards - sustainability

What we can offer Chinese investors

Page 19: Chinese Investment in Australian Citrus - A Case Study

Deregulated and fragmented marketing

Page 20: Chinese Investment in Australian Citrus - A Case Study

• Single units are generally too small to be of interest– combine into larger managed units?

• Industry dominated by family-owned businesses– structures are often loose and complicated– consolidation options?

• Greenfields developments are possible– conversion to citrus from other crops?

• People, people, people!– capturing the IP; maintaining the passion– distributing the rewards; offering security

What are the key issues?

Page 21: Chinese Investment in Australian Citrus - A Case Study

Mildura Fruit Company

Asian investment is already occurring

Page 22: Chinese Investment in Australian Citrus - A Case Study

Super Seasons, Hillston

Asian investment is already occurring

Page 23: Chinese Investment in Australian Citrus - A Case Study

AGRIFresh, Western Australia

Asian investment is already occurring

Page 24: Chinese Investment in Australian Citrus - A Case Study

• Australian businesses need to prepare themselves

• Chinese investors need help in understanding the citrus industry

• There is a need for facilitators to help both sides

Neither side is ‘investment ready’

Page 25: Chinese Investment in Australian Citrus - A Case Study

Thank you