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

1. Chinese investment in the Australian citrus
industry - a case study

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

4. Excellent product range

5. Australia’s reputation for safety, quality &
reliability

6.  Freshness
 Excellent flavour
 Beautiful colour
 Good storage & shelf life
 Food safety & traceability
When you buy Australian
citrus you get:

7. Concerns in China over safety
of local food
MARCH 2013
Plague of 3,000 dead pigs
dumped in river threatens
Shanghai water supply

8. • Traditional wet markets
• Supermarkets
• Premium stores
• On-line selling
Market opportunities

9. Oranges
• South Africa (Valencias)
• USA (late season navels)
• Domestic (early navels)
Mandarins
• South Africa (Nova, Murcott)
• Argentina (Murcott)
• Domestic
The Competition

10. Taste is our biggest point of difference

11. Promoting Australian citrus in China
• Trade missions
• Trade fairs
• Generic on-line or
in-store promotions

14. 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

17. • Lack of succession
• High debt levels
• Need to innovate
Why do Australian citrus businesses
need investment?

18. 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

19. Deregulated and fragmented marketing

20. • 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?

21. Mildura Fruit Company
Asian investment is already occurring

22. Super Seasons, Hillston
Asian investment is already occurring

23. AGRIFresh, Western Australia
Asian investment is already occurring

24. • 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’

25. Thank you