presentation about a new export business startup

1. International Business
Exporting Mangoes to Australia
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2. Group Members
 Obaid Bin Abdul Rehman
 Usman Bin Qasim
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3. Table of Content
 Introduction
 Why chosen Mango as an export product
 Why choose Australia as an export country
 Competition
 Theory of Trade
 Environmental Factors of Import Country
 Export Strategies
 Legalities and Documentation
 Supply Chain
 Trade Barriers
 Benefits for Home and Host Country
 SWOT Analysis
 References
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4. Introduction
 The product that we have chosen for our export business plan is mango
 Pakistan’s total mango production reaches 1.7 to 1.8 million tons annually with the lion’s
share coming from Punjab and 30 percent from Sindh
 Pakistan is the 5th largest producer and 3rd largest exporter of mangoes.
 Pakistani mangoes enjoy a prominent position in the international market due to its taste,
popularity and demand
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5. Mango Variety
 There are about 140 different types of mango varieties that are grown in Pakistan
 We have only chosen two for our export business plan
• Sindhri
• Chaunsa
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6. Sindhri
 Season: mid May to mid July
 Origin: Mirpur Khas
 Color: Gold
 Pulp Gravity: Medium
 Flavor: Slight Perfume
 Fiber: 3-5%
 Moisture Content (avg): 79% after ripening
and 18% before ripening
 Weight: 1-3.5 pounds
 Relative Humidity: 85%
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7. Chaunsa
 Season: July to September
 Origin: Rahim Yar Khan & Multan
 Color: Gold
 Flavor: Slight Perfume
 Fiber: 17.2 - 27.3%
 Pulp Gravity: Heavy
 Moisture Content (avg): 78% after ripening and
81% before ripening
 Weight: 1-2.3 pounds
 Relative Humidity: 85%
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8. Why Choose MANGO as an export product?
 Mango is known as “King of Fruits” due to its exotic aroma ,taste and color.
 Pakistan is already exporting 120,000 million tons mangoes each year.
 After kinnow (oranges), Mango is the largest export crop of Pakistan.
 The necessary tools and equipment required are already available .
 The technicalities and problem associated with mango export are already known.
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9. Why Choose Australian Market?
 With one of the most transparent and well-regulated business environments in the world,
Australia’s political stability and regulatory framework provide investors with confidence
and security.
 Pakistan has recently been given permission for mango export to Australia by Australian
Government.
 There would be no competition from local market as Australia mongo seasons are different
from Pakistan.
 Resources required for business operation would be easily available.
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10. Competition
 Currently we do not face any competition ,neither from the host country or home country.
 But we will face competition from the following countries
• India
• Philippines
• Mexico
• Netherland
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11. Theory of Trade
Comparative Advantage
 We have comparative advantage to be as our theory of trade.
 Comparative advantage occurs when a country cannot produce a product more efficiently
than the other country.
 Australia’s Average production marketed over the last five years has been approximately
53,500 tonnes while Pakistan produces around than 1,000,000 tonnes.
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12. Environmental Factors of Import Country
 Legal
 Competition laws
Australia has a national legal framework to ensure that trading is fair for businesses
and consumers. This framework is administered and enforced by the Australian
Competition and Consumer Commission (ACCC)
 Consumer laws
The Australian Consumer Law (ACL) is the national law for fair trading and consumer
protection.
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13. Contd…
 Cultural
 Religious Beliefs
Australian constitution guarantees religious freedom, and while there is no official
national religion, Australia generally is described as a Christian country.
 Language
Although Australia has no official language, it is largely monolingual with English
being the de facto national language.
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14. Contd…
 Values and Attitudes
Some of Australian values and Attitudes are:
• Freedom of speech
• Freedom of association
• Freedom of religion and secular government
• Support for parliamentary democracy and the rule of law
• Equality under the law
• Equality of men and women
• Equality of opportunity, regardless of race, religion or ethnic background
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15. Contd…
 Economic
It is one of the largest capitalist economies in the world.
• Continuous economic growth due to stable economy
• Low unemployment rate at acceptable per capita income
• Contained inflation
• Very low public debt
• Strong and stable financial system
• Open market with minimal restrictions
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16. Contd…
 Political
Australia is a liberal-capitalistic democracy. Here, the state keeps interfering
substantially in the economy through various roles.
Here are the few things that can be affected by political interference:
• Tariffs & taxes
• Currency controls
• Local content requirements
• Anti-dumping rules
• Export financing
• Free- trade zone
• Administrative policies
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17. Export Strategies
 Joint venture:
Joint venture is when two or more firm join together to create a new business entity that
is legally separate and distinct from its parents. It involves shared ownership.
Reasons for Joint Venture:
 Reduced market and political risk long-term relations
 Shared knowledge and resources
 Shared risk of failure
 Better relations with national
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18. Legalities and Documentations for Export
 NTN
 Bank Account
 Chamber Membership
 Documents for Clearing Agent
 Packing List.
 Commercial Invoice.
 Letter of Credit (L/C).
 Certificate of Origin which is issued by Chamber of Commerce.
 National Tax Number Certificate
 Form “E”
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19. Local Supply Chain19
Purchasing

20. Export Supply Chain20

21. Trade Barriers
 All goods imported to Australia must be cleared through border.
 Australian Government Department of Immigration and Border Protection provides
information to all exporters such as import clearance documents, prohibited goods
and import permits.
 Cost will vary according to the type and value of goods exported in Australia. These
costs may include GST, clearance fee, custom duty and other taxes.
 Goods containing industrial chemical* will require additional registrations.
 If your goods fall under Quarantine regulations*, the Department of Agriculture and
Water resources will inspect them and treat them.
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22. Contd…
Tariffs and Duties:
 Australia has commitments under the World Trade Organization (WTO) on tariffs and tariff
quotas, export subsidies and domestic support for agricultural products.
 Declaration procedures are based on self-assessment by importers. Declarations must be
made to the Australian Customs and Border Protection Service, which also enforces import
restrictions.
Non Tariff Barriers
 Australian Authorities have set different rules and regulations that delay or preclude the
purchase of foreign goods.
 These hurdles can be slow processing of import permits, establishment of quality standards
that exclude foreign producers and “buy local” policy.
 These different barriers demotivate the exporters to sell their product in Australian market.
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23. Benefits for Host Country
 Exports will create Job Opportunity in Host Country
 It will also Increase the Government Income through taxation
 Export will also Increase the Competition in host markets
 People will be able to enjoy the Benefit of Low Price in host country
 Exporting will also break down Monopoly in the host country
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24. Benefits for Home Country
 Exports will increase our Foreign Exchange Earning.
 We will be able to Gain Global Market Shares.
 There will be Increased Sales and Profits.
 Export will generate Jobs Opportunity in Home Country
 Mango exports will also improve our Balance of Payment.
 We will also gain New Knowledge and Experience.
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25. Swot Analysis
SWOT
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Strengths Opportunities
Weakness Threats
• Not enough financial resources
• Unable to fulfill the high demand
• Export through Air cargo
• Highest Quality product
• No competitors
• Qualified Work Force
• Expanding operations to new markets
• Become a market leader
• Start own mango farms
• New Competition
• Local Laws
• Taxes & Tariff's

26. References
• http://consumerlaw.gov.au/
• http://www.mangoes.net.au/homegrown/varieties.aspx.
• http://toolkit.smallbiz.nsw.gov.au/part/3/12/56.
• http://buypakistanimangoes.com/All-about-Pakistani-Mangoes/How-Mangoes-can-be-used.html.
• http://rayma.com.my/pakistanmangoes/chaunsa.html.
• http://rayma.com.my/pakistanmangoes/sindhri.html.
• http://www.austrade.gov.au/
• http://www.accc.gov.au/about-us/information-for/agriculture
• http://www.everyculture.com/A-Bo/Australia.html
• http://www.phdec.org.pk/articles/article_detail.php?id=87
• http://www.phdec.org.pk/MktStrategies/Mango.pdf
• http://www.tdap.gov.pk/pdf/tdap_reports_on_mangoes.pdf
• http://www.icci.com.pk/data/downloads/66/210344805_1.pdf
• http://www.agriculture.gov.au/import/arrival/clearance-inspection
• http://www.pakissan.com/english/allabout/orchards/mango/mango.export.from.pakistan.shtml
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27. Thank You
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