1. 2011 Australian Blueberry Industry Sales Manager, Driscolls Australia
By Jon Gleeson
Sales Manager, Driscolls Australia

2. Australian Growing Locations
S/E QLD
Byron Bay WA
Coffs Habour
Tumbarumba
Victoria
South Australia
Tasmania

3. 3

4. 4

5. Industry Statistics
Productive area – 545Ha to 900Ha (+65%)
Total Volume – 2000Tonnes to 3800T (+90%)
Fresh Domestic – 1100T to 2400T (+120%)
Export Fresh T to 320T (-30%)
Process – decrease of 20% - transfer to fresh
Material increase in NZ Fresh Imports (600%)
Material increase of process imports (Chile)
Domestic consumption the big positive
Growth aided by successful Promo Strategy 5

6. 6

7. Marketing & Distribution Fresh Domestic
Supermarkets main outlet “must have” product
One major … 300% growth over past 5 years
Central Wholesale markets (material growth)
Year on Year consumption growth estimated +25%
Overall quality improving (VIP & Post Harvest)
Small gourmet growers achieving niche sales
Packaging majority in clam shell – 125g
Larger pack sizes under review
Long local season (52 week by 2012) 7

8. Marketing & Distribution Fresh Export
Markets
Japan was premier destination - 600T (8yr)
UK / Europe - opportunistic - price main barrier
South East Asia – minimal growth
China – back door via HK
Russia – Ist sales this year & very promising
China / India direct market access – opportunity
Australian Cost Production our “Achilles' heal”.
Market Opportunities KPI
- Premium Quality
- Strategic timing 8

9. Marketing & Distribution Processing
In 1987 process fruit to U.S.- No sale in Aust
Today Australia produces around 400/600T
Value adding (nutritional) T market & growing
Chile now a large supplier to Oz (direct to chains)
Import replacement opportunity T
Export opportunities limited to supply / price / freight
High quality standards – price premium against imports
Very strong global demand = higher commodity $$$
Material negative profit contribution against fresh 9

10. Australian Berry Consumer
Berry consumption is increasing
Buyers are now purchasing blueberries more regularly
There is still a great opportunity to expand market consumption
Need to spread season

11. Global Growth of BB 2008 Million Tonnes 2010 Million Tonnes Fresh
2008 Million Tonnes
2010 Million Tonnes
Fresh
Process
Total
North America
104100
84530
188580
137440
85410
222850
South America
41780
10450
52220
62170
7410
69580
Europe
24690
890
25580
31130
5670
36800
Med. & N. Africa
370
990 18
10120
Southern Africa
500
200
700
950 91
10430
Asia Pacific
5570
2150
7710
7390
2810
10210
World Acreage
176960
98210
275160
240090
101410
341500

12. Asia/Pacific & South America timing of BB
Early market opportunity for Oz production

13. World Production of BB

14. Asia Pacific Overview

15. Global Territory Overview

16. Global Perspective

17. Summary - Australia Steep learning curve over past 25 years
Profitability underpinned by Quality, R&D,
Cool chain & consistency of supply
COP – labour ($24per hour) – major issue
At the forefront of varietal development
Premium quality recognition (Globally)
Planned volume growth - realistic
We believe profitability will be sustainable going forward as long as we continue to re-invest in R&D & deliver to our customers good tasting berries on a consistent basis. 17