ALMOND INSIGHTS 2013-14

ALMOND INSIGHTS 2013-14

Acknowledgements The Almond Board of Australia wishes to extend appreciation to all industry members who have participated in the ABA s data collection activities. This process was partially funded by the Australian Government through Horticulture Australia Limited. For further information contact: ALMOND BOARD OF AUSTRALIA PO Box 2246, BERRI SA 5343 Australia T +61 8 8582 2055 E admin@australianalmonds.com.au www.australianalmonds.com.au Adelaide Riverland Sunraysia Riverina

Contents Executive Summary 4 The Australian almond industry is Australia s most valuable horticultural export industry. During 2013 almonds became the first Australian horticultural product to have annual export sales in excess of $300 million. The industry s sales on the domestic market also increased. The Australian almond industry has come a very long way in a short period of time. In the past decade: the orchard area planted to almonds has increased from 9,932 Hectares to 28,586 Hectares; production has increased from 11,743 tonnes to 73,361 tonnes; domestic consumption has doubled to 0.9 kilograms per person; and export sales have climbed from $82 million to $309 million per calendar year. The Almond Board of Australia (ABA) is guiding the industry s development by producing and implementing the strategic plan that involves addressing productivity issues such as: input cost and efficiency; yield improvement and risk management; building domestic consumption; product value; and brand awareness of Australian almonds in export markets. The ABA also aims to facilitate an enhanced operating environment for industry stakeholders by providing advocacy on industry wide issues. To achieve these strategies, the ABA relies on funding for specific projects from the R&D levy administered and matched by the Commonwealth via Horticulture Australia Ltd (HAL). The HAL almond R&D plan and resulting projects deliver the outputs of knowledge and technology required by the ABA to implement the industry s strategic plan. Information contained in this booklet provides industry stakeholders, government and those in the broader community with key statistics on the productive capacity, crop, markets and demand for Australian almonds. The booklet is prepared on a marketing year basis spanning March 2013 to February 2014 and is based on data provided by growers, processors and marketers. Information is also sourced from the Australian Bureau of Statistics (ABS), International Nut and Dried Fruit Council (INC), United States Department of Agriculture (USDA) and the Almond Board of California (ABC). The ABA acknowledges and appreciates the assistance of those involved. Our Board 5 Plantings 6 Production 9 Sizing 11 Consumption 12 Exports 13 Foreign Exchange 15 Global 16 Almond Marketers 19 Page 3

Executive Summary 2013/14 has been described as the year the Australian almond industry came of age. Australia is now clearly the second largest producer of almonds with the 2013 crop being significantly larger than that grown in Spain. Our crop increased nearly 50% to 73,361 tonnes, moving industry tonnage toward 90,000 tonnes, believed to be the productive capacity of current orchard plantings once trees are mature. Export sales during our marketing year, which runs from March 2013 to February 2014, increased 58% in volume whilst the value of exports as recorded by the Australian Bureau of Statistics rose from $156 million to $370 million. Australian marketers made sales to 49 countries, with India topping the list with export sales in excess of $100 million. The domestic market grew 3%, consolidating the previous year s gain of 20%. In total, the marketers of Australian almonds made sales in excess of $500 million on the domestic and international markets. During the year, the average monthly export price for Australian almonds rose from $5.20/kg in February 2013 to $8.12/kg in February 2014. It is interesting to note that domestic sales of Australian almonds grew by 9% last year, offsetting a fall in imported product. In terms of total domestic sales, last year s 20,802 tonnes represented a 33% increase on the 15,631 tonnes of three years ago. The severe drought in the Californian central valley has been a key driver of increased world prices. Australian returns from export sales have also benefited from the lower Australian dollar. Looking to the year ahead, the marketing year has started with prices higher than the same time last year. World demand has now surpassed world production, and sales volumes are being constrained by the availability of almonds. This had been predicted based on historical sales growth and the tailing off of plantings, in percentage terms, in both the USA and Australia over the past few years. Effectively, the global market has increased on average by more than the current size of the Australian industry each year for the past decade. The Californian water and land situation has also created renewed interest from overseas investors looking to purchase Australian almond orchards and also develop new plantings. There has also been interest from Australian investors and from growers looking to exit unprofitable horticultural crops. Budwood sales have jumped and this year equates to enough trees to plant an orchard area of 1,000 hectares. It is expected that demand for nursery trees will continue to grow. Crop estimates for 2014 are for a smaller crop than in 2013, with 70,000 tonnes being the current forecast. With some carryover from the 2013 crop, the available supply of Australian almonds this year will be similar to last. The value of sales by the Australian industry is therefore likely to grow given the higher world price and the slightly smaller Californian crop predicted this year. Neale Bennett Chair Ross Skinner CEO 4 P age

Our Board The ABA Board comprises four Marketing Directors and six Grower Directors: two representatives from both the Riverland and Sunraysia regions and one representative from both the Adelaide and Riverina regions. Directors are elected at the ABA Annual General Meeting by Grower Members for a two-year appointment. The ABA Board meets on a quarterly basis to guide the management and performance of the organisation. The Board represents the national interests of the industry s producers, processors and marketers, providing strategic direction for the industry and its research and development program that supports the implementation of the industry plan. The Board is responsible for the governance of the organisation and the investment of ABA funds in the R&D, marketing and administrative programs. The information contained in this document assists in the planning and execution of the ABA s programs to benefit the industry. Neale Bennett Chairman & Sunraysia Region Grower Representative Damien Houlahan Deputy Chairman & Marketing Representative Ross Skinner Chief Executive Officer Grant Birrell Marketing Representative Domenic Cavallaro Adelaide Region Grower Representative Peter Cavallaro Riverland Region Grower Representative Denis Dinicola Riverina Region Grower Representative Tim Orr Sunraysia Region Grower Representative Brendan Sidhu Riverland Region Grower Representative Laurence Van Driel Marketing Representative Brenton Woolston Marketing Representative Page 5

Plantings Commercial almond orchards have been around for over a hundred years, but the industry expanded with large scale orchards developed in the Riverland and Sunraysia regions during the 1970s and 1980s and more recently in the Riverina. The availability of suitable deep loams close to the Murray River facilitated the rapid growth of plantings during the early and mid 2000s. The total area planted to almonds has increased from 5,907 hectares in 2001 to 28,586 hectares in 2013. Annual plantings reached a peak in 2007 when 7,363 hectares were planted. Industry expansion has slowed in recent years, with a total of 5,514 hectares planted since 2007, of which only 144 hectares were planted in 2013. The upswing in the global price for almonds during 2013 has generated considerable interest in investing in almond orchards which will likely see increased plantings occurring in the next few years. The availability of water, particularly in dry periods, is a limiting factor on the development of new greenfield orchard developments, as is land near to the river unencumbered by salinity regulations. Redevelopment of vineyards to almond orchards in community irrigation schemes is being considered by a number of winegrape growers but economies of scale will need to be closely examined to determine the viability of small scale almond farms. Sunraysia (VIC) 19,326 68% Current Hectares Planted by Region Adelaide (SA) 717 3% Riverland (SA) 5,266 18% Riverina (NSW) 3,276 11% Current Hectares Planted by State NSW 3,365 12% SA 5,440 19% 6 P age VIC 19,780 69%

Plantings Almond trees take three years to bear a crop, and seven to eight years to reach mature production levels with yields averaging approximately 3.2 tonnes per hectare. With 1,008 hectares or 4% of Australian almond plantings not yet bearing and 33% of bearing trees not yet fully mature, the industry s production will continue to trend upwards in coming years regardless of future plantings. Australian almond production in 2013 totalled 73,361 tonnes (kernel weight equivalent) and estimated tonnage for 2014 is 70,000 tonnes. The annual crop faces risks from: birds and insects; fungal diseases impacting foliage, roots and fruit; poor cross pollination and rain during harvest. Good orchard management in terms of irrigation and nutrition are also critical to maximising the potential crop. Current Almond Plantings by Variety (Hectares) Variety Pre 2002 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 TOTAL Ha Baxendale 44 0 0 0 0 0 0 0 0 0 0 0 0 44 0 0 44 0.2% Butte 0 0 0 0 0 3 40 7 0 0 0 0 0 50 0 47 3 0.2% Carmel 1,594 173 473 764 868 1,891 2,306 639 98 205 292 20 52 9,201 364 3,247 5,590 32.2% Chellaston 19 0 0 0 0 0 0 0 0 0 0 0 0 19 0 0 19 0.1% Davey 3 0 0 0 0 0 0 0 0 0 0 0 0 3 0 0 3 0.0% Fritz 88 0 0 0 0 0 0 0 0 0 0 0 0 88 0 0 88 0.3% Johnston 40 0 0 3 0 0 0 0 0 0 0 0 0 43 0 0 43 0.1% Keane 21 2 17 6 0 4 14 5 2 2 0 0 0 71 0 23 48 0.2% Milo 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0.0% Mission 64 0 0 0 0 0 0 0 0 0 0 0 0 64 0 0 64 0.2% Monterey 7 7 1 6 15 67 68 18 66 59 115 5 8 435 129 211 95 1.5% Ne Plus 213 0 1 0 0 0 0 0 0 0 0 0 0 214 0 0 214 0.7% Nonpareil 3,234 314 745 1,186 1,352 2,759 3,290 927 220 270 359 31 80 14,453 470 4,706 9,276 50.6% Other 18 0 0 0 0 0 0 0 3 2 0 0 0 24 0 5 18 0.1% Padre 0 0 0 0 0 3 39 7 0 0 0 0 0 49 0 46 3 0.2% Peerless 209 21 27 30 24 54 53 7 3 0 2 0 2 410 3 63 343 1.4% Price 583 74 228 295 398 728 826 269 13 22 31 5 2 3,401 39 1,131 2,231 11.9% Somerton 13 0 0 2 0 0 0 0 0 0 0 0 0 15 0 0 15 0.1% Wood Colony 0 0 0 0 0 0 0 0 0 0 3 0 0 3 3 0 0 0.0% Total 6,150 591 1,491 2,291 2,657 5,508 6,636 1,879 405 561 802 62 144 28,586 1,008 9,480 18,097 100% % by year 22% 2% 5% 8% 9% 19% 23% 7% 1% 2% 3% 0% 1% 4% 33% 63% Non Bearing Maturing Fully Mature % of Plantings Note: totals may not add precisely due to rounding. Page 7

Plantings The large scale of almond orchards and mechanised harvest systems enable production to be very efficient, with low labour input needs compared to most other horticultural industries. Trees are mechanically shaken commencing during February and continuing through to April. The harvested fruit including hull, shell and kernel are stockpiled to await processing to remove the hull to produce inshell product, or removal of hull and shell to produce kernel. Product that is damaged during processing can be used to produce a range of natural and blanched products including slivers, slices, pieces and almond meal. The majority of almonds are shelled during processing, and the hull and shell are most commonly used as stock food, compost or mulch. This by-product is also being considered as a potential bio-fuel source to produce electricity. Nonpareil 14,453 50.6% Current Plantings by Variety (Hectares) Peerless 410 1.4% Price 3,401 11.9% Other 687 2.4% Carmel 9,201 32.2% Monterey 435 1.5% Orchard Plantings Bearing Status by Year Orchard Area Planted by Year 30,000 Bearing Non-Bearing 8,000 28,000 26,000 7,000 24,000 22,000 6,000 Hectares 20,000 18,000 16,000 14,000 Hectares 5,000 4,000 12,000 10,000 3,000 8,000 6,000 2,000 4,000 2,000 1,000 0 1990 19911992 1993 19941995 1996 19971998 1999 20002001 2002 20032004 2005 20062007 2008 20092010 2011 2012 2013 0 Pre 2002 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 8 P age

Production Production by Variety (Kernel Tonnes & %) Variety 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Baxendale 250 3% 221 2% 189 2% 210 1% 163 1% 230 1% 168 1% 173 0% 160 0% 105 0% 21 0% 118 0% Carmel 1,577 17% 1,840 18% 2,483 21% 3,807 23% 4,246 27% 7,383 27% 7,996 31% 11,681 32% 10,561 27% 14,091 37% 15,718 32% 26,922 37% Chellaston 51 1% 43 0% 43 0% 42 0% 59 0% 62 0% 23 0% 33 0% 15 0% 24 0% 4 0% 18 0% Fritz 284 3% 309 3% 288 2% 321 2% 249 2% 331 1% 240 1% 151 0% 198 1% 85 0% 108 0% 99 0% Johnston 23 0% 24 0% 20 0% 16 0% 30 0% 36 0% 35 0% 47 0% 24 0% 36 0% 13 0% 31 0% Keane 46 0% 58 1% 62 1% 79 0% 112 1% 132 0% 70 0% 69 0% 79 0% 65 0% 71 0% 112 0% Mission 322 3% 325 3% 293 2% 333 2% 273 2% 314 1% 251 1% 196 1% 156 0% 146 0% 23 0% 133 0% Monterey - 0% - 0% - 0% - 0% 5 0% 24 0% 42 0% 97 0% 181 0% 328 1% 429 1% 689 1% Ne Plus 585 6% 635 6% 593 5% 616 4% 594 4% 823 3% 527 2% 443 1% 425 1% 290 1% 276 0% 409 1% Nonpareil 5,446 57% 5,572 54% 6,296 54% 8,944 54% 7,989 50% 13,751 51% 13,376 51% 18,686 51% 21,219 54% 17,154 46% 25,766 52% 36,305 49% Peerless 340 4% 384 4% 558 5% 466 3% 576 4% 936 3% 597 2% 693 2% 747 2% 765 2% 715 1% 949 1% Price 318 3% 399 4% 474 4% 936 6% 903 6% 2,037 8% 2,338 9% 4,023 11% 3,936 10% 4,196 11% 5,796 12% 7,212 10% Other* 300 3% 429 3% 442 4% 660 4% 802 5% 824 3% 342 1% 112 0% 1,379 4% 340 1% 645 1% 364 0% Total 9,542 100% 10,238 100% 11,743 100% 16,431 100% 16,001 100% 26,882 100% 26,006 100% 36,403 100% 39,081 100% 37,626 100% 49,585 100% 73,361 100% Note: totals may not add precisely due to rounding. Production by Variety (Kernel Tonnes) 2013 Production by Variety (Kernel Tonnes & %) 75,000 70,000 65,000 60,000 55,000 Price 7,212 9.8% All Others 1,972 2.7% Peerless 949 1.3% Nonpareil 36,305 49.5% Tonnes (kernel) 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 Other Peerless Price Carmel Nonpareil 10,000 5,000 0 Carmel 26,922 36.7% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Page 9

Production Production by State 2013 (Kernel Tonnes) 90,000 NSW 12,296 17% VIC 47,008 64% SA 14,057 19% Tonnes 75,000 70,000 65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Australian Industry Production - Past & Present (Kernel Tonnes) 2000 2001 2002 Production by State (Kernel) South Australia Victoria New South Wales 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 80,000 70,000 60,000 Tonnes 50,000 40,000 30,000 20,000 10,000 0 Tonnes 2003 10,238 2004 11,743 2005 16,431 2006 16,001 2007 26,882 2008 26,006 2009 36,403 2010 39,081 2011 37,626 2012 49,585 2013 73,361 2014 70,000 2015 81,607 2016 82,968 2017 83,732 2018 84,107 2019 84,321 2020 84,336 10 P age

Almond Varieties, Sizes & Grades Our almond sizes are consistent with international standards and is represented as the number of almonds per ounce. Australian almonds are graded as: Fancy, Extra Supreme, Supreme, and Manufacturing. 2013 Kernel Size by Variety (kernels per ounce) Sizing Variety / Size Nonpareil Carmel Price Industry Total 16/18 0.9% 0.5% 0.0% 0.6% Larger 18/20 6.8% 3.2% 4.4% 5.2% 20/22 16.5% 12.7% 9.1% 14.3% Australian Nonpareil Australian Carmel Australian Price 18-20 20-22 23-25 25-27 27-30 30-32 Smaller 23/25 43.9% 45.5% 39.9% 44.1% 25/27 18.0% 22.5% 21.8% 20.1% 27/30 7.1% 8.1% 11.7% 7.9% 30/35 3.1% 4.4% 8.8% 4.2% 35/40 3.4% 2.7% 3.3% 3.1% Other 0.3% 0.4% 1.0% 0.4% TOTAL 100% 100% 100% 100% 50% 45% 40% 2013 Kernel Size by Major Varieties (kernels per ounce) Nonpareil Carmel Price 35% 30% 25% 20% 15% 10% 5% 0% 16/18 18/20 20/22 23/25 25/27 27/30 30/35 35/40 Other Larger Smaller Page 11

Consumption 1kg 900 800 Australian Consumption (g/person kernel) Almonds are consumed as snacks either as raw or roasted kernels that can also have seasoning added to flavour the almonds. Many manufactured goods use almonds as a key ingredient such as breakfast cereals and snack bars, as well as almond paste and almond milk. Almonds are also widely used in home cooking and restaurant dishes. Gluten free almond meal is gaining in popularity as a replacement for flour in baking. Almonds are frequently an ingredient in the dishes of many nationalities and the broadening consumer palate has many people now eating international cuisines and thereby contributing to the increased demand for almonds. In addition to being a good source of protein, almonds are a good source of Vitamin E, dietary fibre and monounsaturated fat which has been associated with decreased risk of heart disease. Over the past year we have seen the continued growth of gluten free foods. Almond meal has been a particular beneficiary of this growth trend as gluten free is perceived as a strong health benefit by a broad consumer segment and is not limited to people with Coeliac Disease. Scientific evidence continues to mount showing a diet including a handful of almonds three to four times a week may help maintain a healthy heart, reduce weight, prevent diabetes and reduce cancer mortality. Almonds are either sold as inshell or kernel including processed items such as dry roasting, blanching, slicing, chopping and conversion into meal, paste (marzipan) or flavourings. As they can be processed into a range of products they are used in many manufactured food products to provide flavour, texture and a healthy product image. Forms of Australian Almonds g per person 700 600 500 400 Kernel Whole Blanched 300 200 100 Natural Sliced In Shell Blanched Sliced 0 2008 674g 2009 618g 2010 693g 2011 738g 2012 849g 2013 909g Slivered Meal 12 P age Sources: ABA, ABS

Middle East & Africa 17% Exports by Region (2013/14 Marketing Year) Americas 4% Asia Pacific Oceania 37% Inshell 37% Exports Exports by Type (2013/14 Marketing Year) Europe 42% Kernel 63% Tonnes 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 14,535 15,402 Australian Export & Domestic Supply (Marketing Year) Kernel equivalent 13,355 Imports 24,132 14,546 Domestic Supply 21,315 14,961 24,483 Exports 17,350 31,047 18,856 48,910 0 1,250 901 1,085 1,861 2,847 1,946 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 Millions $AUD $105 $100 $95 $90 $85 $80 $75 $70 $65 $60 $55 $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Kernel India Top 10 Export Destinations by Value (2013/14 Marketing Year) United Arab Emirates Germany Spain Italy Netherlands New Zealand United States of America United Kingdom Source: ABS Hong Kong (SAR of China) $ 1,373,748 $ 42,884,241 $ 29,341,445 $ 23,872,703 $ 22,871,461 $ 19,447,429 $ 14,775,191 $ 14,107,021 $ 13,338,169 $ 5,893,148 Inshell $ 98,740,039 $ 665,640 $ 588,347 $ 1,072,735 $ 1,108,787 $ 1,188,475 $ 155,943 $ 103,334 $ 290,145 $ 4,909,870 Page 13

Exports Approximately 48 countries now buy Australian almonds, with India being Australia s largest overseas market, twice the size of the next largest market, the United Arab Emirates. Almonds have long been an integral part of India s cultural heritage, especially during festive periods and weddings. The Indian market has a preference for inshell product, which is then hand cracked. Australian product provides an excellent crackout ratio (kernel to inshell weight) and some Indian buyers have expressed a liking for the Australian kernel shape. The almond industry is growing very rapidly in terms of production and value. The rapid growth in plantings and production has meant the supply of Australian almonds now far exceeds domestic demand. Export demand has become crucial with over 50,000 tonnes sold overseas in 2013. The combined value of domestic and export sales from the 2013 crop was more than $500 million. With only 63% of orchards fully mature the industry believes the productive capacity of existing orchards will reach 90,000 tonnes and the industry will become even more dependent on exports. Australian Export Markets by Value (2013/14 Marketing Year) Export Destinations Kernel (kgs) Kernel $AUD Inshell (kgs) Inshell $AUD Total India 202,508 $1,373,748 18,719,731 $98,740,039 $100,113,787 United Arab Emirates 5,313,636 $42,884,241 83,759 $665,640 $43,549,881 Germany 3,707,777 $29,341,445 66,206 $588,347 $29,929,792 Spain 3,398,407 $23,872,703 154,750 $1,072,735 $24,945,438 Italy 3,161,784 $22,871,461 133,645 $1,108,787 $23,980,248 Netherlands 2,508,038 $19,447,429 153,050 $1,188,475 $20,635,904 New Zealand 1,776,435 $14,775,191 18,235 $155,943 $14,931,134 United States of America 2,632,386 $14,107,021 21,772 $103,334 $14,210,355 United Kingdom 1,771,520 $13,338,169 38,836 $290,145 $13,628,314 Hong Kong (SAR of China) 708,054 $5,893,148 777,349 $4,909,870 $10,803,018 France 1,241,938 $9,044,694 34,500 $271,655 $9,316,349 Sweden 960,179 $7,434,547 - - $7,434,547 Egypt 1,167,535 $7,430,816 - - $7,430,816 Turkey 679,889 $5,840,085 195,954 $1,221,598 $7,061,683 Thailand 709,300 $5,601,713 - - $5,601,713 Saudi Arabia 595,623 $4,894,563 - - $4,894,563 Poland 559,765 $4,468,620 - - $4,468,620 Tunisia 451,553 $3,545,071 - - $3,545,071 Russian Federation 326,945 $2,733,518 - - $2,733,518 Switzerland 328,225 $2,668,190 - - $2,668,190 Denmark 272,355 $1,850,659 34,500 $236,569 $2,087,228 Singapore 254,876 $2,067,536 13 $123 $2,067,659 Greece 187,701 $1,428,968 49,295 $413,627 $1,842,595 Norway 255,500 $1,842,432 - - $1,842,432 Export Destinations Kernel (kgs) Kernel $AUD Inshell (kgs) Inshell $AUD Total Malaysia 213,484 $1,631,882 - - $1,631,882 South Africa 206,711 $1,477,896 9,979 $93,375 $1,571,271 Belgium 154,704 $1,354,218 17,997 $133,413 $1,487,631 Lebanon 105,461 $920,717 - - $920,717 China (excl SARs & Taiwan) 174,427 $829,734 43 $998 $830,732 Jordan 91,174 $766,844 - - $766,844 Canada 97,109 $659,889 - - $659,889 Bulgaria 53,230 $401,461 - - $401,461 Korea, Republic of 36,729 $341,580 - - $341,580 Austria 34,474 $268,280 - - $268,280 Vietnam 29,627 $260,562 241 $1,433 $261,995 Japan 34,420 $257,619 - - $257,619 Latvia 19,958 $177,595 - - $177,595 Fiji 19,712 $167,465 - - $167,465 Portugal 17,237 $160,203 - - $160,203 Finland 17,236 $142,340 - - $142,340 Qatar 18,257 $141,446 - - $141,446 Bahrain 18,257 $140,441 - - $140,441 Kuwait 18,257 $138,719 - - $138,719 Malta 15,876 $118,868 - - $118,868 Mauritius 3,804 $31,432 - - $31,432 Brunei Darussalam 258 $4,999 - - $4,999 Indonesia 336 $2,100 - - $2,100 Total Industry Export Value 34,552,665 $259,152,258 20,509,854 $111,196,106 $370,348,364 14 P age Note: totals may not add precisely due to rounding. Source: ABS

Foreign Exchange The exchange rate of the Australian dollar to the US dollar impacts directly on the price achieved by Australian marketers and returns to growers. As the US dominates world production and supply to export markets, almonds are traded internationally in US dollars. The rate at which this converts to Australian dollars can have a major impact on revenue and the bottom line of Australian businesses. During 2013 the Australian dollar fell below parity, increasing the return from overseas sales contracted in US dollars. $1.10 AUD vs USD $1.05 $1.00 Industry marketers participated in international trade fairs in Germany, Russia, Japan, Indonesia and the United Arab Emirates during 2013/14. $0.95 $0.90 AUD $0.85 USD $0.80 $0.75 $0.70 $0.65 $0.60 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Page 15

Global Already Australia s leading horticultural export industry, the almond industry has the potential in the next few years to become Australia s most valuable horticultural industry when domestic and export sales are combined. This has been achieved in a remarkably short time frame from when the almond planting boom commenced ten years ago. The growth of the Australian almond industry has been mirrored in the US with almond production increasing threefold in the past fifteen years. Almonds grown in California are the USA s most valuable horticultural crop worth around $6 billion in 2013. The USA produces 80% of the global crop and invests heavily in overseas market development and domestic promotion. Australia 7.0% Year Global Production 2013 % Turkey Spain 1.7% 5.2% Chile 0.9% Other 3.6% US Almond Plantings by Year (Ha) New Plantings Total Industry 2001 7,830 244,835 2002 6,417 246,858 2003 7,138 246,858 2004 14,658 258,999 2005 19,943 283,280 2006 14,361 305,538 2007 5,820 309,585 2008 8,773 321,725 2009 7,391 327,795 2010 5,407 333,866 2011 6,054 337,913 2012 4,965 352,077 Tonnes 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Global Almond Supply Versus Demand Forecast Supply Consumption Production Carry-Out 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 California Almond Exports by Region % 2012/13 North America 34.7% Latin America/Caribbean 0.8% 2015 Forecast Supply & Potential Demand 2016 2017 Western Europe 25.1% USA 81.7%* *US 2013 Crop Production figures as at May 2014 Central/Eastern Europe 3.5% Middle East/Africa 9.2% Asia Pacific Oceania 26.7% 16 P age Source: ABC

Global Global Almond Production (Kernel) YEAR AUS CHILE CHINA GREECE INDIA ITALY SPAIN TURKEY US World lbs (mill) Tonnes lbs (mill) Tonnes lbs (mill) Tonnes lbs (mill) Tonnes lbs (mill) Tonnes lbs (mill) Tonnes lbs (mill) Tonnes lbs (mill) Tonnes lbs (mill) Tonnes lbs (mill) Tonnes US% AUS% 1990 5.3 2,408 34.2 15,513 41.90 19,006 137.8 62,505 33.1 15,014 488.5 221,579 938.9 425,910 52.09% 0.6% 1991 6.6 3,022 24.3 11,022 24.30 11,022 142.2 64,501 33.7 15,286 656.2 297,647 776.3 352,157 84.5% 0.9% 1992 7.8 3,559 35.3 16,012 39.70 18,008 158.5 71,895 34.6 15,694 485.9 220,400 877.3 397,955 55.4% 0.9% 1993 9.1 4,139 44.1 20,003 33.10 15,014 185.2 84,005 35.3 16,012 545.9 247,616 844.2 382,951 64.7% 1.1% 1994 10.1 4,592 35.3 16,012 30.90 14,016 154.9 70,261 34.6 15,694 488.3 221,489 1,003.3 455,097 48.7% 1.0% 1995 11.2 5,083 35.2 16,000 33.10 15,014 99.9 45,314 30.2 13,698 732.7 332,347 1,019.6 462,497 71.9% 1.1% 1996 12.0 5,470 28.6 13,000 13.20 5,987 132.3 60,010 31.5 14,288 366.7 166,332 603.2 273,631 60.8% 2.0% 1997 12.7 5,783 27.5 12,500 24.30 11,022 165.3 74,979 24.3 11,022 507.5 230,198 705.7 320,132 71.9% 1.8% 1998 13.4 6,104 24.2 11,000 19.80 8,981 66.1 29,982 26.5 12,020 756.5 343,142 1,010.3 458,277 74.9% 1.3% 1999 14.0 6,390 8.8 4,000 37.50 17,010 145.5 65,998 30.9 14,016 517.0 234,507 652.2 295,839 79.3% 2.2% 2000 18.8 8,558 31.9 14,500 22.0 9,979 116.8 52,980 34.2 15,513 829.9 376,436 1,084.0 491,709 76.6% 1.7% 2001 20.1 9,142 8.8 4,000 19.8 9,000 2.2 1,000 39.70 18,008 125.7 57,017 30.9 14,016 698.4 316,788 913.5 414,380 76.4% 2.2% 2002 21.0 9,541 13.2 6,000 37.9 17,200 2.4 1,100 19.80 8,981 145.5 65,998 30.9 14,016 824.1 373,805 1,050.0 476,272 78.5% 2.0% 2003 22.5 10,237 9.9 4,500 0 19.8 9,000 2.2 1,000 11.0 4,990 97.0 43,998 30.2 13,700 1,083.7 491,558 1,164.5 528,242 93.1% 1.9% 2004 25.8 11,742 16.5 7,500 0.2 100 11.0 5,000 2.4 1,100 26.50 12,020 57.70 26,172 27.1 12,300 1,032.9 468,515 1,111.1 504,000 93.0% 2.3% 2005 36.2 16,431 9.2 4,200 2.2 1,000 35.2 16,000 2.5 1,150 26.50 12,020 140.0 63,503 30.2 13,700 998.0 452,685 1,306.5 592,650 76.4% 2.8% 2006 35.2 16,00 15.2 6,900 0.4 200 26.4 12,000 2.6 1,200 13.20 5,987 182.0 82,554 31.7 14,400 911.7 413,540 1,505.2 682,749 60.6% 2.3% 2007 59.2 26,881 19.4 8,800 2.8 1,300 26.4 12,000 2.2 1,000 26.50 12,020 125.40 56,880 34.1 15,500 1,116.7 506,526 1,754.9 796,021 63.6% 3.4% 2008 57.3 26,005 17.6 8,000 0.8 400 26.4 12,000 2.6 1,200 26.50 12,020 120.30 54,567 35.3 16,000 1,383.0 627,318 2,007.2 910,477 68.9% 2.9% 2009 80.2 36,403 13.2 6,000 2.2 1,000 17.6 8,000 2.4 1,100 13.20 5,987 188.50 85,502 35.3 16,000 1,614.6 732,370 1,883.6 854,400 85.7% 4.3% 2010 86.1 39,080 19.8 9,000 5.5 2,500 17.6 8,000 2.6 1,200 13.23 6,000 77.16 35,000 30.9 14,000 1,405.9 637,705 2,028.6 920,163 69.3% 4.2% 2011 82.9 37,626 22.0 10,000 8.8 4,000 17.6 8,000 2.4 1,100 26.46 12,000 132.28 60,000 35.3 16,000 1,628.2 738,539 2,497.1 1,132,666 65.2% 3.3% 2012 109.3 49,585 24.2 11,000 11.0 5,000 17.6 8,000 2.5 1,133 20.0 9,072 120.0 54,431 37.5 17,000 2,020.3 916,392 2,523.1 1,144,500 86.1% 4.7% 2013 161.7 73,361 20.5 9,300 13.2 6,000 11.0 5,000 2.4 1,100 20.0 9,072 120.0 54,431 33.1 18,000 1,884.0 854,568 2,307.0 1,046,455 81.7% 7.0% *US 2013 Crop Production figures as at May 2014 Sources: ABA, ABC, INC Page 17

Global 1,200,000 Australia s Contribution to Global Almond Production (Kernel Tonnes) 1,100,000 1,000,000 900,000 800,000 700,000 Tonnes 600,000 500,000 400,000 300,000 200,000 100,000 0 Australia USA Other 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0.6% 0.9% 0.9% 1.1% 1.0% 1.1% 2.0% 1.8% 1.3% 2.2% 1.7% 2.2% 2.0% 1.9% 2.3% 2.8% 2.3% 3.4% 2.9% 4.3% 4.2% 3.3% 4.7% 7.0% 52.0% 84.5% 55.4% 64.7% 48.7% 71.9% 60.8% 71.9% 74.9% 79.3% 76.6% 76.4% 78.5% 93.1% 93.0% 76.4% 60.6% 63.6% 68.9% 85.7% 69.3% 65.2% 86.1% 81.7% 47.4% 14.6% 43.7% 34.3% 50.3% 27.0% 37.2% 26.3% 23.8% 18.6% 21.7% 21.3% 19.5% 5.0% 4.7% 20.8% 37.1% 33.0% 28.2% 10.0% 26.4% 31.5% 9.3% 11.3% 18 P age

Almond Marketers Almondco Australia Ltd Sturt Highway, PO Box 1744, Renmark, South Australia, 5341 Ph: +61 8 8586 8800 Fax: +61 8 8595 1559 Enquiries: sales@almondco.com.au www.almondco.com.au Nut Producers Australia Ltd 249 Wright Street, Adelaide, South Australia, 5000 Ph: +61 8 8231 7011 Fax: +61 8 8231 2177 Enquiries: nuts@nutproducers.com.au www.nutproducers.com.au Olam Orchards Australia 55 Wyandra Street, Newstead, Queensland, 4006 Ph: +61 7 3250 3300 Fax: +61 7 3852 1600 www.olamonline.com Select Harvests Ltd 360 Settlement Road, Thomastown, Victoria, 3074 Ph: +61 3 9474 3544 Fax: +61 3 9474 3588 Enquiries: info@selectharvests.com.au www.selectharvests.com.au Page 19

Almond Board of Australia Inc. ABN 31 709 079 099 P + 61 8 8582 2055 9 William Street, PO Box 2246 E admin@australianalmonds.com.au Berri South Australia 5343 W www.australianalmonds.com.au Australian Almond Insights Report 2013-14 can be downloaded from www.australianalmonds.com.au