IN-PROGRESS REVIEW DRAFT...HS Codes 030613, 030623 Product All prawns/shrimp, including live, chilled, dry and frozen; both in shell and shelled; uncooked or cooked; product is generally

TARGET MARKET OPPORTUNITIES IN ASIA FOR PRAWNS Part of Asia Market Success, April 2016

IN-PROGRESS REVIEW DRAFT Pre-release copy of significant commercial value to industry Document contains incomplete & in-progress research for comment For named reviewer/firm only; do not duplicate or distribute

RECIPIENT

FIRM

IINNHHEERREENNTT LLIIMMIITTAATTIIOONNSS This work was commissioned by the Department of Agriculture and Food Western Australia (DAFWA), with funding through the State Government’s Royalties for Regions program and prepared by Coriolis. This work is based on secondary market research, analysis of information available or provided to Coriolis by our client, and a range of interviews with industry participants and industry experts. Coriolis have not independently verified this information and make no representation or warranty, express or implied, that such information is accurate or complete. Projected market information, analyses and conclusions contained herein are based (unless sourced otherwise) on the information described above and on Coriolis’ judgement, and should not be construed as definitive forecasts or guarantees of future performance or results. Neither Coriolis nor its officers, directors, shareholders, employees or agents accept any responsibility or liability to readers or recipients of this report other than DAFWA or people other than DAFWA who rely upon it (described below as Recipients) with respect to this document. Coriolis wishes to draw Recipients’ attention to the following limitations of the Coriolis document “Target Market Opportunities in Asia for the Western Australian Premium Products” (the Coriolis Document) including any accompanying presentation, appendices and commentary (the Coriolis Commentary): a. Coriolis has not been asked to independently verify or audit the information or material provided to it by or on behalf of the Client or any of the parties involved in the project; b. the information contained in the Coriolis Document or any Coriolis Commentary has been compiled from information and material supplied by third party sources and publicly available information which may (in part) be inaccurate or incomplete; c. Coriolis makes no representation, warranty or guarantee to Recipients, whether express or implied, as to the quality, accuracy, reliability, currency or completeness of the information provided in the Coriolis Document and any Coriolis Commentary or that reasonable care has been taken in compiling or preparing them; d. the analysis contained in the Coriolis Document and any Coriolis Commentary are subject to the key assumptions, further

qualifications and limitations included in the Coriolis Document and Coriolis Commentary, and are subject to significant uncertainties and contingencies, some of which, if not all, are outside the control of Coriolis; and e. any Coriolis Commentary accompanying the Coriolis document is an integral part of interpreting the Coriolis document. Consideration of the Coriolis document will be incomplete if it is reviewed in the absence of the Coriolis Commentary and Coriolis conclusions may be misinterpreted if the Coriolis document is reviewed in absence of the Coriolis Commentary. Coriolis is not responsible or liable in any way for any loss or damage incurred by any person or entity other than DAFWA relying on the information in, and the Recipient unconditionally and irrevocably releases Coriolis from liability for loss or damage of any kind whatsoever arising from, the Coriolis document or Coriolis Commentary including without limitation judgements, opinions, hypothesis, views, forecasts or any other outputs therein and any interpretation, opinion or conclusion that the Recipient may form as a result of examining the Coriolis document or Coriolis Commentary. The Coriolis document and any Coriolis Commentary may not be relied upon by the Recipient, and any use of, or reliance on that material by the Recipient is entirely at their own risk. Coriolis shall have no liability for any loss or damage arising out of any such use. AACCCCEESSSSIIBBIILLIITTYY Coriolis seeks to support the widest possible audience for this research. This document has been designed to be as accessible to as many users as possible. Any person – with or without any form of disability – should feel free to call the authors if any of the material cannot be understood or accessed. We welcome the opportunities to discuss our research with our readers and users. All photos used in this discussion document were either (1) purchased by Coriolis from a range of stock photography providers as documented, (2) received written permission to use Southern

Forest Food Council photo or (3) are low resolution, complete product/brand for illustrative purposes used under fair dealing/fair use for both “research and study” and “review and criticism”. Our usage of them complies with Australian law or their various license agreements (© Dollar Photo Club). CCOOPPYYRRIIGGHHTT Copyright © Western Australian Agriculture Authority, 2016 IIMMPPOORRTTAANNTT DDAAFFWWAA DDIISSCCLLAAIIMMEERR The Chief Executive Officer of the Department of Agriculture and Food and the State of Western Australia and their employees and agents (collectively and individually referred to below as DAFWA) accept no liability whatsoever, by reason of negligence or otherwise, arising from any use or release of information in this report or any error, inaccuracy or omission in the information. DAFWA does not make any representations or warranties about its quality, accuracy, reliability, currency, completeness or suitability for any particular purpose. Before using the information, you should carefully evaluate these things. The information is general in nature, is not tailored to the circumstances of individuals or businesses, and does not constitute financial, taxation, legal, business or management advice. We recommend before making any significant financial or business decisions, you obtain such advice from appropriate professionals who have taken into account your individual circumstances and objectives. The information in this report should not be presumed to reflect or indicate any present or future policies or decisions by the Government of Western Australia.

2

FFIINNAALL vv110000;; AApprriill 22001166

SCREENING OVERVIEW In Phase One of the Target Market Opportunities in Asia for WA Premium Products Report (TMO Report), extensive import/export trade data was fed through a multi-stage screening process to “hone-in” on potential opportunities for Western Australia; stakeholder interviews also fed into this process

3

STRUCTURE OF MULTI-STAGE SCREENING PROCESS USED IN THIS PROJECT Model; 2016

INDIVIDUAL FIRM ROLE & RESPONSIBILITY STAGE I STAGE II STAGE III STAGE IV

PLATFORM PRODUCT POSITIONING TARGET MARKET

FIT WITH WA

WA INDUSTRY-GOOD RESEARCH

9 PLATFORMS

679 TRADE CODES

47 QUAL/QUANT

SCREENS

Project does not attempt to address firm-level operational or executional activities: -  R&D

-  Product development

-  Sourcing & supply chain

-  Production & operations

-  Marketing & branding

-  Sales & sales structure

-  Capital structure

-  Negotiation

-  Distributor appointment

20 OPPORTUNITIES

YOU ARE

HERE

4 This project is focused on “market demand” from the following twenty-four Asian/Middle Eastern markets

Note: Complete list for analysis purposes, some countries excluded from list if no/limited trade data available (e.g. Iran)

24 COUNTRIES DEFINED AS HIGH POTENTIAL TARGET MARKETS FOR WESTERN AUSTRALIA Target markets; 2015

MIDDLE EAST

Bahrain Egypt Israel

Jordan Kuwait

Lebanon Oman Qatar

Saudi Arabia UAE

24 defined target markets for this project

4

SOUTH ASIA

India Pakistan Sri Lanka

Western Australia

SE ASIA

China Hong Kong

Japan South Korea

Taiwan Indonesia Malaysia

Philippines Singapore Thailand Vietnam

PRODUCT PROFILE

HS Codes 030613, 030623

Product All prawns/shrimp, including live, chilled, dry and frozen; both in shell and shelled; uncooked or cooked; product is generally marketed based on size, colour and uniformity of grading

Out-of-scope Significantly transformed; flavoured; battered; in ready-meals; in other processed foods; soups; etc.

Origin Evidence of wild capture in prehistoric sites; significant protein source in many coastal regions; prawn aquaculture emerged at scale in the late 1970’s

Example ingredients

Whole prawns

Forms/usage -  Boiled

-  Roasted or barbecued (part or whole)

-  Fried; stir fried; similar

-  Ingredient or flavouring in a wide range of processed foods (e.g instant noodles)

-  Wide range of other uses

Drivers of consumer/market success

-  Part of the cuisine styles of a wide range of cultures, particularly in Asia

-  Perceived as healthy: omega-3, calcium, iodine and protein

-  Suitable for processing into a wide range of value-added products

-  However: a common food allergens, not kosher, generally considered halal

WHAT IS THE PRODUCT? Prawns emerged in Phase I as one of twenty “high growth, high potential” opportunities for Western Australia; prawns are a broad family of crustacean eaten across the world

5 Source: photo credit (Dollar Photo); Coriolis analysis

PRODUCT OVERVIEW Example; 2016

DOCUMENT STRUCTURE

What is the global situation?

What is the strategic situation in the market?

In this environment, what is the opportunity for Western Australia?

Who are the potential in-market partners?

Who are the key firms in Western Australia capable of delivering?

6

While there are a wide range of sea life called “shrimp” or “prawns,” only two broad scientific classes of decapods are commercially relevant (Dendrobranchiata and Caridea) collectively called “Natantia”

7 Source: Coriolis from various sources; photo credit (all images from Dollar Photo or are public domain)

~540 species; Penaeus is key family

-  Important in both wild capture fishing and aquaculture

-  WA Brown tiger prawn (P. esculentus)

-  A number of key species are widely used in aquaculture -  Giant tiger prawn (Penaeus monodon) -  Whiteleg prawn (Penaeus vannamei) -  Chinese prawn (Penaeus chinensis) -  Kuruma prawn (Penaeus japonicus)

~3,440 species

-  Of known species, only a few are commercially important

-  Large scale commercial wild catch fisheries -  Pink shrimp (Pandalus borealis) -  Brown shrimp (Crangon crangon) -  Snapping shrimp (Alpheus sp.)

-  Not used in commercial aquaculture

Wide range of other species

-  Common words “shrimp” and “prawns” have no clear definition or meaning

-  Wide range of other species of sea life can be and are labelled as such

-  Minor amounts of wild catch; none commercially farmed in aquaculture

Dendrobranchiata Caridea Other “shrimp” and “prawns”

~13% of wild capture

~87% of wild capture ~99% of aquaculture

Minor amounts of wild capture

“Natantia”

The bulk of global prawn production – whether wild capture or aquaculture – comes from a handful of key species

8 NEI: not elsewhere indicated (no further detail); Penaeus includes Metapenaeus; Source: UN FishStat database; Coriolis classifications and analysis

GLOBAL SHRIMP/PRAWN PRODUCTION BY SPECIES BY PRODUCTION TYPE Tonnes; 000; 2013

Capture Aquaculture

Other 471

Fleshy prawn 131

Giant tiger prawn 212

Northern prawn 287

3,419 4,455

Southern rough shrimp 327

Giant tiger prawn 804

Natantian decapods nei 1,030

Akiami paste shrimp 585

Whiteleg shrimp 3,314

Banana prawn 93

Penaeus shrimps nei 181

Other or NEI 95

Kuruma prawn 48

Penaeus shrimps nei 193

Argentine red shrimp 102

TOTAL = 7,874

Nei = Not elsewhere indicated; no further information given or

available; likely a mix of below named

42% of global production

Overall global production is rising, though growing aquaculture is making up for slowing wild capture

9 Source: UN FishStat database; Coriolis classifications and analysis

GLOBAL PRAWN/SHRIMP PRODUCTION BY TYPE Tonnes; 000; 1950-2013

53y ABS

200

8 20

09

1973 1974

1975

1960

1976

1950

1967

1962

2013

1968

1963

Capture

1964

1966 1965

1961

2011

1972

2010

1951

2012

1969 1970

1971

53y CAGR

200

0

1988 1989 1990

1954

1957

200

2

1985 1986

200

1

1987

1994

1997

1995

1955

1996

1993

1991

1999

1956

1998

1992

200

3

1959

200

6

1980

1981

200

5

1977

1952

200

7

1979 1978

1982

Aquaculture

1958

1953

1983

200

4

1984

639

695

644

665

621

669

476

629

681

756 556 50

5

413

3,507

3,479

3,372

4,0

81 3,94

1 3,636

2,884

2,637 2,575

3,251 2,986 3,0

11

4,14

2

6,892 6,70

3 6,54

4

7,874

7,768 7,4

96

5,665 5,399

4,315

6,565 6,4

20

5,869

2,565

1,175 1,122 1,0

28

1,361 1,339

1,267

836 829

811

995 933 881

1,339

1,957 1,84

7 1,768

2,414

2,30

1 2,188 1,719

1,663 1,4

83

1,644

1,699

1,612 4%

17%

3,007

4,453

CAGR 6%

Global wild capture appears to have stalled in the early 2000’s


GLOBAL PRAWN/SHRIMP WILD CAPTURE PRODUCTION BY KEY SPECIES Tonnes; 000; 1950-2013

1986 1987

Giant tiger prawn

1985

1982 1983 1984

1950

1990

1992 1991

Other

1958

1989 1988

1974

1975 1976

Southern rough shrimp

63y CAGR

1972 1973

1977

1981

Fleshy prawn

1971

1980

Northern prawn

1978 1979

200

7 20

08

200

9

1954

200

4

200

5 20

06

1955 1956

Akiami paste shrimp

Banana prawn 20

13

2010

20

11 20

12

200

3

1995 1996 1997

Argentine red shrimp

1993 1994

1951 1952

200

1 20

02

1953

200

0

1998 1999

1957

1959

Penaeus shrimps nei

1960

63y ABS

1965

1969 1968

1964

Natantian decapods nei

1970

1963

1967

1961 1962

1966

2,944

2,650

503

2,891

2,848

3,348

641

752

2,831

131 2,44

4

2,368

662

2,151

827 80

8

2,581

474

2,561

3,305

3,429

679

666

3,113

543

914

211

283

327

619

3,419 3,20

1 3,275

692 554

3,300

3,144

638

3,171 91

3,270

1,619

8%

5%

989

1,452

1,627

929

1,666

10%

1,548

1,020

1,253 1,163

317

1,113

626

1,340

1,316

4%

1,321

2%

1,953 1,988

101

1,920

412

2,114

2,04

6

832

1,957

1,705

9%

1%

1,555 1,656

89

877

1,981

6%

1,785 1,975

CAGR 5%

N/C

N/C

CAGR 0%

Looking at the drivers of wild capture growth of prawns over the past decade, highlights that the “stall” is not universal, with some species continuing to grow, while others decline


10 YEAR WILD CAPTURE VOLUME GROWTH MATRIX: ABSOLUTE CHANGE VS. RATE OF CHANGE VS. CURRENT VOLUME Tonnes; 000; 2003 vs. 2013

2%

8%

-20 -40

6%

-60

4%

80 60

-4%

-6% 100

0%

0 20

-2%

40 -120 -100 -80

Northern prawn

Natantian decapods nei

200

Southern rough shrimp Akiami paste shrimp

Banana prawn

Argentine red shrimp

Other

Giant tiger prawn

Fleshy prawn

Penaeus shrimps nei

10 year CAGR

10 year absolute change

SHRINKING

GROWING

Bubble scale: tonnes (000); 2013 A bubble this size=

Wild capture prawn production occurs worldwide; however, China, India, Indonesia, and Vietnam stand out

12 Source: UN FAO AgStat database; Coriolis classification and analysis

DISTRIBUTION OF GLOBAL PRAWN WILD CAPTURE PRODUCTION BY COUNTRY/REGION Tonnes; 000; 2013

Others Americas Aus/Pac Ind Sub Europe E Asia SE Asia

Malaysia 108

USA 128

152 18

Other E Asia 5

652

Greenland 92

390

Myanmar 49

Other Pacific 1

Philippines 39

Australia

17

124 759

Indonesia 240

1,324

Canada 149

Mexico 67

Other SE Asia 9

China 1,257

NA

/ME/C

A

48

Other Americas 53

Other Europe

110

Other 23 Thailand

47

India 390

Nigeria 24

Japan 16

Brazil 38

Argentina 101

Other SS A

frica 56

Viet Nam 266

S Korea 28

Guyana 25

Taiwan 17

Norw

ay 14

Growth in global wild capture is primarily coming from China, SE Asia, India and, to a lesser extent, the Americas


GLOBAL PRAWN/SHRIMP WILD CAPTURE PRODUCTION BY KEY SPECIES Tonnes; 000; 1950-2013

1974

1985

1969

2012

Norway

200

5

Other E Asia

Indonesia

1993

Korea, Republic of

1996

1953

India

200

4

Malaysia

Mexico

Other Europe

China

1954

Other

1965

1975

1989

200

8

1979

2010

Taiwan Province of China

Other E/SE Asia

1986

1968

1977

Australia 1978

Argentina

1994

1987

1967

200

9

Nigeria

200

6

Guyana

1951

Greenland

1980

1952

Thailand

Vietnam

1966

1983

1995

200

7

1988

1976

1950

2011

1955

1961

1999

1997

Philippines

200

1

1982

1957

1973

1962

1998

Other SS Africa

2013

1984

1991

1959 1960

Other Pacific 200

0

1970

1963

1958

1971

NA/ME/CA

1972

Other Americas

53y CAGR 53y ABS

1992

United States of America

1990

1956

1964

1981

Brazil

200

2

Japan

Myanmar 20

03

Canada

3,113

1,705

4%

13%

7%

1,555

15

1,230

1,666

4%

13

8%

1% 11%

1%

8%

10%

3%

1

5%

1,785

1,656

3,429

1,627

1%

8%

7%

4

3%

1,548

2%

4%

1,975

8%

3,419

4%

3,305

2,04

6

666

1,163

2,891

692

2,650

1,113

641

1,957

2,831

1,253

662

2,944

626

2,151

989

2,44

4

832

2,368

929 877

2,581

1,020

2,114

752

2,561

827 80

8

0% 3,270

1%

1,920

412

3,275

1,452

4%

8%

5%

3,171

1,981 3%

1%

1,619

3,144

1,953

1,340

638

3,348

679 619

1,321

2,848

1,316

474

1,988

3,201

554

3,300

503

56 24

20 41

48 24

44 11

34 49 37 8

232

320

94

261

92 17

23 99

17 1

42

149

CAGR 5%

N/C

CAGR 0%

Looking at the drivers of wild capture prawn production growth, highlights that most countries/regions are flat or shrinking; growth is concentrated in a handful of countries: Vietnam, Myanmar, Argentina & Malaysia


10 YEAR WILD CAPTURE VOLUME GROWTH MATRIX: ABSOLUTE CHANGE VS. RATE OF CHANGE VS. CURRENT VOLUME Tonnes; 000; 2003 vs. 2013

50 -55 -50 0

0%

-5%

10%

5%

150 100 170

Japan

Australia 200

S Korea

Taiwan

USA

Argentina

Mexico

Greenland

Other E Asia

Canada

Brazil

Other

Norway

China

India

Other SS Africa Nigeria

Other Europe

NA/ME/CA

Myanmar

Guyana

Philippines

Other E/SE Asia

Malaysia

Indonesia

Other Americas

Vietnam

Thailand

10 year CAGR


SHRINKING

GROWING


Prawn aquaculture is concentrated in Asia and in countries near the equator

15 Source: UN FAO AgStat database; Coriolis classification and analysis

DISTRIBUTION OF GLOBAL PRAWN AQUACULTURE PRODUCTION BY COUNTRY/REGION Tonnes; 000; 2013

Aus/Pac East Asia Other Ind Sub Americas SE Asia

Other E Asia 19

49 1,655 5 646 381

Nicaragua 26 Bangladesh

90

1,718

Venezuela 20

Europe 0

Other C/S America 56

SS Africa 6

India 290

Brazil 65

Other Pacific 2

Australia

4

North America 6

Honduras 49

Ecuador 304

Saudi Arabia

20

Other 5

Mexico 121

Thailand 329

China 1,699

Other SE Asia 1

Vietnam 541

Indonesia 623

Other N

A/M

E/CA

19

Philippines 60

Malaysia 50

Myanmar 52

Growth in global prawn aquaculture is primarily coming from China, SE Asia, India and Ecuador


GLOBAL PRAWN/SHRIMP AQUACULTURE PRODUCTION BY KEY SPECIES Tonnes; 000; 1950-2013

Europe

200

5

1992

1955

1961

200

0

1997

1963

2012

1980

1989

2010

1971 1970

1973

1999

200

3

1981

Nicaragua

Malaysia

1951

1976

Philippines

China

1975

Australia 1974

1978

SS Africa

1977

1991

200

4

1953

Ecuador

1990

Other E Asia

1979

Bangladesh

1998

Other

2013

Mexico

1962

1954

2011

1967

1982

Saudi Arabia

Honduras

200

7

1959

200

8

1985

1987

1993

1958

1952

1965

1968

Other C/S America

200

2

Other SE Asia

Indonesia

1972

1986

North America

1950

1994

Venezuela

Thailand

200

1

1988

1983

Myanmar

1964

India

1956

1996

200

6

Other NA/ME/CA

Vietnam

1966

200

9

1995

Brazil 1984

1957

1969

1960

63y ABS

21

11 9 9

17 5

4,4

55

14

2,051

680

838

1,467

897

577

2,668 2,365

621

1,137

917

986 926

1,050

835 883

928

1,311

3,145

63 53

89 72

3,779

22

4,339

31

4,190

44

214

3,295

494

320

3,532

112

172

3,40

0

142

19

1,699

50 1

3 1 1 2

290 5

90

20 19

328

52 60

623

541

2 3 3 4

3 5 3 2 2 2 3 3 2 3

6

121

49 65

304

56 0 26 20

2 4

CAGR 17%

N/C

Looking at the drivers of prawn aquaculture increases over the past decade highlights that most growth is coming from a handful of countries, particularly China, Indonesia, Vietnam, Ecuador and India


10 YEAR AQUACULTURE VOLUME GROWTH MATRIX: ABSOLUTE CHANGE VS. RATE OF CHANGE VS. CURRENT VOLUME Tonnes; 000; 2003 vs. 2013

600 400 -200 -6%

1,000 200 800 0 1,100

-4%

4%

14%

2%

12%

8%

10%

6%

16%

0%

-2%

Venezuela

Honduras

Nicaragua

SS Africa

Saudi Arabia

Other C/S America

Europe

Other Pacific North America

200

Australia

Brazil

Ecuador

Mexico

Other E/SE Asia

Malaysia

Vietnam

Thailand

Myanmar

Philippines

Indonesia

Other NA/ME/CA India

Other

China

Bangladesh

10 year CAGR


SHRINKING

GROWING


DOCUMENT STRUCTURE






18

METHODOLOGICAL NOTE When reviewing the trade data presented in this section, it is important to realise that our client brief only covers part of the total “universe”; please review it with this in mind

19 Source: UN Fishstat database; UN Comtrade database; Coriolis analysis and estimates

EXAMPLE: SIMPLIFIED STRUCTURE OF PRODUCT FLOWS IN AND OUT OF VIETNAMESE PRAWN INDUSTRY Kgs; m; US$; b; 2013/14 (as available)

Domestic Wild Catch 266m/$1.1b

Domestic Aquaculture 541m/$2.2b

HS030613/030623 Imported chilled/frozen prawns from all sources

175m/$1.5b

Vietnamese Processors

Vietnamese Consumption

(Locals & tourists)

HS030613/030623 Exported chilled/frozen

prawns to all destinations 286m/$2.55b

HS160520 Exported prawns

prepared/preserved 127m/$1.34b

Prawns exported in other forms

(e.g. ready-meals, soups, frozen egg rolls, etc.)

HS030613/030623 Exported to 24 target

markets in Asia/Mid-East 144m/$1.26b

HS030613/030623 Exported to

rest of planet 142m/$1.29b

Focus of this document

Focus of this document

EXAMPLE ISSUE IS COMMON ACROSS

ALL MAJOR PROCESSORS

Western Australia can grow prawn exports to Asia, though this will require focus and effort

20

-  Total Asian/Middle Eastern chilled/frozen prawn import value is rising, driven by a combination of growing volumes and growing prices

-  Within the prawns trade, frozen prawns are rising more than ”not-frozen” (live or chilled) -  Asian/Middle East prawn import supply is currently dominated by India, Vietnam, China and other Asian sources,

followed by Ecuador -  Five countries – India, Ecuador, China, Vietnam & Indonesia – have been capturing most value growth over the

past decade -  Over the past five years, Ecuador, India, & Argentina stand out for rate of growth, followed by Vietnam and China -  Average FOB price to target Asian markets vary by supplier, with reasonable price variation

-  Turning to demand, prawns go to a wide range of markets; however, Japan is currently the key Asian/Middle East market, followed by Vietnam, which has a significant processing sector

-  Over the past ten years, Vietnam and East Asia have driven import value growth into Asia/the Middle East -  Vietnam has been driving import growth over the past five years -  Average prawn import prices varies by country, with Hong Kong, Malaysia and Japan standing out as larger

markets paying premium prices -  Imported prawn consumption and aggregate prawn imports appear correlated with income per capita,

particularly across East Asia; this suggests China has long-term growth potential -  Market share varies by country; Australia has some strength in parts of SE Asia and has extensive opportunities

elsewhere -  Australia has some strength – in Indonesia, Thailand, Vietnam, Hong Kong and Malaysia – on which to build -  Data supports new high value, premium prawn opportunities being initially launched in (1) Hong Kong, (2) Japan and (3)

Singapore -  As a “Straw Man” for discussion, we identify an export market roll-out plan

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

Total Asian/Middle Eastern chilled/frozen prawn import value is rising, driven by a combination of growing volumes and growing prices

0

100

200

300

400

500

600

700

800

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

21 * Compound Annual Growth Rate; Source: UN Comtrade database; Coriolis analysis and classifications

VOLUME T; 000; 2004-2014

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

AVERAGE PRICE PER KILOGRAM US$; 2004-2014

VALUE US$m; 2004-2014

CAGR* 6%

CAGR 6%

CAGR 12%

TOTAL IMPORTS TO ASIA/MIDDLE EAST TARGET REGION (24 COUNTRIES)

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

Within the prawns trade, frozen prawns are rising more than ”not-frozen” (live or chilled)

0

100

200

300

400

500

600

700

800

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

22 * Compound Annual Growth Rate; Source: UN Comtrade database; Coriolis analysis and classifications

VOLUME T; 000; 2004-2014

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

AVERAGE PRICE PER KILOGRAM US$; 2004-2014

VALUE US$m; 2004-2014

TOTAL IMPORTS TO ASIA/MIDDLE EAST TARGET REGION (24 COUNTRIES)

Frozen

Not frozen

Frozen

Not frozen

Frozen

Not frozen

Asian/Middle East prawn import supply is currently dominated by India, Vietnam, China and other Asian sources, followed by Ecuador

23 NA/ME/CA = North Africa/Middle East/Central Asia; Note: data is as reported by sender (FOB), not receiver; Source: UN Comtrade database; Coriolis analysis and classifications

EXPORT VALUE BY SUPPLIER TO TARGET REGION (24 COUNTRIES) US$m; FOB; 2014

Americas

Europe

Aus/Pac

Ind Sub

E Asia SE Asia

Other

Hong Kong SAR $69

$1,357 $107

$92

$57

Other E Asia $10

$1,343 $1,152 $2,338

Other Americas $86

Other $20

India $1,278

Vietnam $1,263

Pakistan $79

NA/ME/CA $14

Canada $115

Russia $80

SS Africa $23

Europe $12

USA $64

Philippines $45

Malaysia $161

Australia $88

China $1,073

Other SE Asia $14

Thailand $373

Indonesia $482

Ecuador $803

Greenland $64

Pac I. $19

Argentina $213

TOTAL = US$6,445m

Five countries – India, Ecuador, China, Vietnam & Indonesia – have been capturing most value growth over the past decade

24 Note: data is as reported by sender (FOB), not receiver; Source: UN Comtrade database; Coriolis analysis and classifications

EXPORT VALUE BY SUPPLIER TO TARGET REGION (24 COUNTRIES) US$m; FOB; 2004-2014

NA/ME/CA

Greenland

2011 2006

China

Europe

Thailand

2007

USA

Other SE Asia

Vietnam

2004

Argentina

Pac I.

SS Africa Russia

Hong Kong SAR

2010 2008 2005 2009

Indonesia

Other

India

Philippines

10y ABS

Other Americas

Malaysia

2013

Australia

Ecuador

2012 2014

Canada

Pakistan

Other E Asia

$5

$6,445

$74

$161

$17

$16

$21

$232

$14

$1,995

$10

$225

$8

$2,011

$188 $21

$16

$199

$14

$4,287

$62

$4,589

$22

$41

$21

$30

$29

$19 $18

$47

$45

$19

$11

$56

$5,384

$68

$2,543

$6

$14

$6

$3,498

$10 $45

$24

$302

$13

$42

+$1,027

-$18 $20

$60

+$5

-$13

$15

$42

$146

+$482 $88

+$702

$65

$9

+$72

$69

$16

$10

+$4

$10

+$194

+$0

+$50 +$6

+$797

+$13

+$1

$83

+$78

$16

$14

$13

+$64

$16

$84

$2,037

$18

$486

$515

$723

$88

$1,073

$788

$874

$2,002

$162

$7

$236

$13

$94

$19

$110

$2,058

+$0

$69

$13

+$45

$12

+$71

$64

$24

$21

+$42

+$61

$6 $8

$69

+$771

$46

$9 $9

-$48

$152

$20

$251

$33 $11

$16

$84 $281 $273 $47 $284

$16

$102

$40 $35

$136

$30 $30

$41

$14

$26 $29

$15 $28

$35

$7 $15

$40

$48

$32

$27

$40

$52

$339

$60

$245 $246 $53

$847

$1,278

$52

$551

$568

$37

$17 $16 $11 $18 $10

$130

$19

$9

$115 $26 $11

$6

$14

$6 $9 $9 $29

$23

$28

$13

$49

$61

$58

$73

$2 $57

$132

$80

$59

$84

$50

$73

$12

$109

$12

$13

$109

$2 $0

$89

$2 $2

$120

$24 $85

$42 $23

$331 $318

$14

$195

$213

$21 $25 $3 $18

$33

$64 $26 $15 $10

$34 $31

$91 $88

$97

$420

$373

$12

$122 $103

$19

$82

$214

$384

$803

$390

$21

$346

$590

$647

$442

$442

$527

$71

$795

$23

$647 $613

$21

$1,124

$1,263

$17

$923

$918

$625

$50

$79

$78

$64

$35

$607

$29

$617 $561

$38 $83 $62

$86

$65 $45

$62

$74 $51

$73

$64 $69

$22

$443

$437

$18

$377

$58 $14

$482

$469

$22

CAGR 7%

Over the past five years, Ecuador, India, & Argentina stand out for rate of growth, followed by Vietnam and China


FIVE YEAR EXPORT GROWTH MATRIX: CHANGE IN VALUE VS. RATE OF GROWTH VS. ABSOLUTE VALUE US$m; 2009 vs. 2014

$600 $-200 $200 $0 $400

20%

10%

30%

50%

40%

0%

$1,000 $800 $1,200 -10%

Canada

Vietnam

Russia

Other Americas

Indonesia

SS Africa

India

Pac I.

$500m

Australia

Pakistan

USA

Ecuador

Greenland

China

Hong Kong SAR

Thailand Philippines

Other SE Asia

Malaysia

Other

Argentina

NA/ME/CA Europe

Other E Asia

5y absolute change in value

5y CAGR

Bubble scale: US$m; 2014 A bubble this size=

Average FOB price to target Asian markets varies by supplier, with reasonable price variation


AVERAGE EXPORT VALUE COST CURVE BY SUPPLIER US$/kg; t; FOB; 2014

Pac I.

NA

/ME/C

A

SS Africa

Canada

Thailand

USA

Australia

China

India

Philippines

Other A

mericas

Ecuador

Malaysia

Hong K

ong SAR

Greenland

Pakistan

Other SE A

sia

Russia

Vietnam

Other E A

sia

Indonesia

Argentina

Other

Europe

$8.27

$7.17

$10.62

$12.45

$7.39

$7.04

$4.82

$5.50

$6.56

$6.41

$8.00

$11.60 $10

.28

$10.94

$12.93

$4.95

$9.63

$10.4

0

$8.61

$8.75

$8.25

$18.30

$16.03

$10.12 Average

FOB value

Volume imported by defined target market

Turning to demand, prawns go to a wide range of markets; however, Japan is currently the key Asian/Middle East market, followed by Vietnam, which has a significant processing sector


IMPORT VALUE BY MARKET BY REGION US$m; FOB; 2014

NA

/ME/C

A

East Asia

Indian Sub

SE Asia

China $801

$17 $2,115 $3,870

Other $24

Other $1

$442

Israel $15

Egypt $78

Singapore $110

India $17

Saudi Arabia $60

Bahrain $8

UAE $211

Kuwait $34

Qatar $11 South Korea

$511

Japan $1,771

Hong Kong SAR $480

Taiwan $307 Vietnam

$1,494

Thailand $77

Malaysia $400

Indonesia $15

Philippines $20

TOTAL = US$6,445m

Significant processing for

re-export

Over the past ten years, Vietnam and East Asia have driven import value growth into Asia & the Middle East


IMPORT VALUE BY MARKET BY REGION US$m; FOB; 2004-2014

China

2006

Saudi

2010 2013

Malaysia

2011

India

Indonesia

Thailand

2005 2012

Hong Kong SAR

Egypt

2004

Qatar

Singapore

Bahrain

Other ME

Philippines

2007

Japan

2008

10y ABS

UAE

Other Ind. Sub

Kuwait

South Korea

Israel

Taiwan

Vietnam

2009 2014

$2,543

$5 $4

$47

$511 $10

$416

$91

$2,011

$57

$3,498

$6,445

$18

$1,914

$1,888

$17

$5,384

$1,771

$1,123 $1,127

$1

$1,236

$2,073

$34

$1,787

$111

$284

$8

$242

$4,287

$353

$6

$377

$148

$21

$126 $207 $164

$14

$4,589

+$17

+$29

$51

$156

+$308

$225 $151

$48

$137

+$1,427

$480

+$543

-$48

$179

$68

$176 $338

+$11 +$32

+$176 +$7

+$77 +$13

+$57

+$21

+$17 -$2

$35

$411 $683 $801

$521

+$13

$62

$295

$307

$271

$211

$93

$2,058

$100

$84 $159

$2

$92

$1,995

$254

$2,002

$200

$253

$112

+$396

$61

$223 $250

+$400

$346

$297

+$250

$107

$83 $100 $98

$74

+$664

$2,037

$154

$0

$2 $4

$1

$1

$59

$17 $1

$93

$1

$2 $1

$3 $8 $7 $7

$1

$1 $1 $52 $91

$5

$6

$110

$52 $54 $35 $38

$5

$96

$66

$78

$61

$10

$12

$11

$101

$104

$106

$5 $6 $5 $5 $4 $3

$12

$6

$6

$3

$12

$39

$18

$24

$33

$2 $7 $9

$60

$7

$66

$67

$63

$17

$11

$10

$78

$88

$56

$37

$24

$1

$13

$15

$6 $27

$15

$16

$25

$2

$22

$22

$18

$20

$15

$3

$3

$17

$8

$20

$64

$25

$1 $0

$18 $18 $9 $7

$67

$1,014

$1 $1

$500

$1,494

$1,281 $1,257 $1,229

$2

$287

$34 $26 $46

$1

$1

$1

$104

$32

$59

$36

$11

$48 $46

$20

$26

$32

$39

$7

$3

$142

$3 $3

$115

$198

$249

$400

$246

$3

$8

$4

$17

$2

$3 $3 $1

$14

$7

$12

$2

$6

$98

$30

$47

$77

$2

$3

$5

$2

CAGR 12%


Vietnam has been driving import growth over the past five years


FIVE YEAR IMPORT GROWTH MATRIX: CHANGE IN VOLUME VS. RATE OF GROWTH VS. ABSOLUTE VALUE US$m; t; 2009 vs. 2014

0%

-5%

50,000 0 -50,000 100,000 -10%

200,000 150,000

30%

25%

20%

45%

40%

35%

15%

10%

5%

Saudi Arabia

$500m

Egypt

Lebanon South Korea

Jordan

Oman

Taiwan

Malaysia China

Sri Lanka

Bahrain

Japan

Indonesia

Hong Kong SAR

Thailand

UAE

Vietnam

Kuwait

Pakistan

Israel

Qatar

Philippines

India

Singapore

5y absolute change in volume

5y CAGR Value

Average prawn import prices varies by country, with Hong Kong, Malaysia and Japan standing out as larger markets paying premium prices


AVERAGE IMPORT VALUE COST CURVE BY MARKET/REGION US$/kg; t; FOB; 2014

Thailand

Bahrain

Qatar

Vietnam

Jordan

Indonesia

Malaysia

Saudi Arabia

Hong K

ong SAR

Om

an

Israel Lebanon

South Korea China

Singapore Pakistan

Taiw

an

Philippines

Japan

India

Kuw

ait

UA

E

Sri Lanka

Egypt

$8.90

$9.14

$9.20

$3.48

$8.67

$8.43 $7.68

$7.84

$8.41

$8.01

$16.62

$9.60

$8.98

$12.07

$8.48

$8.54

$8.25 $8.35

$10.10

$10.12 $9.4

2

$4.53

$7.00

$12.41

Volume imported

Average import

value

Imported prawn consumption and aggregate prawn imports appear correlated with income per capita, particularly across East Asia; this suggests China has long-term growth potential

31 Note: data is as reported by sender (FOB), not receiver; Source: UN Comtrade database; Wikipedia (GDP/capita); Coriolis analysis and classifications

MARKET SIZE DRIVERS: GDP PER CAPITA VS. IMPORTS PER CAPITA VS. MARKET SIZE Kg; US$; t; 2014

$10,000

5.0

4.5

$60,000 $0 $30,000 $40,000 $50,000 $20,000

1.5

2.0

0.5

1.0

3.5

4.0

2.5

3.0

0.0

5.5

Israel Egypt

UAE

South Korea

Jordan

Japan

Lebanon

Kuwait

50,000

Sri Lanka Bahrain

Indonesia

Hong Kong SAR

China

Malaysia

Singapore

India

Saudi

Thailand

Vietnam

Oman

Taiwan

Qatar

Philippines

Pakistan GDP per capita

Imports per capita

Bubble scale: tonnes; 2014 A bubble this size=

Market share varies by country; Australia has some strength in parts of SE Asia and has extensive opportunities elsewhere


IMPORT VALUE MARKET SHARE BY MARKET BY KEY SUPPLIER % of value in US$m; FOB; 2014

Hong Kong SAR

Other

Malaysia

China South Korea

Taiw

an

UA

E

Singapore

Thailand

Egypt

Vietnam Japan

$211

Malaysia $10

$307 $801

Thailand $37

Australia $14

$1,771

Malaysia $30

Thailand $45

Malaysia $8

Thailand $55

$480

Thailand $38

$511

Thailand $162

$1,494

USA $18

$40

0

Malaysia $28

$110

China $340

China $122

Philippines $1

Philippines $1

Philippines $11

Australia $6

Australia $5

China $302

China $2

China $12

Philippines $26

China $12

Australia $6

$77

Malaysia $37

Australia $0

Australia $5

Malaysia $6

Australia $38

Malaysia $39

$78

China $2

China $69

Australia $11

$205

China $193

Philippines $2

Pakistan $30

Ecuador $129

Pakistan $13

Ecuador $41

Pakistan $12

Pakistan $6

India $8

India $20

India $142

Ecuador $8

Pakistan $9

India $26

India $85

Other $76

Argentina $61

Argentina $43

Other $8

Other $20

Argentina $67

Argentina $9

Other $67

Ecuador $596

Other $83

Other $92

Argentina $10

Other $45

Indonesia $8

Indonesia $9

Indonesia $15

Indonesia $13

USA $19

Thailand $6

Thailand $21

Indonesia $40

Indonesia $25

Indonesia $358

India $345

India $567

Canada $65

Vietnam $39

India $20

Ecuador $2

India $33

India $19

Vietnam $217

Vietnam $69

Vietnam $460

Vietnam $314

Vietnam $20

Vietnam $33

Vietnam $80

TOTAL = US$6,445m

Australia has some strength – in Indonesia, Thailand, Vietnam, Hong Kong and Malaysia – on which to build


AUSTRALIAN IMPORT VALUE MARKET VS. MARKET VALUE US$m; FOB; 2014

Bahrain

Om

an

Saudi

South Korea

Qatar

Egypt

Singapore

Japan

Kuw

ait

Indonesia

Thailand

Malaysia

Israel

Vietnam

Hong K

ong SAR

India

Jordan

Taiw

an

China

Sri Lanka

Pakistan

UA

E

Philippines

Lebanon

0%

1% 1%

1%

3%

2%

0%

0

%

0%

0%

7%

31%

1% 0%

2%

0%

2% 0

%

0%

0%

1%

0%

0

%

Total value of imports

Australian market share


Data supports new high value, premium prawn opportunities being initially launched in (1) Hong Kong, (2) Japan and (3) Singapore


WHERE TO FOCUS FOR NEW HIGH VALUE, PREMIUM PRODUCTS: AU SHARE VS. AVERAGE VALUE VS. MARKET SIZE % of value; US$; US$m; 2014

$12.00

$10.00

7.0% 6.0% 5.0% 2.0% 1.0% 0.0% 4.0% 3.0%

$13.00

8.0%

$8.00

$0.00

$2.00

$6.00

$4.00

Japan

Malaysia

Thailand

$500

Vietnam

Jordan

South Korea

Israel

Pakistan

Kuwait UAE Bahrain

China

Hong Kong SAR

Indonesia

Oman Qatar

Singapore

Sri Lanka

Philippines

Lebanon

Taiwan

India

Saudi Arabia

Egypt

AU share of total import value [NOTE: LOGARITHMIC]

Value average

FOB $/kg

1

2

3

As a “Straw Man” for discussion, we identify an export market roll-out plan

35

PRELIMINARY “STRAW MAN” DEVELOPMENT & ROLLOUT PLAN FOR CHILLED PRAWN OPPORTUNITY Model; 2016

1 Export launch in Hong Kong

2 Export launch in Japan

3 Export launch in Singapore

0 Product development and testing

-  High income, sophisticated market and consumers

-  AU already has a strong market position on which WA can build

DOCUMENT STRUCTURE






36

Western Australia is well positioned to continue to grow prawn exports to Asia

37

IS THE MARKET DEVELOPED & COMPETITIVE?

-  The flow of prawns, from the sea through to the consumer in Asia, is convoluted and complex; this is driven by labour-intensive further processing and the fragmented nature of seafood distribution

WHAT IS WA CAPABLE OF DELIVERING?

-  Western Australian prawn packer/shippers need to continue to move forward and improve through improved product development and presentation

-  Western Australian prawns are a premium product for which a wide rage of potential positions or claims exist to develop a more differentiated offer for Asia

-  As a “Straw Man” for discussion, we identify an opportunity to reposition Western Australian prawns as the premium prawn of Asia by developing and marketing select characteristics

HOW IS THE MARKET STRUCTURED? The flow of prawns, from the sea through to the consumer in Asia, is convoluted and complex; this is driven by labour-intensive further processing and the fragmented nature of seafood distribution

38 Source: Coriolis

SIMPLIFIED MODEL OF SUPPLY CHAIN: PRAWNS Model; 2016

Retail

Regional Seafood Wholesale Markets

Regional Distributor(s)

Agent/Broker/ Distributor

WA Packer/Shipper

Other Australian Packer/Shipper

WA Fisherman

Ecuadorian Packer/Shipper These stages branch

and add multiple layers in large markets

Vietnam Processor

Frozen Seafreight Logistics

Frozen Seafreight Logistics

Other prawn processors

Indian Packer/Shipper

Domestic Packer/Processor

In-Market Farmer

Foodservice

Other SE Asian Packer/Processor

Chinese Packer/Processor

Local Wild Capture Operators

Local Aquaculture Operators

on-boat freezing/packing

Export/re-export Globally

WHAT IS WA CAPABLE OF DELIVERING? STRATEGIC DIRECTION Western Australian prawn packer/shippers need to continue to move forward and improve through improved product development and presentation

39

SUGGESTED STRATEGIC DIRECTION: WESTERN AUSTRALIAN PRAWNS Model; 2016

Bulk frozen for further

processing in low cost labour areas

Premium whole chilled prawns

Australian branded

Regionally branded

Controlled supply chain

Consumer/ Chef direct

WA suppliers are here in Asia

High growth, high potential opportunities

are here

Leading perishables

sectors are here

Track-&-Trace

PRELIMINARY FOR DISCUSSION

WHAT IS WA CAPABLE OF DELIVERING? CLAIMS Western Australian prawns are a premium product for which a wide rage of potential positions or claims exist to develop a more differentiated offer for Asia

40 Source: Coriolis; photo credit (Dollar Photo)

IDENTIFIED POTENTIAL PREMIUM POSITIONS Model; 2016

Identified source region “Jumbo”/Larger grades Uniform appearance High in protein

Identified catch location

Unique/premium species

Track & trace

HEALTH PROVENANCE INDULGENCE CONVENIENCE

Wild caught

Premium Chef-ready or heat-&-eat Low in fat

Fisherman’s story

Rich in omega-3

Antibiotic free

No added hormones

Ensured quality

Sustainable

Clean waters


Never frozen

Respects the environment

Flavoured

w/dip or dressing

“Cold water”

MSC certified

Peeled

Cooked

WHAT IS WA CAPABLE OF DELIVERING? GLOBAL PEERS Products from other processors in other markets demonstrate what is possible in terms of developing a premium Western Australian prawn offer

41 Source: photo credit (fair use/fair dealing; low resolution; complete product/brand for illustrative purposes); Coriolis analysis

EXAMPLES OF PREMIUM PRODUCTS FROM OTHER MARKETS Select; 2016

Succulent & sweet Large Raw Seaside favourite

Certified sustainable Food you feel good about Shell on Cold water

MSC Family pack Jumbo Shell on

Caught in the pristine icy waters of the Gulf of St. Lawrence Cooked Taste the Difference

Large King Prawns

Peeled

Peel & eat

Traditional pub favourite

Responsibly sourced

No chemicals ever

Peeled & deveined

Great shrimp taste & texture Taste tested by customers

Plain prawn

WHAT IS A POTENTIAL WA OFFER? As a “Straw Man” for discussion, we identify an opportunity to reposition Western Australian prawns as the premium prawn of Asia by developing and marketing select characteristics

42 Source: Coriolis; photo credit (Dollar Photo and Southern Forests Food Council Inc.)

HYPOTHETICAL EXAMPLE OF POTENTIAL PREMIUM PRODUCT FROM WA Model; 2016

High in protein Rich in omega-3

From Western Australia

Fisherman’s story

Track-&-Trace code

Chef-ready

HEALTH

PROVENANCE

INDULGENCE

CONVENIENCE

Ensured quality


Organic Sustainable / MSC Certified

DOCUMENT STRUCTURE






43

FOCUS MARKET – 1 – HONG KONG Hong Kong has a robust and well-developed food retailing and foodservice sector

$11.5

$8.0

$12.8

$3.9

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Turnover Purchases

44 Source: Coriolis from a wide range of sources

TURNOVER & PURCHASES US$b; 2014

ESTIMATED WHOLESALE FOOD & FMCG PURCHASES US$b; 2014

Retail Foodservice

$3.9 $8.0

Foodservice $3.9

CRA $0.3 CRE

$0.2

Wellcome $1.2

AEON $0.6

Drug stores $0.6

Wet markets, etc. $3.0

ParknShop $1.5

Other retail $0.6

Foodservice

Retail 14,000+ restaurants 1,000+ bars & clubs

1,050+ hotels Vending machines

Institutions (1,088 schools, 42 hospitals, 3 main airline

caterers, prisons, etc.)

6.7%

3.5%

Retail

Foodservice

TURNOVER GROWTH RATE % Y-O-Y; HK$; 2013v2014

FOCUS MARKET – 1 – HONG KONG Seven potential in-market partners are identified for Western Australian firms in Hong Kong

Firm Wellcome Park’N Shop CR Vanguard Dah Chong Hong 759 Stores AEON Stores Convenience Retail Asia

Ownership Dairy Farm International/Jardine Matheson

A.S. Watson/ Hutchison Whampoa

CRE/China Resources (SOE; China)

Dah Chong Hong/ CITIC Pacific/CITIC (SOE; China)

Private; Hong Kong (Lam Wai Chun)

AEON (Japan) Fung Group

Website www.wellcome.com.hk www.parknshop.com www.crvanguard.com.hk www.crc.com.cn

www.dch.com.hk

www.759store.com www.aeonstores.com.hk www.aeon.info

www.circlek.hk/en www.cr-asia.com

Annual sales (in HK)

$2.2b+ $2.8b ~$0.8b (food/FMCG) N/A N/A $0.8b $0.4b

Food store formats

Supermarkets 318 Convenience 921 Health & Beauty 369 Restaurants 676

Supermarkets 260+ Convenience

Supermarkets Convenience

Supermarkets Grocery 247+ Dept. stores (w/food) 8 Supermarkets 5

Convenience 600+ Bakery

# of stores Wellcome 280+ Marketplace 31 7-Eleven 900+ Olivers the Delicatessen ThreeSixty

ParknShop 175 PnS Superstore 50+ PnS Taste 10 PnS Fusion 14

CR Vanguard 100+ VanGo 79

DCH Food Mart 80+ DCH Food Mart Deluxe

759 Stores 247+ AEON 13 Circle K Saint Honore Cake

Store fascia


POTENTIAL IN-MARKET PARTNERS – HONG KONG 2015 or as available

FOCUS MARKET – 2 – JAPAN Japan has a robust and well-developed food retailing and foodservice sector

$331

$232

$310

$93

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Turnover Purchases




Foodservice Retail

Convenience $112.9

$93.0

Small grocers $27.5

Specialists $22.5

Foodservice $93.0

Other grocery $16.6

$287.1

Supermarkets $102.3

Online $5.3

Foodservice

Retail 711,000 restaurants, bars & clubs, 87,927 hotels/motels/etc., vending machines,

institutions (schools, hospitals, airline

caterers, prisons, etc.)

0.0%

2.4%

Retail

Foodservice

TURNOVER GROWTH RATE % Y-O-Y; JPY; 2013v2014

FOCUS MARKET – 2 – JAPAN Eight potential in-market partners are identified for Western Australian firms in Japan


POTENTIAL IN-MARKET PARTNERS – JAPAN 2015 or as available

Firm AEON Retail Seven & I Holdings Uny Group Holdings Izumi Co. Ltd. Life Arcs Lawson Family Mart

Ownership Japan; listed Japan; listed Japan; listed Japan; listed Japan; listed Japan Japan; listed Japan; listed

Website www.aeon.info www.maxvalu.co.jp www.daiei.co.jp www.ministop.co.jp

www.7andi.com www.sej.co.jp www.itoyokado.co.jp

www.unygroup-hds.com www.uny.co.jp www.circleksunkus.jp

www.izumi.co.jp

www.lifecorp.jp www.arcs-g.co.jp www.lawson.jp

www.family.co.jp

Annual sales Total/Food

US$61.2b US$16.8b

US$49.1b US$17.5b

US$9.0b US$6.7b

US$4.7b US$2.1b

US$4.7b US$3.8b

US$4b US$4b

US$17.4b US$14b

Food store formats

Hypermarket Supermarket Department stores Convenience (3.4% share) Pharmacy/HBC

Convenience 17,900 (41% share) Supermarkets 185 Department stores

Supermarket Convenience (9.6% share) HBC Foodservice

Supermarkets Hypermarkets Malls

Supermarket Convenience 12,254 (20.5% share)

Convenience 9,975 (19% share)

# of stores 1,882 18,262 226 102 239 290 12,254 9,975 (JP) 16,970 (Global)

Store fascia

FOCUS MARKET – 3 – SINGAPORE Singapore has a robust and well-developed food retailing and foodservice sector

$5.6

$3.9

$6.3

$1.9

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Turnover Purchases




Foodservice Retail

$1.9 $3.9

Online $0.1

Traditional grocery $0.3

Supermarket $2.2

Convenience $0.4

Wet markets, etc. $0.7

Foodservice $1.9

Department stores $0.3

Petrol stations $0.1

Foodservice

Retail 6,500 restaurants,

hawker stalls, hotels, vending machines,

institutions (schools, hospitals, airline caterers,

prisons, etc.)

3.0%

5.0%

Retail

Foodservice

TURNOVER GROWTH RATE % Y-O-Y; HK$; 2013v2014

FOCUS MARKET – 3 – SINGAPORE Four potential in-market partners are identified for Western Australian firms in Singapore

Firm NTUC Fairprice Cold Storage Sheng Siong Prime Supermarkets

Ownership National Trade Union Council (Singapore)

Dairy Farm International (Hong Kong)

Listed; Singapore Private; Singapore

Website www.fairprice.com.sg www.ntuc.org.sg

www.coldstorage.com.sg www.dairyfarmgroup.com

www.shengsiong.com.sg www.allforyou.sg

www.primesupermarket.com

Annual sales US$1.83b US$1.55b US$0.55b US$0.2b

Store formats Supermarket Hypermarket Convenience (Cheers; 139) Online

Supermarket (Cold Storage, Marketplace) Hypermarket Convenience (7-Eleven; 502) Online

Supermarkets Online

Supermarkets

# of stores 285 848 38 19

Store fascia


POTENTIAL IN-MARKET PARTNERS – SINGAPORE 2015 or as available

DOCUMENT STRUCTURE






50

IDENTIFIED WA COMPANIES

AUSTRAL FISHERIES

CORREIA FISHING CO.

MARETERRAM

ADDRESS: 50 Oxford Cl, West Leederville, WA 6017 ADDRESS: 2 Mews Road, Fremantle ,WA 6160 ADDRESS: Unit 4, 24 Mews Road, South Fremantle, WA 6160

PHONE: 08 9217 0100 PHONE: 08 9335 6674 PHONE: 08 9335 1311

WEBSITE: www.australfisheries.com.au WEBSITE: www.correiafishingco.com.au WEBSITE: www.mareterram.com.au

51 Coriolis from a wide range of sources

MG KAILIS GROUP

RICCIARDI SEAFOODS & COLDSTORES

SEAFARMS GROUP

ADDRESS: 50 Mews Road, Fremantle, WA 6160 ADDRESS: 3 Darkan Avenue, North Coogee, WA 6163 ADDRESS: Level 11, 225 St George’s Tce, Perth, WA

PHONE: 08 9239 9239 PHONE: 08 9430 4677 PHONE: 08 9321 4111

WEBSITE: www.mgkailisseafood.com.au www.kailis.com.au

WEBSITE: www.ricciardiseafoods.com.au WEBSITE: www.seafarmsgroup.com.au

WA SEAFOOD EXPORTERS

ADDRESS: 9/12 Hutton St, Osborne Park, WA 6017

PHONE: 08 9444 6999

WEBSITE: www.waseafoods.com.au

AUSTRALIA Coriolis Australia Pty Ltd

PO Box 5831 St Georges Terrace

Perth, WA 6831 Australia

+61 8 9468 4691

NEW ZEALAND Coriolis (New Zealand) Limited

PO Box 90-509 Victoria Street West

Auckland, 1142 New Zealand

+64 9 623 1848

www.coriolisresearch.com

Coriolis is the leading Australasian management consulting firm specialising in the wider food value chain. We work on projects in agriculture, food and beverages, consumer packaged goods, retailing & foodservice. In other words, things you put in your mouth and places that sell them. WHERE WE WORK We focus on the Asia Pacific region, but look at problems with a global point-of-view. We have strong understanding of, and experience in, markets and systems in Australia, China, Japan, Malaysia, New Zealand, Singapore, South Korea, Thailand, the United Kingdom and the U.S. We regularly conduct international market evaluations and benchmarking. WHAT WE DO We help our clients assemble the facts needed to guide their big decisions. We develop practical, fact-based insights grounded in the real world that guide our clients decisions and actions. We make practical recommendations. We work with clients to make change happen. We assume leadership positions to implement change as necessary. HOW WE DO IT All of our team have worked across one-or-more parts of the wider food value chain, from farm-to-plate. As a result, our recommendations are grounded in the real world. Our style is practical and down-to-earth. We try to put ourselves in our clients’ shoes and focus on actions. We listen hard, but we are suspicious of the consensus. We provide an external, objective perspective. We are happy to link our fees to results. WHO WE WORK WITH We only work with a select group of clients we trust. We build long term relationships with our clients and more than 80% of our work comes from existing clients. Our clients trust our experience, advice and integrity.

Coriolis advises clients on growth strategy, mergers and acquisitions, operational improvement and organisational change. Typical assignments for clients include… FIRM STRATEGY & OPERATIONS We help clients develop their own strategy for growing sales and profits. We have a strong bias towards growth driven by new products, new channels and new markets. MARKET ENTRY We help clients identify which countries are the most attractive – from a consumer, a competition and a channel point-of-view. Following this we assist in developing a plan for market entry and growth. VALUE CREATION We help clients create value through revenue growth and cost reduction. TARGET IDENTIFICATION We help clients identify high potential acquisition targets by profiling industries, screening companies and devising a plan to approach targets. DUE DILIGENCE We help organisations make better decisions by performing consumer and market-focused due diligence and assessing performance improvement opportunities. EXPERT WITNESS We provide expert witness support to clients in legal cases and insurance claims. We assist with applications under competition/fair trade laws and regulations.

Documents

IN-PROGRESS REVIEW DRAFT...HS Codes 030613, 030623 Product All prawns/shrimp, including live, chilled, dry and frozen; both in shell and shelled; uncooked or cooked; product is generally