1. Abares Outlook Conference 2011 Supplying and Meeting the Demands of Processors and Retailers Shane Schnitzler

2. Content  1. Overview – A National Perspective of the Fresh Produce Industry  2. Kapiris Bros – Overview from Production to Retail  3. Who Drives Demand – Marker Forces  4. Managing Demand

3. Approximately 6,000 Retail Outlets + Food Service Approx. 400 Wholesalers 15,000 – 17,000 Production Businesses 21 million consumers in Australia Seed, crop protection and fertilizer (input) companies Approx. 50 companies

4. 1,000 bigger retail outlets + 10 retail chains + Food Service Integration Both vertical Approx. 80 key and horizontal Wholesalers Approx. 3,000 main producers and of these approx. 1000 key producers 21 million consumers in Australia Seed companies – 3 total 65% Crop Protection – 4 total 70% Fertilizer – 1 total 50%

5. Kapiris Bros Overview Market Segments  Wholesale market  Large independents  Multi nationals  Food service needs  National accounts Understanding the supply chain commodity  Managing the product and production - highs and lows  Plant yield or a more consistent approach - weather dependant  Harvest stages - Pick at what colour?  Distribution centres  Value adding  Managing food miles

21. Who drives demand?  Shelf space  Multi nationals  Weather  Similar products What drives demand?  Weather/ gas & electricity shortages  Specials & increase in shelf space  Matched competition  Product shortages creates internal demand Competitive tension Customer vs customer  Product vs product  State vs state

22. Managing Interface  Our farms vs wholesale  Other farmers product  Wholesale pricing  Retail outlets  Import and export Managing risk Farming undercover vs outside  Value recovery  Production cycle  Export and import  On time payments

23. Cost of meeting demands  Quality assurance systems  Freight  Packaging  Equipment/ machines  Labelling requirements  IT/ hand held's  Warehousing systems  GPS systems on farm and freight  And importantly, people – finding and developing a good team!

24. Return On Investment  Managing the highs and lows  Business development – new varieties and time lag  One category of broader fresh produce  One segment of the fresh food industry

25. Summary If you want to be a successful fruit & veg producer and supply chain provider….. If you want to be a successful fruit & veg producer and supply chain provider….. You need to be able to...