1. abare > outlook 2007 Australian Apple & Pear Industry Preparing for the future Presented by Darral Ashton Chairman, Apple & Pear Australia Limited

2. abare > outlook 2007 The Australian Apple & Pear Industry Farm gate value $450 M All states, 8 major growing districts 90% pears grown in Victoria Quarantine restricts apple imports BA has allowed NZ apples into Aust Industry doing a lot of ‘soul searching’

3. abare > outlook 2007 Current Situation in Australian Apple & Pear Industry Industry is not world cost competitive Labour cost very high - 70% of fruit value Overcapitalisation in packing infrastructure Supply chain - low transparency, poorly informed market, commodity pricing Cool chain needs improvement to provide more consistent eating experience Low level formal business skills, many small operations, older growers Training and education deficiencies Opportunistic export marketing

4. abare > outlook 2007 Opportunities for Australian Apples & Pears Strong consumer support for fresh product, healthy and nutritious Pink Lady tm experience – branding, IP Able to describe and differentiate product 40% growers have intensive plantings Disease free environment - great asset Consolidation of supply chain in progress

5. abare > outlook 2007 What the Apple & Pear Industry is doing now Future Orchard 2012 Prevar Pome Fruit Improvement Program Good industry structure

6. abare > outlook 2007 Vision for Australian Apple & Pear Industry World competitive orchards and supply chain Well established as quality, healthy food for snacks and balanced diet Established export markets Australian consumers will have best apples and pears in the world