Building the Macadamia Market in Asia Darren Burton General Manager Agrimac Macadamias

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USA Asia Europe & Mid East

Australia

Mt of Kernel

World Macadamia Usage

42%

22%

23%

13%

World Macadamia Usage

USA Asia Europe & Mid East Australia

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500

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Mt of Kernel equiv

• Largest market in Asia for kernel

• Mature market with high level of consumer awareness • Consistently imports approx 2,500 per year - 8% of world pdn. • Confectionary sector is the largest user (70%) followed by snack

• Japanese companies looking to China for growth opportunties

• Customers are demanding but loyal

• Very concerned about agro-chemical residues.

• Health and Beauty is a key driver for our target market

• Australian industry continues to invest in a significant consumer communications and promotions program in Japan.

• This program is squarely focused on promotion the health and beauty benefits of Macadamias

• Predominantly pre-cracked NIS market at present.

• High income consumers are looking for the best quality product.

• We all must contribute to the development of the china market to ensure china remains a net importer of macadamias.

• Market has grown from 100Mt

to almost 500Mt in 5 years

• Usage is mixed of snack,

Bakery, ice cream,

confectionary and home

cooking

• Many small to medium users

• No really large users yet

• Consumption of approx 150-200Mt per year

• This has shown little growth over the last 20 years but more

interest in macs in the last 2 years

•This market should be much larger than it is.

•Duty is 30% for Raw and 45% for Roasted is limiting growth.

•Main use is confectionary but significant market for raw and

roasted macs sold in both markets and supermarkets.

•Nuts generally are seen as healthy especially walnuts and

almonds.

Country Pop. Income Mac Consumption

(million) PerCapita Usage Per Head

USD 2012 grams per yr

Australia 23 37,500 4000 174

USA 320 45,800 13000 41

Germany 82 34,200 2500 30

Singapore 5 49,700 150 30

Japan 127 33,600 2,500 20

Taiwan 24 30,100 450 19

Korea 49 24,800 250 5

Malaysia 28 13,300 150 5

Thailand 70 7,900 150 2

China 1,300 7,500 2,500 2

India 1,500 3,700 10 0.01

What is the Asia Market Demanding?

1. Consistency of quality and safety

2. Consistency of supply

3. Much more information and education about the health and beauty benefits of Macadamias.

Most of the growth in world consumption of macadamias will

come from Asia in the next 10 years.