1. Andrew Guthrie Regional Director – Asia Pacific Presentation to the AUSVEG Conference, 16 April 2011 The Asian vegetables market Opportunity or threat?

2. 2 Asia-Pacific – drivers over the next decade ●60% of the world’s vegetable production ●Potential for 20% growth in productivity ●Strong population growth ●Rapid economic advancement ●Governments focused on food security

3. 3 Changing Asian markets, a challenging domestic market – there is a lot for growers to think about Export opportunities? Low cost imports Land and water security Urbanisation and constraints Profitability versus strong food retailers New innovations to stay at the cutting edge Maintaining access to key production tools Regulations and resistance

4. 4 The threat of low cost imports ●Intensification will continue ●Developed markets remain export targets ●Food safety and quality is improving ●Costs are increasing, but remain low ●Low cost imports will remain a reality ●Labeling for informed choice Intensive vegetable cultivation: Shandong, China

5. 5 Profitability versus strong food retailers ●Demographic & consumer trends = new opportunities ●Efficiencies of scale not the only answer ●Leverage scale with specialisation ●Success through deeper consumer insight ●“Innovative vegetables” create value and profitability

6. 6 GDP PPP growth % Entry-level Consumers High-end Consumers * Per capita at purchasing price parity. Source: Credit Suisse, citing Asian Demographics Ltd. 0 2 4 6 8 10 05 152025303540 JP TW, HK, SG AU, NZ KR SEA South Asia China GDP per capita Purchasing Power Parity $ K Demand for premium produce will increase across Asia Entry-level consumers are will drive the volume growth High-end consumers shop in organised retail and increasingly seek new, innovative and convenient vegetable products 10 %  IN INCOME = 5-7%  IN VEGETABLE CONSUMPTION ( USDA-ERS in CONTEXT 2010)

7. 7 Export opportunities growing ….. but not easy ●Population growth & economic development will create new high-value markets ●Australian export success will require: ―Deep insights into emerging consumer needs ―Decisiveness ―Leverage the Australian brand ―Target segments where Australia has advantage Japanese students inspect export leeks destined for the Japanese Hotel Market Peter Schreurs and Sons, Victoria Export carrots ready for shipping to Asia at Center West Exports, WA

8. 8 Land and water – urbanisation and resource constraints ●Land and water resources are under pressure ●5-7 million hectares of land lost each year ●We must increase productivity of existing farmland ●Efficient growers will be increasingly rewarded

9. 9 Maintaining access to key production tools - Regulations and resistance ●Excessive regulation constrains productivity growth ●Poor regulation threatens food security ●Non science-based regulation denies growers access to the best-available tools ●Australia must consolidate, harmonise and modernise its science-based regulatory framework

10. 10 New innovations to help stay at the cutting edge ●New innovation through sustained commitment to R&D ●Agricultural R&D investment has been declining globally ●Smarter R&D investment to accelerate innovation with strong public and private partnerships

11. 11 Syngenta and DEEDI – developing innovative new varieties ●Syngenta and DEEDI, developing superior tomato and capsicum varieties for the Australian market. ●Leveraging -Syngenta’s germplasm and breeding capabilities -DEEDI’s leading traits ●Delivering major benefits for Australian growers and consumers

12. 12 Weed control Insect control Disease control Nematode control Yield potential Nitrogen efficiency Drought, water use efficiency Quality/ output Breeding Native traits GM traits Seed Care Crop Protection Nutrients, water Machinery Further integration of new technologies is essential CUSTOMER NEEDS Technology Weed control Insect control Disease control Nematode control Yield potential Nitrogen efficiency Drought, water use efficiency Quality/ output Breeding Native traits GM traits Seed Care Crop Protection A DJACENCIES Biological solutions Chemical solutions Adjacencies CP SEEDS

13. 13 Towards an integrated offer – the Almeria Pilot, Spain ●30 pepper growers - 75ha of greenhouse ●The integrated solution encompassed: ―leading seeds varieties; ―a comprehensive crop protection program ―integrated protocols to minimise residues; ―Bioline biologicals; and ―crop monitoring ●Syngenta’s crop solution delivered growers: ―yield and quality benefits ―an improved residue profile; and ―increased overall returns.

14. 14 Towards an integrated offer – Durivo Australia ●Making the most from the best genetics ●Flexible application: seedling tray or planting hole ●Improved plant vigor ●IPM & IRM fit ●Multiple pest species ●6 – 8 less foliar applications

15. 15 Conclusions – The Asian market: an opportunity or a threat? ●The vegetable industry will continue to be highly competitive ●Australia cannot stand still ●Innovation, scale and specialization ●Valuable opportunities will emerge ●Consumer insight and technology integration essential ●Integrated technology solutions are key ●Solution based partnerships to underpin success

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