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Chinese Investment in Australian Citrus - A Case Study

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Australian Business Forum helps Australian SMEs and businesses to understand the Chinese market and refine their China strategy.

http://abf.events/
ABOUT THE PRESENTATION BELOW

David Thomas, CEO of Think Global Consulting, walks through a case study of how Citrus Australia established strong branding in China, building off the characteristics of Australian products with astute marketing support.

Originally presented at Australia-China BusinessWeek 2015 Melbourne

Published in: Economy & Finance
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Chinese Investment in Australian Citrus - A Case Study

  1. 1. Chinese investment in the Australian citrus industry - a case study
  2. 2. National Issues Forum 2013 28-29 October Melbourne China Trade Mission 2013 27 November – 6 December Marketing Forum & Exporter Workshops February 2014 Pilot Intern program
  3. 3. Excellent product range
  4. 4. Australia’s reputation for safety, quality & reliability
  5. 5.  Freshness  Excellent flavour  Beautiful colour  Good storage & shelf life  Food safety & traceability When you buy Australian citrus you get:
  6. 6. Concerns in China over safety of local food MARCH 2013 Plague of 3,000 dead pigs dumped in river threatens Shanghai water supply
  7. 7. • Traditional wet markets • Supermarkets • Premium stores • On-line selling Market opportunities
  8. 8. Oranges • South Africa (Valencias) • USA (late season navels) • Domestic (early navels) Mandarins • South Africa (Nova, Murcott) • Argentina (Murcott) • Domestic The Competition
  9. 9. Taste is our biggest point of difference
  10. 10. Promoting Australian citrus in China • Trade missions • Trade fairs • Generic on-line or in-store promotions
  11. 11. Australian citrus exports to China (metric tonnes) 0 2,000 4,000 6,000 8,000 10,000 12,000 2010 2011 2012 2013 2014 Mandarins Oranges
  12. 12. • Lack of succession • High debt levels • Need to innovate Why do Australian citrus businesses need investment?
  13. 13. Compliant and well developed supply chain • KCT orchard registration • Packing shed registration & inspections • MRL compliance – spray diary checks and residue tests • Minimum pricing regulation • Strong environmental safeguards - sustainability What we can offer Chinese investors
  14. 14. Deregulated and fragmented marketing
  15. 15. • Single units are generally too small to be of interest – combine into larger managed units? • Industry dominated by family-owned businesses – structures are often loose and complicated – consolidation options? • Greenfields developments are possible – conversion to citrus from other crops? • People, people, people! – capturing the IP; maintaining the passion – distributing the rewards; offering security What are the key issues?
  16. 16. Mildura Fruit Company Asian investment is already occurring
  17. 17. Super Seasons, Hillston Asian investment is already occurring
  18. 18. AGRIFresh, Western Australia Asian investment is already occurring
  19. 19. • Australian businesses need to prepare themselves • Chinese investors need help in understanding the citrus industry • There is a need for facilitators to help both sides Neither side is ‘investment ready’
  20. 20. Thank you

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