abalone markets Laura Mattiazzi NAB Agribusiness April 2015 - - PowerPoint PPT Presentation

Future Economic health of our major abalone markets

Laura Mattiazzi NAB Agribusiness April 2015

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1.Asia Desk Introduction 2.World abalone supply 3.Our observations of the world abalone markets:

• China
• Japan
• Singapore
• Hong Kong
• 4. Future challenges

Overview

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NAB Agribusiness – Asia Desk

Laura Mattiazzi Senior Agribusiness Manager, Asia Desk T: 0477 734 802 | E: Laura.h.mattiazzi@nab.com.au Laura joined the Agri team 18 months ago after having spent 14 years in NAB Business. By utilising solid commercial banking experience along with fluent Mandarin and Cantonese language skills, Laura has assisted the Agri team in expanding its service offerings to promote trade and inbound investments into Agri sector. Roger Gaudion Head of PMO & Asia Desk T: 0427 709 408| E: Roger.Gaudion@nab.com.au Roger’s responsibilities are twofold: Oversight with PMO of larger corporate agribusiness exposures along with driving the “Australia in Asia” strategy with the Asia Desk. Roger has extensive experience in the banking industry, having performed front line and leadership roles across NAB Business, Corporate Banking and Credit; and in the last 9 years senior roles within NAB Agribusiness. Mike Mosel Senior Agribusiness Manager, Asia Desk T: 0457 518 382| E: Mike.mosel@nab.com.au Before joining Agribusiness, Mike led a team of business bankers and a portfolio of corporate banking clients in Darwin. His career at NAB covered a range of roles in Risk Management and Business Banking. Mike was born in Australia but raised in Indonesia so he speaks fluent Indonesian. He is currently completing the Asialink Leaders program through the University

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Our mandate

Our strategy is to grow the business, through supporting our customers with outbound trade flows (exports ) and capturing & monetising inbound investment flows of an agribusiness nature “Agri Asia Desk” builds on the leading market share (30.5% ) and positioning in the market place – “right bankers, right places” . We are well placed to capture and grow our Asia related business given our local market presence Enterprise (Internal ) collaboration is a central pillar of our success both domestically and in Asia for NAB. Growing our market share through new business

• pportunities, & supporting

existing customers is enhanced through developing and leveraging key external influencers ,that have an alignment to Asia region

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NAB is Dedicated to Australian Agriculture

• More than 154 years agribusiness

experience

• Banking 1 in every 4 Australian

agribusinesses

• Market Leading Share: 30.5% by total

lending volumes1

• Over 600 Agribusiness Bankers,

financial planners and product specialists

• Across 110 regional Australian

locations

• Dedicated Corporate Agribusiness

teams in Brisbane, Sydney & Melbourne

1 APRA/NAB Market Analysis Sept 2013

NAB Agribusiness Branch Location

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NAB Agribusiness – Global Connectivity

NAB Agribusiness has global reach through NAB Group’s network operating in 10 countries across 4 continents, serving 8 million banking customers & 140,000 agricultural customers

Beijing Shanghai Hong Kong Mumbai Singapore Tokyo & Osaka Glasgow Jakarta

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World abalone supply

 Farm grown abalone 14 times the amount of wild caught  China accounted for 87.5% of the world’s total farm abalone production last year  Increased production in China to meet demand  Greater availability of illegally abalone products also floods supply  Against expectations, Chinese farm production has not increased in the current trend

• Note. Adapted from Cook, (2014), [PDF document], Retrieved from http://dx.doi.org/10.4236/me.2014.513110

*All figures below are in metric tons

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China

 China’s demand for high-quality agriculture and food products is growing rapidly. It predicted that China will account for 43 per cent of global growth in agricultural demand by 2050  Under the ChAFTA, the 10-14% tariff on abalone will be eliminated within 4 years  China’s seafood imports from NZ quadrupled (to $338 million) since the China-NZ FTA  Korea is now pushing hard for abalone sales in China  Australia is recognised by local consumers as having a clean and green environment with good quality products and brands Country snapshot

• World’s second largest

economy

• Australia’s largest trading

partner, total trade 151bil

• 32.6kg per capita seafood

consumption per year

• “New norm” for the

future of stable moderate GDP growth, around 7% year on year

• Rising middle class with a

distinctive consumer trend

• Economic shift towards

domestically driven consumption

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Japan

Country snapshot

• World’s third largest

economy

• Australia’s second largest

trading partner, total trade 71bil

• 53.7 kg per capita seafood

consumption per year

• Currently facing economic

troubles, GDP growth rate target 1.5%

• Quantitative easing in place,

addition QE likely  Japan is world famous for its fish-eating culture, although younger generation showing preference for fast food  Japanese government eliminated all tariffs on abalone last year  Australia enjoys a competitive advantage in supplying fresh, raw seafood to Japan  Demand for Australian wild abalone stable, farmed may see continued growth

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Singapore

Country snapshot

• 8th highest GDP per capita

in the world

• Australia’s fifth largest

trading partner, total trade 27bil

• 22 kg per capita seafood

consumption per year

• Highly dependent on

imports with strong demand for seafood

• Over 10% year on year

increase for seafood imports in 2011

• Significant increase of

consumption in frozen seafood in recent years

• Note. Adapted from Hoshino, (2013), [PDF document], Retrieved from

www.aares.org.au/aares/documents/2013AC/Presentations/Hoshino.pdf

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Hong Kong

Country snapshot

• Biggest exporter target

for wild Australian abalone

• 71 kg per capita seafood

consumption per year

• Sustainable seafood is

becoming more popular

• Hong Kong was the

second largest export market for Australian fish and crustaceans and largest for prepared or preserved seafood

• Note. Adapted from Hoshino, (2013), [PDF document], Retrieved from

www.aares.org.au/aares/documents/2013AC/Presentations/Hoshino.pdf

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Future Challenges

 Increasing price competition from China and Chile for farmed abalone  Illegal fishing of abalone endangers future supply and depresses current prices with excess supply  Korean live abalone is becoming increasingly competitive due to good quality and survivability from shorter distance boat travel  Low product and customer diversification leads to low adaptability to survive in difficult market conditions like the recent GFC  Overall global abalone demand dipped, unlikely to increase again until Chinese and Japanese economics improve  Asian economic trends will significantly affect demand and prices, but the trends are difficult to accurately predict  Fisheries exploited/over-fished

Contact for Asia Desk Agribusiness, NAB

Laura Mattiazzi (刘天惠) Senior Agribusiness Manager, Asia Desk National Australia Bank Address: Level 28, 500 Bourke Street, Melbourne Phone number: +61 477 734 802