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AHEA Annual General Meet ing Minutes , 18 August 2015 P a g e | 1

ANNUAL GENERAL MEEETING

Holiday Inn Melbourne Airport Tuesday, 18 August

8.45am – 9.45am

MINUTES 1. WELCOME

The Chair will welcomed attendees, noted that a quorum was present and no proxies were received.

Present:

Apple and Pear Association Ltd Annie Farrow

Olivia Tait

Australian Horticultural Exporters Association Joe Saina, Deputy Chair

Brian Ceresa, Director

Gary Esterman, Director

Mark Hall, Director

Peter Ingham, Director

Hugh Molloy, Director

Joe Tullio, Director

Michelle Christoe

David Minnis

Sharon Kimmins

Australian Risk Applications Pty Ltd Michael Murrell

Claire Gleeson

Australian Table Grape Association Inc. Jeff Scott

Nick Muraca

BGP International Pty Ltd Prudence Barker

Crozasia Matt Sexton

Delica Domestic Daniel Beddome

Fruit Master Australia Pty Ltd Brett Pickering

Kelly Wandel

Global Fresh Australia Pty Ltd Ben Bartlett

Minnis Horticultural Services Byron Minnis

Momack Produce Pty Ltd James Terry

Schenker Australia Pty Ltd Chris Pienaar

Paul Rod

The Grape House Pty. Ltd Phillip Brancatisano

Wakefield Transport Group Ken Wakefield

Walker Longbottom Richard Longbottom

Sam Walker

Watt Export Pty Ltd Bob Watt

Matthew Watt


Chair opened the meeting at 8.50am.

The meeting also noted the current 2015-16 AHEA financial members list attached for information.

2. AGM MINUTES

RESOLUTION:

AGM to confirm the Minutes of Annual General Member Meeting of 18 September 2014

Moved: Gary Esterman Seconded: Joe Saina UNANIMOUS

3. CHAIR REPORT

David Minnis provided a verbal and written overview of AHEA activities. He noted that imports and exports are inextricably linked. See Chair report in AGM papers. David believes that AHEA need common ground on disinfestation processes. AHEA works hard to develop discussions with the government on disinfestation treatments and many protocols eg China do not exclude methyl bromide. He noted that the USA and South America have reached agreement and are now working cooperatively. Australian and Asia currently have a combative relationship which we need to turn around. The falling Australian dollar should lead to increased trade. Exporters need airfreight access to Asian markets. The Chair expressed appreciation to fellow Directors: all of whom give their time, effort and expertise without payment. He also thanked AHEA staff and acknowledged the increased AHEA profile achieved by the Executive Director over the past few years.

4. AHEA MAJOR ACTIVITIES

The meeting noted the Executive Director written and verbal overview of major AHEA activities for 2014/15. It was noted that AHEA provided a lot of assistance to members on various issues during the year. AHEA was receiving an issue enquiry almost daily – covering issues such as booking of inspectors, container hold ups etc. AHEA has assisted a lot of members through its ‘help desk’.

Michelle also provided an overview of upcoming activities over the next 12 months:

Update Austrade brochure

Launch Export Portal in November

Deliver workshops to growers as part of ABE project

Develop training opportunities

Develop standards - AHEA accredited as an SDO

Improve AHEA help desk capability

Seeking funding for airfreight project

Ongoing liaison with government agencies.

The AHEA has four key strategies moving forward:

Marketing for Competitiveness and Increased Market share: Maintain and improve market access for exporters and importers into all markets for fresh horticulture produce


Finance – Delivering efficient administration support and reducing inefficiencies for horticultural exports and imports. Enabling the industry to become more competitive by reducing red tape and costs to export. Logistics – Increase productivity across the cold chain. Building infrastructure to get produce to market faster than competitors Collaboration – Encouraging industry to work together to develop trade and relationships. Thus providing an environment for industry to work collaboratively. Working with industry to become export ready and strengthening greater collaboration between government and industry. Team Australia. Executive Director noted that all exporters and importers needed to embrace ‘Team Australia’. Executive Director thanked the Chair for his time and support, along with the AHEA Directors.

5. AUDITED FINANCIAL STATEMENTS 2014 / 2015

RESOLUTION:

Annual General Meeting accepted the audited2014-15 Annual Report and Financial Statements and

agreed that Chair sign off audited Financial Statements.

Moved: Mark Hall Seconded: Gary Hall UNANIMOUS

Executive Director advised that AHEA are running under newly formed company limited by guarantee

which has combined the old AHEIS and AHEA into one combined organisation.

6. APPOINTMENT OF AUDITOR

The AHEA Board appointed Hopley Bone as the AHEA Auditor for the 2014/15 financial year and

proposed to also appoint Hopley Bone as the AHEA Auditor for the 2015/16 financial year.

Resolution:

AGM approved the appointment of Hopley Bone as AHEA auditor for the 2015/16 financial year as

per the Audit Engagement correspondence.

Moved: Joe Saina Seconded: Joe Tullio UNANIMOUS

7. CLOSURE OF AHEIS

The AGM noted that the formal AHEIS de-registration has been finalised. Accountants and ASIC confirmed that the de-registration also formally liquidates AHEIS. Accordingly, the AHEIS bank account has been closed, MYOB reconciled and accounts finalised.

8. AHEA CONSTITUTION AMENDMENT

The meeting considered the removal of Clause 7.5g/ “and other information relating to the person that is, in the Selection Committee's opinion, likely to help the members to decide whether to re-elect or elect the person to the office of director” will allow the AGM to undertake a vote on nominations received if they exceed the number of vacancies. If approved by the AGM, AHEA must lodge with ASIC a copy of the modification which cannot take effect until the copy has been lodged.

Resolution:


The AHEA AGM approved the Board recommendation to remove of Clause 7.5 e/ “the Selection Committee must not endorse more candidates than the number of vacancies to be filled at an annual general meeting” from the AHEA Constitution. Moved: Joe Saina Seconded: Joe Tullio UNANIMOUS

9. APPOINTMENT OF DIRECTORS

The Board of 14 July 2015 resolved that:

1. The number of Directors remain at 9 (8 Non Executive Director positions and one Executive Director * position).

2. Terms of appointment for Directors at the AGM 2015 would be one year until the next AGM. 3. The Selection Committee will comprise David Minnis, Joe Saina and Michelle Christoe.

It was noted that the Board appointed the Executive Director for no fixed term with no

special conditions as allowed for under Clause 10.1 of Constitution. The Executive Director

will continue holding voting entitlements on the Board.

The Selection has provided a Candidates Statement and supporting documentation for the 8 vacant

Non Executive Director positions. Accordingly, the AHEA Non-Executive Directors for 2015-16 are:

Brian Ceresa

Gary Esterman

Mark Hall

David Minnis

Hugh Molloy

Joseph Saina

James Terry

Joseph Tullio

The Chair thanked all existing Directors for agreeing to continue on the AHEA Board another year. He

also thanked Peter Ingham his contribution on the AHEA Board and welcomed James Terry as a new

AHEA Director.

10. APPOINTMENT OF CHAIRMAN As per Clause 12.1, The Board appointed David Minnis as Chair and Joe Saina as Deputy Chair.

11. AUSTRALIAN FRUIT AND VEGETABLE EXPORT AND IMPORT REPORT 2015 (Attachment 11)

The Annual AHEA Fresh Fruit and Vegetable Export and Import Analysis Report was presented for the

information of members. This report is exclusively for the use of AHEA members.

There will be an overview of these statistics given at the Industry Forum.

12. GENERAL BUSINESS 12.1 Documents for Information

The AGM noted the following documents provided for information:


AHEA Discussion Paper : 2015/16 Priorities from the Horticultural Export Industry for Department

of Agriculture Negotiations in Protocols with Importing Countries

Extract from Agricultural Competitiveness White Paper : Accessing premium markets; Commonwealth of Australia, 2015

Fruit and Vegetables promotion booklet; Australian Trade Commission, Nov 2014

Horticulture Data 2014 (calendar year); Australian Bureau of Statistics

Global Horticulture Market Outlook – 2015; Gyan Research and Analytics Pty Ltd, 2012

Ecommerce in China : A Guide for Australian Business : Using ChAFTA to sell premium Australian produce; Australian Trade Commission, June 2015

12.2 Cost Recovery

The Chair provided an overview on the history of AQIS Cost Recovery. AHEA fought the department and Minister to resist full cost recovery for what industry believed was badly delivered service and fought to maintain the 40% rebate which was successfully extended for several years. DoA is now again looking to implement full cost recovery. AHEA received a grant which ended up being spent on development of Strategic Plans which have not seen the light of day.

$9.2 million cost recovery is currently being sought by DoA. AHEA has proposed the reintroduction of a tonnage volume levy across all markets and all commodity ranges and also raising the shed registration fee. It is proposed that grapes would be levied $5 a tonne. Criteria for establishing those fees are a bit hazy and AHEA are trying to come up with equitable system. The Chair noted that DoA have had up to $1M surplus and loss over the years. AHEA did not want to go the way of loading up certification or inspection fees and do not want to affect airfreight as it is one of our advantages to Asia.

12.3 HIA

Gary Esterman noted that AHEA has probably got the most informed person in the export / import industry with our Chair, David Minnis. There is concern that all funding has gone to HIA and David is not being briefed and sought out by HIA to ensure commercial aspects are being taken into account.

The Chair noted that HIA is a new body with different funding arrangements and PIBs are now unsure of future funding. HIA are trying to get every grower registered. The new HIA model allows HIA to make all key decisions on research with some money being given back to HIA to undertake key projects. HIA has set up a trade and market access division.

The Chair noted that he was running out of steam and believed that DoA need to take a step outside and talk to industry, eg AHEA. HIA seem to want to channel all activities on market access and improvement through one person with industry wanting to undertake their own negotiations. There is a bit of conflict. OHMA did include 4 exporters were on the committee who provided commercial input. Priorities change all the time in light of international trade and the world keeps changing – these committees must have AHEA representation.

It was pointed out that anyone can become an associate member of HIA which would entitle you to vote on Directors and attend AGMS. HIA are currently undertaking a round of consultation to try to clarify Pool 1 and Pool 2 funds. APAL as a member of OHMA, acknowledge the depth and breadth of knowledge provided by David Minnis which was important to that committee. OHMA will finish on 30 September but HIA should try to utilise David’s expertise again.


Nick Muraca, ATGA support the role played by David. Growers are greatly concerned that without having David Minnis there, HIA are not getting the best advice to take on board. Growers feel disadvantaged not being able to appoint David Minnis to such a committee.

David Minnis is concerned that some existing protocols are not really commercial. Denied access issues should be first priority and then need to address improvement in protocols and then access. It was noted that the Vietnam protocol is still being sorted out.

Hugh Molloy noted that at the moment HIA have interim advisory groups. For the cherry industry, two of cherry grower representatives have withdrawn because they were not confident to represent whole of industry views. We must support produce industry groups because if HIA have to refer to that group you need good people appointed to ensure arrangements put in place are good.

The Chair closed the Annual General Meeting at 9.50am.

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CHAIRMAN`S REPORT AGM August 2015

The Australian Horticultural Exporters Association (AHEA) now represents both exporters and

importers in the fresh produce trade into and out of Australia.

We believe imports and exports are inextricably linked, particularly in Asia where our near

neighbours see Australia as a potentially lucrative market for their tropical fruit. However, their

ability to enter Australia is frequently prevented by the presence of insects such as Oriental fruit fly

and diseases such as Citrus Canker, which preclude them from shipping to our market.

Of course, we are in exactly the same boat. Australia has Med Fly and our own fruit flies such as

Queensland Fruit Fly and the Lesser Queensland Fruit Fly which are not present in Asia. These flies,

along with other insects like Light Brown Apple Moth, Codlin Moth, mealy bugs and Fuller’s Rose

weevil, are insects which the countries in Asia and North America do not want.

So if we are going to trade, how do we reach common ground on disinfestation treatments which

prevent the introduction of new pests and diseases in our respective countries without damaging

the product, using a cost effective treatment.

I can assure you the AHEA spends an enormous amount of time liaising on behalf of our members

discussing issues of market access with state and federal departments, HIA, OHMA and importers.

We are extremely disappointed that exporters have lost the airfreight option in many of these Asian

countries.

I look at the situation in South America where huge quantities of fruit are shipped to the USA and

where they seem to have a more collaborative approach to trade. The USA welcomes out of season

imports from the various countries in South America and most of this trade is based on methyl

bromide fumigation, low pest prevalence, area freedom, non preferred host or a combination of

these measures.

Unfortunately, our relationship with Asia appears to be very combative : each trying to restrict the

trade in produce, protective of local producers and using technical issues at every turn to prevent

any trade from happening.

Economic outlook for exports and imports

The lower value of the Australian dollar has always corresponded with increased exports of fresh

fruit and vegetables because we are more price competitive. For the coming season, the full effect

of the currency should be felt for the whole season across all commodities.

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Correspondingly, imports, particularly from the USA, are expected to decline. Already we have seen

a drop in the US stone fruit imports this season.

If we look to Asia, our principal export destination, it is obvious we are very dependent on what is

happening in Hong Kong / China. In the past, around 40-45% of our table grape, stone fruit and

mango exports are shipped to this combined market and around 30% of all Australian citrus is

shipped to Hong Kong / China.

Of concern is that this market is also the focus for so many of our competitors. China’s fruit imports

increased 24% in 2014. Vietnam, Philippines, Thailand and Ecuador are the main suppliers of

tropical fruit including the biggest volume, bananas.

Chile, the USA, South Africa and, more recently, Peru are the main suppliers of temperate fruit and

citrus, with Chile and Peru enjoying zero import duty under their FTAs. While China is undoubtedly a

huge market, the huge increase in cherry and blueberry exports from Chile and the explosion in the

volume of grape exports from Peru, does sound a warning to Australia as the most expensive

supplier in any Asian market. The sheer volume of these shipments is disruptive to the market

because of the lumpy delivery and the cash flow problems it can create with importers.

Reviewing the 2014/15 season, the lows were the closure of markets in Russia and Vietnam; and the

highs were recorded in the strong growth in grape sales in the Japanese and Korean markets. We

also benefited from the zero duty now applying to Australian cherry exports to Korea as a result of

the FTA.

There is no doubt the three FTAs signed with Japan, Korea and China will greatly benefit horticulture

and will allow us to trade on a more equal footing.

The effect of these lower duties in season 2016, including a zero duty now applying to Australian

table grapes to Thailand and the lower Australian dollar should auger well for the coming season.

David Minnis,

AHEA Chairman, OAM

Fresh Fruit & Vegetable Export / Import Statistics

2014/15

A statistics resource for fresh produce exporters and importers prepared for the Australian Horticultural Exporters Association by Fresh Intelligence Consulting

AHEA Fresh Fruit and Vegetable Export / Import Statistics (2014/15)

© 2015 Fresh Intelligence Consulting 2

Introduction Welcome to the 2015 compilation of export and import trade data for the AHEA. This year has seen some big opportunities afforded by the signing of three free trade agreements; South Korea, Japan and China, and also initiating some new trade following market access achievements. The depreciation of the Australian Dollar again major US and Asian currencies by more than 20 per cent has also helped deliver greater export trade opportunities supported by some ideal growing conditions for our crops. On the down side there have also been some unexpected trade interruptions particularly to Russia and Vietnam while tariff and non-‐tariff trade barriers continue to be problematic in several key markets. This compilation of trade statistics has been arranged by market following feedback from readers and will better enable businesses to benchmark their performance by trade to specific markets against the national position. All the country tables have been prepared in the same format for ease of comparison across markets. They include 3 years of volume figures, growth and share analytics with the latest annual A$ value on the far right column. The data has been sorted by value. Across the top you will see the key market measures for total volume, value and unit values over three years. Wayne Prowse Principal & Senior Analyst Fresh Intelligence Consulting

Disclaimer The data for the AHEA export import statistics was collated by Fresh Intelligence Consulting from data provided through the International Trade Centre and World Trade Atlas based on data provided by the Australian Bureau of Statistics. This data is collated from export and import documents. While every effort is made to ensure that the data is a true reflection of the trade, some errors may occur due to the reporting and Fresh Intelligence Consulting takes no responsibility for any losses that may occur as a result of decisions based on this data



Table of Contents

Introduction 2 Disclaimer 2 Fresh Fruit and Vegetable 2-‐way Trade Summary 5 Fresh Fruit Exports 6 Canada 8 China 8 Hong Kong 9 Europe 9 Indonesia 10 India 10 Japan 11 South Korea 11 Malaysia 12 New Zealand 13 Papua New Guinea 13 Philippines 14 Russia 14 Singapore 15 Saudi Arabia 15 Taiwan 16 Thailand 16 United Arab Emirates 17 United States 17 Vietnam 18

Fresh Fruit Imports 19 China 20 France 20 Italy 20 Israel 21 Mexico 21 New Zealand 21 South Korea 22 United States 22

Fresh Vegetable Exports 23 Bahrain 24 Europe 25 Hong Kong 25 Indonesia 26 Japan 26 South Korea 27 Kuwait 27 Malaysia 28 New Zealand 28 Papua New Guinea 29 Qatar 29 Saudi Arabia 30 Singapore 30 Taiwan 31 Thailand 31 United Arab Emirates 32



Fresh Vegetable Imports 33 China 34 South Korea 34 Mexico 35 New Zealand 35 Peru 35 Spain 36 United States 36

References 36



Fresh Fruit and Vegetable 2-‐way Trade Summary Fresh fruit and vegetable exports increased 8 per cent to A$802m in the year ending June 2015 while imports increased 11 per cent to A$429m to bring the total value of 2-‐way trade to $1.23 billion. The combined exports accounted for 65 per cent of the total 2-‐way trade while imports accounted for 35 per cent.

Source: Australian Bureau of Statistics; Fresh Intelligence analysis Total horticulture trade is often reported to include fresh and processed horticulture products and plant life. From time to time figures may be published suggesting horticulture trade is vastly different to the data outlined in this paper. Distortions occur when different categories are included or excluded. Exports exceed imports for fresh fruit, vegetables and nuts. Imports exceed exports for most processed fruit and vegetable products including frozen orange juice concentrate (FOJC) and frozen prepared potato products. Dried legume exports are worth over $1 billion and distort export reports if included in the vegetable category. This paper is focussed on fresh fruit and fresh vegetable sectors only.

Source: Australian Bureau of Statistics; Fresh Intelligence analysis

Fresh&Fruit&Exports&51%&

Fresh&Vegetable&Exports&&14%&

Fresh&&Vegetable&Imports&6%&

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!200!!

!400!!

!600!!

!800!!

!1,000!!

!1,200!!

Fresh!Fruit!! Fresh!Vegetable!

Nuts! Plants!&!flowers!!

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Dried!and!Frozen!

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legumes!

Dried!Legumes!

Processed!fruit!&!veg!incl!juices!!

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illion##2014/15#

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Fresh Fruit Exports Fresh fruit exports increased 4.1 per cent to 300,195 tonnes in the year to June 2015 and the value lifted 8.3 per cent to A$630 million. Table grapes and citrus dominated the category and accounted for over 80 per cent of the total volume of fresh fruit exported or 71 per cent by value. Notably the higher “unit value” products including cherries, peaches & nectarines, mangoes and strawberries posted volume gains of around 30 per cent. The depreciation of the exchange rate also aided the export growth. The loss of access to the Vietnam market in January 2015 tempered the overall growth, particularly table grapes which accounted for over 80 per cent share of fruit trade to Vietnam.

Source: Australian Bureau of Statistics; Fresh Intelligence analysis

Australian*Fresh*Fruit*Exports*by*Product*2014/15*vs*previous*2*years2014/15 2014/15 2014/15 2014/15change'to'LY vol'share' *A$*million** *A$*per*kg**

*Value*$A*Million* *************499.0* ************581.8* **********629.9* 8.3%

*Volume*Tonnes* *********283,561* ********288,344* *******300,195* 4.1%

*A$*per*kg** $1.76 $2.02 $2.10 4.0%

'Tonnes' 'Tonnes' 'Tonnes' A$'million A$'per'kg'

Table'grapes ''''''''''''72,409' '''''''''''80,164' ''''''''''84,145' 5% 28.0% 240.3'''''''' 2.86''''''''''

Oranges ''''''''''133,155' ''''''''''126,991' ''''''''127,219' 0% 42.4% 145.8'''''''' 1.15''''''''''

Mandarins' ''''''''''''32,940' '''''''''''35,726' ''''''''''31,680' H11% 10.6% 55.4'''''''''' 1.75''''''''''

Cherries ''''''''''''''2,775' '''''''''''''2,708' '''''''''''3,544' 31% 1.2% 47.8'''''''''' 13.49''''''''

Peaches'&'nectarines ''''''''''''''7,786' '''''''''''''6,690' '''''''''''8,581' 28% 2.9% 26.5'''''''''' 3.09''''''''''

Mangoes ''''''''''''''4,604' '''''''''''''5,275' '''''''''''7,012' 33% 2.3% 25.2'''''''''' 3.60''''''''''

Melons ''''''''''''''9,967' '''''''''''11,753' ''''''''''16,270' 38% 5.4% 24.2'''''''''' 1.48''''''''''

Pears ''''''''''''''6,993' '''''''''''''6,459' '''''''''''7,660' 19% 2.6% 12.5'''''''''' 1.63''''''''''

Strawberries ''''''''''''''''788' '''''''''''''1,467' '''''''''''1,906' 30% 0.6% 12.4'''''''''' 6.51''''''''''

Plums ''''''''''''''3,268' '''''''''''''4,205' '''''''''''3,586' H15% 1.2% 10.5'''''''''' 2.93''''''''''

Avocados ''''''''''''''1,977' '''''''''''''1,310' '''''''''''1,290' H2% 0.4% 6.4''''''''''' 4.96''''''''''

Lemons'&'limes ''''''''''''''''464' '''''''''''''1,413' '''''''''''2,745' 94% 0.9% 6.1''''''''''' 2.24''''''''''

Apples ''''''''''''''3,907' '''''''''''''2,121' '''''''''''2,152' 1% 0.7% 5.9''''''''''' 2.76''''''''''

Kiwifruit ''''''''''''''''397' ''''''''''''''''655' ''''''''''''''721' 10% 0.2% 2.7''''''''''' 3.74''''''''''

Blueberries ''''''''''''''''''62' ''''''''''''''''156' ''''''''''''''103' H34% 0.03% 2.0''''''''''' 19.67''''''''

Apricots ''''''''''''''''382' ''''''''''''''''403' ''''''''''''''498' 24% 0.2% 1.7''''''''''' 3.33''''''''''

Persimmons ''''''''''''''''211' ''''''''''''''''205' ''''''''''''''162' H21% 0.1% 0.7''''''''''' 4.47''''''''''

Grapefruit ''''''''''''''''747' ''''''''''''''''184' ''''''''''''''193' 5% 0.1% 0.3''''''''''' 1.72''''''''''

other' ''''''''''''''''728' ''''''''''''''''459' ''''''''''''''729' 59% 0.2% 3.4''''''''''' 4.61''''''''''

*Total** **********283,561* **********288,344* ********300,195* 4% 100% 629.9******** 2.10''''''''''

Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

!Table!grapes!!38%!

!Oranges!!23%!

!Mandarins!!!9%!

!Cherries!!7%!

!Peaches!&!nectarines!!4%!

!Mangoes!!4%!

!Melons!!4%!

!Pears!!2%!

!Strawberries!!2%!

!Plums!!2%!

all!other!!5%!

Australian*Fresh*Fruit*Exports*by*Product*(Value)**

0" 20000" 40000" 60000" 80000"

Other""

United"States"

Vietnam"

Thailand"

Malaysia"

China"

New"Zealand"

United"Arab"Emirates"

Japan"

Singapore"

Indonesia"

Hong"Kong"

Fresh&Fruit&Export&Markets&(Tonnes)&&

2014/15"

2013/14"



Hong Kong remained the largest market destination due to its ease of market access and re export to China influence. China lifted to No 4 position with strong direct access growth from citrus, grapes and cherries. South Korea lifted 86 per cent off a small base due to the Korea Australia Free Trade Agreement (KAFTA) coming into force in December 2014 immediately wiping off 24 per cent tariff on cherries. Trade to the Philippines has also increased substantially off a small base following improved access conditions and the closing stages of tariff reductions being fully implemented under the AANZFTA. On the down side the trade disruptions resulted in 87 per cent decline in trade to Vietnam with market closed since January 2015 affecting the full 2015 table grape season and 94 per cent decline in trade to Russia with that market closed since August 2014. The Vietnam market has since reopened in time for the 2015 citrus season.

The following sector deals with the trade to the leading destinations.

Australian*Fresh*Fruit*Exports*by*Market*2014/15*vs*previous*2*years2014/15 2014/15 2014/15change'to'LY vol'share' *A$*million**

*Value*$A*Million* *************499.0* ************581.8* **********629.9* 8.3%*Volume*Tonnes* *********283,561* ********288,344* *******300,195* 4.1%*A$*per*kg** $1.76 $2.02 $2.10 4.0%

'Tonnes' 'Tonnes' 'Tonnes' A$'millionHong'Kong ''''''''''''68,214' '''''''''''69,797' ''''''''''72,481' 3.8% 24.1% 174.2''''''''Indonesia ''''''''''''23,763' '''''''''''23,208' ''''''''''27,701' 19.4% 9.2% 59.3''''''''''Singapore ''''''''''''22,662' '''''''''''22,359' ''''''''''26,098' 16.7% 8.7% 56.0''''''''''Japan ''''''''''''33,116' '''''''''''34,441' ''''''''''31,297' I9.1% 10.4% 43.2''''''''''United'Arab'Emirates ''''''''''''18,472' '''''''''''17,616' ''''''''''22,070' 25.3% 7.4% 45.9''''''''''New'Zealand ''''''''''''19,957' '''''''''''21,788' ''''''''''19,676' I9.7% 6.6% 37.0''''''''''China ''''''''''''''8,920' '''''''''''15,040' ''''''''''24,805' 64.9% 8.3% 55.8''''''''''Malaysia ''''''''''''17,946' '''''''''''17,645' ''''''''''19,053' 8.0% 6.3% 34.1''''''''''Thailand ''''''''''''13,010' '''''''''''''7,340' ''''''''''10,385' 41.5% 3.5% 27.5''''''''''Vietnam ''''''''''''''8,373' '''''''''''12,551' '''''''''''1,668' I86.7% 0.6% 5.8'''''''''''United'States ''''''''''''11,271' '''''''''''11,736' '''''''''''6,390' I45.6% 2.1% 10.9''''''''''Taiwan ''''''''''''''4,067' '''''''''''''2,979' '''''''''''3,520' 18.2% 1.2% 11.4''''''''''Canada ''''''''''''''5,165' '''''''''''''5,471' '''''''''''4,452' I18.6% 1.5% 7.1'''''''''''Papua'New'Guinea ''''''''''''''4,222' '''''''''''''3,408' '''''''''''2,996' I12.1% 1.0% 6.4'''''''''''Philippines ''''''''''''''''346' '''''''''''''2,104' '''''''''''7,387' 251.1% 2.5% 12.9''''''''''EUROPE ''''''''''''''2,589' '''''''''''''3,216' '''''''''''1,256' I61.0% 0.4% 3.2'''''''''''Russia ''''''''''''''2,626' '''''''''''''3,503' ''''''''''''''204' I94.2% 0.1% 0.3'''''''''''India ''''''''''''''3,883' '''''''''''''2,174' '''''''''''3,312' 52.3% 1.1% 4.0'''''''''''South'Korea ''''''''''''''1,584' ''''''''''''''''586' '''''''''''1,194' 103.8% 0.4% 6.6'''''''''''Saudi'Arabia ''''''''''''''2,426' '''''''''''''1,170' '''''''''''2,630' 124.8% 0.9% 4.1'''''''''''Sri'Lanka ''''''''''''''2,358' '''''''''''''2,151' '''''''''''1,937' I10.0% 0.6% 3.0'''''''''''New'Caledonia ''''''''''''''1,220' '''''''''''''1,459' '''''''''''1,392' I4.6% 0.5% 2.7'''''''''''all'other' ''''''''''''''7,371' '''''''''''''6,599' '''''''''''8,290' 25.6% 2.8% ''''''''''18.7'

*Total* **********283,561* **********288,344* ********300,195* 4.1% 100% 629.9********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



Canada Australian exports to Canada mainly service the retailers and wholesalers on the west coast of Canada with citrus and pears. Chile and Argentina are the main competitors.

China China is seen as Australia’s No 1 growth opportunity and doubled in value in 2014/15 with renewed access for grapes along with major citrus and cherry growth. The first commercial shipments of Tasmanian apples arrived in China during the 2015 season. Official figures reported for China are often understated due to the influence of re export trade via Hong Kong.

Australian*Fresh*Fruit*Exports*to Canada2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 7.4'''''''''''''''' 8.7''''''''''''''' 7.1'''''''''''''' 717.7%*Volume*Tonnes* **************5,165* *************5,471* ***********4,452* 718.6%*A$*per*kg** $1.43 $1.59 $1.60 1.2%

*Tonnes* *Tonnes* *Tonnes* A$*million

'Oranges' ''''''''''''''3,071' '''''''''''''3,336' '''''''''''2,259' 732.3% 50.7% 3.3***********'Pears' ''''''''''''''1,342' '''''''''''''1,333' '''''''''''1,306' 72.0% 29.3% 2.0***********'Mandarins' ''''''''''''''''386' ''''''''''''''''497' ''''''''''''''365' 726.6% 8.2% 0.5***********'Lemons'&'limes' ''''''''''''''''166' ''''''''''''''''145' ''''''''''''''258' 78.4% 5.8% 0.5***********'Mangoes' ''''''''''''''''''38' '''''''''''''''''55' ''''''''''''''''77' 40.4% 1.7% 0.4***********'Grapefruit' ''''''''''''''''143' '''''''''''''''''65' ''''''''''''''123' 89.5% 2.8% 0.2***********'Peaches'&'nectarines' ''''''''''''''''''11' '''''''''''''''''14' ''''''''''''''''58' 307.3% 1.3% 0.1***********'all'other'' ''''''''''''''''''''9' '''''''''''''''''27' '''''''''''''''''6' 775.9% 0.1% ************0.0*

*Total*Volume** **************5,165* *************5,471* ***********4,452* G18.6% 100% 7.1***********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Australian*Fresh*Fruit*Exports*to China2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 18.5'''''''''''''' 27.5''''''''''''' 55.8'''''''''''' 103.1%*Volume*Tonnes* **************8,920* ***********15,040* **********24,805* 64.9%*A$*per*kg** $2.07 $1.83 $2.25 23.2%


'Oranges' ''''''''''''''3,541' '''''''''''''9,864' ''''''''''14,330' 45.3% 57.8% 23.2*********'Table'grapes' ''''''''''''''3,917' ''''''''''''''''218' '''''''''''4,892' 2140.3% 19.7% 15.3*********'Mandarins'' ''''''''''''''1,328' '''''''''''''4,624' '''''''''''5,007' 8.3% 20.2% 9.7***********'Cherries' ''''''''''''''''''66' ''''''''''''''''151' ''''''''''''''324' 114.1% 1.3% 6.4***********'Mangoes' ''''''''''''''''''29' '''''''''''''''''95' ''''''''''''''''60' G36.7% 0.2% 0.6***********'Apples' '''''''''''''''''''G''' '''''''''''''''''24' ''''''''''''''151' 532.3% 0.6% 0.5***********'Lemons'&'limes' '''''''''''''''''''G''' '''''''''''''''''22' ''''''''''''''''40' 79.9% 0.2% 0.1***********'Grapefruit' ''''''''''''''''''39' '''''''''''''''''41' ''''''''''''''''G''' G100.0% 0.0% G***********

*Total*Volume** **************8,920* ***********15,040* **********24,805* 64.9% 100% 55.8*********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



Hong Kong As Australia’s leading export market, Hong Kong continued to increase even though more fruit was bypassing Hong Kong en route to China. There were strong gains also achieved by high value fruits such as cherries and mangoes much of which was re exported to China.

Europe Trade to Europe has declined over 90 per cent in last 5 years and remain opportunistic. The Russian bans have also affected European trade causing over supplies many fruit categories.

Australian*Fresh*Fruit*Exports*to Hong*Kong*2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 125.6'''''''''''' 162.5'''''''''''' 174.2'''''''''' 7.2%*Volume*Tonnes* ************68,214* ***********69,797* **********72,481* 3.8%*A$*per*kg** $1.84 $2.33 $2.40 3.2%


'Table'grapes' ''''''''''''22,265' '''''''''''27,681' ''''''''''29,659' 7.1% 40.9% 89.1*********'Oranges' ''''''''''''31,505' '''''''''''29,911' ''''''''''28,678' C4.1% 39.6% 26.8*********'Cherries' ''''''''''''''1,117' '''''''''''''1,180' '''''''''''1,566' 32.7% 2.2% 19.7*********'Peaches'&'nectarines' ''''''''''''''3,620' '''''''''''''3,250' '''''''''''3,755' 15.6% 5.2% 11.3*********'Mangoes' ''''''''''''''1,933' '''''''''''''2,360' '''''''''''2,707' 14.7% 3.7% 9.9***********'Plums' ''''''''''''''1,854' '''''''''''''2,292' '''''''''''2,076' C9.4% 2.9% 6.3***********'Mandarins' ''''''''''''''4,568' '''''''''''''1,391' '''''''''''1,850' 33.0% 2.6% 4.2***********'Melons' ''''''''''''''''324' ''''''''''''''''877' '''''''''''1,010' 15.2% 1.4% 1.5***********'Strawberries' ''''''''''''''''''86' ''''''''''''''''180' ''''''''''''''159' C12.0% 0.2% 1.2***********'Blueberries' ''''''''''''''''''24' '''''''''''''''''65' ''''''''''''''''56' C14.6% 0.1% 1.2***********'Pears' ''''''''''''''''538' ''''''''''''''''197' ''''''''''''''397' 101.8% 0.5% 0.6***********'Lemons'&'limes' ''''''''''''''''''10' ''''''''''''''''124' ''''''''''''''161' 29.8% 0.2% 0.4***********'Apricots' ''''''''''''''''''77' '''''''''''''''''56' ''''''''''''''128' 128.4% 0.2% 0.3***********'Kiwifruit' ''''''''''''''''''''1' '''''''''''''''''45' ''''''''''''''''41' C8.3% 0.1% 0.2***********'Apples' ''''''''''''''''''48' '''''''''''''''''34' ''''''''''''''''46' 37.1% 0.1% 0.2***********'Avocados'' ''''''''''''''''''10' '''''''''''''''''25' ''''''''''''''''23' C6.0% 0.03% 0.2***********'Persimmons' ''''''''''''''''''16' '''''''''''''''''16' ''''''''''''''''25' 58.4% 0.03% 0.1***********'all'other'' ''''''''''''''''218' ''''''''''''''''114' ''''''''''''''145' 26.8% 0.2% ************1.0*

*Total*Volume** ************68,214* ***********69,797* **********72,481* 3.8% 100% 174.2********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Australian*Fresh*Fruit*Exports*to Europe2014/15 2014/15 2014/15change'to'LY vol'share' Value'



'Apples' ''''''''''''''''480' ''''''''''''''''440' ''''''''''''''234' 947.0% 18.6% 0.8***********'Kiwifruit' ''''''''''''''''131' ''''''''''''''''262' ''''''''''''''328' 25.0% 26.1% 0.8***********'Mandarins' ''''''''''''''''668' '''''''''''''1,714' ''''''''''''''287' 983.3% 22.9% 0.5***********'Oranges' ''''''''''''''''902' ''''''''''''''''658' ''''''''''''''262' 960.1% 20.9% 0.4***********'Peaches'&'nectarines' ''''''''''''''''''44' '''''''''''''''''36' ''''''''''''''''33' 98.0% 2.6% 0.2***********'Cherries' ''''''''''''''''125' '''''''''''''''''38' ''''''''''''''''10' 972.7% 0.8% 0.1***********'Mangoes' ''''''''''''''''''33' '''''''''''''''''23' ''''''''''''''''30' 32.8% 2.4% 0.1***********'all'other'' ''''''''''''''''207' '''''''''''''''''45' ''''''''''''''''72' 59.8% 5.7% ************0.5*

*Total*Volume** **************2,589* *************3,216* ***********1,256* F61.0% 100% 3.2***********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



Indonesia Indonesia’s continuing changes to their import conditions reportedly to regulate their total import supply and encourage their domestic production has tempered the export growth to the market somewhat though has also delivered Australia and advantage where competitors have pulled away from the market.

India India’s huge market potential with 1.2 billion consumers is reason for plugging away to develop trade. Tariff and non-‐tariff barriers are problematic along with lack of reliable cold chain infrastructure to deliver fruit in peak condition to consumers.

Australian*Fresh*Fruit*Exports*to Indonesia2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 44.1'''''''''''''' 48.6''''''''''''' 59.3'''''''''''' 21.9%*Volume*Tonnes* ************23,763* ***********23,208* **********27,701* 19.4%*A$*per*kg** $1.86 $2.09 $2.14 2.1%


'Table'grapes' ''''''''''''11,111' '''''''''''11,405' ''''''''''13,204' 15.8% 47.7% 35.5*********'Mandarins' ''''''''''''''4,986' '''''''''''''5,819' '''''''''''5,640' E3.1% 20.4% 8.9***********'Oranges' ''''''''''''''5,117' '''''''''''''3,508' '''''''''''5,168' 47.3% 18.7% 5.7***********'Pears' ''''''''''''''1,857' '''''''''''''1,536' '''''''''''1,923' 25.2% 6.9% 3.4***********'Lemons'&'limes' ''''''''''''''''105' ''''''''''''''''644' '''''''''''1,277' 98.1% 4.6% 2.8***********'Cherries' ''''''''''''''''''57' '''''''''''''''''76' ''''''''''''''''63' E18.0% 0.2% 1.1***********'Apples' ''''''''''''''''350' ''''''''''''''''''E''' ''''''''''''''230' 0.8% 0.9***********'Plums'' ''''''''''''''''''71' '''''''''''''''''72' ''''''''''''''114' 58.2% 0.4% ************0.9*

*Total*Volume** ************23,763* ***********23,208* **********27,701* 19.4% 100% 59.3*********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Australian*Fresh*Fruit*Exports*to India2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 4.1'''''''''''''''' 2.7''''''''''''''' 4.0'''''''''''''' 49.4%*Volume*Tonnes* **************3,883* *************2,174* ***********3,312* 52.3%*A$*per*kg** $1.06 $1.23 $1.21 <1.9%


'Oranges' ''''''''''''''3,269' '''''''''''''1,323' '''''''''''2,707' 104.6% 81.7% 2.2***********'Table'grapes' ''''''''''''''''427' ''''''''''''''''719' ''''''''''''''505' <29.7% 15.3% 1.4***********'Cherries' ''''''''''''''''''18' '''''''''''''''''''6' ''''''''''''''''16' 159.8% 0.5% 0.2***********'Mandarins' ''''''''''''''''''15' '''''''''''''''''77' ''''''''''''''''56' <26.4% 1.7% 0.1***********'Plums' ''''''''''''''''''''0' '''''''''''''''''47' ''''''''''''''''22' <53.8% 0.7% 0.1***********'Peaches'&'nectarines' ''''''''''''''''''''8' '''''''''''''''''''2' '''''''''''''''''5' 106.5% 0.1% 0.0***********'Apples' ''''''''''''''''144' ''''''''''''''''''<''' ''''''''''''''''<''' G***********

*Total*Volume** **************3,883* *************2,174* ***********3,312* 52.3% 100% 4.0***********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



Japan While citrus has dominated the fresh fruit exports to Japan, the recent market access gain for Australian table grapes has seen 2,394 tonnes of grapes exported to Japan during the first full season of trade which also coincided with the entry into of force of the trade agreement (JAEPA).

The Japan Australia Economic Partnership Agreement (JAEPA) schedule for Australian products entering Japan ranges from immediate tariff elimination for mangoes and cherries through to 15 years for Mandarins. The tariff reduction schedule for key fruit products with quarantine access and existing trade is broadly as follows.

South Korea South Korea has long been identified as a strong potential market for Australian fresh produce with its affluent consumer sectors and demand for premium produce. The high tariffs and restrictive quarantine access has inhibited the trade to small volumes of a handful of products.

Australian*Fresh*Fruit*Exports*to Japan2014/15 2014/15 2014/15change'to'LY vol'share' Value'



'Oranges' ''''''''''''30,701' '''''''''''31,478' ''''''''''27,024' 914.2% 86.3% 32.2*********'Table'grapes' '''''''''''''''''''9''' ''''''''''''''''235' '''''''''''2,394' 920.1% 7.6% 6.5***********'Mandarins'' ''''''''''''''1,973' '''''''''''''2,577' '''''''''''1,710' 933.7% 5.5% 3.2***********'Mangoes' ''''''''''''''''''58' '''''''''''''''''56' ''''''''''''''''64' 14.3% 0.2% 0.6***********'Cherries' ''''''''''''''''''22' '''''''''''''''''13' ''''''''''''''''15' 17.7% 0.05% 0.3***********'all'other'' ''''''''''''''''362' '''''''''''''''''82' ''''''''''''''''92' 11.4% 0.3% 0.3***********

*Total*Volume** ************33,116* ***********34,441* **********31,297* G9.1% 100% 43.2*********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Japan%Australia%Economic%Partnership%Agreement%tariff%reduction%scheduleBase%Tariff Staging%Cat Jan$15 Apr$15 Apr$16 Apr$17 Apr$18 Apr$19 Apr$20 Apr$21 Apr$22 Apr$23 Apr$24 Apr$25 Apr$26 Apr$27 Apr$28

Oranges 16.0% JAEPA:B10 14.55% 13.09% 11.64% 10.18% 8.73% 7.27% 5.82% 4.36% 2.91% 1.45% NILTable:grapes:1/11:$:29/2 7.8% JAEPA:B7 6.83% 5.85% 4.88% 3.90% 2.93% 1.95% 0.98% NILTable:grapes:1/3:$:31/10 17.0% JAEPA:B10 15.45% 13.91% 12.36% 10.82% 9.27% 7.73% 6.18% 4.64% 3.09% 1.55% NILMandarins: 17.0% JAEPA:B15 15.94% 14.88% 13.81% 12.75% 11.69% 10.63% 9.56% 8.50% 7.44% 6.38% 5.31% 4.25% 3.19% 2.13% 1.06%Mangoes 3.0% JAEPA::A NILCherries 8.5% JAEPA::A NILSource:(DFAT(JAEPA(Official(Documents;Fresh(Intelligence(analysis

Australian*Fresh*Fruit*Exports*to South*Korea2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 2.1'''''''''''''''' 1.2''''''''''''''' 6.6'''''''''''''' 461.9%*Volume*Tonnes* **************1,584* ****************586* ***********1,194* 103.8%*A$*per*kg** $1.35 $2.01 $5.55 175.7%


'Cherries'' ''''''''''''''''''''9' '''''''''''''''''''5' ''''''''''''''248' ''++ 20.7% 3.5***********'Table'grapes' '''''''''''''''''''D''' '''''''''''''''''''6' ''''''''''''''588' ''++ 49.3% 2.0***********'Oranges' ''''''''''''''1,572' ''''''''''''''''539' ''''''''''''''290' D46.2% 24.3% 0.6***********'Mangoes' ''''''''''''''''''''3' '''''''''''''''''35' ''''''''''''''''68' 94.0% 5.7% 0.6***********

*Total*Volume** **************1,584* ****************586* ***********1,194* 103.8% 100% 6.6***********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



The Korea Australia Free Trade Agreement (KAFTA) schedule for Australian products entering South Korea ranges from immediate 24 per cent tariff elimination for cherries through to 10 years for mangoes. Table grapes and citrus also have periods where there will be no reductions. The tariff reduction schedule for key products with existing quarantine access and trade is broadly as follows.

Malaysia Malaysia is a major export destination for Australian fruit and enjoys protocol free access for most products and tariffs have been eliminated for most products under the ASEAN Australia New Zealand Free Trade Agreement (AANZFTA). Mangoes are accepted with an irradiation protocol. Malaysian authorities are currently reviewing their import conditions. Citrus and grapes account for over 85 per cent of the trade. South Africa is the key competitor across many of Australia’s fresh fruit products. Apples, oranges and mangoes are Malaysia’s leading imported fresh fruit lines based on imports supplied from all sources.

Korea&Australia&Free&Trade&Agreement&tariff&reduction&scheduleBase&Tariff Staging&Cat Dec$14 Jan$15 Jan$16 Jan$17 Jan$18 Jan$19 Jan$20 Jan$21 Jan$22 Jan$23

Cherries 24% KAFTA<0 NILTable<grapes<1/12<$<30/4 45% KAFTA<S4 24% 18% 12% 6% NILTable<grapes<1/5<$<30/11 45% KAFTA<S4 45% 45% <<$$$<> no<reduction<appliesOranges<<1/10<$<31/3< 50% KAFTA<S2 50% 50% <<$$$<> no<reduction<appliesOranges<<1/4<$<30/9< 50% KAFTA<S2 30% 25% 20% 15% 10% 5% NILMangoes< 30% KAFTA<10 27% 24% 21% 18% 15% 12% 9% 6% 3% NIL<Source:(DFAT(KAFTA(Official(Documents;Fresh(Intelligence(analysis

Australian*Fresh*Fruit*Exports*to Malaysia2014/15 2014/15 2014/15change'to'LY vol'share' Value'



'Oranges' ''''''''''''11,326' '''''''''''11,883' ''''''''''12,160' 2.3% 63.8% 12.3*********'Table'grapes' ''''''''''''''4,311' '''''''''''''3,420' '''''''''''4,389' 28.3% 23.0% 11.1*********'Avocados' ''''''''''''''''283' ''''''''''''''''268' ''''''''''''''454' 69.3% 2.4% 2.3***********'Cherries' ''''''''''''''''115' ''''''''''''''''163' ''''''''''''''168' 3.2% 0.9% 2.1***********'Strawberries' ''''''''''''''''106' ''''''''''''''''151' ''''''''''''''240' 59.4% 1.3% 1.5***********'Peaches'&'nectarines' ''''''''''''''''211' ''''''''''''''''229' ''''''''''''''345' 50.2% 1.8% 1.4***********'Plums' ''''''''''''''''243' ''''''''''''''''248' ''''''''''''''208' K16.0% 1.1% 0.7***********'Melons' ''''''''''''''''132' ''''''''''''''''177' ''''''''''''''240' 35.6% 1.3% 0.5***********'Mandarins'' ''''''''''''''''457' ''''''''''''''''412' ''''''''''''''313' K24.0% 1.6% 0.5***********'Persimmons' ''''''''''''''''''88' '''''''''''''''''92' ''''''''''''''''85' K7.6% 0.4% 0.3***********'Mangoes' ''''''''''''''''179' ''''''''''''''''126' ''''''''''''''''95' K24.8% 0.5% 0.3***********'Apples' ''''''''''''''''337' ''''''''''''''''128' ''''''''''''''''77' K40.0% 0.4% 0.2***********'Lemons'&'limes' ''''''''''''''''''''1' ''''''''''''''''179' ''''''''''''''100' K44.1% 0.5% 0.2***********'Pears' ''''''''''''''''109' '''''''''''''''''95' ''''''''''''''''73' K22.6% 0.4% 0.2***********'all'other'' ''''''''''''''''''46' '''''''''''''''''75' ''''''''''''''107' 42.9% 0.6% ************0.6*


2012/13 2013/14 2014/15



New Zealand Whilst being our closest neighbour trade is restricted due to New Zealand’s stringent bio security requirements and small population compared and similar southern hemisphere local production seasons for fruit we both produce.

Papua New Guinea PNG imports a regular volume of multiple lines for their domestic market and also mining settlements.

Australian*Fresh*Fruit*Exports*to New*Zealand2014/15 2014/15 2014/15

change'to'LY vol'share' Value'

*Value*$A*Million* 29.7'''''''''''''' 36.7''''''''''''' 37.0'''''''''''' 0.8%*Volume*Tonnes* ************19,957* ***********21,788* **********19,676* ;9.7%*A$*per*kg** $1.49 $1.68 $1.88 11.6%


'Table'grapes' ''''''''''''''5,626' '''''''''''''5,638' '''''''''''3,607' ;36.0% 18.3% 10.5*********

'Mandarins' ''''''''''''''3,266' '''''''''''''4,951' '''''''''''3,970' ;19.8% 20.2% 7.1***********

'Melons' ''''''''''''''3,870' '''''''''''''4,424' '''''''''''5,125' 15.8% 26.0% 6.8***********

'Oranges' ''''''''''''''4,806' '''''''''''''4,370' '''''''''''3,488' ;20.2% 17.7% 3.1***********

'Pears' ''''''''''''''1,479' '''''''''''''1,563' '''''''''''2,066' 32.2% 10.5% 3.1***********

'Strawberries' ''''''''''''''''142' ''''''''''''''''221' ''''''''''''''366' 65.4% 1.9% 2.8***********

'Mangoes' ''''''''''''''''589' ''''''''''''''''469' ''''''''''''''886' 89.1% 4.5% 2.7***********

'Lemons'&'limes' ''''''''''''''''''39' '''''''''''''''''47' ''''''''''''''''66' 39.1% 0.3% 0.4***********

'all'other'' ''''''''''''''''139' ''''''''''''''''105' ''''''''''''''102' ;2.5% 0.5% ************0.4*

*Total*Volume** ************19,957* ***********21,788* **********19,676* J9.7% 100% 37.0*********


2012/13 2013/14 2014/15

Australian*Fresh*Fruit*Exports*to Papua*New*Guinea2014/15 2014/15 2014/15




'Apples' ''''''''''''''1,523' '''''''''''''1,148' ''''''''''''''958' 716.5% 32.0% 2.2***********

'Oranges' ''''''''''''''1,571' '''''''''''''1,251' '''''''''''1,019' 718.6% 34.0% 1.7***********

'Table'grapes' ''''''''''''''''163' ''''''''''''''''209' ''''''''''''''232' 11.4% 7.8% 0.8***********

'Pears' ''''''''''''''''397' ''''''''''''''''314' ''''''''''''''379' 20.6% 12.7% 0.7***********

'Melons' ''''''''''''''''227' ''''''''''''''''240' ''''''''''''''208' 713.2% 7.0% 0.3***********

'Mandarins'' ''''''''''''''''209' ''''''''''''''''132' ''''''''''''''''88' 733.3% 2.9% 0.2***********

'Lemons'&'limes' ''''''''''''''''''52' '''''''''''''''''39' ''''''''''''''''43' 9.8% 1.4% 0.2***********

'Kiwifruit' ''''''''''''''''''21' '''''''''''''''''30' ''''''''''''''''34' 12.8% 1.1% 0.1***********

'Strawberries' ''''''''''''''''''''8' '''''''''''''''''''8' '''''''''''''''''7' 714.9% 0.2% 0.1***********

'Peaches'&'nectarines' ''''''''''''''''''14' '''''''''''''''''12' '''''''''''''''''8' 734.6% 0.3% 0.0***********

'all'other'' ''''''''''''''''''36' '''''''''''''''''25' ''''''''''''''''19' 722.3% 0.6% ************0.1*

*Total*Volume** **************4,222* *************3,408* ***********2,996* J12.1% 100% 6.4***********


2012/13 2013/14 2014/15



Philippines Trade to Philippines has lifted exponentially as the improved access conditions and tariff reductions under the AANZFTA approach zero. Table grapes and citrus dominate the trade from Australia though some small opportunities are developing for other niche fruits.

Russia Australian fresh fruit trade to Russia had been building off a low base until the market was closed to Australian, European and US agricultural products in August 2014. The ban has been extended for a further 12 months. Russia is one of the world’s largest importers of fresh fruit and imported 6.1 million tonnes of from all sources in 2013/14.

Australian*Fresh*Fruit*Exports*to Philippines2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 0.5'''''''''''''''' 4.0''''''''''''''' 12.9'''''''''''' 223.4%*Volume*Tonnes* ****************346* *************2,104* ***********7,387* 251.1%*A$*per*kg** $1.53 $1.90 $1.75 ;7.9%


'Table'grapes' ''''''''''''''''''99' '''''''''''''1,033' '''''''''''3,079' 198.1% 41.7% 8.3***********'Oranges' ''''''''''''''''233' ''''''''''''''''682' '''''''''''3,361' 392.5% 45.5% 3.1***********'Mandarins' ''''''''''''''''''';''' ''''''''''''''''363' ''''''''''''''734' 102.3% 9.9% 1.0***********'Lemons'&'limes' ''''''''''''''''''';''' '''''''''''''''''';''' ''''''''''''''145' 2.0% 0.3***********'Plums' ''''''''''''''''''''3' '''''''''''''''''16' ''''''''''''''''26' 59.1% 0.3% 0.1***********'Cherries' ''''''''''''''''''''6' '''''''''''''''''''3' '''''''''''''''''4' 46.5% 0.1% 0.1***********'all'other'' ''''''''''''''''''''4' '''''''''''''''''''7' ''''''''''''''''38' 438.8% 0.5% ************0.1*

*Total*Volume** ****************346* *************2,104* ***********7,387* 251.1% 100% 12.9*********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Australian*Fresh*Fruit*Exports*to Russia2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 6.2'''''''''''''''' 8.8''''''''''''''' 0.3'''''''''''''' 897.0%*Volume*Tonnes* **************2,626* *************3,503* **************204* 894.2%*A$*per*kg** $2.36 $2.51 $1.29 848.7%


'Table'grapes' ''''''''''''''1,404' '''''''''''''1,256' ''''''''''''''''8''' 8100.0% 0.0% E***********'Mandarins'' ''''''''''''''''763' '''''''''''''1,322' ''''''''''''''145' 889.0% 71.1% 0.2***********'Cherries' ''''''''''''''''''41' '''''''''''''''''66' ''''''''''''''''8''' 8100.0% 0.0% E***********'Mangoes' ''''''''''''''''125' ''''''''''''''''147' ''''''''''''''''8''' 8100.0% 0.0% E***********'Peaches'&'nectarines' ''''''''''''''''''67' ''''''''''''''''117' ''''''''''''''''8''' 8100.0% 0.0% E***********'Oranges' ''''''''''''''''129' ''''''''''''''''459' ''''''''''''''''59' 887.2% 28.9% 0.1***********'Plums' ''''''''''''''''''38' '''''''''''''''''36' ''''''''''''''''8''' 8100.0% 0.0% E***********'Blueberries' ''''''''''''''''''10' '''''''''''''''''13' ''''''''''''''''8''' 8100.0% 0.0% E***********'Apricots' ''''''''''''''''''''6' '''''''''''''''''''6' ''''''''''''''''8''' 8100.0% 0.0% E***********'all'other'' ''''''''''''''''''44' '''''''''''''''''82' ''''''''''''''''8''' 8100.0% 0.0% *************E***

*Total*Volume** **************2,626* *************3,503* **************204* E94.2% 100% 0.3***********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



Singapore Singapore is an established key market for Australian fruit though the market is relatively stable with limited overall growth potential. The market is unregulated with no significant trade barriers. It is therefore is highly competitive with other suppliers.

Saudi Arabia Imports by Saudi Arabia are highly price sensitive and influenced by volumes available through the United Arab Emirates, the regional import hub.

Australian*Fresh*Fruit*Exports*to Singapore2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 40.6'''''''''''''' 49.1''''''''''''' 56.0'''''''''''' 14.1%*Volume*Tonnes* ************22,662* ***********22,359* **********26,098* 16.7%*A$*per*kg** $1.79 $2.20 $2.15 ;2.2%


'Table'grapes' ''''''''''''''4,444' '''''''''''''6,126' '''''''''''5,622' ;8.2% 21.5% 15.8*********'Oranges' ''''''''''''10,632' '''''''''''''8,069' '''''''''''9,362' 16.0% 35.9% 10.7*********'Melons' ''''''''''''''2,333' '''''''''''''2,978' '''''''''''4,140' 39.0% 15.9% 5.3***********'Cherries' ''''''''''''''''358' ''''''''''''''''284' ''''''''''''''386' 36.0% 1.5% 4.2***********'Avocados' ''''''''''''''''906' ''''''''''''''''794' ''''''''''''''767' ;3.4% 2.9% 3.7***********'Strawberries' ''''''''''''''''221' ''''''''''''''''475' ''''''''''''''563' 18.4% 2.2% 3.1***********'Mangoes' ''''''''''''''''576' ''''''''''''''''784' ''''''''''''''953' 21.6% 3.7% 2.7***********'Peaches'&'nectarines' ''''''''''''''''801' ''''''''''''''''537' ''''''''''''''983' 83.2% 3.8% 2.6***********'Plums' ''''''''''''''''679' ''''''''''''''''603' ''''''''''''''835' 38.4% 3.2% 2.1***********'Mandarins' ''''''''''''''1,150' '''''''''''''1,000' '''''''''''1,077' 7.7% 4.1% 1.7***********'Lemons'&'limes' ''''''''''''''''''34' ''''''''''''''''106' ''''''''''''''483' 354.6% 1.9% 0.9***********'Pears' ''''''''''''''''137' ''''''''''''''''183' ''''''''''''''337' 84.5% 1.3% 0.8***********'Kiwifruit' ''''''''''''''''''36' ''''''''''''''''165' ''''''''''''''128' ;22.3% 0.5% 0.7***********'Apples' ''''''''''''''''''62' '''''''''''''''''33' ''''''''''''''158' 383.1% 0.6% 0.3***********'Blueberries' ''''''''''''''''''18' '''''''''''''''''47' ''''''''''''''''16' ;66.0% 0.1% 0.3***********'Persimmons' ''''''''''''''''''86' '''''''''''''''''86' ''''''''''''''''44' ;48.5% 0.2% 0.2***********'Apricots' ''''''''''''''''''47' '''''''''''''''''38' ''''''''''''''''33' ;12.0% 0.13% 0.1***********'all'other'' ''''''''''''''''141' '''''''''''''''''53' ''''''''''''''211' 298.9% 0.8% ************0.8*


2012/13 2013/14 2014/15

Australian*Fresh*Fruit*Exports*to Saudi*Arabia2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 2.8'''''''''''''''' 2.0''''''''''''''' 4.1'''''''''''''' 109.2%*Volume*Tonnes* **************2,426* *************1,170* ***********2,630* 124.8%*A$*per*kg** $1.13 $1.69 $1.57 :6.9%


'Oranges' ''''''''''''''1,801' ''''''''''''''''679' '''''''''''1,588' 133.9% 60.4% 1.4***********'Peaches'&'nectarines' ''''''''''''''''101' ''''''''''''''''138' ''''''''''''''395' 186.9% 15.0% 1.0***********'Table'grapes' ''''''''''''''''130' '''''''''''''''''94' ''''''''''''''174' 84.8% 6.6% 0.5***********'Cherries' ''''''''''''''''''15' '''''''''''''''''12' ''''''''''''''''33' 172.4% 1.2% 0.3***********'Mandarins' ''''''''''''''''258' ''''''''''''''''109' ''''''''''''''206' 88.5% 7.8% 0.3***********'Apricots' ''''''''''''''''''29' '''''''''''''''''30' ''''''''''''''''51' 66.8% 1.9% 0.2***********'Melons' ''''''''''''''''''63' '''''''''''''''''44' ''''''''''''''113' 155.7% 4.3% 0.2***********'Mangoes' ''''''''''''''''''17' '''''''''''''''''43' ''''''''''''''''38' :10.3% 1.5% 0.2***********'Plums' ''''''''''''''''''''9' '''''''''''''''''''7' ''''''''''''''''17' 143.3% 0.7% 0.1***********'all'other'' ''''''''''''''''''''3' '''''''''''''''''13' ''''''''''''''''15' 12.4% 0.6% ************0.1*

*Total*Volume** **************2,426* *************1,170* ***********2,630* 124.8% 100% 4.1***********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



Taiwan Cherries are the main export product to Taiwan (by value). Chile and New Zealand are the key competitors and New Zealand’s trade agreement with Taiwan delivered it an immediate 7.5 per cent tariff elimination and subsequent substantial increase in trade.

Thailand The changed import conditions impacted the steady trade growth to Thailand over the past decade since the Australia Thailand Free Trade Agreement (TAFTA) was signed into force and eliminated most tariffs by 2010. Summerfruit and cherries have regained access after a couple of seasons out of the market albeit with more difficult protocols while Avocados are unable to trade with the new protocol requiring cold treatment. The table grape tariff and the tariff rate quota is scheduled to be eliminated from 2016.

Australian*Fresh*Fruit*Exports*to Taiwan*2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 14.1'''''''''''''' 13.4''''''''''''' 11.4'''''''''''' 615.0%*Volume*Tonnes* **************4,067* *************2,979* ***********3,520* 18.2%*A$*per*kg** $3.46 $4.50 $3.24 628.0%


'Cherries' ''''''''''''''''629' ''''''''''''''''468' ''''''''''''''280' 640.3% 8.0% 5.0***********'Mandarins'' ''''''''''''''1,960' '''''''''''''1,072' '''''''''''1,831' 70.8% 52.0% 2.8***********'Table'grapes' ''''''''''''''''166' ''''''''''''''''902' ''''''''''''''794' 611.9% 22.6% 2.3***********'Oranges' ''''''''''''''1,052' ''''''''''''''''537' ''''''''''''''480' 610.5% 13.6% 0.8***********'Peaches'&'nectarines' ''''''''''''''''259' ''''''''''''''''''6''' ''''''''''''''132' 3.8% 0.4***********'Apples' '''''''''''''''''''6''' ''''''''''''''''''6''' '''''''''''''''''2' 0.1% 0.05*********

*Total*Volume** **************4,067* *************2,979* ***********3,520* 18.2% 100% 11.4*********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Australian*Fresh*Fruit*Exports*to Thailand2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 30.2'''''''''''''' 20.4''''''''''''' 27.5'''''''''''' 34.6%

*Volume*Tonnes* ************13,010* *************7,340* **********10,385* 41.5%

*A$*per*kg** $2.32 $2.78 $2.65 <4.9%


'Table'grapes' ''''''''''''''5,156' '''''''''''''3,912' '''''''''''4,968' 27.0% 47.8% 15.7*********'Mandarins' ''''''''''''''4,600' '''''''''''''2,333' '''''''''''3,905' 67.3% 37.6% 7.1***********'Oranges' ''''''''''''''1,670' ''''''''''''''''831' ''''''''''''''980' 18.0% 9.4% 1.4***********'Cherries' ''''''''''''''''''''0' '''''''''''''''''''7' ''''''''''''''''74' ''++ 0.7% 1.3***********'Strawberries' ''''''''''''''''126' '''''''''''''''''98' ''''''''''''''134' 37.3% 1.3% 1.0***********'Apples' ''''''''''''''''674' '''''''''''''''''19' ''''''''''''''131' 606.1% 1.3% 0.3***********'Peaches'&'nectarines' ''''''''''''''''''''2' '''''''''''''''''''2' ''''''''''''''''72' ''++ 0.7% 0.3***********'Blueberries' ''''''''''''''''''''5' '''''''''''''''''''6' '''''''''''''''''9' 58.7% 0.1% 0.2***********'Plums' '''''''''''''''''''<''' '''''''''''''''''''6' ''''''''''''''''37' ''++ 0.4% 0.1***********'Pears' ''''''''''''''''''32' '''''''''''''''''32' ''''''''''''''''76' 139.0% 0.7% 0.1***********'Avocados' ''''''''''''''''549' '''''''''''''''''93' ''''''''''''''''<''' <100.0% 0.0% F***********'all'other'' ''''''''''''''''197' '''''''''''''''''''2' '''''''''''''''''1' <74.5% 0.0% ************0.0*

*Total*Volume** ************13,010* *************7,340* **********10,385* 41.5% 100% 27.5*********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



United Arab Emirates The UAE continues to expand as a major export destination and is also a major trading hub for the Middle East region that sees re exports to other regional states.

United States Citrus dominates the trade to the United States though has declined over 75 per cent in 7 years since Chile gained access to the market and it continues to develop a market leading position with lower priced fruit. The first trial consignment of Australian mangoes was shipped late in the 2014/15 mango season with promising expectations for commercial volumes in 2015/16.

Australian*Fresh*Fruit*Exports*to United*Arab*Emirates2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 36.0'''''''''''''' 38.1''''''''''''' 45.9'''''''''''' 20.4%*Volume*Tonnes* ************18,472* ***********17,616* **********22,070* 25.3%*A$*per*kg** $1.95 $2.16 $2.08 =3.9%


'Table'grapes' ''''''''''''''3,956' '''''''''''''4,145' '''''''''''6,365' 53.5% 28.8% 16.0*********'Melons' ''''''''''''''2,647' '''''''''''''2,612' '''''''''''4,878' 86.7% 22.1% 8.5***********'Peaches'&'nectarines' ''''''''''''''2,148' '''''''''''''1,755' '''''''''''2,129' 21.3% 9.6% 7.0***********'Mandarins' ''''''''''''''3,616' '''''''''''''4,636' '''''''''''2,654' =42.7% 12.0% 4.3***********'Oranges' ''''''''''''''4,821' '''''''''''''2,913' '''''''''''4,313' 48.0% 19.5% 3.2***********'Mangoes' ''''''''''''''''494' ''''''''''''''''596' ''''''''''''''813' 36.5% 3.7% 2.7***********'Strawberries' ''''''''''''''''''70' ''''''''''''''''298' ''''''''''''''322' 8.0% 1.5% 1.8***********'Cherries' ''''''''''''''''163' '''''''''''''''''50' ''''''''''''''120' 137.7% 0.5% 0.9***********'Apricots' ''''''''''''''''131' ''''''''''''''''197' ''''''''''''''208' 5.8% 0.9% 0.7***********'Plums' ''''''''''''''''195' ''''''''''''''''365' ''''''''''''''130' =64.3% 0.6% 0.3***********'Blueberries' ''''''''''''''''''''0' '''''''''''''''''10' '''''''''''''''''1' =86.2% 0.0% 0.03*********'Avocados' ''''''''''''''''113' '''''''''''''''''12' '''''''''''''''''4' =65.9% 0.0% 0.02*********'all'other'' ''''''''''''''''117' '''''''''''''''''27' ''''''''''''''132' 395.9% 0.6% ************0.4*


2012/13 2013/14 2014/15

Australian*Fresh*Fruit*Exports*to United*States2014/15 2014/15 2014/15


*Value*$A*Million* 16.4'''''''''''''' 18.4''''''''''''' 10.9'''''''''''' 940.8%*Volume*Tonnes* ************11,271* ***********11,736* ***********6,390* 945.6%*A$*per*kg** $1.45 $1.56 $1.70 8.8%


'Oranges' ''''''''''''''9,716' '''''''''''10,405' '''''''''''5,491' 947.2% 85.9% 9.1***********

'Mandarins' ''''''''''''''1,547' '''''''''''''1,332' ''''''''''''''734' 944.9% 11.5% 1.4***********

'Lemons'&'limes' ''''''''''''''''''''8' '''''''''''''''''''0' ''''''''''''''120' ''++ 1.9% 0.2***********

'Mangoes' '''''''''''''''''''9''' ''''''''''''''''''9''' '''''''''''''''''5' ''++ 0.1% 0.03*********

'all'other'' '''''''''''''''''''9''' ''''''''''''''''''9''' ''''''''''''''''40' ''++ 0.6% ************0.1*

*Total*Volume** ************11,271* ***********11,736* ***********6,390* H45.6% 100% 10.9*********


2012/13 2013/14 2014/15



Vietnam In 2013 table grapes accounted for 81 per cent share of trade to the rapidly expanding market of Vietnam and when their authorities closed the market in January 2015 amid quarantine concerns at least 10,000 tonnes of table grape trade was lost for the season, along with smaller volume of other fruits normally exported from January to June. The market has re opened in time for the 2015 citrus season.

Australian*Fresh*Fruit*Exports*to Vietnam2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 24.4'''''''''''''' 37.7''''''''''''' 5.8'''''''''''''' 984.7%*Volume*Tonnes* **************8,373* ***********12,551* ***********1,668* 986.7%*A$*per*kg** $2.91 $3.01 $3.47 15.3%


'Table'grapes' ''''''''''''''7,194' '''''''''''10,257' '''''''''''''''''5' 9100.0% 0.3% 0.0***********'Cherries' ''''''''''''''''''98' ''''''''''''''''145' ''''''''''''''135' 96.6% 8.1% 1.7***********'Oranges' ''''''''''''''''570' '''''''''''''1,040' ''''''''''''''692' 933.5% 41.5% 1.0***********'Plums' ''''''''''''''''''69' ''''''''''''''''403' '''''''''''''''''3' 999.3% 0.2% 0.0***********'Pears' ''''''''''''''''''71' ''''''''''''''''116' '''''''''''''''''9' 992.5% 0.5% 0.0***********'Peaches'&'nectarines' ''''''''''''''''''61' ''''''''''''''''140' ''''''''''''''118' 916.0% 7.0% 0.6***********'Mandarins' ''''''''''''''''''27' ''''''''''''''''258' ''''''''''''''150' 941.9% 9.0% 0.3***********'Mangoes' ''''''''''''''''187' ''''''''''''''''119' ''''''''''''''517' 335.6% 31.0% 1.9***********'Kiwifruit' ''''''''''''''''''31' '''''''''''''''''37' '''''''''''''''''0' 999.4% 0.0% 0.0***********'Apples'' ''''''''''''''''''56' '''''''''''''''''''3' ''''''''''''''''11' 292.0% 0.7% 0.0***********'all'other'' ''''''''''''''''''''8' '''''''''''''''''33' ''''''''''''''''29' 914.1% 1.7% ************0.2*

*Total*Volume** **************8,373* ***********12,551* ***********1,668* F86.7% 100% 5.8***********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



Fresh Fruit Imports Imports of fresh fruit increased 10.9 per cent by value to A$350.9 million in 2014/15 while the volumes increased 4.9 per cent to 103,661 tonnes. The higher value growth was influenced by stronger growth of high value products particularly avocados, kiwifruit grapes and cherries. Orange imports were 17 per cent lower and also Summerfruit imports did not perform as well in their second year of trade from United States. Over half the fresh fruit imports are sourced from United States. New Zealand is the second largest supplier being mainly for avocados and kiwifruit. Italy is also a significant supplier of kiwifruit in the off-‐season. Most of the fruit imported from China are Asian pears together with around 500 tonnes of apples. Mangoes are sourced from various countries including Mexico, Taiwan and India. Israel is a secondary supplier of citrus after United States.

Fresh&Fruit&Imports&by&Product&2014/15&vs&previous&2&years2014/15 2014/15 2014/15 2014/15change'to'LY vol'share' &A$&million&& &A$&per&kg&&

&Value&$A&Million& &&&&&&&&&&&&&224.3& &&&&&&&&&&&&316.5& &&&&&&&&&&350.9& 10.9%&Volume&Tonnes& &&&&&&&&&&&84,633& &&&&&&&&&&98,859& &&&&&&&103,661& 4.9%&A$&per&kg&& $2.65 $3.20 $3.39 5.7%

'Tonnes' 'Tonnes' 'Tonnes' A$'million A$'per'kg'Avocados ''''''''''''''5,378' '''''''''''15,888' ''''''''''19,626' 24% 18.9% 85.9'''''''''' 4.38''''''''''Table'grapes ''''''''''''14,568' '''''''''''15,859' ''''''''''17,766' 12% 17.1% 72.3'''''''''' 4.07''''''''''Kiwifruit ''''''''''''22,393' '''''''''''20,499' ''''''''''22,862' 12% 22.1% 50.3'''''''''' 2.20''''''''''Oranges ''''''''''''18,540' '''''''''''19,805' ''''''''''16,408' K17% 15.8% 27.9'''''''''' 1.70''''''''''Lemons'&'limes ''''''''''''''6,196' '''''''''''''7,149' '''''''''''7,334' 3% 7.1% 21.8'''''''''' 2.97''''''''''Cherries ''''''''''''''4,592' '''''''''''''2,349' '''''''''''2,598' 11% 2.5% 18.6'''''''''' 7.17''''''''''Blueberries ''''''''''''''1,060' '''''''''''''1,104' '''''''''''1,003' K9% 1.0% 18.4'''''''''' 18.40''''''''Peaches'&'nectarines ''''''''''''''''''''5' '''''''''''''5,124' '''''''''''3,442' K33% 3.3% 14.7'''''''''' 4.28''''''''''Mandarins ''''''''''''''3,716' '''''''''''''2,155' '''''''''''3,006' 39% 2.9% 9.0''''''''''' 2.98''''''''''Mangoes ''''''''''''''''986' ''''''''''''''''926' '''''''''''1,047' 13% 1.0% 6.3''''''''''' 5.98''''''''''Apricots ''''''''''''''''949' '''''''''''''1,074' ''''''''''''''711' K34% 0.7% 3.6''''''''''' 5.00''''''''''all'other' ''''''''''''11,902' '''''''''''11,083' ''''''''''12,621' 14% 12.2% ''''''''''40.8' 3.23''''''''''

&Total& &&&&&&&&&&&&84,633& &&&&&&&&&&&98,859& &&&&&&&&103,661& 5% 100% 350.9&&&&&&&& 3.39''''''''''Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Fresh&Fruit&Imports&by&Market&2014/15&vs&previous&2&years2014/15 2014/15 2014/15 2014/15change'to'LY vol'share' &A$&million&& &A$&per&kg&&

&Value&$A&Million& &&&&&&&&&&&&&224.3& &&&&&&&&&&&&316.5& &&&&&&&&&&350.9& 10.9%&Volume&Tonnes& &&&&&&&&&&&84,633& &&&&&&&&&&98,859& &&&&&&&103,661& 4.9%&A$&per&kg&& $2.65 $3.20 $3.39 5.7%

'Tonnes' 'Tonnes' 'Tonnes' A$'million A$'per'kg'United'States ''''''''''''48,752' '''''''''''55,181' ''''''''''52,469' F5% 50.6% 170.5'''''''' 3.25''''''''''New'Zealand ''''''''''''24,699' '''''''''''34,016' ''''''''''39,577' 16% 38.2% 151.3'''''''' 3.82''''''''''Italy ''''''''''''''4,980' '''''''''''''4,463' '''''''''''5,533' 24% 5.3% 11.1'''''''''' 2.00''''''''''China ''''''''''''''2,070' '''''''''''''1,776' '''''''''''2,167' 22% 2.1% 5.2''''''''''' 2.39''''''''''Thailand ''''''''''''''1,135' ''''''''''''''''865' ''''''''''''''964' 11% 0.9% 3.9''''''''''' 4.01''''''''''Philippines ''''''''''''''''216' ''''''''''''''''228' ''''''''''''''266' 17% 0.3% 3.1''''''''''' 11.55''''''''Israel ''''''''''''''''578' ''''''''''''''''737' '''''''''''1,030' 40% 1.0% 1.6''''''''''' 1.56''''''''''Mexico ''''''''''''''''421' ''''''''''''''''354' ''''''''''''''383' 8% 0.37% 0.8''''''''''' 2.12''''''''''France ''''''''''''''''882' ''''''''''''''''567' ''''''''''''''''63' F89% 0.06% 0.1''''''''''' 2.29''''''''''South'Korea ''''''''''''''''''12' '''''''''''''''''61' ''''''''''''''113' 84% 0.11% 0.5''''''''''' 4.14''''''''''all'other' ''''''''''''''1,782' '''''''''''''1,238' '''''''''''1,271' 3% 1.2% ''''''''''''3.5' 2.74''''''''''

&Total& &&&&&&&&&&&&84,633& &&&&&&&&&&&98,859& &&&&&&&&103,661& 5% 100% 350.9&&&&&&&& 3.39''''''''''Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



China China is the world’s largest producer of apples with a current crop of around 38 million tonnes. Despite the high volume of production their exports to Australia since access in 2011 have not exceeded 500 tonnes. Asian pears have been imported for many years.

France Kiwifruit from France supplements the imports in addition to Italy when New Zealand is out of season. In 2014/15 most European imports came from Italy.

Italy Italy is the main European supplier of kiwifruit to supplement the imports from New Zealand when it is out of season.

Fresh&Fruit&Imports&from China2014/15 2014/15 2014/15change'to'LY vol'share' Value'

&Value&$A&Million& 3.1''''''''''''''''''' 3.6''''''''''''''' 5.2'''''''''''''' 42.7%&Volume&Tonnes& &&&&&&&&&&&&&&&&&2,070& &&&&&&&&&&&&&1,776& &&&&&&&&&&&2,167& 22.0%&A$&per&kg&& $1.49 $2.04 $2.39 17.0%

&Tonnes& &Tonnes& &Tonnes& A$&million

'Pears' '''''''''''''''''1,624' '''''''''''''1,235' '''''''''''1,505' 21.9% 69.4% 2.6&&&&&&&&&&&'Apples' ''''''''''''''''''''378' ''''''''''''''''325' ''''''''''''''474' 45.9% 21.9% 1.2&&&&&&&&&&&'all'other'' '''''''''''''''''''''68' ''''''''''''''''216' ''''''''''''''188' B12.9% 8.7% 1.3&&&&&&&&&&&

&Total&& &&&&&&&&&&&&&&&&&2,070& &&&&&&&&&&&&&1,776& &&&&&&&&&&&2,167& 22.0% 100% 5.2&&&&&&&&&&&Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Fresh&Fruit&Imports&from France2014/15 2014/15 2014/15change'to'LY vol'share' Value'

&Value&$A&Million& 1.44''''''''''''''''' 1.23''''''''''''' 0.14'''''''''''' 888.2%&Volume&Tonnes& &&&&&&&&&&&&&&&&&&&&882& &&&&&&&&&&&&&&&&567& &&&&&&&&&&&&&&&&63& 888.9%&A$&per&kg&& $1.64 $2.17 $2.29 5.8%


'Kiwifruit' ''''''''''''''''''''882' ''''''''''''''''567' ''''''''''''''''63' 888.9% 100.0% 0.1&&&&&&&&&&&

&Total&& &&&&&&&&&&&&&&&&&&&&882& &&&&&&&&&&&&&&&&567& &&&&&&&&&&&&&&&&63& F88.9% 100% 0.14&&&&&&&&&Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Fresh&Fruit&Imports&from Italy2014/15 2014/15 2014/15change'to'LY vol'share' Value'

&Value&$A&Million& 8.0'''''''''''''''''''' 8.5''''''''''''''' 11.1'''''''''''' 29.7%&Volume&Tonnes& &&&&&&&&&&&&&&&&&&4,980& &&&&&&&&&&&&&4,463& &&&&&&&&&&&5,533& 24.0%&A$&per&kg&& $1.61 $1.91 $2.00 4.7%


'Kiwifruit' ''''''''''''''''''4,980' '''''''''''''4,462' '''''''''''5,533' 24.0% 100.0% 11.1&&&&&&&&&

&Total&& &&&&&&&&&&&&&&&&&&4,980& &&&&&&&&&&&&&4,463& &&&&&&&&&&&5,533& 24.0% 100% 11.1&&&&&&&&&Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



Israel Israel is a key supplier of citrus to Europe and also Russia.

Mexico Mexico is a very large supplier of various fresh fruit to the United States. Currently mangoes are the only product imported from Mexico to Australia.

New Zealand Avocados and kiwifruit account for over 92 per cent of the total fresh fruit imported from New Zealand. Avocados from New Zealand are the No.1 imported product by value at A$85.9m

Fresh&Fruit&Imports&from Israel2014/15 2014/15 2014/15change'to'LY vol'share' Value'

&Value&$A&Million& 0.9'''''''''''''''''''''' 1.2''''''''''''''' 1.6'''''''''''''' 38.5%&Volume&Tonnes& &&&&&&&&&&&&&&&&&&&&&&578& &&&&&&&&&&&&&&&&737& &&&&&&&&&&&1,030& 39.8%&A$&per&kg&& $1.49 $1.57 $1.56 <0.9%


'Mandarins' ''''''''''''''''''''''342' ''''''''''''''''475' ''''''''''''''482' 1.4% 46.8% 0.9&&&&&&&&&&&'Grapefruit' ''''''''''''''''''''''236' ''''''''''''''''261' ''''''''''''''302' 15.5% 29.3% 0.4&&&&&&&&&&&'Oranges' ''''''''''''''''''''''''<''' ''''''''''''''''''<''' ''''''''''''''213' 20.7% 0.3&&&&&&&&&&&'all'other'' '''''''''''''''''''''''''1' '''''''''''''''''''1' ''''''''''''''''34' ''++ 0.02&&&&&&&&&

&Total&& &&&&&&&&&&&&&&&&&&&&&&578& &&&&&&&&&&&&&&&&737& &&&&&&&&&&&1,030& 39.8% 100% 1.6&&&&&&&&&&&Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Fresh&Fruit&Imports&from Mexico2014/15 2014/15 2014/15change'to'LY vol'share' Value'

&Value&$A&Million& 1.2'''''''''''''''''''' 1.1''''''''''''''' 0.8'''''''''''''' 726.3%&Volume&Tonnes& &&&&&&&&&&&&&&&&&&&&&421& &&&&&&&&&&&&&&&&354& &&&&&&&&&&&&&&382& 7.9%&A$&per&kg&& $2.96 $3.09 $2.11 731.7%


'Mangoes' '''''''''''''''''''''421' ''''''''''''''''354' ''''''''''''''382' 7.9% 100.0% 0.8&&&&&&&&&&&

&Total&& &&&&&&&&&&&&&&&&&&&&&421& &&&&&&&&&&&&&&&&354& &&&&&&&&&&&&&&382& 7.9% 100% 0.8&&&&&&&&&&&Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Fresh&Fruit&Imports&from New&Zealand2014/15 2014/15 2014/15


&Value&$A&Million& 80.7'''''''''''''''''' 135.3'''''''''''' 151.3'''''''''' 11.8%&Volume&Tonnes& &&&&&&&&&&&&&&&&24,699& &&&&&&&&&&&34,016& &&&&&&&&&&39,577& 16.3%&A$&per&kg&& $3.27 $3.98 $3.82 ;3.9%


'Avocados' '''''''''''''''''5,378' '''''''''''15,865' ''''''''''19,626' 23.7% 49.6% 85.9&&&&&&&&&

'Kiwifruit' ''''''''''''''''16,458' '''''''''''15,235' ''''''''''17,218' 13.0% 43.5% 39.0&&&&&&&&&

'Blueberries' '''''''''''''''''1,055' '''''''''''''1,102' ''''''''''''''999' ;9.4% 2.5% 18.4&&&&&&&&&

'Apricots' ''''''''''''''''''''884' '''''''''''''1,031' ''''''''''''''648' ;37.2% 1.6% 3.3&&&&&&&&&&&

'Persimmons' ''''''''''''''''''''691' ''''''''''''''''579' ''''''''''''''606' 4.6% 1.5% 2.7&&&&&&&&&&&

'Apples' ''''''''''''''''''''''57' '''''''''''''''''66' ''''''''''''''277' 318.3% 0.7% 0.9&&&&&&&&&&&

'Lemons'&'limes' ''''''''''''''''''''102' '''''''''''''''''71' ''''''''''''''105' 48.0% 0.3% 0.2&&&&&&&&&&&

'Strawberries' ''''''''''''''''''''''35' '''''''''''''''''22' ''''''''''''''''23' 4.7% 0.1% 0.2&&&&&&&&&&&

'all'other'' ''''''''''''''''''''''39' '''''''''''''''''45' ''''''''''''''''76' 70.6% 0.2% &&&&&&&&&&&&0.8&

&Total&& &&&&&&&&&&&&&&&&24,699& &&&&&&&&&&&34,016& &&&&&&&&&&39,577& 16.3% 100% 151.3&&&&&&&&


2012/13 2013/14 2014/15



South Korea South Korea is a supplementary supplier of pears to Australia. As of June 2015 Australia has suspended the imports of pears from South Korea until further notice.

United States The United States is the largest supplier of imported fresh fruit to Australia and includes a wide range of counter seasonal fruit including citrus, grapes, peaches, nectarines and cherries. Peaches and nectarines were given access to Australian in 2013 and plums were given access in 2015 with the first 57 tonnes recorded in June.

Fresh&Fruit&Imports&from South&Korea2014/15 2014/15 2014/15change'to'LY vol'share' Value'

&Value&$A&Million& 0.0''''''''''''''''''''' 0.2''''''''''''''' 0.5'''''''''''''' 106.2%&Volume&Tonnes& &&&&&&&&&&&&&&&&&&&&&&&12& &&&&&&&&&&&&&&&&&61& &&&&&&&&&&&&&&113& 84.4%&A$&per&kg&& $3.14 $3.71 $4.14 11.9%


'Pears' '''''''''''''''''''''''12' '''''''''''''''''61' ''''''''''''''''88' 43.5% 77.8% 0.3&&&&&&&&&&&'Other' '''''''''''''''''''''''@''' ''''''''''''''''''@''' ''''''''''''''''25' 22.2% 0.1&&&&&&&&&&&

&Total&& &&&&&&&&&&&&&&&&&&&&&&&12& &&&&&&&&&&&&&&&&&61& &&&&&&&&&&&&&&113& 84.4% 100% 0.5&&&&&&&&&&&Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Fresh&Fruit&Imports&from United&States2014/15 2014/15 2014/15change'to'LY vol'share' Value'

&Value&$A&Million& 122.2''''''''''''''''' 158.3'''''''''''' 170.5'''''''''' 7.7%&Volume&Tonnes& &&&&&&&&&&&&&&&&48,752& &&&&&&&&&&&55,181& &&&&&&&&&&52,469& ;4.9%&A$&per&kg&& $2.51 $2.87 $3.25 13.3%


'Table'grapes' ''''''''''''''''14,568' '''''''''''15,859' ''''''''''17,741' 11.9% 33.8% 72.1&&&&&&&&&'Oranges' ''''''''''''''''17,857' '''''''''''19,646' ''''''''''15,735' ;19.9% 30.0% 27.2&&&&&&&&&'Lemons'&'limes' ''''''''''''''''''6,063' '''''''''''''7,066' '''''''''''7,220' 2.2% 13.8% 21.6&&&&&&&&&'Cherries' ''''''''''''''''''4,582' '''''''''''''2,339' '''''''''''2,565' 9.7% 4.9% 18.4&&&&&&&&&'Peaches'&'nectarines' ''''''''''''''''''''''';''' '''''''''''''5,114' '''''''''''3,442' ;32.7% 6.6% 14.7&&&&&&&&&'Mandarins' ''''''''''''''''''3,374' '''''''''''''1,658' '''''''''''2,480' 49.6% 4.7% 7.9&&&&&&&&&&&'Grapefruit' '''''''''''''''''''''986' '''''''''''''1,218' '''''''''''1,041' ;14.5% 2.0% 1.9&&&&&&&&&&&'Plums' ''''''''''''''''''''''';''' '''''''''''''''''';''' ''''''''''''''''57' 0.1% 0.3&&&&&&&&&&&'all'other'' ''''''''''''''''''1,322' '''''''''''''2,282' '''''''''''2,188' ;4.1% 4.2% &&&&&&&&&&&&6.4&

&Total&& &&&&&&&&&&&&&&&&48,752& &&&&&&&&&&&55,181& &&&&&&&&&&52,469& I4.9% 100% 170.5&&&&&&&&Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



Fresh Vegetable Exports Australian vegetable exports increased 1.1 per cent by volume to 161,175 tonnes in 2014/15 worth A$172.3 million. Almost 50 per cent of the volumes were carrots, followed by onions and potatoes (excl seed). Asparagus was the third largest export by value.

Singapore was the leading market influenced by its proximity to Australia, a wider range of vegetables accepted and no trade barriers. United Arab Emirates dominated the carrot exports while Japan led with Asparagus and Europe with onions.

Australian*Fresh*Vegetable*Exports*by*Product*2014/15*vs*previous*2*years2014/15 2014/15 2014/15 2014/15change'to'LY vol'share' *A$*million** *A$*per*kg**


'Tonnes' 'Tonnes' 'Tonnes' A$'million A$'per'kg'Carrots ''''''''''''67,334' '''''''''''71,973' ''''''''''78,325' 9% 48.6% 61.2'''''''''' 0.78''''''''''Onions ''''''''''''51,581' '''''''''''45,313' ''''''''''39,625' F13% 24.6% 22.4'''''''''' 0.56''''''''''Asparagus ''''''''''''''2,525' '''''''''''''2,722' '''''''''''3,379' 24% 2.1% 19.8'''''''''' 5.87''''''''''Potatoes'(excl'seed) ''''''''''''36,294' '''''''''''26,191' ''''''''''23,028' F12% 14.3% 17.9'''''''''' 0.78''''''''''Cauliflowers'&'broccoli ''''''''''''''2,287' '''''''''''''3,015' '''''''''''4,187' 39% 2.6% 11.4'''''''''' 2.73''''''''''Lettuce ''''''''''''''1,015' '''''''''''''1,259' '''''''''''1,257' 0% 0.8% 5.7''''''''''' 4.54''''''''''Beans ''''''''''''''1,052' '''''''''''''1,301' '''''''''''1,631' 25% 1.0% 5.5''''''''''' 3.37''''''''''Celery ''''''''''''''''835' '''''''''''''1,121' '''''''''''2,025' 81% 1.3% 2.6''''''''''' 1.30''''''''''Tomatoes ''''''''''''''''439' ''''''''''''''''833' ''''''''''''''751' F10% 0.5% 2.4''''''''''' 3.19''''''''''Pumpkins'&'squash ''''''''''''''1,533' '''''''''''''1,648' '''''''''''1,732' 5% 1.1% 2.3''''''''''' 1.32''''''''''Capsicum ''''''''''''''''182' ''''''''''''''''322' ''''''''''''''483' 50% 0.3% 1.9''''''''''' 3.85''''''''''Other'edible'brassicas' ''''''''''''''''677' ''''''''''''''''664' '''''''''''1,093' 65% 0.7% 1.7''''''''''' 1.54''''''''''all'other' ''''''''''''''3,004' '''''''''''''3,006' '''''''''''3,658' 22% 2.3% ''''''''''17.5' 4.78''''''''''

*Total* **********168,756* **********159,366* ********161,175* 1.1% 100% 172.3******** 1.07''''''''''Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

!Carrots!!36%!

!Onions!!13%!

!Asparagus!!12%!

!Potatoes!(excl!seed)!!10%!

!Cauliflowers!&!broccoli!!7%!

!LeCuce!!3%!

!Beans!!3%!

all!other!!16%!

Fresh&Vegetable&Exports&by&Value&&



Bahrain Carrots dominate the trade to Bahrain, as they do to many other Middle Eastern markets

Australian*Fresh*Vegetable*Exports*by*Market*2014/15*vs*previous*2*years2014/15 2014/15 2014/15 2014/15change'to'LY vol'share' *A$*million** *A$*per*kg**


'Tonnes' 'Tonnes' 'Tonnes' A$'million A$'per'kg'Singapore ''''''''''''17,908' '''''''''''19,684' ''''''''''22,276' 13.2% 13.8% 30.6'''''''''' 1.37''''''''''United'Arab'Emirates ''''''''''''22,386' '''''''''''27,789' ''''''''''32,793' 18.0% 20.3% 27.7'''''''''' 0.85''''''''''Japan ''''''''''''11,058' '''''''''''''8,088' '''''''''''7,358' J9.0% 4.6% 20.4'''''''''' 2.77''''''''''EUROPE ''''''''''''33,030' '''''''''''26,762' ''''''''''24,744' J7.5% 15.4% 14.8'''''''''' 0.60''''''''''Malaysia ''''''''''''15,909' '''''''''''16,073' ''''''''''16,059' J0.1% 10.0% 14.0'''''''''' 0.87''''''''''New'Zealand ''''''''''''''1,732' '''''''''''''2,732' '''''''''''3,349' 22.6% 2.1% 10.7'''''''''' 3.19''''''''''Saudi'Arabia ''''''''''''''7,859' '''''''''''''8,695' '''''''''''9,081' 4.4% 5.6% 7.8''''''''''' 0.86''''''''''South'Korea ''''''''''''12,035' '''''''''''''6,183' ''''''''''11,553' 86.8% 7.2% 7.8''''''''''' 0.68''''''''''Hong'Kong ''''''''''''''4,609' '''''''''''''4,886' '''''''''''4,845' J0.8% 3.0% 7.3''''''''''' 1.50''''''''''Qatar ''''''''''''''5,083' '''''''''''''5,462' '''''''''''5,860' 7.3% 3.6% 4.7''''''''''' 0.80''''''''''Indonesia ''''''''''''12,306' '''''''''''11,966' '''''''''''4,754' J60.3% 2.9% 4.7''''''''''' 0.99''''''''''Papua'New'Guinea ''''''''''''''2,640' '''''''''''''2,231' '''''''''''2,660' 19.2% 1.7% 3.2''''''''''' 1.19''''''''''Bahrain ''''''''''''''3,977' '''''''''''''2,995' '''''''''''3,463' 15.6% 2.1% 2.9''''''''''' 0.85''''''''''Taiwan ''''''''''''''2,879' '''''''''''''1,348' '''''''''''2,835' 110.4% 1.8% 2.8''''''''''' 1.00''''''''''Thailand ''''''''''''''7,573' '''''''''''''6,812' '''''''''''2,253' J66.9% 1.4% 2.0''''''''''' 0.87''''''''''Kuwait ''''''''''''''2,310' '''''''''''''2,442' '''''''''''2,286' J6.4% 1.4% 1.9''''''''''' 0.83''''''''''all'other' ''''''''''''''5,460' '''''''''''''5,219' '''''''''''5,007' J4.1% 3.1% ''''''''''''8.9' 1.78''''''''''

*Total* **********168,756* **********159,366* ********161,175* 1.1% 100% 172.3******** 1.07''''''''''Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Australian*Fresh*Vegetable*Exports*to Bahrain2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 3.1'''''''''''''' 2.4'''''''''''''' 2.9'''''''''''''' 21.3%*Volume*Tonnes* ************3,977* ************2,995* ************3,463* 15.6%*A$*per*kg** $0.77 $0.81 $0.85 4.9%


'Carrots' ''''''''''''3,859' ''''''''''''2,863' ''''''''''''3,318' 15.9% 95.8% 2.7***********'Cauliflowers'&' ''''''''''''''''22' ''''''''''''''''24' ''''''''''''''''47' 101.1% 1.4% 0.1***********'Onions'' ''''''''''''''''58' ''''''''''''''''57' ''''''''''''''''53' E7.0% 1.5% 0.1***********'all'other'' ''''''''''''''''38' ''''''''''''''''52' ''''''''''''''''44' E14.2% 1.3% 0.1***********

*Total** ************3,977* ************2,995* ************3,463* 15.6% 100% 2.9***********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



Europe Onions are major product exported to Europe mainly in April from Tasmania.

Hong Kong Very little if any fresh vegetables are re exported to China contrary to the fresh fruit position.

Australian*Fresh*Vegetable*Exports*to EUROPE2014/15 2014/15 2014/15


*Value*$A*Million* 18.2'''''''''''' 16.8'''''''''''' 14.8'''''''''''' 811.8%*Volume*Tonnes* **********33,030* **********26,762* **********24,744* 87.5%*A$*per*kg** $0.55 $0.63 $0.60 84.6%


'Onions'' ''''''''''33,029' ''''''''''26,738' ''''''''''24,743' 87.5% 100.0% 13.8*********

'all'other'' ''''''''''''''''''1' ''''''''''''''''24' ''''''''''''''''''2' 893.4% 0.0% 1.0***********

*Total** **********33,030* **********26,762* **********24,744* J7.5% 100% 14.8*********


2012/13 2013/14 2014/15

Australian*Fresh*Vegetable*Exports*to Hong*Kong2014/15 2014/15 2014/15




'Carrots' ''''''''''''2,269' ''''''''''''2,324' ''''''''''''2,692' 15.8% 55.6% 2.2***********

'Potatoes'(excl'seed)' ''''''''''''''752' ''''''''''''''622' ''''''''''''1,033' 66.2% 21.3% 1.2***********

'Asparagus' ''''''''''''''''47' ''''''''''''''123' ''''''''''''''139' 13.4% 2.9% 0.9***********

'Lettuce' ''''''''''''''''90' ''''''''''''''135' ''''''''''''''151' 12.5% 3.1% 0.9***********

'Onions'' ''''''''''''1,248' ''''''''''''1,411' ''''''''''''''482' 965.9% 9.9% 0.3***********

'Cauli'&'broccoli' ''''''''''''''''27' ''''''''''''''''50' ''''''''''''''''70' 41.5% 1.5% 0.2***********

'Pumpkins'&'squash' ''''''''''''''''82' ''''''''''''''''87' ''''''''''''''''81' 97.2% 1.7% 0.1***********

'Spinach' ''''''''''''''''''7' ''''''''''''''''11' ''''''''''''''''34' 214.6% 0.7% 0.2***********

'Tomatoes' ''''''''''''''''18' ''''''''''''''''20' ''''''''''''''''33' 68.0% 0.7% 0.1***********

'all'other'' ''''''''''''''''70' ''''''''''''''105' ''''''''''''''130' 23.4% 2.7% 1.0***********

*Total** ************4,609* ************4,886* ************4,845* H0.8% 100% 7.3***********


2012/13 2013/14 2014/15



Indonesia

Japan Asparagus dominates the trade to Japan by value while onions are largest by volume. China is a major supplier of fresh vegetables to Japan and challenges the competitiveness for other products from Australia, particularly brassicas.

Australian*Fresh*Vegetable*Exports*to Indonesia2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 9.7'''''''''''''' 9.3'''''''''''''' 4.7'''''''''''''' 749.3%*Volume*Tonnes* **********12,306* **********11,966* ************4,754* 760.3%*A$*per*kg** $0.79 $0.78 $0.99 27.7%


'Potatoes'(excl'seed)' ''''''''''10,464' ''''''''''10,975' ''''''''''''4,198' 761.8% 88.3% 2.7***********'Lettuce' ''''''''''''''141' ''''''''''''''147' ''''''''''''''149' 1.2% 3.1% 0.5***********'Carrots' ''''''''''''''229' ''''''''''''''182' ''''''''''''''100' 745.1% 2.1% 0.4***********'Tomatoes' ''''''''''''''''24' ''''''''''''''''42' ''''''''''''''''27' 736.2% 0.6% 0.2***********'Pumpkins'&'squash' ''''''''''''''160' ''''''''''''''''93' ''''''''''''''''56' 739.6% 1.2% 0.1***********'Other'edible'brassicas' ''''''''''''''''19' ''''''''''''''''25' ''''''''''''''''30' 19.2% 0.6% 0.1***********'Cauli'&'broccoli' ''''''''''''''''16' ''''''''''''''''28' ''''''''''''''''18' 736.3% 0.4% 0.1***********'Spinach' ''''''''''''''''''4' ''''''''''''''''12' ''''''''''''''''11' 78.3% 0.2% 0.1***********'Celery' ''''''''''''''''''8' ''''''''''''''''''9' ''''''''''''''''28' 224.0% 0.6% 0.1***********'Onions' ''''''''''''''538' ''''''''''''''165' '''''''''''''''''7''' 7100.0% 0.0% I***********'all'other'' ''''''''''''''703' ''''''''''''''289' ''''''''''''''138' 752.3% 2.9% 0.6***********

*Total** **********12,306* **********11,966* ************4,754* I60.3% 100% 4.7***********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Australian*Fresh*Vegetable*Exports*to Japan2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 20.6'''''''''''' 18.9'''''''''''' 20.4'''''''''''' 7.8%*Volume*Tonnes* **********11,058* ************8,088* ************7,358* <9.0%*A$*per*kg** $1.86 $2.34 $2.77 18.5%


'Asparagus' ''''''''''''2,211' ''''''''''''2,237' ''''''''''''2,684' 20.0% 36.5% 15.7*********'Onions' ''''''''''''6,819' ''''''''''''4,834' ''''''''''''3,885' <19.6% 52.8% 2.6***********'Mushrooms' ''''''''''''''''''5' ''''''''''''''''''4' ''''''''''''''''15' 253.9% 0.2% 0.8***********'Carrots' ''''''''''''1,849' ''''''''''''''940' ''''''''''''''601' <36.0% 8.2% 0.6***********'Cauli'&'broccoli' '''''''''''''''''<''' '''''''''''''''''<''' ''''''''''''''''88' 1.2% 0.3***********'Brussels'Sprouts' ''''''''''''''''26' ''''''''''''''''35' ''''''''''''''''49' 39.3% 0.7% 0.2***********'Tomatoes' ''''''''''''''''29' '''''''''''''''''<''' ''''''''''''''''11' 0.1% 0.1***********'Leeks'' ''''''''''''''''60' ''''''''''''''''30' ''''''''''''''''18' <40.7% 0.2% 0.1***********'all'other'' ''''''''''''''''60' ''''''''''''''''''8' ''''''''''''''''''7' <4.6% 0.1% 0.0***********

*Total** **********11,058* ************8,088* ************7,358* G9.0% 100% 20.4*********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



South Korea Potatoes are the main product exported to South Korea and are used mainly for processing potato products. South Korea restricts the supply of potatoes from Australia to eastern states only with NSW, Victoria and South Australia being the main suppliers.

Kuwait Carrots dominate the trade to Kuwait, as they do to many other Middle Eastern markets

Australian*Fresh*Vegetable*Exports*to South*Korea2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 6.5'''''''''''''' 4.2'''''''''''''' 7.8'''''''''''''' 84.8%*Volume*Tonnes* **********12,035* ************6,183* **********11,553* 86.8%*A$*per*kg** $0.54 $0.68 $0.68 :1.1%


'Potatoes'(excl'seed)'' ''''''''''11,898' ''''''''''''6,155' ''''''''''11,372' 84.8% 98.4% 6.8***********'Brussels'Sprouts' ''''''''''''''''':''' ''''''''''''''''''1' ''''''''''''''139' ''++ 1.2% 0.7***********'Asparagus' ''''''''''''''''23' ''''''''''''''''26' ''''''''''''''''39' 53.1% 0.3% 0.3***********'all'other'' ''''''''''''''115' ''''''''''''''''''1' ''''''''''''''''''2' 41.6% 0.0% 0.0***********

*Total** **********12,035* ************6,183* **********11,553* 86.8% 100% 7.8***********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Australian*Fresh*Vegetable*Exports*to Kuwait2014/15 2014/15 2014/15




'Carrots' ''''''''''''2,233' ''''''''''''2,340' ''''''''''''2,126' 89.2% 93.0% 1.6***********

'Cauli'&'broccoli' ''''''''''''''''''2' ''''''''''''''''47' ''''''''''''''''90' 90.5% 3.9% 0.2***********

'all'other'' ''''''''''''''''74' ''''''''''''''''54' ''''''''''''''''70' 29.7% 3.1% 0.1***********

*Total** ************2,310* ************2,442* ************2,286* H6.4% 100% 1.9***********


2012/13 2013/14 2014/15



Malaysia Malaysia imports a wide range of vegetable products though trade has reduced as many products have been unable to compete with supplies from China

New Zealand Australia has recently regained access for capsicum and tomatoes after a couple of years out of the market due to quarantine concerns. Trade however is a fraction of past volumes.

Australian*Fresh*Vegetable*Exports*to Malaysia2014/15 2014/15 2014/15


*Value*$A*Million* 11.3'''''''''''' 12.5'''''''''''' 14.0'''''''''''' 12.6%*Volume*Tonnes* **********15,909* **********16,073* **********16,059* ;0.1%*A$*per*kg** $0.71 $0.78 $0.87 12.7%


'Carrots' ''''''''''''9,054' ''''''''''''9,108' ''''''''''''9,607' 5.5% 59.8% 7.1***********

'Onions' ''''''''''''3,431' ''''''''''''5,109' ''''''''''''3,265' ;36.1% 20.3% 1.5***********

'Potatoes'(excl'seed)'' ''''''''''''2,448' ''''''''''''''689' ''''''''''''1,335' 93.8% 8.3% 1.4***********

'Celery' ''''''''''''''499' ''''''''''''''681' ''''''''''''1,083' 58.9% 6.7% 1.3***********

'Cauli'&'broccoli' ''''''''''''''''97' ''''''''''''''137' ''''''''''''''139' 1.2% 0.9% 0.5***********

'Lettuce' ''''''''''''''133' ''''''''''''''149' ''''''''''''''134' ;10.0% 0.8% 0.5***********

'Pumpkins'&'squash' ''''''''''''''''44' ''''''''''''''''61' ''''''''''''''''68' 11.2% 0.4% 0.1***********

'Asparagus' ''''''''''''''''''6' ''''''''''''''''13' ''''''''''''''''20' 55.2% 0.1% 0.1***********

'Brussels'Sprouts' ''''''''''''''''11' ''''''''''''''''11' ''''''''''''''''22' 107.3% 0.1% 0.1***********

'all'other'' ''''''''''''''186' ''''''''''''''115' ''''''''''''''385' 235.5% 2.4% 1.4***********

*Total** **********15,909* **********16,073* **********16,059* H0.1% 100% 14.0*********


2012/13 2013/14 2014/15

Australian*Fresh*Vegetable*Exports*to New*Zealand2014/15 2014/15 2014/15


*Value*$A*Million* 6.0'''''''''''''' 8.3'''''''''''''' 10.7'''''''''''' 29.0%*Volume*Tonnes* ************1,732* ************2,732* ************3,349* 22.6%*A$*per*kg** $3.49 $3.03 $3.19 5.3%


'Beans' ''''''''''''1,033' ''''''''''''1,285' ''''''''''''1,596' 24.2% 47.7% 5.4***********

'Capsicum' '''''''''''''''''D''' ''''''''''''''149' ''''''''''''''349' 134.4% 10.4% 1.3***********

'Tomatoes' '''''''''''''''''D''' ''''''''''''''252' ''''''''''''''325' 28.8% 9.7% 0.6***********

'Cucumbers'&'gherkins' ''''''''''''''''51' ''''''''''''''''53' ''''''''''''''''59' 10.9% 1.8% 0.2***********

'Lettuce' ''''''''''''''''10' ''''''''''''''''60' ''''''''''''''''22' D64.1% 0.6% 0.1***********

'Spinach' ''''''''''''''''24' '''''''''''''''''D''' ''''''''''''''''''9' 0.3% 0.1***********

'Garlic' '''''''''''''''''D''' '''''''''''''''''D''' ''''''''''''''''12' 0.4% 0.1***********

'Cauli'&'broccoli' ''''''''''''''''''5' ''''''''''''''''''2' ''''''''''''''''21' ''++ 0.6% 0.03*********

'all'other'' ''''''''''''''610' ''''''''''''''930' ''''''''''''''957' 2.9% 28.6% 2.9***********

*Total** ************1,732* ************2,732* ************3,349* 22.6% 100% 10.7*********


2012/13 2013/14 2014/15



Papua New Guinea PNG imports a wide range of fresh vegetable products in regular small volumes for domestic and mining settlement consumption.

Qatar Carrots dominate the trade to Qatar, as they do to many other Middle Eastern markets

Australian*Fresh*Vegetable*Exports*to Papua*New*Guinea2014/15 2014/15 2014/15change'to'LY vol'share' Value'



'Onions'' ''''''''''''''566' ''''''''''''''561' ''''''''''''1,389' 147.7% 52.2% 0.6***********'Carrots' ''''''''''''''359' ''''''''''''''329' ''''''''''''''386' 17.3% 14.5% 0.4***********'Cauli'&'broccoli' ''''''''''''''168' ''''''''''''''150' ''''''''''''''139' 97.7% 5.2% 0.3***********'Potatoes'(excl'seed)' ''''''''''''''432' ''''''''''''''317' ''''''''''''''189' 940.3% 7.1% 0.3***********'Other'edible'brassicas' ''''''''''''''313' ''''''''''''''189' ''''''''''''''135' 928.5% 5.1% 0.2***********'Capsicum' ''''''''''''''124' ''''''''''''''''86' ''''''''''''''''56' 934.3% 2.1% 0.2***********'Tomatoes' ''''''''''''''148' ''''''''''''''201' ''''''''''''''''50' 975.1% 1.9% 0.2***********'Lettuce'' ''''''''''''''108' ''''''''''''''''94' ''''''''''''''''74' 921.0% 2.8% 0.2***********'Garlic' ''''''''''''''''49' ''''''''''''''''54' ''''''''''''''''51' 94.8% 1.9% 0.1***********'Celery' ''''''''''''''''58' ''''''''''''''''59' ''''''''''''''''58' 92.0% 2.2% 0.1***********'Pumkins'&'squash' ''''''''''''''178' ''''''''''''''''81' ''''''''''''''''45' 944.8% 1.7% 0.1***********'all'other'' ''''''''''''''135' ''''''''''''''110' ''''''''''''''''87' 921.0% 3.3% 0.5***********


2012/13 2013/14 2014/15

Australian*Fresh*Vegetable*Exports*to Qatar2014/15 2014/15 2014/15change'to'LY vol'share' Value'



'Carrots'' ''''''''''''4,800' ''''''''''''5,071' ''''''''''''5,527' 9.0% 94.3% 4.1***********'Onions' ''''''''''''''''88' ''''''''''''''139' ''''''''''''''135' 93.1% 2.3% 0.1***********'Potatoes'(excl'seed)' ''''''''''''''''72' ''''''''''''''''82' ''''''''''''''''91' 10.8% 1.5% 0.1***********'Cauli'&'broccoli' ''''''''''''''''66' ''''''''''''''''67' ''''''''''''''''33' 950.6% 0.6% 0.1***********'all'other'' ''''''''''''''''57' ''''''''''''''104' ''''''''''''''''75' 928.3% 1.3% 0.3***********


2012/13 2013/14 2014/15



Saudi Arabia Carrots dominate the trade to Saudi Arabia, as they do to many other Middle Eastern markets

Singapore Singapore is the largest export destination (by value) for Australian fresh vegetables and is supplied with a much wider range than other markets. Singapore relies almost 100 per cent on imported produce and marketed through wet markets and also premium supermarket chains.

Australian*Fresh*Vegetable*Exports*to Saudi*Arabia2014/15 2014/15 2014/15change'to'LY vol'share' Value'



'Carrots' ''''''''''''7,805' ''''''''''''8,599' ''''''''''''8,964' 4.2% 98.7% 7.5***********'Cauli'&'broccoli' ''''''''''''''''43' ''''''''''''''''88' ''''''''''''''100' 14.7% 1.1% 0.3***********'Asparagus' ''''''''''''''''''1' ''''''''''''''''''1' ''''''''''''''''''5' 228.6% 0.1% 0.04*********'all'other'' ''''''''''''''''10' ''''''''''''''''''7' ''''''''''''''''12' 82.9% 0.1% 0.03*********


2012/13 2013/14 2014/15

Australian*Fresh*Vegetable*Exports*to Singapore2014/15 2014/15 2014/15change'to'LY vol'share' Value'



'Carrots'' ''''''''''12,197' ''''''''''12,798' ''''''''''13,010' 1.7% 58.4% 9.6***********'Cauli'&'broccoli' ''''''''''''1,626' ''''''''''''2,143' ''''''''''''2,888' 34.8% 13.0% 7.5***********'Lettuce' ''''''''''''''352' ''''''''''''''441' ''''''''''''''454' 3.1% 2.0% 2.4***********'Potatoes'(excl'seed)' ''''''''''''1,253' ''''''''''''''828' ''''''''''''1,510' 82.4% 6.8% 1.8***********'Asparagus' ''''''''''''''150' ''''''''''''''227' ''''''''''''''336' 48.2% 1.5% 1.7***********'Pumpkins'&'squash' ''''''''''''''923' ''''''''''''1,135' ''''''''''''1,249' 10.0% 5.6% 1.5***********'Other'edible'brassicas' ''''''''''''''167' ''''''''''''''236' ''''''''''''''634' 168.2% 2.8% 0.9***********'Celery' ''''''''''''''179' ''''''''''''''266' ''''''''''''''711' 167.1% 3.2% 0.9***********'Tomatoes' ''''''''''''''105' ''''''''''''''102' ''''''''''''''125' 22.4% 0.6% 0.6***********'Onions' ''''''''''''''641' ''''''''''''1,097' ''''''''''''''652' P40.6% 2.9% 0.5***********'Spinach' ''''''''''''''''34' ''''''''''''''''33' ''''''''''''''''34' 1.6% 0.2% 0.3***********'Brussels'Sprouts' ''''''''''''''''16' ''''''''''''''''21' ''''''''''''''''33' 58.1% 0.1% 0.1***********'Leeks'' ''''''''''''''''50' ''''''''''''''''52' ''''''''''''''''15' P70.4% 0.1% 0.05*********'all'other'' ''''''''''''''215' ''''''''''''''306' ''''''''''''''625' 104.4% 2.8% 2.7***********

*Total** **********17,908* **********19,684* **********22,276* 13.2% 100% 30.6*********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



Taiwan Potatoes are imported by Taiwan mainly for processing. Taiwan has strict bio security measures that are problematic for exporting potatoes from several regions. All potatoes to Taiwan are exported from South Australia only.

Thailand Carrots are leading at the moment in Thailand though face strong competition from China. Potatoes were imported from Victoria and South Australia though there has been no trade since August 2013.

Australian*Fresh*Vegetable*Exports*to Taiwan2014/15 2014/15 2014/15change'to'LY vol'share' Value'

*Value*$A*Million* 2.0'''''''''''''' 1.5'''''''''''''' 2.8'''''''''''''' 94.5%

*Volume*Tonnes* ************2,879* ************1,348* ************2,835* 110.4%

*A$*per*kg** $0.68 $1.08 $1.00 ;7.5%


'Asparagus' ''''''''''''''''68' ''''''''''''''''76' ''''''''''''''136' 79.5% 4.8% 0.9***********'Potatoes'(excl'seed)' ''''''''''''''384' ''''''''''''''134' ''''''''''''''857' 539.3% 30.2% 0.8***********'Onions' ''''''''''''2,225' ''''''''''''''834' ''''''''''''1,414' 69.7% 49.9% 0.7***********'Carrots'' ''''''''''''''202' ''''''''''''''302' ''''''''''''''392' 29.5% 13.8% 0.4***********'Cauli'&'broccoli' ''''''''''''''''';''' ''''''''''''''''''2' ''''''''''''''''37' ''++ 1.3% 0.1***********


2012/13 2013/14 2014/15

Australian*Fresh*Vegetable*Exports*to Thailand2014/15 2014/15 2014/15change'to'LY vol'share' Value'



'Carrots' ''''''''''''1,325' ''''''''''''2,174' ''''''''''''1,453' 733.2% 64.5% 1.1***********'Onions' ''''''''''''''''''5' ''''''''''''''''31' ''''''''''''''653' ''++ 29.0% 0.3***********'Cauli'&'broccoli' ''''''''''''''''10' ''''''''''''''''35' ''''''''''''''''75' 113.1% 3.3% 0.2***********'Lettuce' ''''''''''''''''32' ''''''''''''''''65' ''''''''''''''''27' 758.1% 1.2% 0.1***********'Spinach' ''''''''''''''''''4' ''''''''''''''''24' ''''''''''''''''15' 739.0% 0.7% 0.1***********'Potatoes'(excl'seed)' ''''''''''''6,144' ''''''''''''4,395' '''''''''''''''''7''' 7100.0% 0.0% G***********'all'other'' ''''''''''''''''53' ''''''''''''''''87' ''''''''''''''''30' 765.8% 1.3% 0.1***********

*Total** ************7,573* ************6,812* ************2,253* G66.9% 100% 2.0***********Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



United Arab Emirates The United Arab Emirates is Australia’s largest fresh vegetable destination by volume and No.2 by value worth A$27.7m. Carrot exports mostly from Western Australia contribute to 85 per cent of the fresh vegetable exports followed by potatoes and onions. There are another 20 fresh vegetable products that complete the remaining share with small volumes.

Australian*Fresh*Vegetable*Exports*to United*Arab*Emirates2014/15 2014/15 2014/15




'Carrots'' ''''''''''18,227' ''''''''''22,241' ''''''''''27,739' 24.7% 84.6% 21.6*********

'Potatoes'(excl'seed)' ''''''''''''1,500' ''''''''''''1,508' ''''''''''''1,940' 28.7% 5.9% 2.1***********

'Onions' ''''''''''''2,383' ''''''''''''3,621' ''''''''''''2,325' G35.8% 7.1% 1.5***********

'Cauli'&'broccoli' ''''''''''''''''69' ''''''''''''''''78' ''''''''''''''284' 263.2% 0.9% 0.9***********

'Pumpkins'&'squash' ''''''''''''''122' ''''''''''''''141' ''''''''''''''188' 33.6% 0.6% 0.3***********

'Lettuce' ''''''''''''''''24' ''''''''''''''''22' ''''''''''''''''21' G1.6% 0.1% 0.1***********

'Celery' ''''''''''''''''''2' '''''''''''''''''G''' ''''''''''''''''59' 0.2% 0.1***********

'all'other'' ''''''''''''''''59' ''''''''''''''178' ''''''''''''''235' 31.9% 0.7% 1.1***********

*Total** **********22,386* **********27,789* **********32,793* 18.0% 100% 27.7*********


2012/13 2013/14 2014/15



Fresh Vegetable Imports Australia imported 32,357 tonnes of fresh vegetables in 2014/15 worth A$78.4m. The volume was 11 per cent higher than the previous year. Fresh garlic mostly from China accounts for 35.6 per cent of the total fresh imports by volume while Asparagus, mostly from Mexico accounts for 13.5 per cent of the volume and 31 per cent by value due to higher unit value.

China and Mexico were the leading suppliers influenced by the volume of garlic and asparagus sourced from these markets resp.

Fresh&Vegetable&Imports&by&Product&2014/15&vs&previous&2&years2014/15 2014/15 2014/15 2014/15change'to'LY vol'share' &A$&million&& &A$&per&kg&&

&Value&$A&Million& &&&&&&&&&&&&&&&71.7& &&&&&&&&&&&&&&69.6& &&&&&&&&&&&&78.4& 12.7%&Volume&Tonnes& &&&&&&&&&&&30,021& &&&&&&&&&&29,020& &&&&&&&&&32,357& 11.5%&A$&per&kg&& $2.39 $2.40 $2.42 1.1%

'Tonnes' 'Tonnes' 'Tonnes' A$'million A$'per'kg'Garlic ''''''''''''10,371' '''''''''''10,831' ''''''''''11,514' 6% 35.6% 25.7'''''''''' 2.23''''''''''Asparagus ''''''''''''''3,927' '''''''''''''4,144' '''''''''''4,366' 5% 13.5% 24.3'''''''''' 5.57''''''''''Mushrooms ''''''''''''''1,846' '''''''''''''1,998' '''''''''''2,384' 19% 7.4% 8.0''''''''''' 3.35''''''''''Onions ''''''''''''''7,687' '''''''''''''6,311' '''''''''''9,381' 49% 29.0% 7.4''''''''''' 0.78''''''''''Capsicum ''''''''''''''1,797' '''''''''''''2,205' '''''''''''1,941' I12% 6.0% 6.4''''''''''' 3.29''''''''''Peas ''''''''''''''1,554' '''''''''''''1,007' ''''''''''''''629' I37% 1.9% 2.1''''''''''' 3.34''''''''''Beans ''''''''''''''''736' ''''''''''''''''380' '''''''''''1,097' 189% 3.4% 1.7''''''''''' 1.51''''''''''Tomatoes ''''''''''''''1,258' '''''''''''''1,228' ''''''''''''''596' I51% 1.8% 1.3''''''''''' 2.13''''''''''all'other' ''''''''''''''''847' ''''''''''''''''916' ''''''''''''''448' I51% 1.4% ''''''''''''1.7' 3.70''''''''''

&Total& &&&&&&&&&&&&30,021& &&&&&&&&&&&29,020& &&&&&&&&&&32,357& 11% 100% 78.4&&&&&&&&& 2.42''''''''''Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

!Garlic!!33%!

!Asparagus!!31%!

!Mushrooms!!10%!

!Onions!!9%!

!Capsicum!!8%!

!Peas!!3%!

!Beans!!2%!

!Tomatoes!!2%!

all!other!!2%!

Fresh&Vegetable&Imports&by&Value&&



China China is the world’s largest producer of fresh vegetables and exported around 5.4 million tonnes in 2014 including 1.7 million tonnes of garlic and 733,000 tonne of onions.

South Korea

Fresh&Vegetable&Imports&by&Market&2014/15&vs&previous&2&years2014/15 2014/15 2014/15change'to'LY vol'share' &A$&million&&

&Value&$A&Million& &&&&&&&&&&&&&&&71.7& &&&&&&&&&&&&&&69.6& &&&&&&&&&&&&78.4& 12.7%&Volume&Tonnes& &&&&&&&&&&&30,021& &&&&&&&&&&29,020& &&&&&&&&&32,357& 11.5%&A$&per&kg&& $2.39 $2.40 $2.42 1.1%

'Tonnes' 'Tonnes' 'Tonnes' A$'millionChina ''''''''''''''9,978' '''''''''''10,325' ''''''''''12,240' 19% 37.8% 20.6''''''''''Mexico ''''''''''''''2,695' '''''''''''''3,143' '''''''''''3,947' 26% 12.2% 20.4''''''''''Peru ''''''''''''''1,877' '''''''''''''1,883' '''''''''''1,805' G4% 5.6% 9.4'''''''''''New'Zealand ''''''''''''''4,140' '''''''''''''3,895' '''''''''''3,628' G7% 11.2% 8.6'''''''''''United'States ''''''''''''''6,245' '''''''''''''4,591' '''''''''''5,573' 21% 17.2% 5.2'''''''''''South'Korea ''''''''''''''1,475' '''''''''''''1,636' '''''''''''1,823' 11% 5.6% 5.2'''''''''''Spain ''''''''''''''''704' '''''''''''''1,237' '''''''''''1,322' 7% 4.1% 4.2'''''''''''Thailand ''''''''''''''''415' ''''''''''''''''316' ''''''''''''''225' G29% 0.69% 1.3'''''''''''Argentina ''''''''''''''''728' ''''''''''''''''500' ''''''''''''''408' G18% 1.26% 0.9'''''''''''Netherlands ''''''''''''''''635' ''''''''''''''''398' ''''''''''''''366' G8% 1.13% 0.5'''''''''''all'other' ''''''''''''''2,492' '''''''''''''1,994' '''''''''''1,793' G10% 5.5% ''''''''''''3.6'

&Total& &&&&&&&&&&&&30,021& &&&&&&&&&&&29,020& &&&&&&&&&&32,357& 11% 100% 78.4&&&&&&&&&Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Fresh&Vegetable&Imports&from China2014/15 2014/15 2014/15change'to'LY vol'share' Value'

&Value&$A&Million& 21.1''''''''''''' 17.1''''''''''''' 20.6''''''''''''' 20.2%&Volume&Tonnes& &&&&&&&&&&&&9,978& &&&&&&&&&&&10,325& &&&&&&&&&&&12,240& 18.6%&A$&per&kg&& $2.11 $1.66 $1.68 1.4%


'Garlic' ''''''''''''7,598' ''''''''''''7,842' ''''''''''''8,004' 2.1% 65.4% 13.6&&&&&&&&&'Mushrooms' '''''''''''''''330' '''''''''''''''316' '''''''''''''''506' 59.8% 4.1% 2.3&&&&&&&&&&&'Onions' '''''''''''''''604' ''''''''''''1,135' ''''''''''''2,907' 156.0% 23.8% 2.0&&&&&&&&&&&'Peas' ''''''''''''1,343' '''''''''''''''849' '''''''''''''''489' E42.4% 4.0% 1.9&&&&&&&&&&&'all'other'' ''''''''''''2,050' ''''''''''''2,167' ''''''''''''3,730' 72.2% 30.5% 4.7&&&&&&&&&&&

&Total&& &&&&&&&&&&&&9,978& &&&&&&&&&&&10,325& &&&&&&&&&&&12,240& 18.6% 100% 20.6&&&&&&&&&Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Fresh&Vegetable&Imports&from South&Korea2014/15 2014/15 2014/15


&Value&$A&Million& 3.4''''''''''''''' 4.3''''''''''''''' 5.2''''''''''''''' 19.7%&Volume&Tonnes& &&&&&&&&&&&&1,475& &&&&&&&&&&&&1,636& &&&&&&&&&&&&1,823& 11.4%&A$&per&kg&& $2.28 $2.64 $2.84 7.4%


'Mushrooms' ''''''''''''1,470' ''''''''''''1,636' ''''''''''''1,823' 11.4% 100.0% 5.2&&&&&&&&&&&

'all'other'' ''''''''''''''''''5' ''''''''''''''''''0' '''''''''''''''''A''' 0.0% H&&&&&&&&&&&

&Total&& &&&&&&&&&&&&1,475& &&&&&&&&&&&&1,636& &&&&&&&&&&&&1,823& 11.4% 100% 5.2&&&&&&&&&&&


2012/13 2013/14 2014/15



Mexico Australia imports our “out of season” asparagus from Mexico and also Peru according to the availability. Mexico has a huge capability for fresh vegetable production and exports influenced by the demand from the United States.

New Zealand Imports from New Zealand largely fill opportunities to supplement local Australian production with some niche varieties not readily available locally.

Peru Asparagus is one of Peru’s largest export crops and supplies fresh and canned asparagus

Fresh&Vegetable&Imports&from Mexico2014/15 2014/15 2014/15change'to'LY vol'share' Value'

&Value&$A&Million& 12.1''''''''''''' 13.9''''''''''''' 20.4''''''''''''' 46.9%&Volume&Tonnes& &&&&&&&&&&&&2,695& &&&&&&&&&&&&3,143& &&&&&&&&&&&&3,947& 25.6%&A$&per&kg&& $4.47 $4.42 $5.17 17.0%


'Asparagus' ''''''''''''1,665' ''''''''''''2,045' ''''''''''''2,393' 17.0% 60.6% 13.9&&&&&&&&&'Garlic' ''''''''''''1,008' ''''''''''''1,097' ''''''''''''1,553' 41.6% 39.4% 6.4&&&&&&&&&&&'all'other'' '''''''''''''''''22' ''''''''''''''''''1' ''''''''''''''''''1' 0.0% 0.0% 0.0&&&&&&&&&&&

&Total&& &&&&&&&&&&&&2,695& &&&&&&&&&&&&3,143& &&&&&&&&&&&&3,947& 25.6% 100% 20.4&&&&&&&&&Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Fresh&Vegetable&Imports&from New&Zealand2014/15 2014/15 2014/15change'to'LY vol'share' Value'

&Value&$A&Million& 11.4''''''''''''' 10.8''''''''''''' 8.6''''''''''''''' 820.1%&Volume&Tonnes& &&&&&&&&&&&&4,140& &&&&&&&&&&&&3,895& &&&&&&&&&&&&3,628& 86.9%&A$&per&kg&& $2.74 $2.76 $2.37 814.2%


'Capsicum' ''''''''''''1,750' ''''''''''''2,161' ''''''''''''1,785' 817.4% 49.2% 6.1&&&&&&&&&&&'Tomatoes' ''''''''''''1,258' ''''''''''''1,228' '''''''''''''''596' 851.5% 16.4% 1.3&&&&&&&&&&&'Beans' '''''''''''''''304' '''''''''''''''''12' '''''''''''''''368' 3035.2% 10.2% 0.6&&&&&&&&&&&'Onions' '''''''''''''''582' '''''''''''''''398' '''''''''''''''727' 82.8% 20.0% 0.3&&&&&&&&&&&'Asparagus' ''''''''''''''''''9' '''''''''''''''''27' '''''''''''''''''24' 811.0% 0.7% 0.1&&&&&&&&&&&'Peas' '''''''''''''''151' '''''''''''''''''55' '''''''''''''''''88' 61.9% 2.4% 0.1&&&&&&&&&&&'all'other'' ''''''''''''1,132' '''''''''''''''506' ''''''''''''1,247' 146.5% 34.4% 1.3&&&&&&&&&&&

&Total&& &&&&&&&&&&&&4,140& &&&&&&&&&&&&3,895& &&&&&&&&&&&&3,628& K6.9% 100% 8.6&&&&&&&&&&&Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Fresh&Vegetable&Imports&from Peru2014/15 2014/15 2014/15change'to'LY vol'share' Value'

&Value&$A&Million& 8.2''''''''''''''' 9.2''''''''''''''' 9.4''''''''''''''' 1.8%&Volume&Tonnes& &&&&&&&&&&&&1,877& &&&&&&&&&&&&1,883& &&&&&&&&&&&&1,805& 94.1%&A$&per&kg&& $4.37 $4.91 $5.21 6.2%


'Asparagus' ''''''''''''1,877' ''''''''''''1,883' ''''''''''''1,805' 94.1% 100.0% 9.4&&&&&&&&&&&

&Total&& &&&&&&&&&&&&1,877& &&&&&&&&&&&&1,883& &&&&&&&&&&&&1,805& G4.1% 100% 9.4&&&&&&&&&&&Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15



Spain Onions are the only product imported from Spain, and Europe generally to meet seasonal and variety niches. In contrast exports of onions from Australia to Europe are much larger in the northern Spring season.

United States Onions are the main product imported from United States to meet seasonal and variety niches.

References Global Information Systems -‐ World Trade Atlas -‐ retrieved August 2015 International Trade Centre – Trade Map -‐ retrieved August 2015 Department of Agriculture -‐ MICOR database – retrieved August 2015 Department of Foreign Affairs & Trade – Free Trade Agreements Official Documents – retrieved August 2015

Fresh&Vegetable&Imports&from Spain2014/15 2014/15 2014/15change'to'LY vol'share' Value'

&Value&$A&Million& 2.3''''''''''''''' 4.4''''''''''''''' 4.2''''''''''''''' 64.3%&Volume&Tonnes& &&&&&&&&&&&&&&&704& &&&&&&&&&&&&1,237& &&&&&&&&&&&&1,322& 6.9%&A$&per&kg&& $3.26 $3.54 $3.17 610.4%


'Onions' '''''''''''''''704' ''''''''''''1,237' ''''''''''''1,322' 6.9% 100.0% 4.2&&&&&&&&&&&

&Total&& &&&&&&&&&&&&&&&704& &&&&&&&&&&&&1,237& &&&&&&&&&&&&1,322& 6.9% 100% 4.2&&&&&&&&&&&Source:(Australian(Bureau(of(Statistics;(Fresh(Intelligence(analysis

2012/13 2013/14 2014/15

Fresh&Vegetable&Imports&from United&States2014/15 2014/15 2014/15


&Value&$A&Million& 7.0''''''''''''''' 4.5''''''''''''''' 5.2''''''''''''''' 15.8%&Volume&Tonnes& &&&&&&&&&&&&6,245& &&&&&&&&&&&&4,591& &&&&&&&&&&&&5,573& 21.4%&A$&per&kg&& $1.13 $0.98 $0.93 ;4.6%


'Onions' ''''''''''''5,719' ''''''''''''4,375' ''''''''''''5,343' 22.1% 95.9% 4.5&&&&&&&&&&&

'Asparagus' '''''''''''''''238' '''''''''''''''112' '''''''''''''''''85' ;23.9% 1.5% 0.4&&&&&&&&&&&

'Beans' '''''''''''''''138' '''''''''''''''''77' '''''''''''''''137' 77.4% 2.5% 0.2&&&&&&&&&&&

'all'other'' '''''''''''''''288' '''''''''''''''104' '''''''''''''''145' 39.3% 2.6% 0.3&&&&&&&&&&&

&Total&& &&&&&&&&&&&&6,245& &&&&&&&&&&&&4,591& &&&&&&&&&&&&5,573& 21.4% 100% 5.2&&&&&&&&&&&


2012/13 2013/14 2014/15

1)

1 VIC 95.76% 1 Hong Kong 37.55% 1 Hong Kong 1 China

2 NSW 2.86% 2 Vietnam 13.38% 2 Vietnam 2 Japan

3 Negligible 3 Indonesia 12.80% 3 Indonesia 3 Bahrain

4 Singapore 7.41% 4 Singapore 4 Myanmar

5 Thailand 5.90% 5 New Zealand 5 Maldives

6 UAE 6 Lebanon

7 Russia

8 Phillipines

9 Bangladesh

10 India

11 Pacific Islands

12 Brunei

13 Kuwait

2)

1 VIC 47.67% 1 Japan 21.86% 1 China 1 Singapore

2 SA 37.06% 2 Hong Kong 18.37% 2 Malaysia 2 Saudi Arabia

3 NSW 15.15% 3 China 15.02% 3 Philippines 3 Pacific Islands

4 USA 8.08% 4 Pacific Islands 4 Guam

5 Malaysia 8.04% 5 France

6 Brunei

7 Qatar

3)

1 WA 89.84% 1 UAE 33.20% 1 UAE 1 Reunion

2 TAS 3.78% 2 Singapore 15.89% 2 Malaysia 2 Indonesia

3 VIC 3.35% 3 Saudi Arabia 13.16% 3 Hong Kong

4 Malaysia 11.85% 4 Brunei

080610, Grapes, Fresh

Top producing states in 2014 Top 5 Markets in 2014 Top growth markets Possible emerging markets

080510, Oranges, Fresh


070610, Carrots And Turnips, Fresh Or Chilled

Top producing states in 2014 Top growth marketsTop 5 Markets in 2014 Possible emerging markets

5 Qatar 7.15% 5 Taiwan

6 Pacific Islands

4)

1 QLD 57.55% 1 China 17.24% 1 China 1 Philippines

2 SA 20.41% 2 Indonesia 16.25% 2 Guam 2 Vietnam

3 VIC 20.23% 3 New Zealand 13.33% 3 Pacific Islands 3 France

4 Thailand 11.86%

5 UAE 8.84%

5)

1 TAS 55.94% 1 Hong Kong 39.74% 1 Hong Kong 1 South Korea

2 VIC 27.46% 2 Taiwan 19.31% 2 Taiwan 2 Myanmar

3 NSW 11.34% 3 Singapore 8.36% 3 Singapore 3 Italy

4 China 7.11% 4 Vietnam

5 Vietnam 6.99% 5 Malaysia

6 Indonesia

7 Qatar

8 Kuwait

9 Saudi Arabia

10 Pacific Islands

11 Bahrain

12 Lebanon

13 Brunei

6)

1 VIC 77.97% 1 Hong Kong 44.97% 1 Hong Kong 1 Russia

2 NSW 16.42% 2 UAE 26.17% 2 Malaysia 2 Thailand

3 QLD/SA ~3% 3 Singapore 8.48% 3 Vietnam 3 Switzerland

080520, Mandarins, Fresh Or Dried


080929, Cherries, Fresh, Other Than Sour


080930, Peaches, Including Nectarines, Fresh


4 Malaysia 4.68% 4 Saudi Arabia 4 Macau

5 Vietnam 3.83% 5 Qatar 5 Italy

6 Kuwait 6 Maldives

7 Pacific Islands

8 Bahrain

9 Indonesia

10 Jordan

11 Lebanon

7)

1 TAS 77.34% 1 Germany 32.42% 1 Italy 1 France

2 SA 17.58% 2 Japan 14.31% 2 UAE 2 Sweden

3 QLD 2.46% 3 Italy 8.05% 3 Norway 3 Switzerland

4 UAE 7.97% 4 Singapore

5 Malaysia 6.42% 5 Qatar

6 Pacific Islands

7 Thailand

8)

1 QLD 80.73% 1 Hong Kong 40.92% 1 Hong Kong 1 New Zealand

2 NT 9.73% 2 UAE 11.01% 2 Singapore 2 China

3 NSW/VIC ~5% 3 Singapore 10.96% 3 Vietnam 3 Switzerland

4 New Zealand 10.41% 4 Qatar

5 Vietnam 8.95% 5 South Korea

6 Canada

7 Kuwait

8 Brunei

9 Pacific Islands

9)

Top 5 Markets in 2014

080450, Guavas and Mangoes, Fresh Or Dried

Top producing states in 2014

070310, Onions And Shallots, Fresh Or Chilled


Top growth markets Possible emerging markets

070920, Asparagus, Fresh Or Chilled

1 VIC 99.08% 1 Japan 79.54% 1 Singapore 1 Pacific Islands

2 Negligible 2 Singapore 8.06% 2 Taiwan

3 Taiwan 4.66% 3 South Korea

4 Hong Kong 4.56% 4 Malaysia

5 South Korea 1.50% 5 Saudi Arabia

6 Pacific Islands

10)

1 SA 48.74% 1 Indonesia 38.73% 1 UAE 1 Taiwan

2 NSW 30.90% 2 South Korea 23.68% 2 Brunei 2 Pacific Islands

3 WA 9.72% 3 UAE 9.18% 3 Qatar

4 Singapore 7.81% 4 Bahrain

5 Malaysia 6.38% 5 Saudi Arabia

11)

1 QLD 52.91% 1 Singapore 28.94% 1 UAE 1 Qatar

2 NSW 18.43% 2 UAE 26.82% 2 New Zealand 2 Bahrain

3 VIC 18.14% 3 New Zealand 25.92% 3 Malaysia 3 Kuwait

4 Hong Kong 9.00% 4 Saudi Arabia

5 Malaysia 2.71% 5 Brunei

6 Pacific Islands

12)

1 VIC 49.10% 1 Hong Kong 54.98% 1 Hong Kong 1 India

2 NSW 28.31% 2 Singapore 13.35% 2 Singapore 2 Philippines

3 WA 17.70% 3 Vietnam 9.39% 3 Vietnam 3 Jordan

4 UAE 8.86% 4 UAE 4 Maldives

5 Malaysia 6.37% 5 Malaysia


080940, Plums and Sloes, Fresh

Top producing states in 2014 Top 5 Markets in 2014

070190, Potatoes, Except Seed, Fresh Or Chilled

Top producing states in 2014 Top growth marketsTop 5 Markets in 2014 Possible emerging markets

080719, Melons (Except Watermelons) And Papayas, Fresh

Top producing states in 2014 Top 5 Markets in 2014

Top 5 Markets in 2014 Top growth markets Possible emerging marketsTop producing states in 2014


6 Indonesia

7 Russia

8 Pacific Islands

9 Bahrain

13)

1 WA 56.28% 1 Singapore 25.61% 1 Singapore 1 Thailand

2 QLD 27.22% 2 New Zealand 22.32% 2 New Zealand 2 Brunei

3 NSW 9.97% 3 UAE 15.18% 3 UAE 3 Bahrain

4 Malaysia 11.71% 4 Malaysia

5 Hong Kong 9.91% 5 Hong Kong

6 Vietnam

7 Pacific Islands

14)

1 VIC 89.35% 1 Indoensia 26.17% 1 New Zealnd 1 Singapore

2 QLD 6.94% 2 New Zealand 26.13% 2 Pacific Islands 2 Thailand

3 NSW 3.38% 3 Canada 17.01% 3 Bahrain 3 Sri Lanka

4 New Caledonia 7.31%

5 PNG 4.79%

15)

1 QLD 50.11% 1 Singapore 65.23% 1 Malaysia 1 Kuwait

2 VIC 32.60% 2 UAE 6.33% 2 Saudi Arabia 2 Taiwan

3 NSW 13.99% 3 Malaysia 5.59% 3 Brunei

4 Saudi Arabia 3.29% 4 Hong Kong

5 PNG 3.17% 5 Thailand

6 Pacific Islands

7 Bahrain


081010, Strawberries, Fresh


080830, Pears, Fresh

070410, Cauliflower & Headed Broccoli, Fresh Or Chilled

Possible emerging marketsTop producing states in 2014 Top growth marketsTop 5 Markets in 2014

16)

1 QLD 62.98% 1 Singapore 60.56% 1 Malaysia 1 Pacific Islands

2 WA 26.31% 2 Malaysia 31.42% 2 Pacific Islands

3 NSW/VIC ~5.5% 3 Hong Kong 2.65% 3 Brunei

4 Indonesia 2.35% 4 Russia

5 Fiji 0.86%

17)

1 QLD 83.45% 1 New Zealand 60.38% 1 New Zealand 1 Russia

2 VIC 7.71% 2 UAE 32.21% 2 UAE 2 Bahrain

3 NSW 6.87% 3 PNG 3.02% 3 PNG

4 Kuwait 1.12% 4 Kuwait

5 Nauru 1.12% 5 Nauru

6 Qatar

18)

1 QLD 48.76% 1 PNG 47.61% 1 Singapore 1 Maldives

2 SA 19.93% 2 UK 19.09% 2 Qatar 2 Pacific Islands

3 VIC 18.96% 3 Singapore 5.86%

4 Malaysia 5.69%

5 Nauru 5.52%


080810, Apples, Fresh

080711, Watermelons, Fresh


080440, Avocados, Fresh Or Dried


Global Horticulture Market Outlook-2015

Disclaimer: All information contained in this report has been obtained from sources believed to be accurate by Gyan Research and

Analytics Pvt. Ltd. (Gyan). While reasonable care has been taken in its preparation, Gyan makes no representation or warranty,

express or implied, as to the accuracy, timeliness or completeness of any such information. The information contained herein may be

changed without notice. All information should be considered solely as statements of opinion and Gyan will not be liable for any loss

incurred by users from any use of the publication or contents.

Global Horticulture Market Outlook - 2015

2 | P a g e © Gyan Research and Analytics Pvt. Ltd., 2012

Table of Contents

1. Executive Summary ....................................................................................................................................... 9

2. Global Overview .......................................................................................................................................... 11

2.1 Fruit and Vegetables ............................................................................................................................. 11

2.1.1 Export and Import of Fruits and Vegetables .................................................................................. 13

2.2 Flower .................................................................................................................................................... 17

2.2.1 Export and Import .......................................................................................................................... 18

3. Country-wise Perspective ............................................................................................................................ 21

3.1 India ....................................................................................................................................................... 21

3.1.1 Main Horticultural Products of India .............................................................................................. 22

3.1.2 India’s Export and Import Scenario ................................................................................................ 23

3.1.3 Issues and Challenges ..................................................................................................................... 23

3.1.4 Opportunities in Indian Horticulture .............................................................................................. 24

3.1.5 Horticulture Allied Sector in India .................................................................................................. 25

3.1.6 Key Players ..................................................................................................................................... 26

3.2 Vietnam ................................................................................................................................................. 30

3.2.1 Main Horticultural Products in Vietnam ........................................................................................ 30

3.2.2 Export - Import Scenario of Vietnam’s Horticulture Industry ........................................................ 31


3.2.4 Opportunities in Vietnamese Horticulture..................................................................................... 32

3.2.5 Allied Sectors of Horticulture in Vietnam ...................................................................................... 33

3.5.6 Key Players ..................................................................................................................................... 34

3.3 China ...................................................................................................................................................... 36

3.3.1 Export and Import Scenario of China ............................................................................................. 37


3.3.3 Opportunities in Chinese Horticulture ........................................................................................... 38

3.3.4 Allied Sector of Horticulture........................................................................................................... 38

3.3.5 Key Players ..................................................................................................................................... 40

3.4 Kenya ..................................................................................................................................................... 42



3.4.3 Opportunities in Kenyan Horticulture ............................................................................................ 43




3.4.5 Key Players ..................................................................................................................................... 46

3.5 Iran ........................................................................................................................................................ 48

3.5.1 Main Horticulture Products of Iran ................................................................................................ 48



3.5.4 Opportunities in Iran’s Horticulture ............................................................................................... 49

3.5.5 Key Players ..................................................................................................................................... 51

3.6 Indonesia ............................................................................................................................................... 53

3.6.1 Main Horticulture Produce in Indonesia ........................................................................................ 53




3.6.5 Opportunities in Indonesia’s Horticulture ..................................................................................... 55

3.7 Myanmar ............................................................................................................................................... 56



3.7.3 Opportunities in Myanmar Horticulture ........................................................................................ 57

3.8 Nigeria ................................................................................................................................................... 58


3.8.2 Opportunities in Nigerian Horticulture .......................................................................................... 59

3.8.3 Key Players ..................................................................................................................................... 60

3.9 The Netherlands .................................................................................................................................... 62



3.9.3 Opportunities in the Netherlands’ Horticulture ............................................................................ 63

3.10 Bangladesh .......................................................................................................................................... 63

3.10.1 Major Horticulture Crops ............................................................................................................. 63

3.10.2 Issues and Challenges ................................................................................................................... 64

3.10.3 Opportunities in Bangladesh’s Horticultural Industry ................................................................. 64

3.10.4 Key Players ................................................................................................................................... 66

4. Industry Overview ....................................................................................................................................... 68



4.1. Growth Drivers ..................................................................................................................................... 68

4.2. Critical Success Factors ........................................................................................................................ 68

5. SWOT Analysis ............................................................................................................................................. 70

6. Global Issues & Challenges .......................................................................................................................... 71

7. Outlook ........................................................................................................................................................ 73



List of Tables & Charts

Chart 1 - Global Fruit Production (2008-2011)

Chart 2 - Global Vegetable Production (2008-2011)

Chart 3 - Top Ten Exporters of Fruit -2010

Chart 4 - Top Ten Importers of Fruits-2010

Chart 5 - Top Ten Vegetable Exporters -2010

Chart 6 - Top Ten Vegetable Importers -2010

Chart 7 - Global Export-Import Scenario of Fruits (2008-2010)

Chart 8 - Global Export-Import Scenario of Vegetable (2008-2010)

Chart 9 - Outlook of Top-Ten Vegetable Producing Countries (2011-2015)

Chart 10 - Outlook of Top Fruit Producing Countries (2011-2015)

Chart 11 - World Production of Flowers and Potted Plants 2010

Chart 12 - Outlook - Global Floriculture (2011-2015)

Chart 13 - Top-Ten Exporters of Flowers - 2010

Chart 14 - Top-Ten Importers of Flowers - 2010

Table 1 - Top-Ten Fruit and Vegetable Producing Countries -2010

Table 2 - Fruit and Vegetable Production in India-2010 (MT)

Table 3 - Top Varieties of Fruits Produced in India - 2010

Table 4 - Export & Import of Horticultural Products – India (FY06-FY12)

Table 5 - Financials of Titan Biotech Limited

Table 6 - Financials of JK Agri Genetics Ltd



Tables7 - Fruit and Vegetable Production in Vietnam (2010)

Table 8 - Export & Import of Horticultural Products in Vietnam (2007-2011)

Table 9 - Vietnam’s Packaged Food Industry (by Category - in USD million) - (2010-2014)

Table 10 - Fruit and Vegetable Production in China (2010)

Table 11 - Export-Import Scenario of China’s Horticulture (2007-2010)

Table12 - Fruit and Vegetable Production in Iran (2010)

Table 13 - Vegetable and Fruit Production in Indonesia (2010)

Table 14 - Market Size of Indonesia’s Processed Food with Sub-categories (in USD million) (2008-2011)

Table 15 - Vegetable and Fruit Production in Myanmar (2010)

Table 16 - Fruit and Vegetable Production in Nigeria (2010)

Table 17 - Vegetable and Fruit Production in Bangladesh (2010)

Table 18 - SWOT Analysis



Glossary

AIPH - The International Association of Horticultural Producers

AIDS - Acquired Immune Deficiency Syndrome

AMI - Agricultural Market Information Service

ASEAN - Association of Southeast Asian Nations

CAAP - Canadian Agricultural Adaptation Program

CEPT - Common Effective Preferential Tariff

CFA - China Flower Association

COHA - Canadian Ornamental Horticulture Alliance

DARE - Department of Agricultural Research and Education (India)

DPI - Department of Primary Industries (Australia)

FAO - Food and Agricultural Organization

FiBL - Forschungs Institutfür Biologischen Landbau (German)

FY – Financial Year (from 1st April to 31st March)

GHI - Global Horticulture Initiative

GMO - Genetically Modified Crops

GSP - Generalized System of Preferences

GVP - Gross Value of Production

Ha - Hectares

HIV - Human Immunodeficiency Virus



HTA - Horticultural Trades Association (United Kingdom)

IFOAM - International Federation of Organic Horticulture Movements

ICAR - Indian Council of Agricultural Research

KHCP - Kenya Horticulture Competitiveness Project

KFC - Kenya Flower Council

PHDEC - Pakistan Horticulture Development and Export Company

PLC - Product Life Cycles

POS - Pacific Organic Standard

MM - Mini Mission

MT – Metric Tonnes

NAFTA - North American Free Trade Agreement

VAD - Vitamin A Deficiency



1. Executive Summary

The horticulture industry has opened a new dimension into the agriculture sector globally. As a matter of

fact it is so flourishing and opening up new prospects of employment and research that it is currently

considered as a separate industry. The horticultural industry consists of the production of fruits, vegetables

and flowers. In today’s world, people have been very conscious about their diet and eating habits due to

busy lifestyle and stressful work culture which has pushed the consumption of fruits and vegetables. Also

the floriculture industry is picking up pace due to the increasing demand for fresh flowers and also several

associated products. This has opened up new income prospects for the farmers and others related to the

allied sectors for this industry. The processing, transportation, distribution and packing sectors associated

with the horticulture industry have been greatly benefitted.

Global fruit production in 2011 was reported at 548 million tonnes, a growth of 2.5 percent over 2010. The

global fruit industry consists of the production and trade of bananas, semi-tropical fruits, citrus fruit, soft

fruit, pommes and stone fruits.

Global vegetable production came in at 990 million tonnes in 2011. China and India were amongst the

highest producing countries for the year. Among all vegetables, potato was the most popular; other

widespread vegetables were sweet potato, tomato, onions and cabbage.

For the year, the size of the global floriculture industry stood at around USD 109 billion; it is anticipated to

reach USD 166 billion by 2015 at a compound annual growth rate (CAGR) of around 11 percent. Global

exports of floriculture have been growing at an average rate of 10.3 percent per annum.

In 2011, land area under flower production worldwide was 400,000 hectares. Asia-Pacific with an area of

244,263 ha accounted for nearly 60 percent of the total area under production, with China and India

dominating this space.

Global annual consumption of flowers was estimated in the range of USD 40 - 60 billion in 2011. On the

demand side, major flower consuming countries in the world are concentrated in Western Europe.

Germany, the USA, the UK, France, the Netherlands and Switzerland consumed around 80 percent of total

flower production. Of the world’s ten largest domestic markets for cut flowers, six are in EU, namely

Germany, the UK, France, Italy, the Netherlands and Spain. Other important markets are the US and Japan,



accounting for around 20 percent each. Recently, Russia and the Middle East have also become important

markets demonstrating rapid market growth.

Over the last few years, the market for the flower industry has advanced and the demand for newer

products has augmented. For instance, currently, the Russian market preference is for very large flower

buds. Globalization, trade liberalization and transformation in consumer demand are generating new

market opportunities for producers and laborers of the horticulture industry. This has thrown up a wide

range of economic prospects for the industry in the tropics and sub-tropic zones. Consequently, many

farmers who produce cereals have changed a portion of their production into high value horticultural

crops.

Many countries across the globe have been taking many measures to support this industry due to the fact

that it is contributing significantly in the economy of the same. For instance, The Netherlands tops the

charts in the export of flowers. The country’s economy is largely influenced by this industry. So, despite

various issues of soil degradation and erosion, the country is still taking up measures to increase the soil

fertility and implement new technology into the production of the flowers.

According to the Agricultural Market Information Service, global fruit and vegetable production is expected

to rise in the next five years, at a considerably faster pace. Expected revenue generation is anticipated to

increase by an average annual rate of 3.7 percent to USD 190 billion through 2016.



2. Global Overview

2.1 Fruit and Vegetables

The global fruits and vegetables production

industry has been on an upswing in recent

times. The fast pace of modern life has not only

made people busy but has also made them

health conscious and increased the urge for a

healthy lifestyle. This trend is predominantly

based on the consumption of fruits and

vegetables, thereby greatly fuelling the

horticulture industry.

Fruit and vegetable production is a labour

intensive industry, which employs more people

across its value chain than some other

agricultural product like cereals.

Global fruit production stood at 548 million

tonnes in 2011, compared to the production in

2010 which was 506 million tonnes, indicating

a growth of 2.5 percent. The global fruit

industry consists of the production and trade of

various kinds of fruits like tropical and semi-

tropical fruits, citrus fruits, soft fruits, berries,

exotics, pommes, stone fruits and such like.

The key citrus fruits include oranges and

lemons; semitropical fruits include pineapples

and avocados; and pommes and stone fruits

comprise apples, pears, peaches and grapes.

Melons are the most commonly produced fruit,

Chart 1

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Global Fruit Production (2008-2011)

Source: FAO

Chart 2

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Global Vegetable Production (2008-2011)

Source: FAO



followed by bananas.

In 2011, 100 million tonnes of melons, bananas and apples were produced and 70 million tonnes of grapes

and oranges. These five fruits together captured 60 percent of the total global harvest in 2011.

During the year, global vegetable production accounted for 990 million tonnes; China and India were

among the highest producing countries in the world. Among vegetables, potato was the most popular -

grown across all regions, followed by tomatoes, onions, cabbages, cucumbers and aubergines, which

together comprised around 45 percent of total global vegetable production. Around 3-4 percent of the

global production of major vegetables varieties was traded internationally in 2011.

Vegetable

Countries Production

(MT)

China 132,885,800

India 34,761,000

Vietnam 6,732,700

Nigeria 5,945,600

Philippines 4,842,200

Myanmar 3,719,300

Nepal 3,003,820

Republic of Korea 2,698,000

Japan 2,619,400

Brazil 2,445,100

Fruit

Countries Production

(MT)

India 9,564,100

Vietnam 2,564,500

China 2,299,500

Iran 2,169,400

Myanmar 1,350,000

Nigeria 1,212,000

Indonesia 1,204,000

Papua New Guinea 947,800

Nepal 656,300

Democratic People's Republic of Korea 548,100

Table 1

Top-ten Fruit and Vegetable Producing Countries in World - 2010

Source: Food and Agriculture Organization of the United Nations



2.1.1 Export and Import of Fruits and Vegetables

In 2010, fruits valued at USD 76 billion were

exported globally. The USA, Spain, Chili, the

Netherlands and Italy were the major

industry players. The USA was the only

country which made it to the top-ten charts

of both categories - exporters and importers

of fruits. Its main export markets were

Canada, Hong Kong, Japan and Germany. The

import markets for USA were Mexico, Chile,

Costa Rica, Guatemala, Ecuador, among

others. In 2010, the second largest exporter

of fruits was Spain followed by Chile. The

export trend of the fruit industry of these

countries largely depends upon the prices,

production and climatic conditions.

In 2010, fruits worth USD 84 billion were

imported globally. Again, the USA was the

largest importer from Mexico, Chile,

Guatemala, and Costa Rica. After USA,

Germany was the second largest importer,

followed by Russia. Import trends have been

primarily dominated by prices and the

consumption pattern in a particular country.

In 2010, the value of vegetables exported

globally amounted to USD 56 billion. The

largest exporter of vegetables was China and

its main export destinations were Japan,

Indonesia, Korea, Vietnam, and the USA. The

second largest vegetable exporting country was The Netherlands, followed by Spain. The major

Chart 4

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Top Ten Importers of Fruits - 2010

Source: International Trade Centre

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Top Ten Exporters of Fruits - 2010




destinations for the former were Germany, the UK, Russia, Belgium, and France, while Spain primarily

exported to Germany, France, the UK, The Netherlands and Italy.

In 2010, vegetables worth USD 57 billion were imported globally. The largest importer was the USA, while

the second largest was Germany, followed by the UK. The USA imported from Mexico, Canada, Peru and

Guatemala, and Germany imported from The Netherlands, Spain, Italy, Belgium, and France.

Chart 6

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Top-Ten Vegetable Importers - 2010


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Chart 8

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Global Export-Import Scenario of Vegetable (2008-2010)

Import Export


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Export Import

Global trade decline due to economic downturn




Chart 9

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Outlook of Top-Ten Vegetable Producing Countries (2011-2015)

China India Vietnam Brazil Japan Korea Phillippinse Myanmar Nigeria Nepal

Source: Gyan Research and Analytics

Chart 10

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Outlook of Top Fruit Producing Countries (2011-2015)

India Vietnam China Iran (Islamic Republic of) Indonesia Myanmar Nigeria




2.2 Flower

The size of the global floriculture

industry stood at around USD 109 billion

in 2011. It is anticipated to reach USD

166 billion by 2015, at a CAGR of around

11 percent. There are many players and

markets associated with the floriculture

industry. Though the industry’s growth

was considerably affected by the recent

global economic crisis, but the global

export of floriculture has been growing

at an average growth rate of 10.3

percent per annum. It is projected to

reach USD 25 billion by 2012.

In 2011, area under flower production,

worldwide, was 400,000 hectares. Asia -

Pacific with an area of 244,263 ha

accounted for nearly 60 percent of the total area and China and India accounted for the lion’s share of area

under flower cultivation.

Europe, America, and Asia are considered to be the major trading zones, where more than 90 percent of

floriculture products were traded in 2011. To a large extent, international trade in floriculture was

organized along regional lines. In the African region, Kenya was the key player. It exported flowers valued

at USD 519 million in 2011 and its key destinations were the UK, Germany, Russia, Norway, France, among

others. In the Asia Pacific region, China was the major exporter, with exports worth USD 220 million. Major

destinations of China’s flowers were Japan, Korea, Thailand, Malaysia, Vietnam, Hong Kong, and others.

In the Americas, Colombia was the second largest exporter of flowers globally, valued at USD 1.25 million

in 2011. It was the primary flower supplier to the USA, Russia, Japan, the UK, Canada, Spain, and others.

Global annual consumption of flowers was estimated in the range of USD 40 - 60 billion in 2011. On the

demand side, Germany, the USA, the UK, France, The Netherlands and Switzerland accounted for around

80 percent of total flower consumption. Major flower consuming countries in the world are concentrated

Chart 11

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Global Production of Flowers and Potted Plants 2010

USA China Japan Canada

colombia Korea Kenya Others

Source: Live Plants and Products of Floriculture: Market

Analysis



in Western Europe. Of the world’s ten largest domestic markets for cut flowers, six are in the EU, namely

Germany, the United Kingdom, France, Italy, The Netherlands and Spain. Other important markets are the

United States and Japan, accounting for around 20 percent each. Recently, Russia and the Middle East have

entered into the floriculture industry and gained importance with rapid market growth. With the current

trends, the markets have matured considerably and the demand for new products has picked up pace. For

instance, the Russian market preference is inclined towards very large flower buds.

International trade is a significant driver for the floriculture industry. A case in point is the Netherlands,

which caters to almost 75 percent of the EU market and constitutes around 80-90 percent of the UK,

Germany and France’s imports. The country is also the main distribution hub of floricultural products, with

products being imported and distributed to other EU countries. It was the largest exporter of flowers,

valued at USD 11 million in 2011.

To meet the growing and changing demands of the market, production continues to shift from the

countries which have been traditional consumers and growers to newer locales. For instance, production is

moving from the Netherlands to other relatively new producing countries such as Colombia, Ecuador and

Kenya. The key drivers which have resulted in this shift in production are the existence and availability of

abundant labor and land, developed infrastructure, transportation and suitable climate.

2.2.1 Export and Import

The import and export trend of the floriculture industry is mainly dominated by production trends,

consumption patterns and new varieties of flowers introduced in the market. In 2010, flower worth USD 18

billion was exported globally. The Netherlands was largest exporter, followed by Colombia. Major export

destinations of flowers from The Netherlands were Germany, France, the UK, Italy, and Belgium. The

export markets for Colombian flowers were the USA, the UK, Russia, Japan, and the Netherlands. Belgium

was the third largest exporter of flowers in 2010, and its primary beneficiaries were the Netherlands,

France, the UK, Germany, and Switzerland.



Globally, USD 17 billion worth of

flowers were imported in 2010.

Major players in this segment were

Germany, the USA and the UK.

Germany imported from The

Netherlands, Italy, Denmark,

Belgium, and Kenya. The USA

imported from Colombia, Canada,

The Netherlands, Ecuador, and

Costa Rica, while the importing

destinations of UK were the

Netherlands, Kenya, Colombia,

Belgium and Italy.

Chart 13

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Top-Ten Importers of Flowers - 2010




3. Country-wise Perspective

3.1 India

India has been expanding its space in the

horticulture industry at a steady rate of 30

percent in the last five years. The country

was the largest producer of fruits and the

second largest producer of vegetables in the

world in 2011. It was ranked 14th in the

export of vegetables, which was valued at

USD 962 million in 2010, and 12th in the

import of vegetables, which valued USD1.3

million. The country was placed 19th in the

export of fruit, valued at USD 1.1 million,

and the import fruits at USD 1.02 million in

2010.

The total area under fruit production was

6.33millionhectares (ha) during 2009-10

with a production of 71.5 million metric

tonnes. However the country lacks in

terms of the yield per hector with its

competitor China. The country is

categorized with the small farmlands,

losses related to post harvest period and

old fashioned farming techniques. Mango

was the most important fruit crop of the

country, occupying maximum area of 2.31

million ha accounting for about 37 per cent

of the total area under fruits. However, in

terms of production (15.03 million MT), it

ranked second after banana (27.1 million

Table 3

Top Varieties of Fruits Produced in India - 2010

Fruits Area (HT)

Production (MT)

India's Rank

Mango 2,309 12,750 1

Apple 274 1,985 7

Banana 709 26,217 1

Citrus 923 8,608 5

Guava 204 2,270 NA

Grapes 80 1,878 12

Litchi 72 423 NA

Papaya 98 3,639 1

Pineapple 84 1,341 6

Pomegranate 109 807 NA

Sapota 156 1,308 NA

Others 1,083 7,249

Total 6,101 68,475

Source: National Horticulture Database 2009 & FAO 2009

Table 2

Fruit and Vegetable Production in India-2010 (MT)

Year Fruits Vegetables

2006 6,737,100 27,480,800

2007 6,244,400 29,146,000

2008 7,321,000 31,402,000

2009 7,983,900 28,006,300

2010 9,564,100 34,761,000

Source: Food and Horticulture Organization



MT) during 2009-10.

The floriculture industry of India chiefly consists of traditional flowers and cut flowers. Both, open air

flower production as well as growing flowers in a controlled environment, are practiced in the country.

West Bengal, Delhi and Tamil Nadu are among the key flower producing states in India. Tamil Nadu is the

largest loose flower producing state, while West Bengal is the leading cut flower producing state in the

country. The industry comprises of seed production, micro propagation material, nursery plants, potted

plants, bulb and extraction of essential oil from flowers.

The Indian floriculture industry had been growing at a CAGR of 25 percent in the period 2000-2010 and

was worth USD 661 million in 2011. This industry is expected to grow to USD 1 billion by 2015, with a CAGR

30 percent.

Rose is the principal cut flower and is grown all over the country. Other important cut flowers crops in

India are gladiolus, tuberose, aster, and gerbera. The country earned USD 62.7 million from the export of

flowers to over 90 countries 2010. Leading destinations of Indian flowers were Germany, The Netherlands,

the United Kingdom and the United Arab Emirates.

India also exported 1.57 tonnes of flowers to Pakistan and to smaller countries such as St. Kitts Nevis,

Finland, Mali, Sierra Leone and Seychelles.

3.1.1 Main Horticultural Products of India

According to the National Horticulture Board the primary fruits produced in India are apple, banana, lime

or lemon, mosambi, orange (mandarin), grapes, mango and papaya. The main tropical fruits consist of

mango, banana, guava, pineapple, papaya and lichi, with smaller amounts of sapota, jackfruit, phalsa and

annona being produced. Tropical fruits account for nearly 70 percent of the total fruit production in India.

Mango is the chief tropical fruit produced in India, followed by guava.



3.1.2 India’s Export and Import Scenario

3.1.3 Issues and Challenges

The horticulture industry in India is beset by several challenges. Some of them are:

A major section of India’s agriculture is dependent on monsoons, especially since the country lacks

proper irrigation facilities

The yield per hectare is quite low due to small and segregated land holdings

Paucity of back-up infrastructure like cold-storages, roads, distribution networks and management

of horticulture products considerably increases post harvest losses

Lack of correct technical inputs is hampering the quantity and quality of products

Table 4

Export & Import of Horticultural Products – India (FY06-FY12)

Export (in USD million)

Items FY06 FY07 FY08 FY09 FY10 FY11 FY12 (April-

Dec)

Vegetables 567.86 623 626.71 767.92 848.85 897.56 801.55

Fruits 850.03 881.05 928.97 1,087.47 1,096.62 1,077.78 1,091.46

Flowers 68.09 145.62 84.27 80.93 61.95 64.85 56.31

Import (in USD million)

Vegetables 637.63 1,014.04 1,413.18 1410.24 2,554.42 1,660.49 1,541.91

Fruits 787.08 824.20 890.72 1,107.02 1,247.31 1,380.37 1,740.91

Flowers 0.36 0.58 0.03 Nil 0.19 9.99 11.24

Source: Export Import Data Bank, Department of Commerce in India



Lack of encouragement for organic farming is making Indian horticulture products non-competitive

in the international market

Packaging and marketing of horticulture products are not aligned to market requirements

Inaccessible financial instruments like micro-credits and loans for horticulture farmers make its

pursuit a challenge

Practices like cooperative farming are not promoted properly among farmers

Absence of innovations in the Indian horticulture industry, such as newer and more useful

agricultural equipment and implements, is affecting the sector

Flower production still mainly follows open air cultivation; green-house production technology is

scarce and there is an absence of other sophisticated technology associated with production of

flowers

3.1.4 Opportunities in Indian Horticulture

The horticulture industry in India has grown by 7 percent in the last five years (2006-2011). A significant

growth in production and export of horticultural products has also been observed. According to the

Ministry of Agriculture, export of horticultural products earned USD 3 billion in 2011-12, compared to USD

2.4 billion in 2009-2010.

The National Horticulture Mission has played a vital role in promoting the fruits and vegetables segments.

Through the implementation of strategic schemes, the Mission has brought an area of 1,657 thousand

hectares under horticultural crop cultivation. About 278 thousand ha of defunct orchards have been

rejuvenated. Organic farming has been taken up in 137 thousand ha. Besides, 247 thousand honey bee

colonies, along with hives, have been distributed to farmers for enhancing productivity through cross

pollination. In collaboration with the Government of Israel, it has created Centers of Excellence to promote

state-of-the-art technology for the production of fruits and vegetables. In 2011, one Centre of Excellence

for Vegetables was established at Karnal, Haryana, with the financial support of USD 1 million.

The National Horticulture Mission has also helped to establish 285 cold storage units, 264 mobile / primary

processing units, 1,091 packing houses, 4 Controlled Atmosphere (CA) stores, 16 refrigerated vans, under

the post-harvest management scheme. Additionally, 172 markets, including 9 wholesale markets, have

been set up to facilitate the marketing of horticulture products.



Indian Council of Agricultural Research (ICAR) Institutes, State Agriculture Universities and Krishi Vigyan

Kendras (KVK) have taken several initiatives to develop the infrastructure to support horticultural

production.

There exist innumerable business opportunities in the Indian horticulture industry. Consequently, investors

and entrepreneurs across the globe are making huge investments in the industry, including the trading of

crops. Both the Central Government and the State Governments of India are taking initiatives to

commercialize the horticultural activities in the country.

3.1.5 Horticulture Allied Sector in India

The food processing industry in India is one of the key allied industries associated with the horticulture

sector and it forms a vital link between agriculture and industry. This industry provides nearly 60 percent of

all job opportunities by directly employing around 1.6 million workers. It is the fifth largest industry in the

country in terms of production, consumption, export and growth. The worth of the Indian processed foods

sector stood at USD 157 billion in FY2012; it is expected to touch USD 255 billion by FY2016, with 13

percent growth rate per annum. The accessibility of raw materials, changing lifestyles and relaxation in

regulatory policies are the primary growth drivers of this industry.

India is the highest producer of milk in the world at 90 million tonnes per annum and the third largest

producer of fish. With an arable landmass of 184 million hectares, it is the second largest producer of fruits

& vegetables and the third largest producer of food grains. It has the largest livestock population as well. In

addition to its large and wide-ranging raw material base, India has a huge consumer base of over one

billion people. All these are positive factors that add vigor to the processed foods industry, which holds

tremendous opportunities for large investments.



3.1.6 Key Players

Titan Biotech Limited

Snapshot

Legal Status: Titan Biotech Limited

Year of Incorporation: 1992

Industry/Sector: Horticulture

CEO/MD/Chairman: Naresh Kumar Singla

Listing: Bombay Stock Exchange

Address: A-2/3, IIIrd Floor, Lusa Tower,

Azadpur Commercial Complex,

Delhi-110033, India

Branches: NA

Employees: NA

Background

Titan Biotech Limited is an ISO certified company. It was

established in 1992 and operates in 35 countries across

the world. Titan Biotech offers a wide range of

products, including biological products like protein

hydrolysates, peptones, bile extract, malt extract, yeast

extract, liver extract and their derivates, dehydrated

culture media & media bases, laboratory chemicals,

plant tissue culture media, plant growth promoters &

their basic ingredients for soil nutrition, and food

additives. It also offers products for Agro-

biotechnology.

Products/Services

Biotechnology & Fermentation

Cosmetic Ingredients

Pharmaceuticals & Nutraceuticals

Food Products

Agro Products

Veterinary & Animal Feed Ingredients

Dehydrated Culture Media

Plant Tissue Culture Media

Laboratory Chemicals



Financials

Table 5

Financials of Titan Biotech (in INR million)

FY2011 FY2010 FY2009 FY2008

Total Income 186.8 160.7 134.8 123.2

Total expenditure 167.3 144.7 120.3 109.6

Operating Profit 19.2 15.6 14 13.6

EPS* 1.84 1.5 1.27 1.35

PAT 10.2 8.3 7.1 7.5

*Except EPS

Source: Company Annual Report



JK Agri Genetics Ltd

Snapshot

Legal Status: Public Sector Undertaking



CEO/MD/Chairman: Bharat Hari Singhania

Listing: Bombay Stock Exchange

Address: JK Agri-Genetics Limited, 1-10-177,

4th floor, VarunTowers, Begumpet,

Hyderabad - 500016

Branches: NA

Employees: NA

Background

JK Agri Genetics Ltd. (JKAL) was established in 1989, with

its head office at Hyderabad, Andhra Pradesh. This

organization is focused on manufacturing, processing,

marketing, research and development of hybrid seeds of

sorghum, sunflower, tomato, okra, pearl millet, maize,

cotton, rice and hot pepper. From the beginning this

organization has been motivated by continuous

improvement in every field of action, such as production,

quality, research, management, processing, and

marketing.

Products/Services

HY Cotton –Gene-H

HY Cotton BG-II

Bajra Hybrid Seed

Paddy Hybrid Seed

Jowar Hybrid Seed

Maize Hybrid Seed

Mustard Hybrid Seed

Wheat Hybrid Seed

Caster Hybrid Seed

Sunflower Hybrid Seed

Tomato Hybrid Seed

Okra Hybrid Seed

Chili Hybrid Seed

Water Melon Hybrid Seed

Aubergine (eggplant) Hybrid Seed

CUCUMBER HYBRID SEED

CABBAGE HYBRID SEED

BITTER GOURD

BOTTLE GOURD



Financials

Table 6

Financials of JK Agri Genetics Ltd (in INR million)

2011 2010 2009 2008 2007

Total Income 126.91 122.99 151.27 NA NA

Total Expenditure 110.05 103.62 147.14 NA NA

Operating Profit 10.31 10.22 -7.06 NA NA

EPS - Annualized (INR)

31.05 30.34 -2.31 NA NA

PAT 10.89 10.64 -1.22 NA NA

Source: Company Annual Report



3.2 Vietnam

Vietnam’s favorable climatic and environmental

conditions facilitate the production of fruits and

vegetables. The country was ranked the second

largest producer of fruits and third largest

producer of vegetables in the world in 2010. The

total area under fruit production in Vietnam is

554,000 ha. The country produced 6,732,799 MT

of vegetables and 2,564,500 MT of fruits in 2010.

3.2.1 Main Horticultural Products in Vietnam

Fruits produced in Vietnam are diverse in nature

and are harvested around the year. The main fruits

of the country are dragon fruit, mango, pineapple,

lemon, citrus, banana, orange, avocado, jackfruit,

coconut, papaya, pomelo, lychee, longan, durian, milk fruit, custard-apple, rambutan, guava, and

watermelon, organic citrus fruit, grapes, and strawberries.

Table 7

Fruit and Vegetable Production in Vietnam (2010) (MT)


2006 2,807,390 6,380,340

2007 2,580,280 6,559,530

2008 2,559,800 6,202,390

2009 2,616,910 6,313,390

2010 2,564,500 6,732,700




3.2.2 Export - Import Scenario of Vietnam’s Horticulture Industry

Vietnam is giving its horticulture industry priority treatment. It has recently introduced many stimulating

measures not only because the industry generates a huge amount of employment opportunities but also

because it increases income and sustainability among farmers. Additionally, it has initiated some hi-tech

agricultural parks for the testing and observation of various flowers and seeds. Further, it is training

farmers on the production of fruits and vegetables. A number of EU countries have begun to import fruits

and vegetables from Vietnam and the country appears to be fully committed to promoting its fruits and

vegetables export.

Table 8

Export & Import of Horticultural Products in Vietnam (2007-2011)


2007 2008 2009 2010 2011

Fruits 762,179 1,086,234 1,062,908 1,259,392 1,615,995

Vegetables 249,640 231,401 393,644 303,244 538,539

Flowers 10,724 13,634 20,014 25,726 31,883


2007 2008 2009 2010 2011

Fruits 238,047 340,144 344,287 897,119 1,007,566

Vegetables 59,121 85.644 99.044 561,177 900,448

Flowers 9,363 14,722 16,669 74,392 69,758





Adversities faced by the Vietnamese horticulture industry include:

Vietnamese fruits and vegetables fail to meet the requirements of foreign importers both in terms of

quality and quantity. In the case of the domestic market, Vietnamese fruits and vegetables face huge

competitive pressure from foreign, better-quality, horticultural produce

Irrational and dispersed distribution of cultivated areas hampers extensive production for a specific

farmer, who then encounters losses

Production is small-scale and isolated, leading to high costs due to the absence of proper planning

Organic farming techniques are not yet properly infused in the Vietnamese horticulture industry

which slows down the growth of crops

Improper handling of produce leads to heavy post-harvest losses; microbial and pesticide infectivity

also significantly affects the nutritional value of horticultural produce

Transportation of the horticultural produces is also not very efficient, leading to losses

3.2.4 Opportunities in Vietnamese Horticulture

Vietnam is promoting coordination among states, enterprises, scientists and farmers with the aim to

achieve better status in horticulture. This will help the country to increase the production of better quality

fruits and vegetables at lower costs. This in turn will allow it to meet the demand of markets such as China,

the United States, Japan and Australia. Vietnam exports fruits and vegetables to around 50 countries and

territories worldwide.

The horticulture industry in Vietnam presents huge investment opportunities. The segments which are

particularly lucrative are agro technology, manufacturing of poly-houses and greenhouses, and floriculture.

Among other initiatives that are promising are manufacturing of seeds, production of young plants (for

instance roses, phalaenopsis, gerberas, lillium, chrysanthemums) and bio fertilizers.



3.2.5 Allied Sectors of Horticulture in Vietnam

Table 9

Vietnam’s Packaged Food Industry (by Category - in USD million) – (2010-2014)

2010 2011 2012F 2013F 2014F

Packaged Food 5,683.4 6,621 7,512.9 8,408.4 9,363.6

Baby Food 664 779.3 890.5 1,004.3 1,126.2

Bakery 720.3 848.7 974.4 1,101.4 1,242

Canned/Preserved Food 51.5 58.8 66.2 73.9 82.8

Chilled Processed Food 21.8 26.5 31.3 36.5 42.5

Confectionery 253.7 288.9 323.5 360.4 402.9

Dairy 937.9 1,102.5 1,264.5 1,431.8 1,604.3

Dried Processed Food 1,022.8 1,191.9 1,350.2 1,501.3 1,654.5

Frozen Processed Food 91.7 110.4 129 148.8 171

Ice Cream 151.8 171.7 188.8 204.9 222.4

Meal Replacement 18.9 21.4 23.7 26.1 29

Noodles 996.7 1,160.3 1,313.1 1,458.3 1,605.1

Oils and Fats 823 958.8 1,086.4 1,215.4 1,356.9

Pasta 10.9 12.7 14.4 16.1 17.9

Ready Meals 17.4 20.1 22.7 25.5 28.7

Sauces, Dressings and Condiments

686.9 784.5 870.5 953.5 1,040.1

Soup 1.5 1.7 2 2.2 2.4

Spreads 6.1 6.9 7.7 8.5 9.4

Sweet and Savory Snacks 232.8 270.7 306.2 341.7 379.7

Source: Euromonitor International, 2011



3.5.6 Key Players

Viet Star Import Export Co. Ltd

Financials – NA

Snapshot

Legal Status: Private Limited



CEO/MD/Chairman: Tran Thi Minh Loc

Listing: NA

Address: 189, Le DucTho, P. 17,

Q. Go Vap Dist. City, Vietnam

Branches: NA

Employees: 301-500

Background

Viet Star Import Export Co. Ltd. was established in 1999

in Vietnam. The company manufactures and exports a

range of products such as tapioca chips, tapioca starch,

tapioca powder, tapioca residue, ulvalactuca, gracilaria,

sargassum, eucheumacottonii, seag grape, and canned

foods (pineapple, cucumber and mushroom) and many

others.

Products/Services

Tapioca chips, tapioca starch, tapioca powder, tapioca residue

Seaweed: ulvalactuca, gracilaria, sargassum, eucheumacottonii, seag grape

Canned food: pineapple, cucumber, mushroom

Spices: pepper, chilli, cinnamon, star aniseed, turmeric, ginger

Coconut products: desiccated coconut, coconut fiber

Fresh fruits and vegetables: pomelo, dragon fruit, mango, lychee

Seeds: cashew nuts, coffee beans, peanut, sesame

Special products: dried sea cucumber, dried fish maw



VEGETEXCO

Financials - NA

Snapshot




CEO/MD/Chairman: Mr. Nguyen Toan Thang

Listing: NA

Address: No.2 Pham Ngoc Thach ,

District: Dongda, City: Hanoi, Vietnam

Branches: NA

Employees: 1000

Background

This company was established in 1986 in Vietnam. The

company provides sorting of horticultural products,

processing, packaging, storing, transporting and

distribution to customers.

Products/Services

Mixed pickled cucumber,

Desiccated coconut

Rambutan in light syrup

Canned products: pineapple slices, pieces and juice, pickled cucumber, lychee syrup, pineapple

concentrate, passion fruit puree



3.3 China

China is ranked third in the list of the top-ten

largest fruit producing countries, globally. Fruit

production in China grew at a CAGR of 3 percent in

the period 2006-2010. The country was ranked first

in vegetable production in the world in 2010, even

though the produced amount was less than 2009.

The reason behind the fall in vegetable production

in China in 2010 was natural calamities. The

country was struck by earthquakes, floods,

droughts, freezing temperatures, snowstorms and

tough winds during that year. In the first half of

2010, 20.3 million hectares of Chinese farmland

were affected and 3 million hectares of crop were

destroyed.

Shandong Province is by far the largest production region for fruit and vegetables in China. Many other

provinces and cities have also been actively involved in the development of horticulture. To make this

possible, the Chinese government has allocated large budgets and special facilities to attract investors.

Some important developments in this field are:

Yunnan Province is striving to become the central flower region of Southeast Asia. A new airport in

Kunming is expected to further open the doors to foreign markets in Asia. This will also throw up

opportunities for the expansion of the Dutch presence in Yunnan, not only for the producers but

also for propagation material, knowledge transfer and technology supply

Tianjin Province has large greenhouse development projects in the pipeline, with strong support

from the local government

Hebei and Jiangsu Provinces also have major greenhouse projects on the anvil. These are in

partnership with the provinces of South-Holland and City of Westland in China

Toward becoming an agricultural and horticultural hub, Fujian Province is working in close

cooperation with Wageningen University and making use of the Sino-European Agricultural

Development Center in Zhangzhou

Table 10

China’s Fruit and Vegetable Production - 2010 (MT)


2006 2,029,455 145,534,375

2007 2,103,089 146,882,428

2008 2,125,157 147,876,949

2009 2,180,378 148,876,084

2010 2,299,500 132,885,800




3.3.1 Export and Import Scenario of China


The Chinese horticulture industry needs to overcome a few hurdles. These include:

Scarcity of water is the most vital problem plaguing the Chinese horticulture industry. The problem

has intensified in recent times due to limited water supply and a rise in the demand for water. Per

capita water availability in China is only 300 cubic meter. Irrigation facilities have already exploited

most of the water bodies and spiraling demand from the expanding urban population has stressed

the surface water supply and reduced ground water resources

Increase in the number of farms as well as a decline in their size is another hurdle. Small farm

holdings reduce the productivity of the land, especially since there are many measures which

cannot be implemented in smaller farms. This in turn affects the produce. In China there were 10

million horticultural producers in 2010

Table 11

Export-Import Scenario of China’s Horticulture (2007-2010)


2007 2008 2009 2010

Fruits 1,632.44 2,104.37 2,378.78 2,679.44

Vegetables 4,042.92 4,222.04 4,853.06 7,477.26

Flowers 131.59 148.59 188.27 205.56


2007 2008 2009 2010

Fruits 915.04 1,237.70 1,719.97 2,139.43

Vegetables 800.27 841.20 1,052.56 1,515.54

Flowers 83.88 91 90.3 103.98




In many cases, the quality of the produce and food safety is compromised to increase productivity.

Chinese farmers use additional chemicals and fertilizers to overcome the scarcity of land and

water, which adversely affects food quality

The country has witnessed a sudden increase in food consumption due to a dramatic increase in

per capita income; per head food consumption has more than doubled in the last 20 years

Lack of land ownership discourages investment and consolidation into larger and more efficient

farms. China’s farm land essentially belongs to the local government - a holdover from the

communist era. This implies that land in China cannot be bought or sold by farmers, only leased

Technology standards for a larger portion of domestic farms are below the international standard

3.3.3 Opportunities in Chinese Horticulture

China, with its 1.3 billion people is the world’s most populous country. Employing over 300 million farmers,

agriculture constitutes an essential industry in China. The country already ranks in the top-ten agricultural

goods producing countries in the world. Within the Chinese agriculture industry, horticulture plays a very

important role and has been growing at a brisk pace. Rise in population, awareness about the benefits of

horticultural products and increasing purchasing power have been the primary growth drivers for the

Chinese horticulture industry. To add fillip to the sector, the Chinese government offers assistance for the

distribution of horticultural tools and materials (used for cultivation) and provides many opportunities for

horticulture-supporting industries.

Investors can harness huge opportunities available in the Chinese horticulture industry. The segments that

would be beneficial for investors are seeds - including China's unusual and expensive breeds involving the

infusion of fine genes to produce transgenic plant seeds. Another attractive segment is food processing,

which includes special processing of tea and soybeans. The wholesale and retail distribution segment,

including the distribution of grain, cotton, vegetable oil, sugar and such like, is yet another lucrative

segment. Other support segments such as pesticides, plastic sheeting for plants, and fertilizers also offer

immense opportunities. There also lies a huge scope in the growth, breeding and manufacturing of new

range of crops and seeds.

3.3.4 Allied Sector of Horticulture

The Chinese processed food industry was valued at USD 140.4 billion in 2011. This industry has grown at a

CAGR of 13.3 percent during the period 2007 to 2011 and is expected to grow at a CAGR of 10.1 percent



between 2012 and 2016. The dairy industry generates the highest profit (USD 28.0 billion), followed by

bakery (USD 19.3 billion), and with dried processed foods in third place (USD15.2 billion).



3.3.5 Key Players

Sunshine Horticulture Co. Ltd.

Financials - NA

Snapshot




CEO/MD/Chairman: Ms Laura Ho

Listing: NA

Address: Shuangyang Town, Quanzhou,

Fujian, China

Branches: NA

Employees: 201 - 500

Background

Sunshine Horticulture LLC, a supplementary of Sunshine

International Group, was founded in 1998. The

company is located on 170 acres of land. Sunshine

Horticulture assimilates research, production, retail and

trade. This company’s products comprise seed

production, bonsai, exotic plants, pot flowers,

hydroponic culture plant and other ornamental plants.

Products/Services

Ficus Microcarpa (FCJ3040)

Pachira Macrocarpa (PAM001-1)

Syngonium Podophyllum (Robusta)



Zhangzhou Xiangcheng Greenhome Horticulture Co. Ltd.

Financials - NA

Snapshot

Legal Status: Limited Liability Company



CEO/MD/Chairman: Mr. Wuhui Yao

Listing: NA

Address: No. 1404, Bldg. 1, Junlin Tianxia,

No. 24, Shengli East Rd., Xiangcheng District,

Zhangzhou, Fujian, Zip: 363000

Branches: NA

Employees: 51 - 100

Background

Zhangzhou Xiangcheng Greenhome Horticulture Co.

Ltd. is a grower and a key trader of professional

phalaenopsis nurseries. The company exports its

products to more than 10 countries.

Products/Services

Bonsais

Orchids

Trees

Lucky bamboos

Flower pots

Cacti

Seedlings

Seedling trays

Bougainvilleas

Saplings

Succulents

Cycas

Phalaenopsis

Bulbs

Pachira

Ficus

Bonsai figurines



3.4 Kenya

The horticulture industry of Kenya holds the record of the most efficient producer of flowers and fresh

produce in the Sub-Saharan Africa region and among other countries of the continent. The Kenyan

horticulture industry is growing at an estimated 15 - 20 percent per annum. This has had a positive impact

on poverty alleviation by increasing income, especially in the rural areas. Apart from generating

employment opportunities for the rural people, the industry has increased the foreign exchange earnings

of the country. Thus, the horticulture industry has contributed significantly to the economy of Kenya. This

sector employs around 4.5 million people directly - in production, processing, and marketing - and another

3.5 million people have benefitted indirectly through trade and other activities associated with

horticultural products.

Kenya was ranked eighth in flower export and thirteenth in vegetable production in 2010. It produced

596,100 MT of vegetables and 106,800 MT of fruits during the year. Floriculture generated USD 4.3 billion

in 2010.


Kenya exported vegetables valued at USD 270 million in 2010 to the UK, The Netherlands, India, France and

Somalia. During the year, the country’s vegetables import came in at USD 34 million and the net worth of

vegetables traded was USD 236 million. In the fruit segment, Kenya’s fruits import stood at USD 11 million

and exports at USD 61 million in 2010.

As per the Nairobi-based Kenya National Bureau of Statistics, Kenya was the biggest exporter of flowers

to Europe. The country exported flowers valued at USD 454 million in 2010 and its major destinations were

the Netherlands, the UK, Germany, Russia and Japan. It also imported flowers worth USD 10 million. For

the year, net trade of flowers stood at USD 444 million. Flower exports accounted for nearly half of the

country's horticulture export earnings, which was reported at USD 932.7 million in 2010.

In 2010, the value of cut flowers increased to USD 1.8 billion from USD 1.4 billion in 2009 and the volume

rose to 7,079 tonnes from 5,829 tonnes. According to the Kenya Flower Council, the country accounts for

35 percent of all flower sales in Europe and its main markets in the European Union are Germany, France,

Switzerland, Holland, and the UK.




A few of the major challenges that the Kenyan horticulture industry has to contend with are as follows:

Absence of appropriate policy and institutional framework to coordinate the industry

Poor inter-agency coordination, leading to weak delivery of regulatory services

Ineffectual enforcement of food safety and hygiene standards in the local markets

Poor and ineffective linkages among public, private and other regulatory, developmental and

supportive institutions

Inadequate finance, human and physical resources for research and development

Ineffective dissemination of research findings and poor adoption of technology

Insufficient research on pest and disease management and surveillance

Insufficient programmes for capacity building of research personnel, leading to inability to keep

abreast of technological advances

Due to reliance on imported planting material and minimal implementation of intellectual property

rights, there are risks of losing germ-plasm of indigenous horticulture crop varieties

Inadequate financial support from the government

Inaccessibility of funds due to high interest rates

Lack of access to long-term loans for capital investment

Inadequate management capacity for some horticulture loan applicants

Lack of appropriate insurance products tailored for the industry

3.4.3 Opportunities in Kenyan Horticulture

Kenya is the third largest exporter of cut flowers to the EU, and is ranked eighth in flower export, globally.

This assures a large export market for investors.

Kenya’s climate has both tropical and temperate conditions which help to grow a wide range of

horticultural products all year around. The country’s strategic geographical location also attracts investors

to this industry. Its east African coast and the port of Mombasa, which is a regional airline hub, gives easy

accessibility to the eastern and central African markets and other parts of the world. Other than the

advantage of location, Kenya has easily available, cost effective labor force - the vital resource for

horticultural production.



The country’s horticulture industry can attract large to medium scale companies which would give a degree

of constancy and technological direction to the industry. Its close linkages with importers of indigenous

horticultural products give producers a ready and stable market. Kenya is home to several international

and local seed companies like Pioneer, Panaar, Monsanto, and Seminis. These seed companies provide a

wide range of premium seeds, thereby ensuring high-quality produce. Further, Kenya’s geographical

location and well developed infrastructure ensures on-time supply of the produce.

Private sector participation in the horticulture industry in Kenya ensures efficient management with

minimal government interference. Additionally, the Kenyan government guarantees investor friendly

arrangements. The Export Processing Zones (EPZ) program provides smart incentives to export-oriented

investors and aftercare; the Investment Promotion Centre (IPC) encourages all other investment in Kenya

including Manufacturing under Bond (MUB) program; the Tax Remission for Export Office (TREO) program

facilitates intermittent imports for export production. Kenya’s membership in regional trading bodies for

instance the African Union and the East African Community provides potential investors with a large

prospective market for their products.

Other than these facilities, Kenya offers several other opportunities that encourage investors. Some of

these are:

Pre-cooling and cold storage amenities, which help exporters to maintain the high standard of their

products, as per market requirements

The use of sea freight for exports calls for additional investment in refrigeration facilities

Modern farm input materials and technologies requires investments and development

Opportunities in the processing of frozen and canned vegetables

Investment in high quality packaging materials for horticultural products

Opportunities in seed production and plant propagation

Prospects in banana and pineapple plantation

Investment in fruit processing, particularly mango and passion fruit


The total production of Kenyan food processing industry accounted for USD 3,461 million in 2011. Key

segments of this industry were bakery, dairy, grain milling, sugar confectionery, soft drinks and carbonated



waters, edible oils and fats. In Kenya, there were 1,070 registered foods processing companies in 2011

among which mostly are small companies.



3.4.5 Key Players

Woni Veg-Fru Exporters

Financials - NA

Snapshot




CEO/MD/Chairman: NA

Listing: NA

Address: 6th Floor, Kenya Commercial Bank

Building, Enterprise Road, Industrial Area,

P.O. Box - 52115 – 00200, Nairobi, Kenya

Branches: NA

Employees: NA

Background

This company was established in 1987. It is an exporter

of fruits and vegetables to Africa, Western Europe and

the Middle East.

Products/Services

Beans

Peas

Baby Products

Fruits

Exotic Vegetables



Greenlands Agro Producers Ltd

Financials - NA

Snapshot




CEO/MD/Chairman: Eng. W. Murungi

Listing: NA

Address: 6th Floor, Greenlands Complex,

Jkia Cargo Village, P.O.Box - 78025-00507,

Nairobi , Kenya

Branches: NA

Employees: NA

Background

Greenlands Agro Producers Limited was established in

1987. This company is a processor and exporter of

horticulture products.

Products/Services

Baby Brassicas

Baby Carrots

Baby Corns

French Beans

Passion Fruit

Runner Beans

Snow Peas

Sugar Snaps



3.5 Iran

In 2010, the total amount of land available in Iran

was 162.2 million hectares, of which

approximately 19 million hectares was used for

horticulture. This represents 12 percent of the

country’s total land area. Iran produced 1,856,600

MT of vegetables in 2010 and 2,169,400 MT of

fruit. According to the Food and Horticulture

Organization, the country ranks amongst the top-

seven countries in producing 22 vital agricultural

products. It is the largest producer of saffron,

accounting for 93.7 percent of the world's total

production.

Land available for natural flora in Iran is four times that of Europe. In addition, wide variation in

temperature across different parts of the country and a variety of climatic zones gives it the added

advantage of nurturing assorted fruits (figs, pomegranates, dates, melons and grapes), vegetables, saffron

and medicinal herbs. The country grows more than 2,000 plant species, of which nearly 100 are used

in pharmaceutical industries. The amount of domestic fruit consumption was around 173 kg per head and

vegetable consumption 186 kg per head, in 2010.

3.5.1 Main Horticulture Products of Iran

In flower segment, Iran produces gladiola, rose, chrysanthemum, carnation, lilies, strelitzia, gerbera,

anthurium, eustoma and alstroemeria. In the vegetable segment, the primary products are leaf vegetables,

tomatoes, onions, cucumbers; in the fruit segment, it produces grape, dátiles, citrus fruit, apples, pears,

melon, watermelon, fruit of bone, and nuts such as walnuts, pistachio and hazelnuts.


Iran was ranked tenth in the export of fruits and sixteenth in the export of vegetables in the world, in 2010.

Its fruit export was valued at USD 2.3 billion and vegetables at USD 724 million. The country’s chief export

destinations are Iraq, Germany, Russia, the UAE and others. It exports saffron to 46 countries including

Table 12

Iran’s Fruit and Vegetable Production – 2010 (MT)

Fruits Vegetables

2010 2,169,400 1,856,600

2009 1,811,980 1,800,400

2008 1,661,540 1,577,720

2007 1,431,290 1,887,430

2006 1,505,180 1,750,000

Source: FAO and Gyan Research and Analytics



European and Persian Gulf countries. Iran exported about 68 tonnes of saffron in the first three quarters of

2010.

On the import side, fruits worth USD 571 million and vegetables amounting to USD 107 million were

imported, in 2010.


Poor investment in the agriculture sector in general

Acute climatic conditions and harsh weather affects the horticulture industry. The country faces

extremely high and equally low temperatures, extended freezing periods and long hot summers

Insufficient water distribution, as irrigation facilities are too weak to support horticulture

Inadequate irrigation system, which suffers from technical and design related problems, poor

construction applications, improper operation and maintenance

Lack of drainage infrastructure

Soil erosion, which results in washing away essential nutrients from the soil, negatively impacts the

growth of horticulture products

Lack of packaging facility hampers the export of the produce

Poor cultivation methods, due to lack of awareness

3.5.4 Opportunities in Iran’s Horticulture

The Government of Iran’s energetic support of the horticulture industry for the last 10 years has

expanded horticultural production by 8 percent per annum. In early 2000, the government launched

its initiative by reducing restrictions on the import of equipment and materials necessary for horticultural

production, such as greenhouses and fertilizers. This kick started the era of development in horticulture.

Today, Iran has raised its production to a level from where export is possible. The nation was ranked tenth

in fruit export and sixteenth in vegetable export globally, in 2010. The government is also actively

promoting the floriculture industry of the country by organizing seminars and workshops. This has resulted

in increasing flower production and has facilitated the export of flowers, which was reported at USD 5.4

million in 2010.

Despite the increase in export, according to the International Trade Centre, the discrepancy of export of

horticulture products in Iran is high. This discrepancy occurs due to a lack of investment in horticulture



production infrastructure. In Iran, farming techniques are obsolete. They lack the involvement of new

technologies due inadequate investment. The situation is expected to improve through investment in the

fundamental structure of production. In this regard, monetary and financial institutions, including banks,

can provide support by investing.



3.5.5 Key Players

Fateh Industrial Group

Financials - NA

Snapshot




CEO/MD/Chairman: NA

Listing: NA

Address: Tabriz- Iran

Tabriz 51575-5319

Branches: NA

Employees: NA

Background

Fateh Industrial Group was established in 1983. It is a

manufacturer and supplier of machinery required for

food processing.

Products/Services

This company produces and exports machinery to manufacturers of confectionery (cacao chocolate, candy,

toffee, wafer, biscuit, cake and marshmallow), salty snacks (all kinds of puffs) and chips (potato, corn). It

makes automatic, semi-automatic and fully-automatic machines for puff chips, slice chips, French fries and

mashed potato.



Green Goods Co.

Financials – NA

Snapshot




CEO/MD/Chairman: Ms. N Malekpouri

Listing: NA

Address: Unit 1, No.46, 5th Tohid, Golha

St, Darya St, Saadat Abad, Tehran, Iran.

Branches: NA

Employees: NA

Background

This company is an exporter of different kinds of food

stuffs, dried fruits and nuts, dried herbs and vegetables,

infusion and healthy plant, extract oils and powders,

aroma water (plant water).

Products/Services

Juices & concentrates

Date fruit and products

Pistachios & other nuts

Raisins

Dried fruits

Fresh fruits

Dried herbs

Plant extracts

Saffron and saffron tea

Infusion and herbal teas



3.6 Indonesia

With on an output of 1,204,000 MT of fruit, Indonesia

was ranked seventh in world for fruit production in

2010. The country also produced 618,500 MT

vegetables during the year. However, fruit production

in 2010 registered a drop in from 2009, primarily due

to the volcanic eruption of Mount Merapi which

significantly crippled production.

Another factor responsible for the decline in the

production of fruit in Indonesia in 2010 was climate

change. This country was the third largest emitter of

greenhouse gases in 2010. Climate change affected

not only the country’s environment, but it also

impacted its people and its agricultural production greatly. In 2010, the World Bank stated that

deforestation, forest fires and degradation of soil had placed Indonesia as the world’s third largest emitter

of greenhouse gases.

3.6.1 Main Horticulture Produce in Indonesia

Indonesia is renowned for its fruits. The country’s main horticultural products are star fruit, pomegranate,

sapodilla, mangosteen, jambu air, rambutan and dukuh, pineapple, snake fruit, soursop, jackfruit, thorny

fruit, citrus varieties, avocado, apple, and mango.

Table 13

Vegetable and Fruit Production in Indonesia -

2010 (MT)

Vegetable Fruit

2010 1,204,000 618,500

2009 1,400,000 615,000

2008 1,350,000 NA

2007 1,330,410 NA





Table 14

Market Size of Indonesia’s Processed Food with Sub-categories (in USD million) (2008-2011)

2008 2009 2010 2011

Total Packaged Food 1,1929.3 1,3854 1,5410.1 1,8714.5

Sugar confectionery 593.8 662.4 727.2 865.2

Baked goods 1,157.8 1,290.5 1,411.1 1,648.9

Breakfast cereals 30.2 34.8 38.8 47.5

Ice cream 225.2 262.3 289.1 343.6

Drinking milk products 694.6 774.5 885.4 1,105.9

Cheese 46.1 48 52.7 60.7

Yogurt & sour milk drinks 145 176.1 205.7 266.4

Other dairy products 358.3 404.9 455.9 548.1

Sweet & savoury snacks 716.3 791.8 869.7 1,028.9

Snack bars 0.8 3.2 3.5 4.2

Meal replacement products 15.1 18.2 21.6 29.4

Ready-meals 3.6 3.9 4.5 5.7

Soup 2.4 2.7 3.1 3.9

Frozen processed food 241.9 298.2 341.9 441.4

Rice 2,459.5 3,000.6 3,450.7 4,413.7

Dessert mixes 73.9 82.8 89.4 104.4

Chilled processed foods 57.5 66.6 70.6 81.6

Chilled processed meats 54.9 63.6 67.4 77.9

Olive oil 14.2 16.1 17.6 20.3

Vegetable & seed oil 456.3 609.1 578.7 619.9

Butter 17.7 18.9 19.9 21.5

Margarine 84.6 95.6 106.6 126.8

Spreadable oils & fats 124.9 147.4 160.6 187.5

Sauces & dressings 426.1 472.6 517.2 608.6

Baby food 1156 1364.4 1563.1 1936.5

Spreads 56.9 63.2 69.3 82.2

Source: Euromonitor International




Indonesia exported USD 297 million worth of fruits and USD 90 million worth of vegetables in 2010. The

amount of fruit export accounted for 0.2 percent of the country’s total export. For the year, import of fruits

was valued at USD 655 million. Thus, net trade in fruit in 2010 was valued in negative axis (USD -357

million). Vegetables amounting to USD 431 million were also imported during the year.


The Indonesian horticulture industry suffers from a few setbacks, such as:

Drastic climate change, which negatively affects the growth of the produce

There is significant discrepancy in the land ownership structure and control of horticultural production

The absence of diversification in horticultural products limits catering to international standards and

exports

Ineffective irrigation system results in degradation of soil in the irrigated areas, groundwater

reduction, water pollution and degradation of water-related ecosystems

Paucity of initiatives towards high value production has restricted diversification to a few regions and

a few commodities

Lack of research and development activity not only hampers increase in productivity but also farmers’

gains

Inadequate institutional systems, methods, technology and mechanisms curbs the dissemination of

technology among small scale producers

Deficit of skilled labor for efficient growth and handling of the produce is yet another constraint

Inadequate infrastructure facility and poor transportation, particularly in the rural areas, affects

distribution

Lack of proper maintenance and government support

3.6.5 Opportunities in Indonesia’s Horticulture

Indonesia has advantageous conditions for horticulture production such as a conducive agro environment,

and easy and cost effective labor force, which lowers production costs as compared to Europe. This can

pave the path to remarkable development in Indonesia’s horticulture industry.



In Indonesia, opportunities for investment are plentiful in seeds, joint marketing, capacity building,

research and development (plant breeding, biotechnology and seed technology), production management,

cold storage chains or warehouses, packaging, education, and extension services for horticulture

production.

3.7 Myanmar

Myanmar was the fifth largest producer of fruits

and the sixth largest producer of vegetables in the

world in 2010. The country grew 3,719,300 MT of

vegetables and 1,350,000 MT of fruits during the

year, reflecting an increase of 65,960 MT and

82,050 MT, respectively, over 2009. Vegetable

production in Myanmar has been growing at CAGR

of 4 percent in period 2006-2010, while fruit

production has been increasing at a CAGR of 3

percent for the same period.


Myanmar exported vegetables valued at USD 720,783 in 2010, which amounted to 12 percent of the

country’s total exports and 1.3 percent of the world’s vegetable export for the year. In the fruit segment, it

exported fruits worth USD 55,543 thousand, which comprised 1 percent share of the country’s total export

and 0.07 percent of the world’s fruit export in 2010. On the import side, Myanmar reported imports of USD

13,216 of fruits and USD 2,255 of vegetables during the year.


Among the many challenges plaguing the horticulture industry in Myanmar, the following are the most

significant:

Absence of availability of credit for farmers, which pushes them into high levels of debt

Lack of awareness about the availability and advantages of the use of proper fertilizers

Table 15

Vegetable and Fruit Production in Myanmar – 2010 (MT)

Vegetables Fruits

2010 3,719,300 1,350,000

2009 3,653,340 1,267,950

2008 3,589,100 1,240,280

2007 3,200,000 1,250,000

2006 3,150,000 1,200,000




Seeds are not of the preferred quality. Most farmers use seeds which are saved from the previous

harvest. These are largely in mixed varieties that are not efficient and lack disease resistance

Lack of sufficient water supply, because of which farmers mostly depend on rain water; irrigation

facilities are woefully inadequate

Absence of modern technology affects productivity. In some areas, planting and farm production is

delayed due the use of draft animal traction. In these areas there are no tractors or modern tools

of agriculture

Improper infrastructure results in delays in reaching the market and causes wastage of products

3.7.3 Opportunities in Myanmar Horticulture

Myanmar is gifted with abundant natural resources. The country has a dynamic land and water resources

management system, which helps to achieve substantial horticulture-led growth that benefits the

economy as a whole. In addition, it has the advantage of strong export markets. Therefore, growth of

Myanmar’s horticulture industry has exciting prospects over the long term.

Despite the huge potential, Myanmar’s horticulture industry has not been able to increase its production

beyond a certain level. Given the agro-ecological and seasonal diversity in the country, a wide range of

horticultural crops can be grown. But the amount of production is far behind its neighboring countries. For

instance, Thailand has developed a very important export business through high value horticulture which is

missing in Myanmar. This is largely due to the absence of adequate technology, infrastructure facilities,

cold storage chains, poor air cargo facilities and unreliable power supply. Most importantly, the country

has not received any major investment for nearly one and a half decades. Thus, there is a serious

investment gap in Myanmar’s economy.

On the other side, this also presents great possibilities for private enterprises and financial institutions

to invest in Myanmar’s horticulture industry and infrastructure. With proper investment and

infrastructure implementation, not only is the growth of the industry possible, but also export

procedures can be initialized.



3.8 Nigeria

The horticulture industry of Nigeria is hugely dependant on rain fall. The country’s climate is mainly

tropical. The southern region experiences high humidity, while the northern region has high temperatures

and extreme heat.

In Nigeria, rainfall ranges from 2,000-3,500 mm per

annum. Rainfall in the country’s sub-humid region

varies between 1,000 mm and 2,000 mm, and in

the semi-arid regions, it ranges between 500 mm

and 1,200 mm.

According to FAO classification, Nigeria’s soils do

not fall in the high productivity category. Only 6

percent of the soil has high-quality productivity, 46

percent is rated as medium and the remaining 48

percent has low productivity. Thanks to modern

technology, which improves the fertility of soils,

and advanced cropping system Nigeria has become a significant contributor to the world horticulture

industry.

Nigeria was the fourth largest producer of vegetables and the sixth largest producer of fruits in the world in

2010. The country’s horticulture industry is dominated by small scale farmers who produce more than 90

percent of the domestic food requirement.


The horticulture industry in Nigeria also faces its fair share of challenges. Some of the significant issues are:

Vegetable production is rapidly decreasing due to scarcity of water supply

Current irrigation methods accrue high labor costs as well as consume large amounts of water

which makes it almost off limits

Horticultural production in Nigeria goes through phases when sufficient amounts of good quality

planting materials are not available

Table 16

Fruit and Vegetable Production in Nigeria-2010 (MT)

Year Fruit Vegetable

2010 1,212,000 5,945,600

2009 1,082,040 4,536,380

2008 976,000 5,705,000

2007 1,084,000 4,861,720

2006 1,200,000 5,651,000

Source: FAO



The industry is plagued by pests and diseases. Most vegetables are affected by a variety of diseases

including those which are caused by viruses and fungi, such as choanephora, cucurbitarium and

cercospora

3.8.2 Opportunities in Nigerian Horticulture

Nigeria enjoys highly diversified agro ecological conditions, which makes the production of a wide range of

horticultural products possible. In this country, horticulture constitutes one of the most important sectors

of the economy. Its significance lies in terms of the employment opportunities it creates, its role in the

country’s Gross Domestic Product (GDP) and export revenue earnings.

Despite Nigeria’s affluent agricultural resources, the country’s horticulture industry has been growing at a

very low rate. Farmers use outmoded production techniques leading to low profits. Investment in the

sector is the need of the hour, in order to revive and expand the industry significantly. Financial

institutions, agricultural equipment manufacturers, logistics, cold chain and warehousing companies,

transport companies, research and development organizations for horticultural crops, would benefit

greatly by investing in Nigeria’s horticultural industry.



3.8.3 Key Players

Plantaero

Financials - NA

Snapshot




CEO/MD/Chairman: NA

Listing: NA

Address: 249/250, Ikorodu Road

Anthony, Lagos

Branches: NA

Employees: NA

Background

They are the suppliers of household plants with

benefits of keeping the air clean and free from

pollution

Products/Services

Areca Palm

Peace lilly

Ficus

Dumbcane/Leopard Lily

Mums

P cordatum

Mauna Loa/Spath/Peace Lily

Spider Plants

Aloe vera

Marginata - Dracaena Marginata

Lady palm

Bamboo palm

Rubber plant

English ivy

Date palm tree

Boston fern



E.L.O Ngodo Enterprises Limited

Financials – NA

Snapshot

Legal status: Private Limited



CEO/MD/Chairman: Mrs. E.N Ngodo

Listing: NA

Address: N0/38, Ebenzer Akintunji Avenue,

Off Association Avenue, Ikotun, Lagos

Branches: NA

Employees: NA

Background

E.L.O Ngodo Enterprises Limited was established

in 1989. The company offers several products

including packaged tubers, legumes, sesame

seeds, grains and many others.

Products/Services

Crude palm oil, sugar, corn, crude palm oil, palmolein, agriculture & by-product agents, food stuffs,

sugar icumsa 45, tropical fruits, herbs, animal feeds, RBD palmolein, banana powder, banana meal,

banana flour, feed additives, feedbinders, wheat & rice bran. It also produces organic fertilizers,

cement, steel, palm biodiesel fuel and deals in commodities and property.



3.9 The Netherlands

The Netherlands possesses 41.258 square kilometers of area, of which 10.311 ha of land was used for

horticulture production in greenhouses in 2010. This included 5.041 ha under vegetable cultivation and

5.270 ha under cut flowers, potted plants and bedding plants. Additionally, 139.057 ha were used for open

air horticultural production comprising 23.242 ha of flower bulbs production, 20.727 ha of ornamental

trees and plants production, 22.759 ha of fruit, 72.309 ha of vegetables, and 74 ha of mushrooms

production.

In 2010, the Netherlands’ horticulture industry accounted a valuation at USD 9.9 billion. The Netherlands

ranked first in the export of flowers, second in the export of vegetables and fourth in the export of fruit

worldwide.


On the export side, the country exported USD 8 billion worth of flowers in 2010, mainly to Germany, the

UK, France, Italy, and Belgium, among others. It also exported vegetables worth USD 6 billion to Germany,

the UK, Belgium, France, and Russia. In the fruit segment, the Netherlands exported fruits worth USD 3

billion to France, Germany, the UK, Belgium and Sweden. Among these countries, Germany was the largest

importer of fruits from the Netherlands.

The country also imported horticultural products in 2010. Fruit imports amounted to USD 4 billion and

fruits were purchased from South Africa, Spain, Chile, Belgium and Brazil. Thus, in 2010, the Netherlands’

net trade in fruits was in negative axis (-USD 681,055 thousand). The country’s vegetables import stood at

USD 2 billion with procurements from Spain, Germany, France, and Israel. Flower imports came in at USD 1

billion and net trade in flower for the year was pegged at USD 6 billion.


The challenges faced by the horticulture industry in the Netherlands include:

Degradation of soil and water quality

Acidification of soil due to huge amounts of pesticides used

Loss of biodiversity

Climate change

Fragmentation and isolation of land



3.9.3 Opportunities in the Netherlands’ Horticulture

The Netherlands’ location along the North Sea, in the delta of a number of important European rivers, has

always been advantageous for transport and trade to and from the neighboring European countries. The

country’s climate, with a fair rainfall distribution, and relatively productive soils favor a wide range of

horticulture products. In addition, government policy strongly encourages the competitive horticulture

industry, through a robust agricultural research and education system, innovative supply and processing

industries, accessibility of low-cost natural gas to support greenhouse horticulture and floriculture, and

production of inexpensive fertilizers.

Despite these advantages, the horticulture industry in the country has been suffering for the last few years.

This is due to soil degradation and soil acidification. In this situation, there is an urgent need to invest in

developing an effective irrigation facility, seed technology, manure industry and post-harvest handling.

Investment to implement improved technology and to provide related education to horticultural farmers

would go a long way in supporting the industry.

3.10 Bangladesh

In 2010, Bangladesh was ranked fifteenth in

vegetable production, which stood at 1,391,400

MT, and twelfth in fruit production, reported at

490,000 MT. Fruit production in Bangladesh has

been growing at a CAGR of 10 percent and

vegetable production at a CAGR of 7 percent in

the period 2006-2010.

For the year, Bangladesh exported vegetables

valued at USD 21 thousand and fruit valued at

USD 23 thousand.

3.10.1 Major Horticulture Crops

Some of the primary horticulture crops of Bangladesh include fruits such as sapodilla, carambola, lime,

lemon banana, papaya, mango, and lychee. The country’s major vegetables are gourds (ash, snake and

Table 17

Vegetable and Fruit Production in Bangladesh-

2010 (MT)

Fruits Vegetables

2010 490,000 1,391,400

2009 450,000 1,265,000

2008 442,714 1,210,000

2007 409,213 1,096,000

2006 339,340 1,056,000




ridge, teasle, pointed, bottle & bitter) cabbage, cauliflower, egg plant, tomato, capsicum, chilli, okra, yard

long bean, potato, sweet corn, betel leaves, chewing cane, lemon grass, fine bean, turmeric, ginger, and

garlic. Its chief floriculture crops are orchids, dendrobium, moccara, tuberose, gladioli, and heliconia.


The issues that are restricting the growth of the horticulture industry in Bangladesh are as follows:

No effective post-harvest management to protect the produce and reduce waste

Unfavorable climatic conditions, which are subject to frequent cyclones and flooding

The production season is short and is dominated by summer monsoons; very high temperatures in

the pre-monsoon season are also a severe setback

Deficiency of cold storage facilities and refrigerated cold chain distribution chains

A complex distribution system that connects more than four intermediaries from farm to terminal

market leading to absence of any form of traceability from field to market

Poor execution of international standard processes such as GAP, HACCP and Phyto-sanitary

certification

Inadequate private sector investment in wholesaling, distribution, logistics and retailing

3.10.3 Opportunities in Bangladesh’s Horticultural Industry

Bangladesh is encircled by emerging markets like India, China and other Asian countries. It is also in a

favorable agro-climatic zone, which is perfect for producing many kinds of horticulture and agro-products.

Further, the country has cheap and easily accessible labor, which makes production cost effective. Finally,

other factors like shifting domestic demand from food grains to high-value horticultural products, including

fruits and vegetables, promise huge prospects for agro-based industries.

Development in infrastructure and post-harvest technology are urgent requirements in Bangladesh. To

fulfill the need, huge investments in research and development activities are needed to boost production

as well as export of horticulture products. Any development in cold chain or warehousing facilities, and

refrigerated transport would positively impact product quality and reduce post-harvest losses. These

infrastructure developments would help in extending the shelf-life of products and create incremental

income for facility owners.



Bangladesh has been exporting high-value products such as fruits, vegetables, and processed foods, as

there is huge demand for such items among non-resident Bangladeshis as well as foreigners. Its emerging

agri-business invites more investors. The country’s emerging new age group of educated people is

expected to make a difference by engaging in agro-based industry. Significantly, corporate multinationals

can play an essential role in securing agricultural sustainability. Above all, investment in the horticulture

industry and its allied sectors in Bangladesh can in turn improve the living standard of farmers and other

sections of people associated with it.



3.10.4 Key Players

Khamar Agro Tech (KAT)

Financials – NA

Snapshot




CEO/MD/Chairman: NA

Listing: NA

Address: Khamar Agro Tech, Shanti Kunja

House No.-3, CERDI Road, Joydevpur, Gazipur

Branches: NA

Employees: NA

Background

KAT seed was established in 2008. The

company is engaged in the production,

marketing, import and export of seeds.

Products/Services

Bottle Gourd

Hybrid Bottle Gourd

Hybrid Cucumber

Hybrid Cucumber (Caddie)

Hybrid Cucumber (Omi)



Seed Bangla Agro Ltd

Financials - NA

Snapshot




CEO/MD/Chairman: NA

Listing: NA

Address: Sha-45/ka, Shajahan Villa, North

Badda, Dhaka-1212, Bangladesh.

Branches: NA

Employees: NA

Background

Seed Bangla Agro Ltd. was established in 2008. It is an

agro based company that offers a range of organic

seed system, organic fertilizer system, organic

pesticides system and organic packing system.

Products/Services

Organic Fertilizers Organic Fertilizers for Vegetable Organic Fertilizers for Rice, Wheat, Corn, etc.

Organic Pesticides Organic Seeds

Pepper

Egg Plant

Tomato

Cauliflower

Cabbage

Kohlrabi

Radish

Bitter Gourd

Cucumber

Luffa

Ridge Gourd

Okra

Watermelon

Onion

Coriander

Amaranth

Rice

Pumpkin

Wax Gourd



4. Industry Overview

4.1. Growth Drivers

Economic and per-capita income growth - According to the Food and Agricultural Organization of

the United Nations (FAO), economic growth and rising incomes in Asia have fuelled demand for

food, particularly in low income groups. This is the reason which is driving the per-capita demand

for better quality food and food safety

The shift of population in the Asian region in recent decades from rural to urban centers that offer

higher wages and increased employment opportunities is significant. Although the levels of

urbanization vary considerably between countries, the net effect has been a growth in disposable

incomes which has translated into increased demand for food with better quality and greater

variety. This demand has given rise to the development of modern food retailing and food service

formats in larger cities

Modern life style is stressful, leading to lifestyle related habits which harm the human body and

decrease its performance. This situation is generating attention towards the benefits of fruits and

vegetables. The food value of fruits and vegetables in terms of vitamins and minerals boost the

nervous system, metabolism and muscles, while conferring energy.

4.2. Critical Success Factors

Each horticultural product has its own requirements in terms of climate, soils, altitude, day-length,

and such like. To meet these specifications it is preferable to have the right natural growing

conditions. If the natural conditions are not perfect, then it is necessary for a country to have the

ability to control them by taking necessary steps like growing under shade, in green houses, with

irrigation facility and many others

Because of the perishable nature of horticultural products, a fast transport link is very important. A

cost-effective and efficient transport system and cold storage chains are fundamental necessities

to reduce logistical cost

Airfreight costs vary significantly between countries. In the case of perishable products, time is of

utmost importance. Thus, horticulture products with longer shelf life are able to generate better

revenues



As in the case of all modern consumer goods industries, marketing of horticulture products is of

primary consequence. It is important to develop marketing strategies that will minimize the cost

and increase profit margins by adding value. The marketing of fresh produce in itself is a specialist

area, precisely because it is fresh and cannot be stored beyond a few days

Growing, processing and packaging of fresh produce is normally both technically demanding and

highly labor intensive. There is an increasing need to train the labor by maintaining relatively low

costs, to keep a competitive advantage over production and processing

Good quality products require intensive pest and disease control with hazardous agro-chemicals,

which if used irresponsibly are harmful to workers as well as potential consumers



5. SWOT Analysis

Table 18

Chart 9

• Opportunities for new companies to join

• Many developing countries are entering into this industry

• Good industry statistics available on production and distribution

• Increase in consumption increases the production size

Strengths

• Limited market diversity in some countries

• There are some countries where production cost is relatively high and yield per hectare is low

• Slow uptake on best practices like moisture moinitoring, canopy management, green house maintenance

• In some countries small production base is limiting market capture

Weakness

• There are many underdeveloped markets available like Singapore, Hongkong, Thailand, Dubai, among others

• An increasingly health conscious market place coupled with many recognized health benefits of horticultural products

• New, improved varieties and root stocks are becoming available from international breeding and evaluation for low producing countries

• Product tranformation options are now available

Opportunities

• Climate change issues rae reducing fruit production, therefore yield and profitability

• Increasing competition for land and water is limiting growth

• Significant pest incursions are reducing the profitability

• Absence of proper infratrusture is hampering the market and worsening the products

Threats



6. Global Issues & Challenges

Despite the vital role that horticulture plays in modern communities, global horticulture is going

through some very significant challenges. These are adversely impacting both the production of

horticultural crops and its research and development.

Current global economic conditions

The overall meltdown in the globally economy over the past decade has lowered the income levels

of consumers in many countries. As a result, the consumption of fresh fruit and vegetables has

been static or declining. This has impacted the rate of growth in exports from some countries.

Growth in supermarkets

The global supply chain of horticultural crops has altered rapidly over the past two or three

decades. Supermarkets have speedily shifted to smaller marketers as the main channel for year-

round supply of fruit, vegetables and cut-flowers. Consequently, purchasing power has become

consolidated in fewer retailers with considerable cost to both primary producers and to buyers

Changes in demographics

In Asia and Europe severe population ageing is expected to occur in the near future. In the next

twenty years, many countries in these regions will face a situation where the largest population

will be over 65 years of age and the average age will be around 50. These shifts will have a huge

impact on the spending pattern of consumers

Urbanization

Worldwide, an increasing proportion of the population is living in urban areas, where the interest

and knowledge of food production is scarce. Urbanization is also significantly affecting the

availability of labor for farming. The loss of productive soils through urban encroachment is also

posing a problem now a day.



Growth in the scale of new producers

Global unavailability of low-cost labor and the increasing cost of land has resulted in the decline of

horticultural production in many developed nations. Accordingly, production has been transferred

to the nations where land and labor allow cost-competitiveness

Priorities for research on horticultural crops

There are many priorities that for horticultural research which are influenced by country, region

and circumstance. However, the basic need for research on horticultural crops is facing challenges.

With increase in the current consumer demands for affordability, safety and continuity of supply,

has come the need to achieve sustainable practices and deal with challenges arising from a more

variable climate.

Year-round supply

High costs of energy for transport and for storage, changes in consumer preferences and in

consumer concerns (such as expressed through schemes like computed carbon footprints),

increasingly mean that these options may no longer be viable for some markets. A further option,

particularly in tropical and sub-tropical countries, where many products currently have a gross

over-supply during a very concentrated production season, is to extend the production season and

hence the period available for marketing the particular crop. The use of photo-period extension for

changing the flowering and therefore the production period for dragon fruit, or the use of special

fertilizers for shifting the flowering time, are two effective and proven approaches that can be used

in this regard. Temperate crops can also be developed for extended production seasons.

Climate change

In the case of outdoor horticulture, climate change directly impacts the growth of the horticultural

produce.



7. Outlook

Globalization, trade liberalization and transformation in consumer demand are generating new market

opportunities for players in the horticulture industry. This has thrown up a wide range of economic

prospects for the industry in the tropical and sub-tropical zones. A case in point is that many farmers who

are involved in the production of cereals are changing a portion of their production into high value

horticultural crops.

Horticulture provides a new and profitable medium of income for farmers. Farmers engaged in the

production of fruits and vegetables earn higher revenues than those engaged in cereal production only. For

instance, in India, a farmer who produces fruits and vegetables earns five to eight times more than a cereal

producer. In Kenya, the export of fruits, vegetables and flowers has given farmers six to twenty times more

profit than others. Since horticultural crops are well suited for small holdings and family enterprises, these

crops are particularly well suited for small-scale farming.

Over two billion people in the world, primarily women and children, have micronutrient deficiencies in

their diets. Vitamin A deficiency (VAD) alone compromises the resistance system of nearly 40 percent

children in the developing countries. VAD causes higher rates of anemia and morbidity from common

childhood infections like diarrheal and respiratory diseases, malaria and measles. Horticulture produce

plays a vital role in solving this global crisis. Vegetables and fruits are the most affordable sources of

micronutrients in diets. As per the data of the World Vegetable Center, Sub-Saharan and South Asian

countries consume one-fourth the amount of vegetables in comparison with developed countries. Food

and Agricultural Organization (FAO) data states that the diet of residents of Sub-Saharan Africa consists of

less than 20 percent fruits and vegetables and 80 percent cereals and starchy roots. Global production

rates of vegetables and fruits cannot fulfill the consumer demand. This demand-supply gap raises the price

of the products, making them too expensive for the poor. Consequently, the consumption of fruits and

vegetables has declined in the least developed countries. These facts should fuel production and

postharvest horticultural support developments.

According to the Agricultural Market Information Service, global fruit and vegetable production is expected

to increase in the next five years at a considerably stronger rate. Expected revenue generation will increase

by an average annual rate of 3.7 percent over the five years through 2016, to USD 190 billion.



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