Fresh Fruit & Vegetable Export / Import Statistics 2016/17

Fresh Fruit & Vegetable Export / Import Statistics 2016/17 A statistics resource for fresh produce exporters and importers prepared for the Australian Horticultural Exporters Association by Fresh Intelligence Consulting

Introduction Welcome to the 2017 compilation of export and import trade data for the AHEA. With the dual focus on exports and imports we have compiled this report by country with combined two-way trade for exports and imports, where applicable, on each page. A three year 2-way trade graph is included in the markets where 2-way trade is significant. As in previous issues 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. There is a summary of total fruit and total vegetables by product and market. The total fresh fruit and vegetables exclude dried fruits and vegetables except in some cases where there is no distinction by the codes. Such volumes would make no material impact on the overall results. We trust that you will find these statistics a useful reference to benchmark individual business objectives and performance. 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 Global 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 2017 Fresh Intelligence Consulting 2

Table of Contents Introduction 2 Disclaimer 2 Fresh Fruit and Vegetable Summary 4 Exchange Rate 5 Fresh Fruit Exports & Imports 6 China 9 Hong Kong 10 Japan 11 Indonesia 11 India 12 South Korea 13 Malaysia 14 Philippines 14 Singapore 15 Taiwan 15 Thailand 16 Vietnam 16 United Arab Emirates 17 New Zealand 18 Europe 19 United States 20 Canada 21 Egypt 21 Fresh Vegetable Exports and Imports 22 Singapore 26 Indonesia 26 Japan 27 South Korea 27 Hong Kong 28 China 28 Malaysia 30 Thailand 30 Taiwan 31 United Arab Emirates 32 Saudi Arabia 32 Other Middle East 33 Europe 34 New Zealand 35 United States 36 Mexico 36 Peru 36 References 37 2017 Fresh Intelligence Consulting 3

Fresh Fruit and Vegetable Summary Fresh fruit and vegetable exports increased 3.4 per cent to $1.2 billion for the year ending June 2017. The combined results eclipsed last year s record to again record the highest trade for fresh fruit and vegetables by value. The major fruit lines, citrus and grapes, recorded increased values and were driven by strong growth in demand from China. A major set back for the cherry crop prevented the overall result from being even higher. 1,400 Fruit & Vegetable Export Values over 20 years 1.20 1,200 1.00 Million AUD per year Imports increased 18.9 per cent to $489m (shown as negative in graph below) to bring the total value of 2-way trade to $1.69 billion. The combined exports accounted for 71 per cent of the total 2-way trade down from 74 per cent last year as imports increased their share of the twoway trade. Million AUD per year 1,000 800 600 400 200-1996/97 1997/98 1,400.0 1,200.0 1,000.0 800.0 600.0 400.0 200.0 - -200.0-400.0-600.0 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2-way Trade Fresh Fruit and Vegetables 0.80 0.60 0.40 0.20 - AUD : USD Exchage Rate Exports Imports Fresh Vegetables Fresh Fruit USD: AUD Source: ABS (2017) via Trademap; Fresh Intelligence analysis 2017 Fresh Intelligence Consulting 4

Exchange Rate During 2016/17 the AUD:USD exchange rate depreciated 8 per cent from 77c to 71c by end December, then returned to 77c by end June and has nudged 80c in late July. AUD:USD exchange rate from 9 August 2016 to 9 August 2017. Source: www.xrates.com 2017 Fresh Intelligence Consulting 5

Fresh Fruit Exports & Imports By volume fresh fruit exports dipped 0.7 per cent to 391,040 tonnes in the year to June 2017 and the value lifted 2.2 per cent to $954 million. Table grapes staged a turnaround around after a very late start and managed to return almost to the previous year s result while citrus posted a 3 rd straight record year. Cherries impacted significantly on the overall result with trade down 56 per cent after unseasonal September rains disrupted the flowering in most mainland production areas. Peaches and nectarines were 10 per cent lower although offset by 21 per cent increase for plums that brought the Summerfruit category in line with last year and ahead slightly in value. Fresh Fruit Exports by Product 2016/17 vs previous 2 years 2016/17 A$ per kg Value $A Million 628.2 933.8 954.6 2.2% Volume Tonnes 299,139 393,968 391,040-0.7% A$ per kg $2.10 $2.37 $2.44 3.0% A$ per kg Table Grapes 84,103 110,007 106,841-3% 27.3% 373.1 3.49 Oranges 126,417 160,580 164,585 2% 42.1% 224.7 1.36 Mandarins 31,566 48,974 52,498 7% 13.4% 103.1 1.96 Cherries 3,551 5,593 2,462-56% 0.6% 43.3 17.59 Peaches & nectarines 8,581 10,018 9,023-10% 2.3% 33.9 3.75 Strawberries 1,904 3,009 3,897 29% 1.0% 32.8 8.42 Melons 16,239 19,243 19,401 1% 5.0% 32.1 1.65 Mangoes 7,012 7,006 7,120 2% 1.8% 29.7 4.17 Plums 3,586 3,748 4,521 21% 1.2% 15.9 3.51 Apples 2,134 4,665 4,958 6% 1.3% 12.8 2.58 Avocados 1,287 1,546 2,323 50% 0.6% 12.6 5.42 Pears 7,647 12,260 7,165-42% 1.8% 12.3 1.71 Blueberries 103 254 356 40% 0.1% 8.5 23.80 Lemons & limes 2,743 4,088 1,730-58% 0.4% 4.8 2.77 Kiwifruit 720 1,004 970-3% 0.2% 3.1 3.17 all other 19,766 29,537 25,214-15% 6.4% 82.0 3.25 Total 299,139 393,968 391,040-1% 100% 954.6 2.44 Mangoes 3% Plums 2% Melons 3% Apples 1% Fruit Exports by Type by Value Avocados all other 1% 4% Peaches & nectarines 4% Cherries 5% Strawberries 3% Mandarins 11% Oranges 24% Table Grapes 39% 2017 Fresh Intelligence Consulting 6

China established its position as the No.1 destination for Australian fresh fruit by both volume and value of fruit lifting 42 per cent to 87,642 tonnes and worth $245 million. Trade to Hong Kong declined 30 per cent reflecting the increased direct trade to China such that the combined Hong Kong / China trade lifted 3 per cent by volume and 10 per cent by value. Trade to Japan lifted 11 per cent with stronger citrus results and Vietnam increased 51 per cent albeit with grapes and citrus access only. Despite the strong growth in trade to China, most other markets declined between 3 to 20 per cent with exception of Canada and Taiwan, which posted strong gains off smaller bases. Arguably the trade was limited by the capacity to supply. Fresh Fruit Exports by Market 2016/17 vs previous 2 years 2016/17 A$ per kg Value $A Million 628.2 933.8 954.6 2.2% Volume Tonnes 299,139 393,968 391,040-0.7% A$ per kg $2.10 $2.37 $2.44 3.0% A$ per kg China 24,691 61,784 87,642 42% 22.4% 244.8 2.79 Hong Kong 72,387 71,226 49,874-30% 12.8% 129.1 2.59 Japan 31,086 41,472 46,162 11% 11.8% 86.5 1.87 Indonesia 27,671 32,481 27,162-16% 6.9% 75.0 2.76 Singapore 26,062 29,534 25,761-13% 6.6% 65.2 2.53 United Arab Emirates 21,946 33,472 27,215-19% 7.0% 59.5 2.19 Thailand 10,334 15,719 14,436-8% 3.7% 41.8 2.89 New Zealand 19,676 22,530 19,341-14% 4.95% 41.3 2.13 Malaysia 19,000 19,252 18,580-3% 4.75% 39.7 2.14 Vietnam 1,668 5,425 8,182 51% 2.09% 28.4 3.47 United States 6,364 9,865 9,637-2% 2.46% 20.7 2.15 Philippines 7,359 9,794 9,936 1% 2.54% 18.2 1.83 Taiwan 3,474 5,111 7,367 44% 1.88% 17.9 2.43 Canada 4,428 5,524 8,133 47% 2.08% 13.7 1.69 Saudi Arabia 2,630 3,410 3,489 2% 0.89% 10.0 2.87 Kuwait 953 1,859 2,114 14% 0.54% 8.2 3.90 all other 19,410 25,510 26,010 2% 6.7% 54.8 2.11 Total 299,139 393,968 391,040-1% 100% 954.6 2.44 Fresh Fruit Exports by Market by Value 2015/16 2016/17 China Hong Kong Japan Indonesia Singapore United Arab Emirates Thailand New Zealand Malaysia Vietnam United States Philippines Taiwan Canada Million of AUD 0 50 100 150 200 250 300 Source: ABS data; Fresh Intelligence analysis 2017 Fresh Intelligence Consulting 7

Imports of fresh fruit increased 19 per cent by value to $389 million in 2016/17 and 22 per cent higher to 110,367 tonnes by volume. Avocados from New Zealand rebounded 79 per cent and was easily the highest overall value import, while imports of oranges increased 42 per cent from United States and Egypt. Table grapes from the United States were the second largest import by value. Apple imports increased 70 per cent off a very low base while Summerfruit imports from United States were over 30 per cent lower. Fresh Fruit Imports by Product 2016/17 vs previous 2 years 2016/17 A$ per kg Value $A Million 350.9 325.8 389.0 19.4% Volume Tonnes 103,661 90,472 110,367 22.0% A$ per kg $3.39 $3.60 $3.52-2.1% A$ per kg Avocados 19,626 13,108 23,478 79% 21.3% 117.5 5.00 Table Grapes 17,766 13,784 14,405 5% 13.1% 63.3 4.39 Kiwifruit 22,862 23,254 23,527 1% 21.3% 50.9 2.16 Oranges 16,408 14,587 20,694 42% 18.7% 35.0 1.69 Blueberries 1,003 1,432 1,211-15% 1.1% 27.1 22.38 Lemons & limes 7,334 6,464 7,812 21% 7.1% 22.3 2.85 Cherries 2,598 1,505 2,295 52% 2.1% 19.5 8.48 Mandarins 3,006 3,375 4,324 28% 3.9% 10.6 2.45 Peaches & nectarines 3,442 3,653 2,235-39% 2.0% 8.8 3.92 Mangoes 1,047 887 1,111 25% 1.0% 5.7 5.17 Apricots 711 900 794-12% 0.7% 4.2 5.25 Pears 1,613 1,487 2,158 45% 2.0% 3.4 1.59 Persimmons 617 546 492-10% 0.4% 2.8 5.72 Plums 62 798 548-31% 0.5% 2.6 4.78 Grapefruit 1,343 1,036 1,291 25% 1.2% 2.5 1.95 Apples 883 619 1,053 70% 1.0% 2.4 2.32 all other 3,339 3,034 2,939-3% 2.7% 10.4 3.53 Total 103,661 90,472 110,367 22% 100% 389.0 3.52 New Zealand and United States accounted for 82 per cent of the fresh fruit supplied to Australia, with New Zealand lifting 33 per cent mostly due to avocados. Citrus, grapes, cherries and summerfruit arriving counter seasonally from US were 8 per cent higher overall while citrus from Egypt increased 320 per cent. Italy supplemented kiwifruit in the New Zealand off-season. Some 48 per cent more pears and apples were sourced from China. Fresh Fruit Imports by Market 2016/17 vs previous 2 years 2016/17 A$ per kg Value $A Million 350.9 325.8 389.0 19.4% Volume Tonnes 103,661 90,472 110,367 22.0% A$ per kg $3.39 $3.60 $3.52-2.1% A$ per kg New Zealand 39,577 32,771 43,688 33% 39.6% 192.7 4.41 United States 52,469 42,708 46,228 8% 41.9% 156.9 3.39 Italy 5,533 7,387 6,927-6% 6.3% 12.5 1.80 Egypt 414 1,685 7,085 320% 6.4% 9.2 1.30 China 2,167 1,917 2,832 48% 2.6% 5.1 1.80 Thailand 964 838 613-27% 0.6% 3.7 6.04 Israel 1,030 1,206 1,228 2% 1.1% 2.0 1.67 Philippines 266 174 163-6% 0.15% 1.4 8.87 Mexico 383 424 486 15% 0.44% 1.3 2.68 Korea, South 113 166 223 34% 0.20% 0.9 3.87 all other 1,239 1,787 1,603-10% 1.5% 5.4 3.37 Total 103,661 90,472 110,367 22% 100% 389.0 3.52 2017 Fresh Intelligence Consulting 8

China China is further established as the leading export destination by value and volume following very strong growth in direct trade from table grapes and citrus, and also the new access for nectarines. Cherries declined due to adverse seasonal impacts while mangoes held around 80 tonnes. Fresh Fruit Exports to China Value $A Million 55.6 175.8 244.8 39.3% Volume Tonnes 24,691 61,784 87,642 41.9% A$ per kg $2.25 $2.84 $2.79-1.8% Table Grapes 4,892 29,936 41,196 37.6% 47.0% 148.4 Oranges 14,216 23,034 34,159 48.3% 39.0% 59.3 Mandarins 5,007 7,789 9,812 26.0% 11.2% 21.5 Cherries 324 791 373-52.8% 0.4% 7.6 Peaches & nectarines - - 1,866 2.1% 7.0 Mangoes 60 83 80-3.3% 0.1% 0.5 Apples 151 92 138 50.3% 0.2% 0.3 Grapefruit - 18 - -100.0% 0.0% - Lemons & limes 40 42 - -100.0% 0.0% - all other - 0 17 ++ 0.0% 0.3 Total 24,691 61,784 87,642 41.9% 100% 244.8 (++) more than 500% increase Imports from China comprise mostly apples and pears though volumes are low. The all other category records a range of berries. The balance of trade for fresh fruit with China is strongly favouring exports with a 98 per cent share of the two-way trade and increasing. Million AUD per year 300.0 250.0 200.0 150.0 100.0 50.0-2-way Trade with China Exports Imports -50.0 Fresh Fruit Imports from China Value $A Million 5.2 4.4 5.1 16.1% Volume Tonnes 2,167 1,917 2,832 47.8% A$ per kg $2.39 $2.29 $1.80-21.5% Pears 1,505 1,374 1,959 42.6% 69.2% 2.7 Apples 474 357 698 95.5% 24.6% 1.5 all other 188 186 175-5.6% 6.2% 0.9 Total 2,167 1,917 2,832 47.8% 100% 5.1 2017 Fresh Intelligence Consulting 9

Hong Kong Hong Kong has ceded its No.1 volume destination to China and gave up 30 per cent volume as more fruit, particularly citrus, grapes and nectarines by-passed the market for direct access to China. Of note is the growth in listed other fresh fruit though understood to be mostly Lychee increasing almost 150 per cent, as did avocados off a small base. The overall decline has been more than offset by the increase in trade to China. Fresh Fruit Exports to Hong Kong Value $A Million 174.1 164.0 129.1-21.3% Volume Tonnes 72,387 71,226 49,874-30.0% A$ per kg $2.40 $2.30 $2.59 12.4% Table Grapes 29,659 13,097 8,026-38.7% 16.1% 28.9 Oranges 28,584 39,641 25,967-34.5% 52.1% 26.2 Cherries 1,567 2,259 895-60.4% 1.8% 17.3 Mangoes 2,707 3,010 3,328 10.6% 6.7% 14.3 Plums 2,076 1,948 3,096 58.9% 6.2% 11.3 Mandarins 1,850 3,411 3,743 9.7% 7.5% 8.9 Peaches & nectarines 3,755 4,434 1,711-61.4% 3.4% 7.3 Blueberries 56 115 169 46.4% 0.3% 4.1 Strawberries 159 197 368 86.7% 0.7% 2.7 Other (Lychee?) 144 174 433 149.4% 0.9% 2.4 Melons 1,010 1,273 1,174-7.8% 2.4% 2.2 Avocados 23 87 217 150.5% 0.4% 1.4 Apples 46 297 343 15.6% 0.7% 0.9 Grapefruit - 0 138 ++ 0.3% 0.7 all other 1,831 2,940 2,137-27.3% 4.3% 5.5 Total 72,387 71,226 49,874-30.0% 100% 129.1 (++) more than 500% increase There are no recorded fresh fruit imports to Australia from Hong Kong. 2017 Fresh Intelligence Consulting 10

Japan Citrus continues to dominate the fresh fruit exports to Japan with a substantial lift in grapefruit and mandarins and a further 10.7 per cent growth for oranges capped off a strong performance. Australian table grapes have seen 8,397 tonnes of grapes exported to Japan during the third full season of trade. Access for Melons granted by Japan in 2016 generated 165 tonnes for the first time. Cherries, only from Tasmania, struggle to find demand in the northern winter, as do cherries from New Zealand and Chile with similar low volumes according to Japan Customs data. Fresh Fruit Exports to Japan Value $A Million 42.8 75.7 86.5 14.3% Volume Tonnes 31,086 41,472 46,162 11.3% A$ per kg $1.38 $1.82 $1.87 2.7% Oranges 26,812 29,898 33,101 10.7% 71.7% 46.9 Table Grapes 2,394 9,383 8,397-10.5% 18.2% 29.1 Mandarins 1,710 1,895 3,430 81.1% 7.4% 7.3 Grapefruit 4 117 779 568.3% 1.7% 1.2 Melons - - 165 0.4% 0.3 Mangoes 64 59 48-18.5% 0.1% 0.5 Bananas - - 45 0.1% 0.1 Cherries 15 36 30-16.8% 0.1% 0.4 all other 88 86 167 94.5% 0.4% 0.6 Total 31,086 41,472 46,162 11.3% 100% 86.5 The Japan Australia Economic Partnership Agreement (JAEPA) schedule for Australian products entering Japan ranges from immediate tariff elimination on entry into force for mangoes and cherries through to 15 years for Mandarins. The tariff for oranges is currently 9.6 per cent (for period 1 st June 30 th September 2017), and scheduled to phase to zero by 2024. Indonesia Indonesia gave up the gains in 2015/16, mostly from pears, grapes and lemons, and slipped 16 per cent back to 27,000 tonnes worth $75 million. Ongoing regulated, and changing market access conditions arguably inhibits growth with some uncertainty for longer term development, though arguably Australia s close proximity has been a competitive advantage Fresh Fruit Exports to Indonesia Value $A Million 59.2 88.1 75.0-14.8% Volume Tonnes 27,671 32,481 27,162-16.4% A$ per kg $2.14 $2.71 $2.76 1.8% Table Grapes 13,204 17,363 15,586-10.2% 57.4% 50.4 Mandarins 5,632 3,313 3,389 2.3% 12.5% 6.4 Oranges 5,145 3,515 4,305 22.5% 15.9% 5.8 Pears 1,924 4,700 1,757-62.6% 6.5% 3.4 Lemons & limes 1,277 2,752 943-65.7% 3.5% 2.6 Cherries 60 95 105 10.1% 0.4% 2.2 Apples 230 434 671 54.8% 2.5% 2.2 Plums 114 164 276 69.0% 1.0% 1.0 Peaches & nectarines 37 64 64-0.8% 0.2% 0.3 all other 50 81 64-20.8% 0.2% 0.7 Total 27,671 32,481 27,162-16.4% 100% 75.0 2017 Fresh Intelligence Consulting 11

India India s huge market potential with 1.2 billion consumers is a reason for plugging away to develop trade albeit at low volumes. High tariff and non-tariff barriers are problematic along with lack of reliable cold chain infrastructure to deliver fruit in peak condition to consumers. Overall fresh fruit trade to India from Australia was 1,938 tonnes worth $3.05 million, being mostly citrus and grapes. In 2016 India Customs recorded 377,000 tonnes of fresh fruit being imported from all sources, of which 65 per cent or 245,000 tonnes were apples and 56,000 tonnes were oranges. The result was 29 per cent higher than 2015 and indicates the growth potential as market access hurdles are addressed. Fresh Fruit Exports to India Value $A Million 3.9 3.6 3.0-14.7% Volume Tonnes 3,247 2,701 1,938-28.3% A$ per kg $1.21 $1.32 $1.57 18.8% Oranges 2,642 1,911 1,200-37.2% 61.9% 1.17 Table Grapes 505 204 279 36.6% 14.4% 0.74 Cherries 16 37 23-38.3% 1.2% 0.39 Mandarins 56 337 276-18.2% 14.2% 0.45 Pears - - 121 6.2% 0.18 Peaches & nectarines 5 3 12 240.2% 0.6% 0.06 Apples - 62 19-69.1% 1.0% 0.04 Plums 22 80 3-96.9% 0.1% 0.01 all other 1 65 5-92.0% 0.3% 0.01 Total 3,247 2,701 1,938-28.3% 100% 3.05 2017 Fresh Intelligence Consulting 12

South Korea Oranges are increasing to South Korea albeit at a fraction of the greater than 170,000 tonnes imported from United States. The honeymoon period for cherries taking off with the immediate tariff elimination of the KAFTA came to an abrupt end thanks to a combination of New Zealand achieving a free trade agreement in 2016 with the same tariff elimination, and then Chile gained access to the market and shipped over 1,300 tonnes. The lower than expected crop in Tasmania further compromised the supply capability resulting in a 79 per cent fall from 365 to 77 tonnes. Similarly table grapes slowed perhaps due to Australian exporters greater concentration toward China. Under the KAFTA the tariff on grapes will reach zero in 2018 for Jan April period (45% at other times) while the tariff on oranges is now 15 per cent and will be zero by 2020 for the April to September period (50% at other times) Fresh Fruit Exports to South Korea Value $A Million 6.5 8.5 5.0-41.4% Volume Tonnes 1,149 1,752 1,749-0.2% A$ per kg $5.70 $4.86 $2.86-41.3% Oranges 245 1,015 1,461 43.9% 83.5% 2.9 Cherries 248 365 77-78.9% 4.4% 1.1 Table Grapes 588 256 162-36.8% 9.3% 0.5 Mangoes 68 115 49-57.8% 2.8% 0.4 all other - 0 0 0.0% 0.1 Total 1,149 1,752 1,749-0.2% 100% 5.0 South Korea is also a supplier of Asian pears and recently began to supply table grapes counter seasonal to the Australian season though only very low volumes. Million AUD per year 10.0 8.0 6.0 4.0 2.0 - -2.0 2-way Trade with South Korea Exports Imports Fresh Fruit Imports from South Korea Value $A Million 0.5 0.7 0.9 27.7% Volume Tonnes 113 166 223 34.3% A$ per kg $4.14 $4.07 $3.87-4.9% Pears 88 113 200 76.1% 89.5% 0.7 Table Grapes 25 53 23-55.7% 10.5% 0.1 all other - 0 - -100.0% 0.0% - Total 113 166 223 34.3% 100% 0.9 2017 Fresh Intelligence Consulting 13

Malaysia Malaysia is a major export destination for Australian fruit and enjoys unregulated access for most products. Tariffs have been eliminated under the ASEAN Australia New Zealand Free Trade Agreement (AANZFTA). Mangoes are accepted with an irradiation protocol. While oranges and grapes lead the trade from Australia, avocados continue to rise in volume and value as the No.2 destination for avocados after Singapore. Cherries declined severely due to the lack of supply. Strawberries and apples gained over 10 per cent. Fresh Fruit Exports to Malaysia Value $A Million 34.0 40.9 39.7-2.8% Volume Tonnes 19,000 19,252 18,580-3.5% A$ per kg $1.79 $2.12 $2.14 0.7% Oranges 12,109 11,991 11,465-4.4% 61.7% 13.3 Table Grapes 4,389 3,748 3,691-1.5% 19.9% 12.2 Avocados 454 591 900 52.2% 4.8% 5.1 Strawberries 240 248 278 11.9% 1.5% 2.2 Peaches & nectarines 345 477 406-14.9% 2.2% 1.8 Cherries 168 219 89-59.5% 0.5% 1.6 Mandarins 313 668 794 18.9% 4.3% 1.4 Plums 208 214 174-18.8% 0.9% 0.6 Apples 77 411 453 10.1% 2.4% 0.5 Melons 237 196 157-19.8% 0.8% 0.3 all other 460 487 174-64.2% 0.9% 0.7 Total 19,000 19,252 18,580-3.5% 100% 39.7 Philippines Trade to the Philippines continued to lift buoyed by the improved access conditions legislated in 2012 and most tariff reductions reached zero. Volumes exceeded 10,300 tonnes worth $18.8 million. Table grapes led by value though dipped 17 per cent while oranges lifted 28 per cent on volume. Fresh Fruit Exports to Philippines Value $A Million 12.9 20.3 18.8-7.4% Volume Tonnes 7,359 9,794 10,305 5.2% A$ per kg $1.75 $2.07 $1.83-12.0% Table Grapes 3,079 4,446 3,684-17.1% 35.8% 10.18 Oranges 3,334 3,949 5,067 28.3% 49.2% 5.84 Mandarins 734 1,025 938-8.5% 9.1% 1.52 Lemons & limes 145 262 218-16.7% 2.1% 0.51 Plums 26 26 12-53.7% 0.1% 0.03 Cherries 4 9 3-71.0% 0.0% 0.03 Peaches & nectarines 6 14 7-46.6% 0.1% 0.03 all other 31 64 376 489.2% 3.6% 0.68 Total 7,359 9,794 10,305 5.2% 100% 18.8 2017 Fresh Intelligence Consulting 14

Singapore Singapore is an established key market for Australian fruit though vulnerable to competitive price movements. Trade dipped almost 13 per cent to 2014/15 levels driven down by citrus and grapes, and also cherries and summerfruit although melons, avocados and strawberries all lifted. Fresh Fruit Exports to Singapore Value $A Million 56.0 73.2 65.2-10.9% Volume Tonnes 26,062 29,534 25,761-12.8% A$ per kg $2.15 $2.48 $2.53 2.1% Oranges 9,341 11,460 9,929-13.4% 38.5% 12.9 Table Grapes 5,622 4,521 3,143-30.5% 12.2% 10.5 Melons 4,140 4,863 5,494 13.0% 21.3% 9.1 Strawberries 563 814 940 15.5% 3.6% 7.2 Avocados 765 792 909 14.7% 3.5% 4.8 Cherries 391 519 276-46.9% 1.1% 4.1 Mangoes 953 869 1,127 29.7% 4.4% 3.9 Peaches & nectarines 983 965 849-12.0% 3.3% 3.2 Mandarins 1,064 1,638 1,229-25.0% 4.8% 2.7 Plums 835 1,011 772-23.6% 3.0% 2.2 all other 1,406 2,083 1,094-47.5% 4.2% 4.6 Total 26,062 29,534 25,761-12.8% 100% 65.2 Taiwan Mandarins switched places with cherries as the leading export product to Taiwan thanks to a 60 per cent rise in Mandarins and a 67 per cent fall in cherries. Australia has 90 per cent share of the Taiwan mandarin import market while New Zealand has challenged Australia s position in Taiwan for cherries. Meanwhile demand for oranges more than doubled in Taiwan and Australia picked up more than its share of the market growth. South Africa is the main southern supplier of oranges. Fresh Fruit Exports to Taiwan Value $A Million 11.4 20.6 17.9-13.4% Volume Tonnes 3,474 5,111 7,367 44.2% A$ per kg $3.27 $4.04 $2.43-39.9% Mandarins 1,785 2,125 3,392 59.6% 46.0% 6.0 Table Grapes 794 1,946 1,374-29.4% 18.7% 4.4 Cherries 280 508 165-67.5% 2.2% 3.5 Oranges 480 430 2,398 458.0% 32.5% 3.4 Peaches & nectarines 132 61 19-68.3% 0.3% 0.1 Apples 2 41 1-97.0% 0.0% 0.0 all other - - 18 0.2% 0.5 Total 3,474 5,111 7,367 44.2% 100% 17.9 2017 Fresh Intelligence Consulting 15

Thailand Exports to Thailand dipped 8 per cent to 14,436 tonnes worth $41.8 million. Table grapes and mandarins were the main products in demand particularly as the tariffs and quotas are now eliminated. Table grapes though dropped 25 per cent after a record year in 2015/16 and this may have been a supply issue. Apples were almost 80 per cent lower after reaching 680 tonnes the previous year. Thailand however imported 190,000 tonnes of apples, up 19 per cent according to Thailand Customs data, which was the largest product import of the 666,772 tonnes of fresh fruit from imported by Thailand recorded from all sources in 2016. Trade with the new protocols requiring cold treatment has been problematic for some industries since 2013, in particular avocados where the cold treatment requirement effectively shut down the trade. Fresh Fruit Exports to Thailand Value $A Million 27.4 45.0 41.8-7.3% Volume Tonnes 10,334 15,719 14,436-8.2% A$ per kg $2.65 $2.87 $2.89 0.9% Table Grapes 4,968 6,219 4,659-25.1% 32.3% 17.6 Mandarins 3,882 7,024 7,884 12.3% 54.6% 15.5 Strawberries 134 224 450 100.5% 3.1% 3.8 Oranges 953 1,215 955-21.4% 6.6% 2.0 Blueberries 9 20 36 82.9% 0.3% 0.9 Cherries 74 129 45-65.1% 0.3% 0.6 Apples 131 683 150-78.1% 1.0% 0.4 Peaches & nectarines 72 85 77-8.9% 0.5% 0.3 Pears 76 70 94 34.0% 0.7% 0.2 all other 37 49 85 71.8% 0.6% 0.4 Total 10,334 15,719 14,436-8.2% 100% 41.8 Vietnam Table grapes and citrus have been re-instated with trade continuing to increase toward the pre 2013 levels. No access for other lines has been confirmed though some negotiations are in progress. Prior to the suspension in 2015 the value of trade had reached $40 million. Fresh Fruit Exports to Vietnam Value $A Million 5.8 18.4 28.4 54.3% Volume Tonnes 1,668 5,425 8,182 50.8% A$ per kg $3.47 $3.39 $3.47 2.3% Table Grapes 5 4,285 5,287 23.4% 64.6% 23.7 Oranges 692 966 2,623 171.6% 32.1% 4.0 Mandarins 150 170 273 60.4% 3.3% 0.7 Mangoes 517 - - - Cherries 135 0 - - Peaches & nectarines 118 0 - - Blueberries 4 0 - - Pears 9 - - - all other 38 4-0 - Total 1,668 5,425 8,182 50.8% 100% 28.4 2017 Fresh Intelligence Consulting 16

United Arab Emirates The UAE is a major export destination and trading hub for the Middle East region. Export trade declined 18.7 per cent to 27,215 tonnes worth A$59.5 million with most lines being lower, particularly grapes. Strawberries were the only product recording strong growth into UAE. In 2016 the UAE imported 1.1 million tonnes of fresh fruit, unchanged from 2015 with South Africa, India and Philippines being the major suppliers. Fresh Fruit Exports to United Arab Emirates Value $A Million 45.7 71.2 59.5-16.5% Volume Tonnes 21,946 33,472 27,215-18.7% A$ per kg $2.08 $2.13 $2.19 2.7% Table Grapes 6,338 7,043 4,180-40.6% 15.4% 13.2 Melons 4,855 6,294 5,457-13.3% 20.1% 9.5 Mandarins 2,653 6,260 4,804-23.3% 17.7% 8.5 Oranges 4,241 8,924 8,414-5.7% 30.9% 7.7 Peaches & nectarines 2,129 2,343 1,957-16.5% 7.2% 6.9 Strawberries 322 590 760 28.7% 2.8% 6.6 Mangoes 813 805 756-6.2% 2.8% 2.8 Cherries 120 288 109-62.3% 0.4% 1.4 Apples 9 331 303-8.4% 1.1% 1.0 Apricots 208 232 120-48.4% 0.4% 0.5 all other 257 360 355-1.3% 1.3% 1.5 Total 21,946 33,472 27,215-18.7% 100% 59.5 2017 Fresh Intelligence Consulting 17

New Zealand Exports to New Zealand declined 14 per cent to 19,341 tonnes with citrus and pears influencing the decline. Strawberries lifted 18 per cent against the wider trend. Whilst being our closest neighbour trade is restricted due to New Zealand s stringent bio security requirements and small population. Fresh Fruit Exports to New Zealand Value $A Million 37.0 42.3 41.3-2.5% Volume Tonnes 19,676 22,530 19,341-14.2% A$ per kg $1.88 $1.88 $2.13 13.5% Table Grapes 3,607 3,182 3,127-1.7% 16.2% 10.5 Mandarins 3,970 5,161 3,811-26.2% 19.7% 6.9 Strawberries 365 491 579 18.0% 3.0% 5.2 Melons 2,991 3,011 3,033 0.7% 15.7% 5.1 Pears 2,066 2,985 2,238-25.0% 11.6% 3.4 Oranges 3,488 4,246 2,988-29.6% 15.5% 3.3 Mangoes 886 834 828-0.7% 4.3% 3.2 Watermelons 2,134 2,385 2,523 5.7% 13.0% 2.8 Other (incl Lychee) 34 43 44 4.2% 0.2% 0.4 all other 134 193 170-12.2% 0.9% 0.5 Total 19,676 22,530 19,341-14.2% 100% 41.3 New Zealand is again the largest supplier of imported fruit to Australia dominated by avocados and kiwifruit. Imports lifted 33 per cent influenced by a strong on season for avocados. The trade balance strongly favours imports with 82 per cent of two-way trade by value. Million AUD per year 100.0 50.0 - -50.0-100.0-150.0-200.0-250.0 2-way Trade with New Zealand Exports Imports Fresh Fruit Imports from New Zealand Value $A Million 151.3 141.7 192.7 36.0% Volume Tonnes 39,577 32,771 43,688 33.3% A$ per kg $3.82 $4.32 $4.41 2.1% Avocados 19,626 13,108 23,355 78.2% 53.5% 116.9 Kiwifruit 17,218 16,445 17,182 4.5% 39.3% 39.7 Blueberries 999 1,432 1,211-15.5% 2.8% 27.1 Apricots 648 858 793-7.5% 1.8% 4.2 Persimmons 606 544 479-12.0% 1.1% 2.8 Apples 277 262 355 35.5% 0.8% 1.0 Lemons & limes 105 33 243 628.3% 0.6% 0.5 all other 99 88 70-21.3% 0.2% 0.7 Total 39,577 32,771 43,688 33.3% 100% 192.7 2017 Fresh Intelligence Consulting 18

Europe Trade to Europe declined 9.2 per cent to 3,148 tonnes although there were larger swings by product. Pink Lady apples to United Kingdom rebounded strongly and influenced by additional sales programs while Mandarins fell by 59 per cent. Kiwifruit and Blueberries more than doubled. Fresh Fruit Exports to EUROPE Value $A Million 3.2 7.1 8.6 21.2% Volume Tonnes 1,256 3,465 3,148-9.2% A$ per kg $2.58 $2.06 $2.75 33.5% Apples 234 699 1,327 89.8% 42.2% 3.7 Mandarins 287 2,029 822-59.5% 26.1% 1.5 Kiwifruit 262 328 705 115.0% 22.4% 1.7 Peaches & nectarines 31 44 36-19.0% 1.1% 0.3 Oranges 263 208 184-11.4% 5.9% 0.3 Cherries 45 21 2-88.7% 0.1% 0.0 Pears 8 48 - -100.0% 0.0% - Blueberries - 11 29 165.2% 0.9% 0.6 Pears 8 48 - -100.0% 0.0% - all other 118 29 42 44.6% 1.3% 0.4 Total 1,256 3,465 3,148-9.2% 100% 8.6 2-way Trade with EUROPE The trade balance favours imports of fresh fruit from Europe, mostly kiwifruit from Italy though this past 2 years has seen small volumes of Spanish citrus enter the Australian market. Million AUD per year 10.0 5.0 - -5.0 Exports Imports -10.0-15.0 2017 Fresh Intelligence Consulting 19

United States Citrus dominates the trade to the United States though has declined in recent years since Chile gained access to the market. The market is favouring soft citrus (mandarins), which lifted 78 per cent while oranges declined 27 per cent influenced by the refocus on China. Cherry volumes almost doubled from Tasmania while the 3rd season for mangoes lifted to 75 tonnes. Fresh Fruit Exports to United States Value $A Million 10.8 19.0 20.7 8.6% Volume Tonnes 6,364 9,865 9,637-2.3% A$ per kg $1.70 $1.93 $2.15 11.2% Oranges 5,465 7,258 5,298-27.0% 55.0% 9.9 Mandarins 734 2,292 4,085 78.2% 42.4% 8.2 Cherries - 64 124 94.9% 1.3% 1.7 Mangoes 5 45 75 65.4% 0.8% 0.6 all other (other citrus) 160 207 55-73.4% 0.6% 0.8 Total 6,364 9,865 9,637-2.3% 100% 20.7 The United States is Australia s second largest supplier of imported fresh fruit after New Zealand and the trade balance firmly favours imports with 88 per cent of the two-way trade by value. Counter seasonal grapes and citrus dominate the imports while summerfruit and cherries are also significant by value. Plums were permitted entry to Australia from the United States in 2015. Million AUD per year 2-way Trade with United States 50.0 - -50.0-100.0-150.0-200.0 Exports Imports Overall import results though were 8 per cent higher in 2016/17 at 46,228 tonnes and worth $156.9m Fresh Fruit Imports from United States Value $A Million 170.5 151.6 156.9 3.5% Volume Tonnes 52,469 42,708 46,228 8.2% A$ per kg $3.25 $3.55 $3.39-4.4% Table Grapes 17,741 13,711 14,382 4.9% 31.1% 63.2 Oranges 15,735 13,116 15,249 16.3% 33.0% 29.0 Lemons & limes 7,220 5,666 6,163 8.8% 13.3% 19.5 Cherries 2,565 1,484 2,286 54.0% 4.9% 19.4 Peaches & nectarines 3,442 3,653 2,201-39.7% 4.8% 8.7 Mandarins 2,480 2,111 2,814 33.3% 6.1% 7.3 Pomegranates 2,093 1,334 1,565 17.3% 3.4% 4.9 Plums 57 798 548-31.4% 1.2% 2.6 Grapefruit 1,041 761 957 25.9% 2.1% 2.0 all other 95 74 62-15.6% 0.1% 0.3 Total 52,469 42,708 46,228 8.2% 100% 156.9 2017 Fresh Intelligence Consulting 20

Canada Exports to Canada continued a growth run in 2016/17, up 47 per cent. Notably oranges increased 69 per cent to 5,765 tonnes and exceeded the orange exports to United States for the first time. Peach & nectarine exports to Canada ramped up 5-fold to 281 tonnes worth $1.3m and table grapes also more than doubled off a small base. Most Australian exports service the west coast of Canada. Canada has one of the world s highest per capita consumers of fresh fruit and mostly purchased from modern supermarket formats. Fresh Fruit Exports to Canada Value $A Million 7.1 10.0 13.7 37.1% Volume Tonnes 4,428 5,524 8,133 47.2% A$ per kg $1.60 $1.81 $1.69-6.9% Oranges 2,259 3,394 5,765 69.8% 70.9% 8.1 Pears 1,306 998 855-14.3% 10.5% 1.4 Peaches & nectarines 58 48 281 480.8% 3.4% 1.3 Mandarins 365 612 638 4.3% 7.8% 0.9 Mangoes 77 142 92-35.1% 1.1% 0.5 Table Grapes - 52 139 167.6% 1.7% 0.5 Grapefruit 99 48 153 219.2% 1.9% 0.3 Lemons & limes 258 147 148 0.8% 1.8% 0.3 Blueberries - 7 5-28.9% 0.1% 0.1 Plums 1 6 20 253.8% 0.2% 0.1 all other 5 71 37-47.9% 0.5% 0.4 Total 4,428 5,524 8,133 47.2% 100% 13.7 Egypt Egypt has started to make a stronger impact in the citrus trade and supplied 7,085 tonnes of citrus worth $9.2m in 2016/17, a 320 per cent increase. Egypt supplied 21 per cent of Australian imported citrus in this last year. Fresh Fruit Imports from Egypt Value $A Million 0.4 2.2 9.2 325.9% Volume Tonnes 414 1,685 7,085 320.5% A$ per kg $0.93 $1.28 $1.30 1.3% Oranges 414 987 4,855 392.1% 68.5% 5.0 Lemons & limes - 563 1,367 143.0% 19.3% 2.2 Mandarins - 136 862 536.3% 12.2% 2.0 all other - - - 0.0% - Total 414 1,685 7,085 320.5% 100% 9.2 2017 Fresh Intelligence Consulting 21

Fresh Vegetable Exports and Imports Australian vegetable exports dipped 8 per cent by volume to 191,652 tonnes in 2016/17 worth $253 million, which conversely was an increase of 8 per cent due to a switch in the mix favouring higher value products. Carrots contributed to 54 per cent of the volume, followed by potatoes and onions. Asparagus was the fourth largest export by value. There was strong volume growth across many of the smaller vegetable lines. The largest declined was with onions that fell 43 per cent by volume due to less demand from Europe, though as a lower unit value product, had less overall impact on the total vegetable value. Fresh Vegetable Export by Product 2016/17 vs previous 2 years 2016/17 change to LY vol share A$ million A$ per kg Value $A Million 181.4 234.2 252.7 7.9% Volume Tonnes 160,728 208,237 191,652-8.0% A$ per kg $1.13 $1.12 $1.32 17.2% A$ per kg Carrots 78,182 100,214 103,335 3% 53.9% 91.2 0.88 Potatoes (fresh) 23,024 37,212 34,800-6% 18.2% 27.8 0.80 Onions 39,432 43,888 24,825-43% 13.0% 18.1 0.73 Cauliflower & Broccoli 4,168 6,106 5,717-6% 3.0% 17.0 2.98 Asparagus 3,379 4,086 5,056 24% 2.6% 31.0 6.13 Celery 2,023 3,557 3,913 10% 2.0% 6.3 1.60 Other Brassicas 1,080 2,118 2,631 24% 1.4% 4.7 1.77 Pumpkins & Squash 1,728 1,869 2,089 12% 1.1% 3.2 1.53 Beans 1,616 1,787 1,603-10% 0.8% 6.9 4.32 Lettuce 1,244 1,315 1,503 14% 0.8% 9.6 6.38 Tomatoes 748 939 530-44% 0.3% 2.5 4.76 Capsicum 479 484 351-28% 0.2% 1.4 3.99 all other 3,625 4,663 5,299 14% 2.8% 33.0 6.24 Total 160,728 208,237 191,652-8% 100% 252.7 1.32 2017 Fresh Intelligence Consulting 22

Beans 3% Pumpkins & Squash 1% Other Brassicas 2% Celery 3% LeFuce 4% Asparagus 13% Fresh Vegetable Exports by Value Other 12% Carrots 37% Onions 7% Potatoes (fresh) 11% Cauliflower & Broccoli 7% Singapore was the leading market influenced by its proximity to Australia and a wider range of vegetables accepted with no trade barriers. United Arab Emirates and other Middle East markets dominated the carrot exports while Japan led with asparagus and Europe with onions, albeit much lower than normal. Fresh Vegetable Export by Market 2016/17 vs previous 2 years 2016/17 change to LY vol share A$ million A$ per kg Value $A Million 181.4 234.2 252.7 7.9% Volume Tonnes 160,728 208,237 191,652-8.0% A$ per kg $1.13 $1.12 $1.32 17.2% A$ per kg Singapore 22,227 28,849 26,669-8% 13.9% 45.5 1.71 United Arab Emirates 32,764 38,906 36,774-5% 19.2% 35.9 0.98 Japan 7,330 9,363 14,532 55% 7.6% 34.3 2.36 Malaysia 16,026 25,989 19,828-24% 10.3% 20.9 1.05 Hong Kong 4,841 6,853 7,431 8% 3.9% 15.7 2.11 Saudi Arabia 9,055 11,316 14,953 32% 7.8% 13.4 0.90 Korea South 11,553 24,612 20,826-15% 10.9% 13.2 0.63 New Zealand 3,316 3,413 3,008-12% 1.6% 11.5 3.82 Taiwan 2,835 4,326 6,437 49% 3.4% 8.3 1.30 EUROPE 26,989 23,449 11,206-52% 5.8% 7.4 0.66 Qatar 5,833 7,670 7,345-4% 3.8% 6.7 0.92 Indonesia 4,753 5,036 6,333 26% 3.3% 6.2 0.98 Thailand 2,252 6,316 4,093-35% 2.1% 4.4 1.06 Papua New Guinea 2,521 1,292 2,011 56% 1.0% 3.7 1.84 Bahrain 3,463 3,803 3,473-9% 1.8% 3.3 0.95 all other 4,971 7,045 6,734-4% 3.5% 22.3 3.31 Total 160,728 208,237 191,652-8% 100% 252.7 1.32 Source: ABS (2017) ITC Trademap; Fresh Intelligence analysis 2017 Fresh Intelligence Consulting 23

Fresh Vegetable Exports by Market by Value Million of AUD - 5 10 15 20 25 30 35 40 45 50 Singapore United Arab Emirates Japan Malaysia Hong Kong Saudi Arabia Korea South New Zealand Taiwan EUROPE Qatar Indonesia 2015/16 2016/17 Imported vegetables lifted 17.6 per cent by volume in 2015/16 influenced mostly by onions and also asparagus. 2-way Trade Fresh Vegetables Fresh garlic from China is the major imported product followed 300.0 by asparagus (by value) from 250.0 Mexico and Peru. 200.0 Exports of fresh vegetables were 73 per cent of the two-way trade balance and imports were 27 per cent in contrast to the 69:31 split last season. Fresh Vegetable Imports by Product 2016/17 vs previous 2 years 2016/17 change to LY vol share A$ million A$ per kg Value $A Million 78.5 85.8 100.4 17.0% Volume Tonnes 32,357 27,903 32,803 17.6% A$ per kg $2.42 $3.08 $3.06-0.5% A$ per kg Garlic 11,514 12,521 12,787 2% 39.0% 46.0 3.60 Onions 9,381 4,670 8,335 78% 25.4% 5.8 0.70 Asparagus 4,366 3,679 4,249 15% 13.0% 25.2 5.93 Capsicum 1,941 1,507 1,388-8% 4.2% 5.6 4.04 Tomatoes 596 1,386 932-33% 2.8% 2.3 2.47 Peas 629 570 782 37% 2.4% 2.4 3.05 Beans 1,097 487 717 47% 2.2% 0.7 0.91 all other 2,832 3,083 3,612 17% 11.0% 12.4 3.42 Total 32,357 27,903 32,803 18% 100% 100.4 3.06 Source: ABS (2017) ITC Trademap; Fresh Intelligence analysis Million AUD per year 150.0 100.0 50.0 - -50.0-100.0-150.0 Exports Imports China, Mexico, New Zealand and Peru supply around 75 per cent of imported fresh vegetables and the balance is supplied from at least 10 further countries including small volumes of garlic from Europe. 2017 Fresh Intelligence Consulting 24

Fresh Vegetable Imports by supplier 2016/17 vs previous 2 years 2016/17 change to LY vol share A$ million A$ per kg Value $A Million 78.5 85.8 100.4 17.0% Volume Tonnes 32,357 27,903 32,803 17.6% A$ per kg $2.42 $3.08 $3.06-0.5% A$ per kg China 12,240 11,882 15,518 31% 47.3% 37.2 2.39 Mexico 3,947 4,694 4,245-10% 12.9% 23.8 5.61 New Zealand 3,628 2,809 2,382-15% 7.3% 7.8 3.29 South Korea 1,823 2,034 2,562 26% 7.8% 7.8 3.04 Peru 1,805 1,130 1,055-7% 3.2% 6.4 6.10 Spain 1,322 1,067 1,267 19% 3.9% 5.5 4.34 United States 5,573 1,888 2,551 35% 7.8% 3.0 1.17 Argentina 408 334 676 102% 2.1% 2.2 3.19 Egypt 102 235 592 152% 1.8% 1.8 2.96 all other 1,507 1,828 1,955 7% 6.0% 4.9 2.53 Total 32,357 27,903 32,803 18% 100% 100.4 3.06 Source: ABS (2017) ITC Trademap; Fresh Intelligence analysis 2017 Fresh Intelligence Consulting 25

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 to meet the needs of its 7 million consumers. Fresh vegetable exports to Singapore have declined 7.6 per cent to 26,669 tonnes worth $45 million with carrots accounting for half the volume. A range of smaller, higher value lines such as celery and broccoli and pumpkins posted strong gains off smaller bases. Fresh Vegetable Exports to Singapore Value $A Million 30.5 40.9 45.5 11.3% Volume Tonnes 22,227 28,849 26,669-7.6% A$ per kg $1.37 $1.42 $1.71 20.4% Broccoli 2,882 4,128 4,227 2.4% 15.8% 12.1 Carrots 12,984 14,733 13,292-9.8% 49.8% 11.7 Lettuce 251 317 471 48.7% 1.8% 3.3 Potatoes 1,510 1,645 1,707 3.8% 6.4% 2.4 Pumpkins & squash 1,249 1,349 1,527 13.2% 5.7% 2.2 Asparagus 336 346 307-11.5% 1.1% 2.1 Celery 711 854 1,250 46.3% 4.7% 1.9 Cabbages & brassicas 627 1,183 995-15.9% 3.7% 1.3 Lettuce 202 166 118-28.9% 0.4% 1.0 Tomatoes 125 154 138-10.5% 0.5% 0.9 Onions 652 1,948 747-61.6% 2.8% 0.8 Spinach 34 50 48-5.0% 0.2% 0.4 Brussels Sprouts 33 59 38-35.1% 0.1% 0.2 all other 634 1,915 1,805-5.7% 6.8% 5.3 Total 22,227 28,849 26,669-7.6% 100% 45.5 Indonesia Trade to Indonesia lifted 25.7 per cent to 6,333 tonnes driven by potatoes with somewhat improved access conditions. Some lines recorded substantial percentage growth off small bases though carrots dropped back 91 per cent to 188 tonnes. Fresh Vegetable Exports to Indonesia Value $A Million 4.7 6.5 6.2-4.5% Volume Tonnes 4,753 5,036 6,333 25.7% A$ per kg $0.99 $1.29 $0.98-24.1% Potatoes 4,198 1,980 5,278 166.6% 83.3% 3.8 Lettuce 18 52 90 73.7% 1.4% 0.4 Broccoli 18 46 89 91.0% 1.4% 0.3 Cabbages & brassicas 30 92 92-0.3% 1.4% 0.3 Onions - 234 338 44.5% 5.3% 0.2 Tomatoes 27 38 30-22.2% 0.5% 0.2 Carrots 100 2,192 188-91.4% 3.0% 0.2 Pumpkins & squash 56 96 86-10.3% 1.4% 0.2 Other 53 34 16-52.9% 0.3% 0.1 Celery 28 50 74 46.2% 1.2% 0.1 all other 225 221 53-76.2% 0.8% 0.3 Total 4,753 5,036 6,333 25.7% 100% 6.2 2017 Fresh Intelligence Consulting 26

Japan Exports to Japan continued to expand rapidly and increased 55.2 per cent, mostly due to strong growth from carrots along with asparagus and onions. Exports of broccoli also expanded off a small base and have taken some market share from United States that had been affected by the Californian drought. Fresh Vegetable Exports to Japan Value $A Million 20.4 25.9 34.3 32.1% Volume Tonnes 7,330 9,363 14,532 55.2% A$ per kg $2.78 $2.77 $2.36-14.9% Asparagus 2,684 3,222 4,085 26.8% 28.1% 23.2 Onions 3,861 4,364 5,494 25.9% 37.8% 4.3 Carrots 601 1,084 3,875 257.5% 26.7% 3.7 Broccoli 90 479 812 69.5% 5.6% 1.6 Brussels Sprouts 49 62 69 11.9% 0.5% 0.3 Leeks 18 57 57 0.2% 0.4% 0.2 Celery - 76 64-16.3% 0.4% 0.1 Pumpkins & squash - 13 47 249.7% 0.3% 0.1 all other 28 5 29 428.2% 0.2% 0.8 Total 7,330 9,363 14,532 55.2% 100% 34.3 South Korea Potatoes account for almost 99 per cent of Australian fresh vegetable exports to South Korea. Under the KAFTA (Korea Australia Free Trade Agreement) since December 2014 Australia as a seasonal tariff free access for chipping potatoes from December to April and this outcome has helped drive export volumes. Outside this period the tariff is reducing from 304 per cent to zero by 2028. Most other vegetable products enjoy tariff reductions from around 27 30 per cent to zero over 5 to 15 years depending on the product. However apart from asparagus and brussels sprouts there is no other measurable trade. Overall South Korea s imports of fresh vegetables from all sources were 337,000 tonnes, with carrots, mostly from China accounting for 30 per cent of the total imports. Fresh Vegetable Exports to South Korea Value $A Million 7.8 15.0 13.2-12.2% Volume Tonnes 11,553 24,612 20,826-15.4% A$ per kg $0.68 $0.61 $0.63 3.7% Potatoes 11,372 24,269 20,634-15.0% 99.1% 12.0 Asparagus 39 87 105 20.8% 0.5% 0.9 Brussels Sprouts 139 113 83-27.1% 0.4% 0.3 Carrots 1 143 0-100.0% 0.0% 0.0 all other 1 1 4 490.9% 0.0% 0.0 Total 11,553 24,612 20,826-15.4% 100% 13.2 2017 Fresh Intelligence Consulting 27

Hong Kong Exports of fresh vegetables to Hong Kong increased 8.4 per cent in 2016 to 7,431 tonnes with a strong lift in asparagus, lettuce and broccoli. Very little, if any, fresh vegetables are re exported from Hong Kong to China in contrast to the fresh fruit position. Thus Hong Kong s vegetable imports are consumed in Hong Kong. Fresh Vegetable Exports to Hong Kong Value $A Million 7.3 11.4 15.7 36.8% Volume Tonnes 4,841 6,853 7,431 8.4% A$ per kg $1.50 $1.67 $2.11 26.2% Carrots 2,692 3,220 3,427 6.4% 46.1% 3.3 Asparagus 139 165 262 59.0% 3.5% 2.4 Lettuce 120 221 279 26.3% 3.8% 2.0 Potatoes 1,033 1,544 1,342-13.1% 18.1% 1.9 Onions 479 986 882-10.6% 11.9% 0.7 Broccoli 70 96 149 54.7% 2.0% 0.5 Spinach 34 44 43-2.4% 0.6% 0.3 Cabbages & brassicas 4 56 68 21.5% 0.9% 0.3 Celery 16 47 130 179.3% 1.8% 0.2 Tomatoes 33 67 45-32.4% 0.6% 0.2 all other 220 407 803 97.5% 10.8% 3.7 Total 4,841 6,853 7,431 8.4% 100% 15.7 China China imported just 51 tonnes of fresh vegetables from Australia last year. The country imported 3,000 tonnes of fresh vegetables from all sources in 2015, mostly pumpkins & squash from New Zealand while exporting 5.5 million tonnes of fresh vegetables (garlic, onions, carrots and cabbages) to global destinations. China is therefore a key competitor to Australia for these products in Asian markets. While the 51 tonnes of asparagus and Asian vegetables was a 366 per cent increase on 11 tonnes the previous year the volumes are negligible. Fresh Vegetable Exports to China Value $A Million 0.2 0.1 0.2 243.8% Volume Tonnes 78 11 51 366.8% A$ per kg $2.90 $4.88 $3.59-26.3% Cabbages & brassicas - - 17 32.9% 0.04 Asparagus - 11 5-54.0% 9.9% 0.03 Leeks 20 - - 0.0% - Lettuce 58 - - 0.0% - all other - - 29 57.2% 0.11 Total 78 11 51 366.8% 100% 0.2 2017 Fresh Intelligence Consulting 28

China is a supplier of garlic, peas and onions to Australia. These imports from China lifted 30.6 per cent to 15,518 tonnes, mostly garlic and onions with a small volume of Asian style fresh peas Fresh Vegetable Imports from China Value $A Million 20.6 29.7 37.2 25.3% Volume Tonnes 12,240 11,882 15,518 30.6% A$ per kg $1.68 $2.50 $2.39-4.1% Garlic 8,004 8,415 8,759 4.1% 56.4% 29.3 Onions 2,907 2,272 5,684 150.2% 36.6% 3.2 Mushrooms 506 377 485 28.7% 3.1% 2.3 Peas 489 440 452 2.8% 2.9% 1.9 all other 334 378 138-63.6% 0.9% 0.4 Total 12,240 11,882 15,518 30.6% 100% 37.2 The two-way trade balance was therefore favouring imports with 99.9 per cent and 0.1 per cent exported. 2-way Trade with China Million AUD per year 5.0 - -5.0-10.0-15.0-20.0-25.0-30.0-35.0-40.0 Exports Imports 2017 Fresh Intelligence Consulting 29

Malaysia Malaysia imports a wide range of vegetable products from Australia. The trade has reduced to around 20,000 tonnes from over 60,000 tonnes a decade ago due to the influence of cheaper exports from China exports. Carrots are the main product supplied from Australia to Malaysia. Fresh Vegetable Exports to Malaysia Value $A Million 14.0 22.0 20.9-5.1% Volume Tonnes 16,026 25,989 19,828-23.7% A$ per kg $0.88 $0.85 $1.05 24.4% Carrots 9,607 14,724 14,084-4.3% 71.0% 12.1 Celery 1,083 2,149 1,915-10.8% 9.7% 2.6 Potatoes 1,335 2,481 1,694-31.7% 8.5% 2.2 Onions 3,235 5,972 1,464-75.5% 7.4% 1.0 Broccoli 139 210 212 0.8% 1.1% 0.8 Other 263 81 53-34.4% 0.3% 0.7 Lettuce 107 87 95 9.7% 0.5% 0.4 Asparagus 20 24 36 52.0% 0.2% 0.3 Pumpkins & squash 68 90 122 35.7% 0.6% 0.2 all other 169 173 153-11.6% 0.8% 0.7 Total 16,026 25,989 19,828-23.7% 100% 20.9 Thailand Trade to Thailand dipped 35 per cent, which carrots and onions together accounting for over 80- per cent of the category falling 25 and 57 per cent resp. Lettuce and Celery exports lifted over 60 per cent each off a small base. Fresh Vegetable Exports to Thailand Value $A Million 2.0 4.8 4.4-9.1% Volume Tonnes 2,252 6,316 4,093-35.2% A$ per kg $0.87 $0.76 $1.06 40.2% Carrots 1,453 2,991 2,225-25.6% 54.4% 1.9 Onions 653 2,629 1,125-57.2% 27.5% 0.7 Lettuce 25 35 62 75.2% 1.5% 0.6 Potatoes - 500 500 0.0% 12.2% 0.3 Broccoli 75 88 83-5.4% 2.0% 0.3 Spinach 15 17 14-21.2% 0.3% 0.2 Celery 13 22 36 64.4% 0.9% 0.1 all other 18 33 48 45.3% 1.2% 0.3 Total 2,252 6,316 4,093-35.2% 100% 4.4 Thailand supplied 22 tonnes of Asparagus to Australia in 2016/17 2017 Fresh Intelligence Consulting 30

Taiwan Carrots are the leading export product to Taiwan posting 3 x fold growth and followed by onions in volume and asparagus by value. Overall trade to Taiwan lifted 49 per cent last year. Fresh Vegetable Exports to Taiwan Value $A Million 2.8 5.1 8.3 64.4% Volume Tonnes 2,835 4,326 6,437 48.8% A$ per kg $1.00 $1.17 $1.30 10.5% Carrots 392 659 2,575 290.8% 40.0% 2.6 Asparagus 136 180 227 25.9% 3.5% 1.8 Onions 1,414 1,818 2,247 23.6% 34.9% 1.4 Potatoes 857 1,347 939-30.3% 14.6% 1.3 Broccoli 37 308 219-28.9% 3.4% 0.5 Cabbages & brassicas - 0 199 ++ 3.1% 0.5 all other 0 13 31 132.6% 0.5% 0.2 Total 2,835 4,326 6,437 48.8% 100% 8.3 (++) more than 500% increase Million AUD per year 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 - -1.0 2-way Trade with Taiwan Exports Imports Taiwan supplied 20 tonnes of mushrooms as the only import product recorded. 2017 Fresh Intelligence Consulting 31

United Arab Emirates The United Arab Emirates is Australia s largest fresh vegetable destination by volume and No.2 by value worth A$35.9m. Carrot exports mostly from Western Australia contributed to 87 per cent of the fresh vegetable exports followed by potatoes and onions. There are more than 10 other fresh vegetable products that complete the remaining share with small volumes. Fresh Vegetable Exports to United Arab Emirates Value $A Million 27.7 34.5 35.9 4.2% Volume Tonnes 32,764 38,906 36,774-5.5% A$ per kg $0.85 $0.89 $0.98 10.2% Carrots 27,713 33,034 32,148-2.7% 87.4% 27.6 Potatoes 1,940 2,129 1,784-16.2% 4.9% 2.6 Onions 2,325 2,465 1,831-25.7% 5.0% 1.5 Celery 59 241 289 20.0% 0.8% 1.0 Broccoli 284 436 207-52.6% 0.6% 0.8 Pumpkins & squash 187 175 137-21.7% 0.4% 0.2 all other 257 425 377-11.3% 1.0% 2.1 Total 32,764 38,906 36,774-5.5% 100% 35.9 Saudi Arabia Saudi Arabia is the second largest Middle East export market for Australian vegetables and as with most Middle Eastern markets carrots dominate with 99 per cent share. The market expanded 32 per cent though some of this is likely to have stemmed from more direct trade rather than through UAE. There are smaller opportunities for other vegetables although competition with local production and the closer producers in Lebanon, Jordan and Egypt inhibits growth. Fresh Vegetable Exports to Saudi Arabia Value $A Million 7.8 9.5 13.4 40.8% Volume Tonnes 9,055 11,316 14,953 32.1% A$ per kg $0.86 $0.84 $0.90 6.6% Carrots 8,937 11,133 14,796 32.9% 99.0% 13.1 Broccoli 100 101 56-45.2% 0.4% 0.1 Potatoes 5 16 61 292.8% 0.4% 0.1 Other - 3 8 166.4% 0.1% 0.0 Onions - 51 26-48.6% 0.2% 0.0 all other 12 12 6-49.2% 0.0% 0.0 Total 9,055 11,316 14,953 32.1% 100% 13.4 2017 Fresh Intelligence Consulting 32