International Table Grape Symposium November 2014 Australian Table Grapes Jeff Scott Chief Executive Officer

International Table Grape Symposium November 2014 Australian Table Grapes Jeff Scott Chief Executive Officer

Australian Table Grape Industry - Snapshot There are approximately 900 table grape growers throughout Australia Growers are predominately family owned, 2 nd generation farmers In recent times there has been consolidation of the industry of the industry The average grower has a 20 ha property There are very few large farms of 100 Ha or more Due to the domestic supply experiences in recent years growers are now very much export focused There has been some significant gains in market access in the last three years. 2

National production SE Queensland, Emerald, St George and Mundubbera production fills east coast early domestic trade Nov Dec Western Australia produces around 5,000 tonnes for WA market Small though successful crops in Central Australia, Bourke and Menindee in NSW 75% of of National Production is in Victoria s Sunraysia and supplies 99% of exported grapes Jan - June

Main grape varieties Australian Table Grapes - Varieties & Seasonality Variety Nov Dec Green Grapes Seedless Menindee Seedless Thompson Seedless Seeded Calmeria O'Hanez Red Grapes Seedless Crimpson Seedless Flame Seedless Ralli Seedless Seeded Red Globe Blue/Black Grapes Seeded & Seedless Autumn Royal Midnight Beauty Jan Feb Mar Apr May Queensland regions and Carnarvon in Western Australia commence harvest mid November The southern regions of Victoria and Western Australia commence harvest in January through to June

Number of properties Change in property numbers and size for table grape growers from 1997 to 2014 in Sunraysia 700 600 500 400 300 200 100 0 Property size (table grape area) 1 to 5 ha 5 to 10 ha 10 to 20 ha 20 to 40 ha 40 to 100 ha 100 to 500 ha Total properties Average size (ha) 1997 2003 2006 2009 2014 75 205 205 94 210 227 86 174 204 69 146 151 94 120 103 94 111 118 111 86 100 to 500 ha 50 to 100 ha 20 to 50 ha 10 to 20 ha 5 to 10 ha 1 to 5 ha 1997 2003 2006 2009 2014 % of 2014 total 94 111 118 111 86 19% 205 227 204 151 103 23% 205 210 174 146 120 27% 75 94 86 69 94 21% 8 12 18 20 28 6% 3 13 13 14 10 2% 590 667 615 513 443 100% 13.6 17.1 18.3 19.6 23.2 Change 1997-2014 - 8-102 - 85 + 1 9 + 2 0 + 9-147 There has been a consolidation of growers within the industry in the last 5 years 30% of properties are over 20 hectares and grow 73% of the grape plantings The average size of the properties has increased from 13.6 ha to 23.2 Ha

Change 7. Table in grape table industry plantings grape analysis plantings 1997 to 2014 9 9, 0 0 0 8,000 7,000 6,000 1997 2003 2006 2009 2014 White non-bearing There has been a considerable increase in red varieties planted going from 25% of plantings in 1997 to 57% of 2014 plantings H E C T A R E S 5,000 4,000 3,000 2,000 White bearing Red Non-bearing Red bearing Black non-bearing The proportion of black table grape plantings increased from 2% of 1997 plantings to 8% of 2014 plantings. 1,000 0 Black bearing White table grape declined from 73% of 1997 plantings to just 36% of 2014 plantings

Summary of bearing and non-bearing table grape plantings (hectares) 1997-2014 Table grapes 1997 2003 2006 2009 2014 % of 2014 total Change 1997-2014 Black non-bearing 16 18 292 206 102 1% +86 Black bearing 80 73 73 342 568 6% +488 Red non-bearing 408 1,099 755 709 1,123 13% +715 Red bearing 991 1,728 2,569 2,744 3,835 44% +2,844 White non-bearing 486 728 528 180 445 5% -41 White bearing 3,558 4,038 3,823 3,139 2,682 31% -876 Total table grapes (ha) 5,540 7,685 8,040 7,320 8,755 100% +3,215 % Bearing 84% 76% 80% 85% 81% % Non-bearing 16% 24% 20% 15% 19% % Black grapes 2% 1% 5% 7% 8% % Red grapes 25% 37% 41% 47% 57% Red bearing and non bearing plantings have increased from 25% to 57% from 1,399 to 4,958 Ha White bearing and non bearing plantings have decreased from 73% to 35% from 4,044 to 3,127 Ha Black bearing and non bearing plantings have increased from 2% to 8% from 96 to 670 Ha % White grapes 73% 62% 54% 45% 36%

The Murray River provides the water to Australia s fruit bowl where over 75% of our fruit is grown.

Hectares Irrigation methods for table grape plantings Low level sprinklers remained the dominant irrigation method for table grape plantings from 1997 to 2014. 96% of plantings are irrigated with low level sprinklers or drippers. Change in irrigation methods for table grape plantings from 1997 to 2014 1997 2003 2006 2009 2014 9,000 8,000 7,000 6, 0 0 0 5,000 4,000 3,000 2,000 1,000 0 Drip Low level Overhead Furrow Irrigation method 1997 2003 2006 2009 2014 % of 2014 total Change (ha) 1997-2014 Drip 660 1,540 2,230 2,460 4,145 47% +3,485 Low level 2,170 3,960 4,230 4,110 4,325 49% +2,155 Overhead 980 1,090 860 565 225 3% -755 Furrow 1,730 1,095 720 185 60 1% -1,670 Total (ha) 5,540 7,685 8,040 7,320 8,755 100% +3,215

National production on the increase The industry produced almost 160,000 tonnes fresh table grapes in 2013/14* which was 29% more than 2012/13 Worth $300 million to Victoria *Based on levy data and industry estimates

Table Grapes Production, Export and Consumption 210,000 180,000. 150,000 83,504 52% 120,000 40,813 36% 72,409 61% 15,745 90,000 29,861 38% 10,743 60,000 30,000 6,351 47,839 62% 72,943 64% 14,568 46,672 39% 76,496 48% 0 2010/11 2011/12 2012/13 2013/14** 2013/14** - production and export figures are Production - export Import Export based on forecast

Table Grapes are Australia s largest fresh fruit export sector by value. In 2013/14 Australia exported 80,000 tonnes worth A$242 million, 36 per cent of Australian fresh fruit exports. Thailand Hong Kong China

2012/13 Export by State

Table Grape exports by month vs last year January to June combined is 10 per cent higher than last year s record trade with the trend slowed by a lower than anticipated June result.

EXPORTS BY COUNTRY Hong Kong and Vietnam drove growth with several other markets recording strong growth at smaller levels. Trade to China (direct) recommenced in April though only recorded 218 tonnes, while new access to Japan and South Korea achieved 235 tonnes and 6 tonnes resp. for initial trade.

PREVIOUS SEASON INDICATORS Exports have been increasing consistently over the past 4 years. Strong growth has been recorded in Hong Kong, Vietnam and Thailand together with several other markets at smaller levels.

LATEST ANNUAL SNAPSHOT Hong Kong leads with 35% share. Together with Indonesia and Vietnam these 3 markets account for 63 per cent of trade over 12 months.

Australia is still a small player in Asia though has capacity to expand market share - got to do it right quality commitment value long term view

Asian markets have increased imports of table grapes on average 14 per cent per year. Increasing by 14 per cent per year Thailand Hong Kong China

LONG TERM TREND ANALYSIS Australian Table Grape annual export trend over 5 years overall is up 27 per cent per year measured for the 12 months to June. New access markets for China, Japan and South Korea are included. share 5year p.a. Market Jul - June 10 Jul - June 11 Jul - June 12 Jul - June 13 Jul - June 14 2014 % to LY Trend Tonnes Tonnes Tonnes Tonnes Tonnes % Hong Kong 7,508 9,863 17,351 22,265 27,681 35% 24% 39% Indonesia 7,699 5,751 6,246 11,111 11,405 14% 3% 10% Vietnam 1,545 2,538 3,761 7,194 10,257 13% 43% 61% Singapore 2,488 2,414 3,382 4,444 6,134 8% 38% 25% New Zealand 1,483 654 1,721 5,626 5,638 7% 0% 40% United Arab Emirates 1,075 1,256 775 3,956 4,145 5% 5% 40% Thailand 3,592 2,760 2,730 5,156 3,912 5% -24% 2% Malaysia 2,261 1,452 2,059 4,311 3,403 4% -21% 11% Russia 699 665 619 1,404 1,256 2% -11% 16% Philippines - 1 17 99 1,033 1% 941% Bangladesh 387 603 254 451 922 1% 104% 24% Taiwan 150 403 187 166 902 1% 443% 56% India 245 293 253 427 719 1% 68% 31% Sri Lanka 448 587 495 682 650 1% -5% 10% Japan - - - - 235 0% China - 21 215 3,917 218 0% -94% Korea, South - - - - 6 0% all other 1,037 599 748 1,200 1,645 2% 37% 12% Total Exports (Tonnes) 30,615 29,861 40,813 72,409 80,160 100% 11% 27% Source: Australian Bureau of Statistics; Fresh Intelligence analysis This data is funded from project MT14006

Australia is Asia s closest southern supplier of table grapes

IMPORT INSIGHTS Imports have stabilised around 16,000 tonnes notwithstanding 2011 when Australia restricted access from United States due to pest concerns. The volume appears to have responded strongly to price signals in earlier periods.

Thank you

International Promotion

Bruce Miller Australian Ambassador Japan 26

Thank you