chinese investment in australian citrus - a case study
TRANSCRIPT
Chinese investment in the Australian citrus industry - 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
Excellent product range
Australia’s reputation for safety, quality & reliability
Freshness
Excellent flavour
Beautiful colour
Good storage & shelf life
Food safety & traceability
When you buy Australian citrus you get:
Concerns in China over safetyof local food
MARCH 2013
Plague of 3,000 dead pigs dumped in river threatens Shanghai water supply
• Traditional wet markets
• Supermarkets
• Premium stores
• On-line selling
Market opportunities
Oranges• South Africa (Valencias)
• USA (late season navels)
• Domestic (early navels)
Mandarins• South Africa (Nova, Murcott)
• Argentina (Murcott)
• Domestic
The Competition
Taste is our biggest point of difference
Promoting Australian citrus in China
• Trade missions
• Trade fairs
• Generic on-line orin-store promotions
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
• Lack of succession
• High debt levels
• Need to innovate
Why do Australian citrus businesses need investment?
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
Deregulated and fragmented marketing
• 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?
Mildura Fruit Company
Asian investment is already occurring
Super Seasons, Hillston
Asian investment is already occurring
AGRIFresh, Western Australia
Asian investment is already occurring
• 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’
Thank you