The Australian Story by Mr. Peter Wilson, Chairman Pulse Australia Limited at The Pulses Conclave 2014

1. The Pulses Conclave 2014
“The Australian Story”
Grand Hyatt
Goa, India
February 20 2014
Peter Wilson
Chief Executive Officer – Australia Milling Group
Chairman – Pulse Australia Limited

2. Discussion

Australian pulse industry snapshot
 Where have we come from?
 Where are we now?
 Where do we need to be?
 What’s missing?

3. Discussion

Where have we come from?
 Poor agronomy and harvest outcomes
 Ad Hoc but “dedicated” state/regional breeding with poor
commercialisation strategies
 “Special” crops
 Statutory marketing and bulk handling….
 Crop shaping responsibilities…..gone?
 Volatile and unstructured markets – high risk
 Few players
 “Grain trade is naturally out of sync with science”

4. Relative Australian Pulse
Area, Production and Value
10%
$1.20
$1.11
9%
$1.00
8%
$0.84
$0.82
7%
$0.81
$0.80
$0.69
6%
4%
$0.62
$0.61
$0.57
5%
3%
$1.00
$0.60
$0.40
$0.39
$0.40
$0.30
2%
$0.20
1%
0%
$2002
2003
2004
2005
2006
AREA
ABS/ABARE/Pulse Australia
Limited/Australia Milling Group
2007
PROD
2008
BLN $
2009
2010
Expon. (BLN $)
2011
2012
2013

5. Discussion

Where are we now?
 National and International Industry structure
 Market access, contract execution, supply chain support
and quality standards
 Focused national breeding and commercialisation strategies


Integrated agronomy and supply chain focus



Pulse Australia increasing applied science collaboration…in
partnership with GRDC and the AOF
This is in contrast with the broader grain industry
Structured markets developing…


Commercial is the key
But slowly!
Attracting significant public/private investment

6. Indian Pulse Production, Consumption
and Gap

7. FX a key Indian price driver.

8. Price relativity!

9. Top 5 Producing Chickpea Nations.
(source StatPub)

10. Australian Chickpea Exports (top 10
Destinations)
(source ABS/Stat Pub)

11. Australian Supply Snapshot

12. The Real Story!

14. Issues and Opportunities



Market integrity
 Moral hazards
 Market Structure
 Forward Contracts – at what cost?
 Defaults, Defaulters and Brokers
 The role of futures markets
Market direction on quality and food technology
 Australian market will pursue food innovation to improve market
opportunities.
 “Quality” Provides “flexibility” – Canning, crushing or feed?
Supply Chain integration, cost and industry leadership is our absolute best growth
and risk management path.
 Genetics
 Husbandry
 Food Technology applications
 Logistics
 Market access and support