1. Investment in Australian Agribusiness Tony Eyres, Senior Investment Specialist Austrade Sydney

2. Australia: a Partner for Growth in Asia

3. Economic Profile  Open economy  Free trade economy  No/few subsidies for agriculture  Low agricultural land prices (on a cost per unit of production basis)  High input costs (labour, energy), relative to Brazil, US, NZ

4. Taiwan: strong economic ties with Australia Taiwan and Australia (as in 2015)  10 th largest export market for Australia  A$12.4 billion in total two-way trade  A$7.4 billion of inward investment from Taiwan Complementary Trade Relationship  Taiwan imports over 90% of its agriculture and food products and energy sources, these are Australia’s major export items  Major Exports to Taiwan: Raw Materials o Coal, iron ore, aluminum and beef  Major Imports from Taiwan: Refined and Produced items o Refined petroleum, telecom equipment & parts, computers, motorcycles & cycles

5. Agribusiness and Food Market Overview  Australia is the 4 th largest agriculture and food supplier to Taiwan  10 th major export destination for Australia  A$793 million agricultural export value to Taiwan in 2014 -15  Taiwan has well-established modern food retail outlets Major Australian Food Exports to Taiwan  Meat  Dairy  Wheat/Oats  Wines

6. Agribusiness and Food  Premium wine and quality packaged food are in demand Taiwan has a growing taste for Australian fine wine with exports rising 47% to A$15 million last year, and Australia the 5th largest wine supplier in Taiwan  Fresh produce Counter season supply from Australia presents competitive advantage  Natural & organic products, and sustainable seafood Consumers increasing health consciousness, and concern for food safety and traceability

7. Investment Thesis for Australia  Long history of attracting foreign capital  Significant interest from foreign investors – political/economic stability  Significant capital investment required  Low A$, low interest rates, relatively low land price, high liquidity  “Food narrative” resonates  Strategic location – proximity to Asia, transport infrastructure  Strong demand for Australian agri-food products – ‘Clean & Green’

8. People: Products: Places People High productivity; resilient Highly educated workforce Excellent research institutions Early adopters and innovators Places Proximity to Asia Sophisticated domestic market as a base to scale up into Asia Stability Products Direct access to quality inputs Abundant land and natural resources Supply chain integrity Biosecurity bonus; traceability Sustainability and health credentials * * Austrade’s Brand Australia Food Strategy Research, 2015

9. Overview  Large variety of geological and climatic zones, ensuring the availability of a broad range of fruit and vegetables for export across the year

10. Opportunities  Participating in integrated supply chains

11. Top Agribusiness and Food companies in Australia  Grains GrainCorp / CBH Group / Glencore / Cargill / Bunge  Beef processing and feedlots JBS Australia, Teys, Cargill, Minerva (July 2016)  Crop protection/fertilisers Nufarm, Elders, Wesfarmers, Monsanto, Dow, Incitec

13. Key Players in Australia’s Grain Supply Chain R&D: GRDC; CSIRO (Australia’s Embrapa) Inputs: Elders; Wesfarmers; Crop Protection Companies (Monsanto; Dow; Incitec) Farmers: Fragmented; 80/20 rule applies Logistics: Road/rail; Aurizon; Pacific National; ARTC Storage & Handling “up-country”: CBH; GrainCorp; Bunge; Louis Dreyfus; Cargill; Viterra Ports: Qube; Graincorp; CBH; Viterra; Bunge Traders: A,B,C,D* and Japanese trading houses (eg; Sumitomo’s Emerald Grain) *A.B.C.D = ADM, Bunge, Cargill & Louis Dreyfus

14. Resources and Energy sector at a glance Largest single export earner; mining and services represented 10.4 per cent of GDP Generated A$194.6 billion in export income in 2013 ‒ 14, 58.6 per cent of total export income Export earnings projected to be A$240 billion in 2019–20 Employed 269,000 people or 2.3 per cent of the national workforce Invested A$6.6 billion in minerals and petroleum exploration

15. Australia’s commodity world rankings COMMODITYRESOURCES WORLD RANKING PRODUCTION WORLD RANKING 52,578 Mt 1.2 Mt 62,095 Mt 9,808 t 62.3 Mt 19.0 Mt 93.1 Mt 6,281 Mt 1151112211511122 IRON ORE URANIUM COAL (BLACK) GOLD ZINC NICKEL COPPER BAUXITE 609 Mt 6.4 Mt 538 Mt 265 t 1.52 Mt 0.234 Mt 1.0 Mt 81.1 Mt 2352245123522451

16. Policy and Regulatory  Secure land tenure system, with different titles/rights  Advanced and secure water rights (and trading) system  Stringent environmental laws (land clearing, EPBC)  Stringent biosecurity laws (a bonus)  Foreign investment policy – FIRB  Northern Australia – Government support

17. Northern Australia

18. Northern Australia water infrastructure priorities

19. Scale of Northern Australia’s Irrigation Potential  Natural resources sufficient to support 1.4 million hectares of irrigated agriculture exist in Northern Australia.  This will increase by around 50 per cent of Australia’s total irrigated area.  The current irrigated agricultural footprint in Northern Australia is very small.

20. How we can help you The Australian Trade and Investment Commission (Austrade), in cooperation with State and Territory governments, provides free and confidential assistance  National coordination of Australian government investment services  Information on the Australian business and regulatory environment  Market intelligence and investment opportunities  Identification of suitable investment locations and partners in Australia  Advice on Australian government programs and approval processes

21. Contact details Tony Eyres Senior Investment Specialist, Resources and Energy Australian Trade and Investment Commission (Austrade) Level 23, 201 Kent Street Sydney NSW T: +61 2 9392 2408 M: +61 429 069 072 E: tony.eyres@austrade.gov.autony.eyres@austrade.gov.au W: www.austrade.gov.au