Citrus to ASEANExporter Update

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Amelia WalshTrade Commissioner Singapore

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REGIONAL SNAPSHOT

3

How big is the market?

Market Total population 'Middle class' % (approx)*

Average age (approx)*

Indonesia 267 m 20% 28 years

Malaysia 32 m 40% 29.2 years

Philippines 110 m 40% 25.7 years

Singapore 5.6 m 25% 42.2 years

Thailand 69 m 35% 40 years

Vietnam 97 m 13% 32.5 years

Australia 25.3m 58% 37.9 years

* Estimates only and taken from different data sources due to incomplete sources. Use for general guide purposes only.

REGIONAL SNAPSHOT

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What are the current trends and drivers?

Increasing interest in healthier lifestyles and food choices

Opportunities for juicing (but COVID impacted) and fresh

Growing e-commerce sales (though often importer-driven in ASEAN)

Diversification opportunities are happening 'now' with emerging middle class

Logistics and shipping proximity$

Hannah Wade Trade Commissioner Jakarta

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MARKET OVERVIEW

6

Covid-19 Impact Update

Distribution channelsRegulatory

considerations

• Case loads in Indonesia, Philippines are very high

• Moderate-strict lockdowns: Thailand, Singapore and Malaysia

• Vaccine rollout has varying progress

• Consumers are keen to preserve their health

• Spending remains cautionary

• Increasing prominence of online platforms

• Continuing importance of physical retail and wholesale outlets

• Oranges are also popular in food service (hotels) / juice shops

• Different retail segments can take different fruit classes/sizes

• TAFTA, IA-CEPA and AANZFTA (trade agreements)

• Strict regulations for quarantine inspection

• Market access variables –quotas, tariffs and documentation (refer to DAWE)

TOTAL CITRUS IMPORTS INTO ASEAN

Source : Global Trade Map 0805 (mirror data), subscription access – for oranges, mandarins, tangerines, clementines (AUD'000)

193,713

280,264

334,473

99,448

283,976

830,440

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Indonesia Malaysia Philippines Singapore Thailand Vietnam

AU

D '000

ASEAN-6

Imported citrus values from the world

Imported value in 2018 Imported value in 2019 Imported value in 2020

Vietnam is the largest importer of citrus in the region

Compare imported value of A$193.7

million to total retail sales of $3.1 billion

Compare imported value of A$830.4

million to total retail sales of $2.6 billion

SPECIFIC COVID IMPACTS

• Price sensitivity is even higher during the pandemic

• Importers may request flexibility with pricing and terms

• Shipping delays – important to have relationships well established to overcome obstacles and help importers manage timelines

• However – continually growing interest and familiarity with imported fruit, particularly driven by social media trends

What trends are we seeing?

KEY CHALLENGES

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• Importers + consumers continue to be price sensitive – they may choose 'cheaper' over 'higher quality'

• Cheaper competitors – in some markets there is overlap between northern hemisphere and Australian seasons

• Particularly in markets with domestic self-sufficiency goals, non-tariff barriers can arise and disruption can occur. Have an established relationship with your importer to navigate (know who to call!)

What should you be aware of?

TIPS FOR DOING BUSINESS

Maximise benefits of Australian reputation for clean and green – though remember this is not as 'established' as some other markets

Develop and maintain good relationship with your buyers – they will expect long term business relationships, and 'switching' partners can be viewed very negatively

Collaborate with key retailers/buyers in market to generate awareness and promote Australian citrus – online (storytelling) and offline (in-store)

Don't forget to let Austrade, industry partners and state government supporters know what you're up to!

How can you set your business up for success?

ThipwadeeBusiness Development Manager, Bangkok

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MARKET ACCESS & OPPORTUNITY ASSESSMENT

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Indonesia Malaysia Philippines Singapore Thailand Vietnam

Oranges *** *** ** *** *** ***

Mandarins *** ** ** *** *** ***

Grapefruit * * ** ** * *

Lemons *** ** *** *** * *

Limes * *** * ** * *

*** Strong opportunity Market access

** Moderate opportunity No market access /(or very limited) conditions apply

* Limited (or no) opportunity

IMPORTED CITRUS MARKET SHARE BY COUNTRY

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Source: TradeMapUsing ‘direct data’– List of supplying markets for imported citrus, 2020

HS Code: 0805 Citrus fruit, fresh or dried

Key international suppliers to ASEAN markets

2019

DEEPER DIVE – MARKET SHARES FOR ORANGES, MANDARINS & LEMONS

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Australian oranges enjoy dominant market positions across key markets

Also strong showing for mandarins in Vietnam and lemons in Indonesia

19.3%

7.6%6.4%

36.2%

39.8%

50.1%

54.4%51.6%

0.4%

27.9%

1.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Thailand Indonesia Philippines Vietnam

Australia market share of Oranges, Mandarins and Lemons against Total Imports in 2020

Fresh or dried mandarins incl. tangerines and satsumas (excl. clementines) - 080521

Fresh or dried oranges - 080510

Fresh or dried lemons "Citrus limon, Citrus limonum" and limes "Citrus aurantifolia, Citrus - 080550

Vietnam figures are based on 2019 figures due to lack of 2020

data.

Source: Trademap – HS codes 0805, subscription access

OPPORTUNITIES & PEAK PERIODS

Indonesia:

• Consumers demand for Australian citrus remain strong. Consumers are specifically requesting Australian citrus to be available at retail markets

• Currently there are no more seasonal window restrictions applied by Indonesian Government (unlike in previous years)

• Under IA-CEPA, tariffs on citrus were eliminated subject to certain yearly progressions/quotas

• Popular varieties: Honey Murcot, Valencia, Navels, Afrourer, Daisy, etc

• Indonesia is also a market for class 1 and composite citrus

Philippines:

• Australia remains the top citrus supplier among exporters from the southern hemisphere with 0% tariff under AANZFTA

• Citrus is popular for snacks, offerings, corporate giveaways and celebratory gifts

• Increasing fresh produce availability through e-commerce and social commerce channels

• Popular varieties (sweet & easy peel): Navels, Valencias, Lemons, Cara Cara, Daisy, Royal Honey Murcott, Afourer; Others: Ponkan (China), Keeno (Pakistan)

• Philippines takes in a range of Class 1, Class 2, composite and juicing fruits depending on importers' customers.

OPPORTUNITIES & PEAK PERIODS

Thailand:

• Australian citrus seasonal supply window aligns with Chinese Festivals (the Hungry Ghost and Vegetarian season) where sales of fruit during these periods could increase up to 30%

• Thai consumers preference for full flavoured (high sugar – sub acid) citrus

• Popular citrus: Honey Murcott and navels but market also started to take on RHM, Daisy, Phoenix, Afourer, valencia, Car cara, blood orange, Sumo

• Training required to educate consumers of different varietals and supply window

• During COVID-19, market tend to be more price sensitive, room for a range of fruit grades (but do not compromise on quality and taste)

Vietnam:

• Citrus is being considered a priority health food along with essential items by consumers

• Fruit imported from Australia is perceived as high quality and safe

• Popular varieties: Navel, Cara, Dolci and Valencia (orange) - Honey Murcott and Afourer(mandarin).

PROFILING AND PROMOTING YOUR PRODUCT

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JUICE SHOP, SOCIAL MEDIA AND E-COMMERCEINDONESIA

RETAIL PROMOTION

Australian lemons featured in Taste of Australia promotion organised by Austrade Jakarta, 17 May – 14 June 2021 Social media campaign emphasize on health benefit attributes

PROFILING AND PROMOTING YOUR PRODUCT

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PHILIPPINES

Social Media & Influencer Campaigns

Retail & E-Commerce Highlights

PROFILING AND PROMOTING YOUR PRODUCT

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THAILAND

The Australian Ambassador

Generate awareness through social media

Retail On-the-job Citrus Training

Mandarin promotions during Hungry Ghost Festival

PROFILING AND PROMOTING YOUR PRODUCT

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VIETNAM

Citrus display at AEON mall

Social Media – Taste Australia fanpage

21

PROFILING AND PROMOTING YOUR PRODUCT

Citrus display at major supermarket

SINGAPORE

22

PROFILING AND PROMOTING YOUR PRODUCT

Citrus display at major supermarket

MALAYSIA

Citrus on e-commerce

Citrus on supermarket online store

Amelia WalshTrade Commissioner, Singaporein conversation with

Ms. Bella Lie, Head of Partner Relations, PT Mulia RayaIndonesia

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- Founded in 1989!

- Family owned, professionally run business

- Manufacturer, importer and distributor

- Fresh fruits and vegetables from 26 countries

annually

Get to

know us!

Key Business

OperationsWorking with out sister companies, we are able to service and provide our

customers with complete collection of products and end-to-end service. With

each sister company operation and working independently, we are able to

simultaneously progress forward and promote efficiency to the business.

Import of fresh fruits and

Vegetables

• Globally sourced fresh fruits, vegetables, pulses, French fries and

dairy products from over 26 countries annually

• Partnerships with various global suppliers

• Cold-chain logistic throughout the journey Air and sea freight.

Distributor for major global

• Indonesia-wide distribution points with dry, chilled and frozen

capabilities

• Efficient and cohesive sales and support teams

• In-house demo and test kitchens accessible to all

• Integrated customer and sales management system

Distributor for major global

Partners

• Self-manufacture frozen dough, drinking yoghurt, processed cheese,

condiments and premium sausage

• World-class manufacturing facilities with food safety and quality

certifications

• Locally produced products, internationally recognised

Citrus from other countries:

• Mandarin from Pakistan

• Mandarin from Argentina

• Oranges from USA

• Orange from Africa

• … and local mandarins!

Citrus in Indonesia

• SWEET (high brix, low acid) and pretty skin (Class 1

/ good composites)

• Mandarin:

– Fremont, RHM, Murcotts, Taylor Lees

– 56/64/72

• Oranges:

– Washington, Late Lanes

– 56/72/80/88

What do we like?

Q&A

Featuring:

Bella Lie, Head of Partner Relations, PT Mulia Raya

Hannah Wade, Trade & Investment Commissioner, Indonesia

Amelia Walsh, Trade & Investment Commissioner, Singapore

Thipwadee, Business Development Manager, Thailand

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What’s next?

Reach out to your Tradestart or Global Engagement Manager

• 13 28 78New to Austrade? Get in touch to see how we can help and ask specific questions about grants, programs and services

• export.business.gov.auTry the Guide to Exporting tool to identify, understand and prioritise markets

• agriculture.gov.au

• austrade.gov.auRead more about the $72m Agribusiness Expansion Initiative

• austrade.gov.au/news/newsletters

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