NUT INDUSTRY COUNCIL Australia’s Nut Industry · NUT INDUSTRY Australia’s Nut Industry January...

AUSTRALIAN

COUNCIL

NUT INDUSTRY

Australia’sNut Industry

January 2007

A case for high priority inexport market development

and export market access

© Australian Nut Industry Council 2007

For further information, contact:

Julie Haslett

SecretaryAustralian Nut Industry CouncilHorticulture House7 Wilson Street, PO Box 52Berri South Australia SA 5343

Phone: (08) 8582 2055Fax: (08) 8582 3503Email: [email protected]: www.nutindustry.org.au

AUSTRALIAN

COUNCIL

NUT INDUSTRY

The industry’s development – now and into the future ...................................................... 3

Current and expected production and value ....................................................................... 3

Australian nuts – the competitive advantages ................................................................... 4

Horticultural skills ............................................................................................................. 4

Low cost land .................................................................................................................... 5

Water efficiency ................................................................................................................ 5

Clean and green ................................................................................................................ 6

Lack of government subsidies ........................................................................................... 6

Capital .......................................................................................................................... 7

Low labour input ............................................................................................................... 7

Well-organised industries .................................................................................................. 7

Australia’s competitors ...................................................................................................... 8

Home grown advantage .................................................................................................... 8

Underlying world demand ................................................................................................. 8

Industry snapshots:

■ Almonds ............................................................................................................. 9

■ Chestnuts ......................................................................................................... 10

■ Hazelnuts ......................................................................................................... 11

■ Macadamias .................................................................................................... 12

■ Pecans ............................................................................................................. 13

■ Pistachios ........................................................................................................ 14

■ Walnuts ............................................................................................................ 15

International tariffs .......................................................................................................... 16

CONTENTS – CONTENTS – CONTENTS – CONTENTS – CONTENTS – CONTENTS – CONTENTS – CONTENTS

The Australian tree nut industry is rapidly expanding. The additional production from

new tree nut orchards, both planted and planned, will produce an industry with a value

of more than $1 billion within eight years and exports of $1 billion in about a decade.

Such an export performance would exceed the total Australian horticulture exports of

2003/04.

The long lead times in nut cultivation have so far hidden this expansion from the production

and export statistics. It is time to ensure that the maximum market opportunities are

available for this new sector of Australian agriculture.

This imminent expansion in production has important policy implications.

Nuts need to figure in policy directions and government decisions, particularly in the

area of trade negotiations.

SYNOPSIS – SYNOPSIS – SYNOPSIS – SYNOPSIS – SYNOPSIS – SYNOPSIS – SYNOPSIS – SYNOPSIS

A $1 billionAustralian

nut industryis in sight.

The Australian Nut Industry 11111

Capital and expertise have combined to rapidlyexpand the areas under nut cultivation in Australia.The industry is a mixture of large ‘corporate’ farmsand medium- and small-sized family farms.

Nut growing converts land from broadacre cropswith low returns per hectare to intensive crops withhigh returns per hectare and per megalitre of waterapplied.

Current Australian nut production has a commercialvalue of about $350 million. Orchards alreadyplanted and/or planned for planting within the nextthree years will produce crops worth more than$1 billion within eight years.

Despite an expanding domestic market, most ofthat new production will be exported. Exports areprojected to be valued at about $1 billion per yearwithin a decade.

Capital for expansion of nut orchards has beencommitted in the belief that the industry can expandon the existing markets of Japan, Europe, Asia, theMiddle East and the United States (US). The industryneeds to make the most of export marketdevelopment opportunities. These opportunities willbe greater if import tariffs are lowered andunrealistic sanitary and phyto-sanitary protocolsare avoided.

Many of the countries with whom Australia isnegotiating free trade agreements (FTAs) –including Singapore, China and the United ArabEmirates (UAE) – are nut importers with significantpotential for growth. Such markets have little orno domestic production to protect, but frequentlyhave high revenue tariffs that restrict nutconsumption.

The Australian tree nut industries show acomparative advantage over competitors in anumber of areas. Depending on the industry,advantages may take the form of lower per unitproduction costs, higher yields and a ‘country oforigin’ gene pool. This allows Australia to compete(produce and process) with countries that havelower labour costs. In addition, Australian tree nutproduction generally reflects a high level of supplycomplementarity into key importing markets – byway of supply windows and enhanced quality.

Tree nut industries require long-term developmentcapital, technological skills and research to build

on advantages. With the support of R&D funding,Australia is producing some of the highest kernelyields per hectare in the world for almonds, pecansand macadamias. Long-term breeding programsaimed at improved varieties are also in progress.

The world tree nut trade involves minimal marketdistortion and government interference – allowingsupply and demand signals to be interpretedrelatively transparently. Tree nut prices andproduction are not plagued by the export subsidiesor other incentives that many other commoditiesface due to the agricultural support programs ofthe US and Europe. The recent failure of the DohaRound suggests the competitive position of affectedcommodities is unlikely to change in theforeseeable future.

Tree nuts also provide alternative productionoptions to the older Australian agriculturalindustries currently under pressure from low labourcosts and heavily subsidised overseas competitors.

Australia’s tree nut orchards use few, if any,pesticides, promoting the image of Australia as aclean and safe producer of foods. In addition, nutindustries can generally afford an enlightenedsense of environmental awareness and act on it insuch areas as vegetation management and theapplication of more pest-specific chemicals as partof integrated pest management.

The Australian nut industry receives no significanttariff or quarantine protection. It is an industry thathas grown largely on its own efforts due tointernational competitiveness. The governmentassistance required is to ensure that there are themaximum international market opportunitiesavailable. The international trade and bilateralagreements that Australia is negotiating with othercountries are unlikely to be renegotiated for 5-10years. Australian nut production will need thosemarkets within that time span.

Now is the time to identify the potential of Australiantree nuts as a serious contributor to Australianagricultural income in the years ahead and ensurethat the nut industries achieve appropriaterecognition in Australian government negotiationsto reduce tariff and maintain biosecurity access.

Tree nuts providealternative productionoptions to the olderAustralian agriculturalindustries.

Australia’s tree nutorchards use few, if any,pesticides, promotingthe image of Australiaas a clean and safeproducer of foods.

22222 The Australian Nut Industry

BACKGROUND – BACKGROUND – BACKGROUND – BACKGROUND – BACKGROUND – BACKGROUND

The industry’s development– now and into the future

Most of the Australian nut industries began with asmall band of devoted, innovative pioneers.

In need of new technology to harvest and processnuts, the early years were difficult and slow.Translating overseas experience to Australian soilsand conditions has taken time, patience andsometimes significant stubbornness to perseverewith nut production. While the nut industry has inmost cases been building the knowledge pool for

more than 20 years, it has been the past decade inwhich pioneering effort has paved the way forsignificant and rapid industry expansion. It is nowprofitable to expand into large-scale commercialproduction from essentially ‘cottage’ origins.

There have been few government subsidies orassistance for nut farming. In fact, few ingovernment circles have been aware of the nutindustries’ development. Those who have been,may have seen them as linked to tax minimisation.

Given a production lead time of some five yearsfrom planting and some 10 years till breakeven for

EXPECTED AUSTRALIAN NUT PRODUCTION

Area planted, ha 2006 2011 2016 2020Almonds 18,593 35,104 40,163 44,000Chestnuts 1,040 1,240 1,440 1,600

Macadamias 17,700 21,575 26,075 30,050Pecans 1,010 1,200 1,350 1,350Pistachios 840 1,740 2,740 3,540Walnuts 1,140 7,140 11,640 13,640

Total hectaresTotal hectaresTotal hectaresTotal hectaresTotal hectares 40,32340,32340,32340,32340,323 67,99967,99967,99967,99967,999 83,40883,40883,40883,40883,408 94,18094,18094,18094,18094,180

Production, tonnes 2006 2011 2016 2020Almonds, kernels 16,509 57,617 102,408 114,708Chestnuts, in-shell 1,200 2,200 3,200 4,000Macadamias, in-shell 40,000 53,823 84,834 104,569Pecans, kernels 2,350 2,374 2,453 2,744Pistachios, in-shell 1,000 1,792 3,179 5,704Walnuts, in-shell 400 4,855 32,115 52,050

Total production, tonnesTotal production, tonnesTotal production, tonnesTotal production, tonnesTotal production, tonnes 61,45961,45961,45961,45961,459 122,661122,661122,661122,661122,661 228,189228,189228,189228,189228,189 283,775283,775283,775283,775283,775

Value $m 2006 2011 2016 2020Almonds 116 403 717 803Chestnuts 7 13 19 24Macadamias 183 246 388 478Pecans 28 28 29 33

Pistachios 9 16 29 52Walnuts 2 19 128 208

Total $mTotal $mTotal $mTotal $mTotal $m 345345345345345 725725725725725 1,3101,3101,3101,3101,310 1,5981,5981,5981,5981,598

Export surplus, value $m 2006 2011 2016 2020Almonds 29 303 601 672Chestnuts 1 6 10 14

Macadamias 149 207 342 427Pecans 15 13 12 13Pistachios – – – 18Walnuts (net of imports) – – 84 158

Export value $mExport value $mExport value $mExport value $mExport value $m 194194194194194 529529529529529 1,0491,0491,0491,0491,049 1,3021,3021,3021,3021,302



most nut trees, there is no doubt that the incomegap is long and the requirement for external capitalis large.

There is good reason to believe that the Australiannut industry can continue to prosper with minimalgovernment financial assistance. However,governments need to be aware of the opportunitiesfor the expected growth in tree nut production andexport availability and give these industries priorityin agriculture trade development.

Nut growing has the real prospect of providingalternative and profitable avenues for growers oftraditional broad-acre crops that are increasinglyconfronted by subsidised competition into maturemarkets.

Tree nuts also provide an alternative for growersof other horticultural crops facing international tradepressure from low wage countries.

The attraction may be enhanced by the inability ofthe lower labour cost countries to withstand theincome and cash flow gap inherent in tree nutproduction. Low labour cost countries are notautomatically seeking or achieving a share of theworld tree nut trade.

Australia’s competitiveadvantages

Australia has an excellent combination of thenecessary factors to be a successful grower of nuts:

■ Access to horticultural skills and R&D.

■ Relatively low cost land.

■ Ability to pay market value for water.

■ Increasing focus on clean and green (andorganic).

■ Access to capital.

■ Development of labour-saving technology.

■ Organised industries structure.

■ Home-grown gene pool.

Horticultural skills

Growing nuts on some of the world’s poorest soilsand generally in a hot, dry climate is a challenge.Australian nut farmers have become good at it. Inthe process, Australian nut farmers have developedhorticultural skills that have put them in theforefront of the world for nut yields per hectare andquality.

Australian almond growers, for example, havebecome especially proficient at managing theinteraction between water and nutrients onSunraysia soils to consistently achieve higher yieldsand lower per unit production costs thancompetitors. The use of continuous soil moisturemonitors, an Australian development in its ownright, has been a critical element in this success.

Australian pecan growers have demonstrated thatthey are leaders in product quality, attracting a pricepremium against US suppliers in the traditionalmarkets.

Australian macadamia growers, who have theadvantage of working with the native gene pool,are the leaders in farm-based research and haveplaced heavy emphasis on integrated pestmanagement to maximise recovery of soundkernel.

The ability to plant and manage large areas quicklyin difficult terrain has been a feature of the recentexpansion of Australian nut farming. These areskills not generally apparent in other nut growingregions of the world. Almond and pecan growersfrom traditional growing countries such as the USregularly visit Australia to learn Australiantechniques. The Australian macadamia industry isthe key provider of research and developmentinformation to the rest of the world.

A dogged focus on managing climate, coupled withthe relative freedom from disease, gives theAustralian nut industry an advantage.

The vision shown by the Australian nut industry issimilar to the innovation Australia has shown inviticulture.


There is good reason tobelieve that theAustralian nut industrycan continue to prosperwith minimalgovernment financialassistance.


TYPICAL WATER EFFICIENCY FOR NUTS

High Usage Low Usage Gross MarginML/ha ML/Ha $/ML

Almonds 15 9 $1,800 – $2,400Pecans 11 9 $1,200 – $1,500Pistachios 9 6 $1,800 – $2,200Macadamias 6 3 $900 – $1,200

Walnuts 11 8 $1,500 – $1,800

Yields are based on average yields from well-managed, mature orchards. The gross margin is based oncurrent farmgate prices.

Low cost land

Much of the land now being converted to nutproduction in Mediterranean climate regions ofsouth-west NSW, north-east Victoria and north-eastSouth Australia has been used for relatively lowvalue broad-acre crops.

With a change to nuts, and the addition of irrigationand horticultural skills, the output value has risenfrom a few hundred dollars to many thousands ofdollars per hectare.

Not all wheat/sheep properties can be convertedto nuts. While nuts can generally be grown on poorsoils, they do have some minimum requirementsthat most Mallee soils lack. This creates a limit tonut farming – and a natural barrier to the tendencyof agriculture to overproduce.

The macadamia industry began in the 1960s onwhat was low-cost subtropical rainforest landadjacent to the east coast of northern NSW andsouthern Queensland. Much of the traditionaldairying land has undergone a many fold increasein value, bolstered by interest from ‘lifestyle’ landbuyers.

The industry is now expanding into centralQueensland on traditional sugar cane land. In thepast decade, the sugar industry, like most broad-acre crops, has faced low prices and environmentalstress. The emergence of energy-related uses forsugar cane will affect the production trend, but theexpansion of macadamias into these areas providesa viable alternative for cane growers who areseeking to diversify.

Water efficiency

Nuts are efficient users of water with a high dollarreturn for each megalitre of water used.

The major expansion of nut orchards has occurredin the past decade, with an appreciation that wateris a major limiting factor. The irrigation technologyused has been of the highest standard and latestdesign. Almost all recent nut developments havebeen with pressurised irrigation systems withoutopen channels. The almond industry has led theway with pulse drip – a technology that furtherincreases the return per unit of water applied.

The gross margin for a crop per megalitre of waterused is difficult to measure. The waterrequirements for different crops can vary indifferent locations.

Almonds, pistachios, pecans and walnuts largelyrely upon irrigation water. Macadamia, chestnutsand hazels largely rely on rainfall. Recentmacadamia orchards have been designed to usesupplementary irrigation water.

Typically, the gross margin for nuts is about $2,000per megalitre of water used. Rice and grasses, themajor users of irrigation water in Australia, achievegross margins of about $100 per megalitre.

The emerging free market for irrigation water willensure that precious water is allocated to cropsthat produce the highest values. This provides exitstrategies for those farmers wishing to leave theirrigated industries that have relatively lowerreturns. It also ensures that the community receivesa high return for each precious megalitre of waterinvested in agriculture.

The nut industries welcome the free trade in waterannounced by the recent meeting of heads ofgovernment concerned with the Murray-Darlingbasin.

Typically, the grossmargin for nuts is about$2,000 per megalitre of

water used. Rice andgrasses, the major users

of irrigation water inAustralia, achieve gross

margins of about$100 per megalitre.




The culture of the nutindustry is to succeedwithout a handout.

Nut trees are carbonsinks for at least halftheir life.

Clean and green

Australia is seen in consuming countries as cleanand green. Our relative isolation has generallyprovided Australian agriculture with a pest anddisease free environment – another competitiveadvantage.

The almonds, pistachios, walnuts and pecansgrown in the arid parts of Australia have extremelylow pesticide use compared to their foreigncompetitors. Some are grown without the use ofany insecticides. Apart from lowering the cost ofproduction, this presents market opportunities withconsumers who are seeking minimal use of farmchemicals and/or organically grown product.

The general isolation of nut production regions alsoprovides a pollution-free environment. The skiesare blue and intense – exactly the requirementsfor photosynthesising trees. A major competing nut-growing area, the San Joaquin Valley in California,has a serious air pollution problem – the constantsmog reduces plant sunlight and growing capacity.This is regarded as a major reason for the higheryields of almonds and grapes in Australia.

Nut trees are carbon sinks for at least half theirlife. This may present tree nuts with an earlyincome-generating option if a carbon tradingmarket is established in Australia.

The tyranny of distance generally means that mostagricultural commodities carry a high freight costin most markets. However, the high value of nutscompared to most broad-acre crops means thefreight cost is relatively insignificant. For example,a 20 foot container of almonds or macadamias hasa market value of at least $150,000 compared to$4,500 for a container-load of wheat.

$4 million a year in returns when the import tariffon US imports was eliminated. No governmentcompensation was sought or paid to those growers– in contrast to significant financial assistance toindustries considered to have lost out as a resultof this FTA.

Economic protection associated with quarantine(sanitary and phytosanitary requirements) has beenminimal. To ensure quarantine-related marketaccess is maintained, nuts must be treated (heator other) but it is low cost and generally consistentwith accepted commercial practice.

While AQIS regularly inspects nut import shipments,the total quarantine cost is estimated to add lessthan $0.02/kg to the cost of nuts that have a$8–$15/kg market value.

Almost all the Australian nut industries, with thepossible exception of the native macadamia (whichbegan with a clear export focus on the US),developed as import substitution industries. Assuch, nut industries have grown and prospered inthe face of global competition. This expansion isexpected to continue, given fair market access.

The nut industries have expanded alongside morefavourable taxation treatment of other delayed-production industries – including viticulture. Whilenuts growers must capitilise initial establishmentand operating costs for some years, depreciationbenefits are provided on the establishment of winegrapes.

The culture of the nut industry is to succeed withouta handout. This self-reliance is considered to givethe nut industry considerable underlying strength.

Important and valuable government assistance isprovided through financial support of industryresearch and marketing programs, managedthrough Horticulture Australia Ltd (HAL). Similarly,the industry assistance from the state agriculturedepartments is also significant.

Nevertheless, the nut industries generally have highgrower (levy) contribution rates for R&D andmarketing programs and high levels of growersupport for them. This reflects the industry’s beliefthat the way forward is with better farmingpractices and better marketing techniques – mostlydeveloped and/or adapted by the industry itself.The ongoing support from HAL and the statedepartments is invaluable and an essential elementin maintaining industry competitive advantage.


Lack of government subsidies

The nut industries receive little assistance fromgovernment. Import tariffs have long been zero orvery low. Since the negotiation of the FTA with theUS, there is effectively no tariff protection ofAustralian nut industries. However, nut industriesoften face significant tariff barriers in current andpotential export markets.

Australian almond and pistachio growers lost

Capital

Nut growing requires significant capital input. Nonut crop earns sufficient return to cover costsbefore the fifth year (with macadamias and pecans,it’s more likely the eighth year). This delay in thepossibility of a return on investment has asignificant impact on nut industry investment.

The current strong Australian economy, with 16years of continuous growth, has provided a sourceof development capital. In some cases, that capitalis being marshalled through Managed InvestmentSchemes but there are also a large number ofprivately funded nut orchard expansions and newplanting investments.

Other competing developed economies, such asthe US, are also able to provide such developmentcapital and are expanding nut production – to theextent that suitable farming land and conditions areavailable.

However, the low labour cost countries are showingvery narrow expansion. The imperative for short-term cash income ensures that farmers in mostdeveloping countries are focusing on quick cashflow crops, such as vegetables and fast-maturingfruit trees, that can be hand-harvested (andprocessed).

Access to adequate capital is an important elementin comparative advantage for Australia, helping toensure that there are at least several decadesbefore low wage countries can produce significantquantities of nuts (and become a greatermarketplace challenge).

Well-organised, united industries

Each of the nut-producing industries has a strong, well-organised producers’association. Each industry is well supported by its growers in the planning and fundingof farm research and marketing.

All operate on a single, national basis – having avoided state or regionally segmentedindustry decision-making.

All have a focus on maximising returns to growers by expanding horticultural skillsand the market rather than protecting them.

All have well-supported grower levies or voluntary contribution schemes to supportthe research and marketing at levy contribution rates at or near the highest inagriculture.

The Australian Nut Industry Council (ANIC) is a federation of the producing industries.Through ANIC, the nut industries can achieve that what they cannot individually.

The Nuts for Life campaign is an initiative of ANIC. The campaign focuses on healthprofessionals and consumers. Recent research shows that regular nut consumptionas part of a healthy diet produces a significant reduction in body cholesterol and therisk of heart disease.

The well-supported, united, industry associations and the high research and marketingspend underpin the underlying strength of the Australian nut industry.

Low labour input

Nut tree farming has developed to the point that ithas relatively low labour input – the majorproduction and processing operations take placemechanically.

The decline in labour use is expected to continue,in contrast to many horticultural crops that requirehand harvesting. The exception to this trend relatesto the nut orchard establishment phase, whichrequires experienced and skilled labour to ensureenvironmentally sound orchard layout and planting.

Labour is also required in the processing plants,where the nuts are shelled and graded, but this isrelatively low with the use of electronic sortingequipment.

The current shortage of skilled labour in regionalareas is well known. This provides our UScompetitors with a labour cost advantage.However, assessed long-term, nut industries userelatively little labour, ensuring that Australia canaccess most global markets competitively. Also,many potential markets have a ready supply oflabour to further process and value-add nut exports,thus providing employment in these countries.

Capital is beingmarshalled through

Managed InvestmentSchemes but there are

also a large numberof privately funded

nut orchard expansionsand new planting

investments.




World production Australian est. Australiantonnes (approx) production 2015 market share

Almonds (kernels) 600,000 103,795 17%Chestnuts (in-shell) 300,000 3,000 1%Macadamias (in-shell) 150,000 84,000 56%Hazelnuts (kernels) 700,000 small ~0Pecans (in-shell) 200,000 3,000 1.5%Pistachios (in-shell) 400,000 3,000 <1%

Walnuts (in-shell) 1,200,000 32,000 2.5%

Australia’s productioncompetitors

The major producers against whom Australia mustcompete are:

Almonds: US and Spain, with a small but growingindustry in Chile

Pecans: US and Mexico

Macadamias: US (Hawaii), South Africa, Brazil,Guatemala

Pistachios: US, Iran, Turkey

Walnuts: US, China, India

Australia can compete against all these supplierson a cost and quality basis.

With the exception of macadamias, Australia willonly produce a small share of world production forthe medium term. This allows Australia to targetniche and premium markets. The supply andconsistent quality of Australian macadamiasalready achieves a price premium.

The underlying world demand

World demand for nuts is growing at about 4% ayear, well above natural population growth.

This expansion is coming from an increasingawareness of the health benefits of nuts and anincreasing prosperity in developing economies.

Research in the past 15 years has conclusivelyshown that regular nut consumption willsignificantly reduce the risk of heart disease. Thereis also research supporting the role nuts can playin diabetes and weight management. Regular nutconsumption has been shown to have a positiveeffect on heart health. Bodies such as the NationalHeart Foundation are recommending that nuts beincluded as part of a healthy diet.

The nut health message is slowly beingcommunicated to consumers, who are respondingby increasing consumption. Over the past fouryears, Australian tree nut consumption hasincreased 50% in dollar terms and 39% by weight.The higher consumption trend reflects an increasein family budget spending on nuts, which is helpingto support underlying demand.

Developing economies, such as India, China andEastern Europe, are showing a strong demand fortree nuts. As disposable incomes rise, consumptionof traditionally expensive foods increases. Nuts arenot luxury foods (they are priced at similar levelsto medium cuts of beef), but they traditionally havebeen beyond the pockets of the poor.

The evidence suggests that as economic growthand incomes increase in developing countries, sowill their demand for nuts.

India has more than doubled its almond imports insix years. In 1999, it imported a little over 10,000tonnes of almonds. In 2005, imports were about25,000 tonnes. Similar growth performance canbe seen in China and Eastern European countries.

There is little reason to doubt that the increases innut consumption will continue into the future.

Home grown advantage

The Australian macadamia nut has a unique competitive advantage. It is the onlyAustralian native plant to play a significant commercial role in the food chain. Whilethe Hawaiians first commercialised the industry, Australia has now taken firm leadershipof world production, research, marketing and development. Australia is the largestproducer and largest exporter and has an extensive research program to help supportand maintain this leadership.

Being the home of natural rainforests that produced the macadamia is a significantcompetitive advantage.


PRODUCTION AREAS

■ Almonds are primarily grown in South Australiaand northern Victoria. Some orchards arelocated in the Adelaide Hills. However, the maingrowing areas extend from Nildottie, north-eastof Adelaide, up the Murray River as far east asBoundary Bend in Victoria. Within this area, thevast majority of orchards are located fromWaikerie to Renmark in the Riverland, and fromMildura to Nangiloc and Robinvale in theSunraysia region of Victoria. Almonds are alsogrown in NSW at Finley and Darlington Point.

■ The almond industry is composed of familyorchards, business ventures and investmentcompany projects.

CURRENT PRODUCTION

■ Area: about 13,535 ha.

■ Production: about 16,000 kernel tonnes.

INDUSTRY POTENTIAL

■ In five years, the area under almond productionis expected to total 35,104 ha. Estimated totalkernel production at that time will be 59,000tonnes.

■ Almonds have become an attractive crop forinvestors because the industry has proven tobe profitable and stable over the long term.Reasons for this are the ability to develop andmanage almond orchards as a broadacre cropand the development of new growingtechnologies that have enhanced profitability.Almonds have also become attractive due to adecline in the wine grape market and difficultiesin producing soft fruits.

■ New almond projects are expected to beginproduction 3–4 years after planting.

■ Consumer demand for almonds has increasedglobally and this trend is expected to continuedue to the positive nut health message.

■ New market opportunities are developing dueto improved living standards in developingcountries.

■ On a percentage basis, Australia is the fastestgrowing almond industry in the world and willbe the second largest producer behindCalifornia in about six years. By then, the

industry will be worth between $370 millionand $500 million at the farmgate, dependingon price.

MARKETS: PRESENT AND FUTURE

■ Australian almonds supply domesticconsumption and an expanding export market.

■ Some almonds are imported into Australia butthis is a manufacturing grade product for usein baking and confectionery.

■ Current domestic consumption of almondkernel is 13,000 tonnes (kernels) a year.

■ Current export of almond kernel is 5,250 tonnes(kernels).

■ New markets, such as China and India, areexpected to provide great market potential.

■ Increased consumer awareness of nut healthbenefits is increasing global demand foralmonds. Combined with new marketpenetration, this is expected to underpin furtherindustry growth.

■ Consumption growth is supported by expandingmarketing and promotion budgets.

COMPETITIVE ADVANTAGES

■ Australian almonds are harvested fresh in thenorthern hemisphere off-season.

■ Australian producers achieve world-renownedcrop yields and product quality.

■ There is a growing export demand for qualityAustralian almond kernel.

■ Australia is close to the expanding Asianmarket.

■ Australia is in a good position and is willing toaddress niche market requirements. Californiadoes not always serve these markets well andmany markets are actively looking for analternative source of reliable and high-qualityproduct. Australia fills this need very well.

ALMONDS – ALMONDS – ALMONDS – ALMONDS – ALMONDS – ALMONDS – ALMONDS – ALMONDS

ALM

ONDS


PRODUCTION AREAS

■ About 70-75% of the total national chestnutcrop is produced in north-east Victoria.Chestnuts are also grown east of Melbourne,in central Victoria, around Orange and Batlowin New South Wales, in the Adelaide Hills inSouth Australia, in Tasmania and in south-westWestern Australia.

■ Many chestnut orchards are small family-owned orchards, but there are several largeplantings and the average size of new chestnutorchards is increasing.

CURRENT PRODUCTION

■ Area: about 1,000 ha.

■ Production: an estimated 1,200 tonnes a yearof fresh chestnuts.

INDUSTRY POTENTIAL

■ In five years, chestnut production is expectedto total 2,200 tonnes as young orchards comeinto production.

■ New varieties and improved orchardmanagement techniques have reduced time tobearing and increased nut yield, nut size andease of peeling.

■ Many large orchards are fully mechanised asa result of new harvesting machinery beingdeveloped.

■ Growers are planting and re-working oldertrees to newer and more consumer-friendlyvarieties of chestnuts.


■ Traditionally, chestnuts are highly valued byEuropeans, North Americans, Japanese,Chinese and Koreans.

■ Most growers sell the bulk of their crop throughthe fresh wholesale markets in each state.

■ Current domestic chestnut consumption is1,050 tonnes. This is fully supplied by domesticproduction.

■ Small quantities of fresh chestnuts and frozenpeeled chestnuts are exported to Japan andSingapore.

■ The Australian industry is developing newprocessing techniques for frozen peeledchestnuts, chestnut meal, flour and pureeproducts. These value-added products couldbe marketed locally and overseas and have thepotential to expand the overall market forchestnuts.

■ The chestnut industry is seeking new exportmarkets for fresh chestnuts to sustainincreased production.

■ Nut size is important in the fresh chestnutmarket and new pruning techniques haveenhanced this quality.


■ Australian chestnuts are fresh in the northernhemisphere off-season.

■ Australia is free from chestnut blight, the fungaldisease that has devastated orchards andnative forests overseas.

■ Australia is free from insect pests such as thechestnut gall wasp and chestnut weevil.

■ Australia’s pest-free status means chestnutsare produced without insecticides.

■ In Japan, Australian chestnuts are highlyregarded for good flavour and quality appeal.

■ The Australian chestnut industry is consumerfocused and the tree varieties selected arebased on ease of peeling and flavour. Overseas,yield is generally given a higher priority invarietal selection than chestnut eating quality.

CHESTNUTS – CHESTNUTS – CHESTNUTS – CHESTNUTS – CHESTNUTS – CHESTNUTS – CHESTNUTS

CHES

TNUT

S


PRODUCTION AREAS

■ Hazelnut orchards are scattered throughoutsouth-eastern Australia. The main productionregions are the Central Tablelands of NewSouth Wales near Bathurst and Orange, andnorth-east Victoria near Myrtleford. Hazelnutsare also grown in central and eastern Victoriaand throughout Tasmania.

■ Many hazelnut operations are small familyorchards planted to older varieties. The averagesize of new hazelnut orchards is increasing andthey are planted to more productive varieties.

CURRENT PRODUCTION

■ Area: slightly less than 100 ha.

■ Production: slightly less than 50 tonnes;expected to increase as new orchards comeinto bearing.

INDUSTRY POTENTIAL

■ By 2011, the area under hazelnut productionis expected to increase to 200 ha.

■ It is estimated that at this time hazelnutproduction could total 500 tonnes in-shell withthe use of high-producing varieties identifiedin field evaluation undertaken by the HazelnutGrowers of Australia Ltd, with assistance ofRural Industries Research and DevelopmentCorporation.

■ There is an expanding interest in growinghazelnuts in Australia.


■ Current domestic consumption of in-shellhazelnuts is relatively small at about 80 tonnesa year. Domestic consumption of hazelnutkernel is currently around 2,000 tonnes or4,000 tonnes of in-shell equivalent.

■ Australian hazelnuts in-shell are sold direct togourmet food outlets, farmers’ markets andfruit shops. Kernel is sold to local markets andretailers and specialist confectioners andbakers.

■ Locally grown product receives a pricepremium and is sought by the local market dueto superior flavour and freshness compared toimported hazelnuts.

■ Australia imports some 2,000 tonnes ofhazelnut product annually, primarily from themajor producers, Turkey and Italy. The bulk ofimported product is kernel.

■ Due to the low cost of imported hazelnut kerneland the fact that kernel is largely an ingredientused in baking and confectionery, where priceis generally of greater priority than quality,Australian product is not expected to replaceimported product for this end use. However,the premium quality end of the market such asvalue-added snack food, specialist bakeryitems and confectionery such as chocolate-coated hazelnuts and fudge could be suppliedby Australian-produced hazelnuts at a premiumprice.

■ The demand for hazelnuts is increasingglobally. It is expected that with the increasedawareness of the health benefits of including afew grams of nuts in the daily diet, consumptionwill continue to increase.

■ There is potential for export of hazelnut in-shellto out-of-season markets in the northernhemisphere.

■ A total of 1,500-2,000 ha of well-managedplantings would meet Australia’s currentrequirement.


■ Australian hazelnuts are fresh in the northernhemisphere off-season.

■ Australia is free from Eastern Filbert Blightwhich has devastated crops overseas.

■ Due to the absence of pests, Australianhazelnuts are produced without pesticides.

■ Australian hazelnuts taste fresher thanimported hazelnuts.

HAZE

LNUT

S

HAZELNUTS – HAZELNUTS – HAZELNUTS – HAZELNUTS – HAZELNUTS – HAZELNUTS – HAZELNUTS


PRODUCTION AREAS

■ Macadamias are grown around Alstonville andLismore in northern NSW, and in Queenslandaround Gympie, Bundaberg, Rockhampton andthe Atherton Tablelands.

■ Family-owned orchards, business ventures andinvestment company projects.

CURRENT PRODUCTION

■ Area: approaching 20,000 ha.

■ Production: estimated at 41,000 tonnes in-shell(2006 data).

INDUSTRY POTENTIAL

■ Major growth is taking place in the Bundabergregion of central Queensland with planting oflarger farms.

■ In five years, the area is expected to exceed23,000 ha. At that time, production could total54,000 tonnes (in-shell).

■ There has been a five-fold increase in treeplantings in the past 20 years.

■ Macadamias have become an attractivediversification crop for sugar cane growers.

■ Increased profitability in recent years hasincreased investor interest.

■ Consumer demand exceeds supply.Consumption of tree nuts includingmacadamias is increasing due to kernelingredient versatility. This trend is expected tocontinue, supported by an increasingawareness of the health benefits of tree nuts.

■ Consumption of macadamias is expected toincrease in Asian countries due to a rise in livingstandards.

■ The ability to manage urban encroachmentpressures in traditional growing areas willsupport industry growth.

■ By 2020, about 30,000 ha will be undermacadamias in NSW and Queensland, with in-shell production of 100,000 tonnes. The exportvalue will exceed $350 million. About 55% ofthis will be produced in Queensland.


■ Macadamias are primarily sold as kernel whichis processed for snack food lines and as aningredient in food products, including foodservice.

■ The domestic market uses about 20% of totalproduction, 95% of which is sold as kernel.

■ Kernel for the ingredient market (confectionery,bakery and ice-cream products) totals about70% of kernel sold.

■ In 2004/05 kernel equivalent exports were9,000 tonnes, representing 80% of industryproduction with a value of $146 million.

■ Macadamia exports are spread relatively evenlybetween the US, Japan, Europe (as kernel) andChina (as nut in-shell).

■ European markets continue to expand inparallel with increasing consumer awarenessand promotion.

■ The Chinese market consumes about 40% ofnut in-shell that is exported to that country forcracking. The balance is re-exported to EU andUS ingredient users.

■ New markets, e.g. China and India, areexpected to provide great market developmentpotential.

■ Global domestic demand for macadamias isexpected to increase because of risingconsumer incomes supported by an industry-driven market development and promotionbudget.

■ Strong marketing has boosted sales intoGermany and Japan.

■ The promotion of health benefits is a supportdriver of demand and combined with newmarket penetration is expected to underpinfurther industry growth.


■ Macadamias are an Australian native.

■ Australia has high product standards, with ademonstrated capacity to produce superiorkernel.

■ There is a strong financial commitment toexport market development and farm researchfunded by a compulsory grower levy onproduction.

■ Australia is close to the expanding Asianmarkets.

MACADAMIAS – MACADAMIAS – MACADAMIAS – MACADAMIAS – MACADAMIAS – MACADAMIAS

MAC

ADAM

IAS


PRODUCTION AREAS

■ Production in NSW extends from the HunterValley and Nelsons Bay on the Central Coast,to the Mid North Coast near Kempsey and theNorth Coast near Lismore. Pecans are alsogrown in Queensland at Munduberra, Gympie,the Atherton Tablelands and Beaudesert.

■ Stahmann Farms orchard at Moree in NSWaccounts for about 90% of Australianproduction.

CURRENT PRODUCTION

■ Area: 1,000 ha.

■ Production: about 2,700 tonnes in-shell (1,500tonnes kernel).

INDUSTRY POTENTIAL

■ In 5–10 years the area under production isexpected to expand to 1,400 ha and productionis expected to increase as young orchardsmature.

■ Stahmann Farms, which has led the way in thedevelopment of the Australian industry, hasachieved some of the highest pecan yields inthe world.

■ The Stahmann Farms plant at Toowoomba,Queensland, provides processing andmarketing facilities for the whole industry. Ithas capacity to increase production.

■ An established commercial processing andmarketing facility allows growers toconcentrate on production and provides amechanism for maintaining product quality.

■ Small processing facilities have beenestablished to process product from smallgrowers whose crops were previously notharvested.

■ Market demand is increasing and, unlike mostsoft fruit crops, pecan production can be fullymechanised.

■ Seasonal difficulties and land competition haveled to short- and possibly long-term reductionsin US supply.

■ Finalisation of the NSW Water Reform Act maylead to greater certainty for new growers. Anembargo on new water licences in NSW since1996 has been an inhibiting factor in pecandevelopment.


■ The bulk of Australian pecan product is sold askernel for both domestic consumption andexport market.

■ Most growers send their crop to Toowoombafor processing and marketing. A small numberof growers market in-shell pecans and kernelthrough niche shops and farmers’ markets.

■ Current domestic consumption of pecan kernelis 1,050 tonnes or about two-thirds of the localproduction.

■ Potential exists to increase both domestic andexport markets of pecan.

■ Farmgate price is largely dependent on the USmarket for pecan kernel and the relevantexchange rate and shipping costs. There areno tariffs on imported product and as such theAustralian industry must remain marketcompetitive with world prices.

■ Consumer demand for pecans is increasingglobally. The consumption of pecans world-wide has been increasing for a number of years.It is expected that with the increased awarenessof the health benefits of including a few gramsof nuts in the daily diet, this rate will rise evenfurther.

■ Nuts for Life campaign is producing results andthere is a noticeable rise in the profile of pecansin the past two years.


■ Australian pecans are harvested in the northernhemisphere off-season. The northernChristmas market can be supplied with freshsouthern pecans rather than nuts that are fromthe previous year’s harvest, as happenscurrently.

■ Pecan production in Australia is not troubledby scab disease as it is in the US and innovativeproduction techniques mean that the bulk ofthe Australian crop is grown without the use ofpesticides.

■ The processing facility in Australia is more costcompetitive than the processors of our UScompetitors.

■ Australia is close to the expanding Asianmarkets.

PECA

NS

PECANS – PECANS – PECANS – PECANS – PECANS – PECANS – PECANS – PECANS – PECANS – PECANS


PRODUCTION AREAS

■ The major production areas are along theMurray River Valley between Swan Hill inVictoria and Waikerie in South Australia. Furtherplantings are in central west Victoria andPinnaroo, South Australia. Small trial plantingshave begun in Western Australia.

■ A central commercial processing facility is atRobinvale in Victoria.

■ The pistachio industry includes a mix ofmedium-sized business ventures and smallerfamily-owned operations. The bulk of the cropis produced on medium-sized orchards.

CURRENT PRODUCTION

■ Area: 840 ha (2006 data).

■ Production: average of 1,100 tonnes in-shellper year (2006 data).

INDUSTRY POTENTIAL

■ By 2011, the area under pistachio productionis expected to increase to 1,740 ha. It isestimated that in a decade pistachio productioncould average 3,700 tonnes/year ($26 million).

■ Pistachios are an attractive crop due to theirhardiness in drought conditions, tolerance ofpoor soil and water, long tree life, andresistance to common orchard pests anddiseases.

■ The development of improved orchardmanagement and quality processing techniqueshas now established a profitable andsustainable pistachio industry.

■ An established commercial processing andmarketing facility allows growers toconcentrate on pistachio production andprovides a mechanism for maintaining productquality.

■ Pistachio production is fully mechanised,requiring minimal labour and ensuringinternational competitiveness.

■ Processing facilities have the capacity toefficiently process increased tonnage.


■ Australian consumption of pistachios is 2,700tonnes/year (2006 data). Thus, about two-thirdsof demand is currently imported.

■ The demand for pistachios is increasing globallyand in Australia due to an increased awarenessof the health benefits of including a few gramsof nuts in the daily diet.

■ Pistachios are primarily consumed as a snackfood. This market sector is growing in Westerncountries. Consumption of snack foods is alsoincreasing in developing countries asdisposable incomes expand.


■ Australian pistachios are harvested fresh in thenorthern hemisphere off-season.

■ Pistachio crops in Australia are less troubledby pests than they are overseas. Lowerchemical usage reduces the cost of productionand Australia can exploit the clean, green imageof its agriculture.

■ The low labour inputs ensure that Australia cancompete with California and Iran, the two majorproducers.

PISTACHIOS – PISTACHIOS – PISTACHIOS – PISTACHIOS – PISTACHIOS – PISTACHIOS – PISTACHIOS

PIST

ACHI

OS


PRODUCTION AREAS

■ The major production areas in Australia are onthe east coast of Tasmania, in Victoria in theGoulburn Valley near Shepparton and theMurray Irrigation Area near Kerang and SwanHill, and the Riverina near Griffith in NSW.

■ Small-scale orchards are scattered in theOvens Valley, Gippsland and Central regions ofVictoria, in the NSW Southern Highlands, in theAdelaide Hills and Riverland regions of SouthAustralia, and in south-west Western Australia.

CURRENT PRODUCTION

■ The 2006 area under cultivation was 1,140 ha.This is expected to rise to 7,140 ha by 2011.

■ The Australian industry is a mix of small, olderorchards and new, more extensive orchards.Most orchards are family operations but thesedo not represent the majority of hectares undercultivation.

■ Webster Limited is the largest orchardmanaging 650 ha of walnuts in Tasmania and250 ha in the Riverina. Webster’s goal is toestablish 2,000 ha by 2007. When mature,these orchards are expected to produce about10,000 tonnes in-shell.

■ Production in 2004 was about 400 tonnes. Thisis expected to increase dramatically within thenext five years as new orchards come intobearing. A number of commercial growers andinvestment companies are currentlyinvestigating new walnut orchard projects.

INDUSTRY POTENTIAL

■ Walnuts have become an attractive crop forinvestors. Reasons for this include problemsin other horticultural crops, particularly winegrapes and soft fruits. Harvest can be fullymechanised and the market is relatively stable.

■ New varieties and improved propagation andorchard management techniques have reducedtime to bearing and increased nut yield.

■ Australia is in a favourable position as there islimited scope for walnut production across thesouthern hemisphere due to the lack of suitableclimatic conditions, water, soil types andtopography and capital raising ability.


■ Current domestic consumption of in-shellwalnuts is about 600 to 800 tonnes a year.Domestic consumption of kernel is around2,500 tonnes or 6,000 tonnes of in-shellequivalent, which is largely destined for bakingand confectionery. Locally produced product isexpected to supply the total domesticconsumption of walnut in-shell in the next 3–5years. Despite a premium price, Australianwalnuts in-shell are sought by the local marketdue to superior flavour and freshness comparedto imported walnuts.

■ Due to the low cost of imported walnut kerneland its use largely as an ingredient in bakingand confectionery, where price is of greaterpriority than quality, Australian product is notexpected to replace imports for this use.However, Australian walnuts can supply thepremium quality end of the market (e.g. value-added snack food, and decoration for bakeryitems and confectionery) at a premium price.

■ The bulk of the expanded Australian walnutproduction will exported in-shell.

■ The demand for walnuts is increasing globally.World consumption has been increasing at asteady rate of about 4% per year. With theincreased awareness of the health benefits ofincluding a few grams of nuts in the daily diet,this rate is expected to rise.

■ By 2010 the major market for Australianwalnuts is expected to be the export of in-shellwalnuts to Europe.


■ Australia has the opportunity to become areliable exporter of off-season walnuts.Australia can easily ship new crop walnuts intoEurope for the Christmas trade whereas theCalifornians struggle to make deliveries with aSeptember harvest. The Christmas market is alarge in-shell market (15,000 tonnes forGermany alone and 25,000-30,000 tonnes forall of Europe).

■ Walnuts are not troubled by insect pests inAustralia and so chemical use is low in walnutproduction. This means production costs arelower than for other world producers and theproduct is free from insecticides.

WAL

NUTS

WALNUTS – WALNUTS – WALNUTS – WALNUTS – WALNUTS – WALNUTS – WALNUTS – WALNUTS



APPL

IED

TARI

FFS

ON N

UTS

IN S

ELEC

TED

MAR

KETS

– D

ATE

OF C

OMPI

LATI

ON 2

6.4.

06

Alm

onds

Alm

onds

Alm

onds

Ches

tnut

sCh

estn

uts

Mac

asM

acas

Mac

asPe

cans

Peca

nsPe

cans

Pist

achi

oPi

stac

hio

Pist

achi

oW

alnu

tsW

alnu

tsin

-she

llsh

elle

dp/

pfre

sh/d

ried

froze

nin

-she

llsh

elle

dp/

pin

-she

llke

rnel

sp/

pin

-she

llsh

elle

dp/

pin

-she

llsh

elle

dCh

ina

Code

0802

1100

0802

1200

2008

1920

0802

4010

0811

9010

0802

9049

0802

9049

2008

1920

0802

9090

0802

9090

2008

1920

0802

5000

0802

5000

2008

1920

0802

3100

0802

3200

MFN

Rate

%24

1013

2530

2424

1324

2413

1010

1325

20

Chile

Rate

%*3

*3*3

*3*1

*2*2

*3*2

*2*3

*3*3

*3*3

*3* 1

Elim

inat

ion

of M

FN ta

riff o

ver 2

yea

rs fr

om 1

Jan

uary

200

6 w

ith ze

ro ta

riff f

rom

1 J

anua

ry o

f yea

r 2 (2

007)

* 2 E

limin

atio

n of

MFN

tarif

f ove

r 5 y

ears

from

1 J

anua

ry 2

006

with

zero

tarif

f fro

m 1

Jan

uary

of y

ear 5

(201

0)* 3

Elim

inat

ion

of M

FN ta

riff o

ver 1

0 ye

ars

from

1 J

anua

ry 2

006

with

zero

tarif

f fro

m 1

Jan

uary

of y

ear 1

0 (2

015)

Hong

Kon

gCo

de08

0211

0802

1220

0819

0802

4000

0811

9008

0290

0802

9020

0819

0802

9008

0290

2008

1908

0250

0008

0250

0020

0819

0802

3108

0232

MFN

Rate

%fre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

e

Indi

aCo

de08

0211

0008

0212

0020

0819

2008

0240

0008

1190

9008

0290

9008

0290

9020

0819

2008

0290

9008

0290

9020

0819

2008

0250

0008

0250

0020

0819

2008

0231

0008

0232

00M

FNRa

te %

35Rs

/kg

100R

s/kg

3030

3010

010

030

100

100

3030

3030

3030

Japa

nCo

de08

0211

200

0802

1220

020

0819

222

0802

4000

0811

9029

008

0290

200

0802

9020

020

0819

221

0802

9030

008

0290

300

2008

1922

308

0250

0008

0250

0020

0819

228

0802

3100

008

0232

000

MFN

Rate

%2.

42.

45

9.6

125

55

4.5

4.5

50

05

1010

Mal

aysi

aCo

de08

0211

000

0802

1200

020

0819

2008

0240

000

0811

9010

008

0290

900

0802

9090

020

0819

2008

0290

900

0802

9090

020

0819

2008

0250

0008

0250

0020

0819

2008

0231

000

0802

3200

0M

FNRa

te %

free

free

6fre

efre

efre

efre

e6

free

free

6fre

efre

e6

free

free

Note

:Aus

tralia

and

US

are

nego

tiatin

g FT

As w

ith M

alay

sia

Sing

apor

eCo

de08

0211

0802

1220

0819

0802

4000

0811

9008

0290

0802

9020

0819

0802

9008

0290

2008

1908

0250

0008

0250

0020

0819

0802

3108

0232

MFN

Rate

%fre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

e

S. K

orea

Code

0802

1100

0008

0212

0000

2008

1990

0008

0240

1000

008

1190

1000

0802

9090

0008

0290

9000

2008

1990

0008

0290

9000

0802

9090

0020

0819

9000

0802

5000

0008

0250

0000

2008

1990

0008

0231

0000

0802

3200

00M

FNRa

te %

88

5050

3030

3050

3030

5030

3050

5050

Chile

Rate

%*1

*1*2

*4*3

*4*4

*2*4

*4*2

*4*4

*2*2

*2Un

ited

Stat

esKo

rea-

USA

FTA

unde

r neg

otia

tion

Note

s:* 1

Elim

inat

ion

of M

FN ta

riff o

ver 5

yea

rs fr

om 1

Jan

uary

200

6 w

ith ze

ro ta

riff f

rom

1 J

anua

ry o

f yea

r 5 (2

010)

* 2 E

limin

atio

n of

MFN

tarif

f ove

r 7 y

ears

from

1 J

anua

ry 2

006

with

zero

tarif

f fro

m 1

Jan

uary

of y

ear 6

(201

2)* 3

Elim

inat

ion

of M

FN ta

riff o

ver 1

0 ye

ars

from

1 J

anua

ry 2

006

with

zero

tarif

f fro

m 1

Jan

uary

of y

ear 1

0 (2

015)

* 4 T

o be

neg

otia

ted

afte

r the

end

of t

he D

oha

Deve

lopm

ent A

gend

a of

the

WTO

Taiw

anCo

de08

0211

1005

0802

1210

0320

0819

1005

0802

4010

0008

1190

1107

0802

9020

0708

0290

2007

2008

1930

0108

0290

2007

0802

9020

0720

0819

3001

0802

5000

0980

2500

009

2008

1920

0308

0231

0003

0802

3200

02M

FNRa

te %

1040

1025

4010

1030

1010

3010

1010

1010

Thai

land

Code

0802

1108

0212

2008

1908

0240

0008

1190

0802

9008

0290

2008

1908

0290

0802

9020

0819

0802

5000

0802

5000

2008

1908

0231

0802

32M

FNRa

te8.

5b/k

g8.

5b/k

g25

b/kg

8.5b

/kg

27.5

b/kg

8.5b

/kg

8.5b

/kg

25b/

kg8.

5b/k

g8.

5b/k

g25

b/kg

8.5b

/kg

8.5b

/kg

25b/

kg8.

5b/k

g8.

5b/k

gAu

stra

liaRa

te %

free

*1*2

free

free

*1*1

*2*1

*1*2

*1*1

*2fre

efre

eUn

ited

Stat

esTh

aila

nd-U

SA F

TA u

nder

neg

otia

tion

Note

s:* 1

Elim

inat

ion

of M

FN ta

riff o

ver 5

yea

rs fr

om 1

Jan

uary

200

5 w

ith ze

ro ta

riff f

rom

1 J

anua

ry o

f yea

r 5 (2

009)

* 2 E

limin

atio

n of

MFN

tarif

f ove

r 6 y

ears

from

1 J

anua

ry 2

005

with

zero

tarif

f fro

m 1

Jan

uary

of y

ear 6

(201

0)

N. Z

eala

ndCo

de08

0211

0008

0212

0020

0819

0908

0240

0008

1190

1908

0290

0008

0290

0020

0819

0908

0290

0008

0290

0020

0819

0908

0250

0080

2500

020

0819

0908

0231

0008

0232

00M

FNRa

te %

free

free

free

free

5fre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

e

Cana

daCo

de08

0211

0000

0802

1200

0020

0819

1010

0802

4000

1008

1190

9030

0802

9000

9108

0290

0092

2008

1990

3008

0290

0011

0802

9000

1220

0819

9040

0802

5000

1008

0250

0020

2008

1910

2008

0231

0000

0802

3200

00Ra

te %

free

free

free

free

free

free

free

6fre

efre

e6

free

free

free

free

free

Note

:Tar

iffs

for p

rodu

ce fr

om U

S an

d M

exico

sub

ject

to N

AFTA

FTA - Tree trade agreement MFN - Most favoured nation GCC - Gulf Cooperation Council TRQ - Tariff rate quota P/P - Prepared / Preserved

APPLIED TARIFFS ON NUTS IN SELECTED MARKETS – DATE OF COMPILATION 26.4.06


Alm

onds

Alm

onds

Alm

onds

Ches

tnut

sCh

estn

uts

Mac

asM

acas

Mac

asPe

cans

Peca

nsPe

cans

Pist

achi

oPi

stac

hio

Pist

achi

oW

alnu

tsW

alnu

tsin

-she

llsh

elle

dp/

pfre

sh/d

ried

froze

nin

-she

llsh

elle

dp/

pin

-she

llke

rnel

sp/

pin

-she

llsh

elle

dp/

pin

-she

llsh

elle

dM

exic

oCo

de08

0211

0108

0212

0120

0819

9908

0240

0108

1190

9908

0290

9908

0290

9920

0819

9908

0290

9908

0290

9920

0981

999

0802

5001

0802

5001

2008

1999

0802

3101

0802

3201

Rate

%15

2020

2020

+*1

2020

2020

2020

2020

2020

20

Note

s:Ta

riffs

for p

rodu

ce fr

om U

S an

d Ca

nada

sub

ject

to N

AFTA

*1th

at is

20

+ 0.

20 +

39.

58c/

kg

Unite

d St

ates

Code

0802

1100

0802

1200

2008

1940

0802

4000

0811

9080

8008

0290

8010

0802

9098

1020

0819

9010

0802

9010

0802

9015

2008

1925

0802

5020

0802

5040

2008

1930

2008

0231

0008

0332

00M

FNRa

te7.

7c/k

g24

c/kg

32.6

c/kg

free

14.5

0%1.

3c/k

g5c

/kg

17.9

c/kg

8.8c

/kg

17.6

c/kg

9.9c

/kg

0.9c

/kg

1.9c

/kg

1c/k

g7c

/kg

26.5

c/kg

Aust

ralia

Rate

%*1

free

*1fre

e*2

free

free

*1fre

e*1

free

free

free

free

*1*1

Note

s:Ta

riffs

for p

rodu

ce fr

om C

anad

a an

d M

exico

sub

ject

to N

AFTA

* 1 E

limin

atio

n of

MFN

tarif

f in

equa

l inst

alm

ents

ove

r 4 y

ears

from

1 J

anua

ry 2

005

with

zero

tarif

f fro

m 1

Jan

uary

of y

ear 4

(200

8)

* 2El

imin

atio

n of

MFN

tarif

f in

equa

l inst

alm

ents

ove

r 18

year

s fro

m 1

Jan

uary

200

5 w

ith ze

ro ta

riff f

rom

1 J

anua

ry o

f yea

r 18

(202

2)

EU*2

Code

0802

1190

0802

1290

2008

1993

0802

4000

0811

9039

0802

9060

0802

9060

2008

1995

0802

9020

0802

9020

2008

1995

0802

5000

0802

5000

2008

1993

0802

3100

0802

3200

MFN

Rate

%TR

Q*1

TRQ*

110

.25.

620

.82

212

free

free

121.

61.

610

.24

5.1

Note

:* 1

TRQ

0809

2119

0 w

ith 0

8021

290

at 9

0,00

0 to

nnes

& IQ

rate

2%

, OQ

rate

s 5.

6% &

3.5

%* 2

The

EU

Com

mon

Tar

iff in

clude

s Au

stria

, Bel

gium

, Den

mar

k, F

ranc

e, F

inla

nd, G

erm

any,

Gre

at B

ritai

n &

North

ern

Irela

nd, G

reec

e, Ir

elan

d, It

aly,

Lux

embo

urg,

Net

herla

nds,

Por

tuga

l, Sp

ain,

Sw

eden

Switz

erla

ndCo

de08

0211

0008

0212

0020

0819

9008

0240

0008

1190

9008

0290

9008

0290

9020

0819

9008

0290

9008

0290

9020

0819

9008

0250

0008

0250

0020

0819

9008

0231

0000

0802

3200

00M

FNRa

te %

free

free

11Fr

/100

kgfre

e9F

r/100

kg4F

r/100

kg4F

r/100

kg11

Fr/1

00kg

9Fr/1

00kg

4Fr/1

00kg

11Fr

/100

kgfre

efre

e11

Fr/1

00kg

3Fr/1

00 k

g3F

r/100

kg

Russ

iaCo

de08

0211

9000

0802

1290

0020

0819

9300

0802

4000

0008

1190

3900

0802

9060

0008

0290

6000

2008

1999

0008

0290

2000

0802

9020

0020

0819

9900

0802

5000

0008

0250

0000

2008

1993

0008

0231

0000

0802

3200

00M

FNRa

te %

55

155

105

515

55

155

515

55

Jord

anCo

de08

0211

000

0802

1200

020

0819

000

0802

4000

0811

9000

0802

9000

008

0290

000

2008

1900

008

0290

000

0802

9000

020

0819

000

0802

5000

008

0250

000

2008

1900

008

0231

000

0802

3200

0M

FNRa

te %

2525

2530

2525

2525

2525

2530

3025

3030

Unite

d St

ates

Rate

%*2

*2*2

*1*1

*1*1

*2*1

*1*2

*1*1

*2*1

*1No

tes:

* 1 E

limin

atio

n of

MFN

tarif

f in

equa

l inst

alm

ents

ove

r 8 y

ears

from

1 J

anua

ry 2

002

with

zero

tarif

f fro

m 1

Jan

uary

of y

ear 8

(200

7)* 2

Elim

inat

ion

of M

FN ta

riff i

n eq

ual in

stal

men

ts o

ver 1

0 ye

ars

from

1 J

anua

ry 2

002

with

zero

tarif

f fro

m 1

Jan

uary

of y

ear 1

0 (2

011)

Gulf

(GCC

)Co

de08

0211

0008

0212

0020

0819

1108

0240

0008

1190

0008

0290

9108

0290

9220

0819

1908

0290

9108

0290

9220

0819

1908

0250

1008

0250

2020

0819

1208

0231

0008

0232

00M

FNRa

te %

55

55

55

55

55

55

55

55

Note

s:GC

C Cu

stom

s Ta

riff S

ched

ule

appl

ies

to S

audi

Ara

bia,

UAE

, Bah

rein

, Qat

ar, K

uwai

t and

Om

an

Unite

d St

ates

has

neg

otia

ted

FTAs

with

Om

an &

Bah

rain

Leba

non

Code

0802

11‘0

8021

220

0819

0802

4008

1190

0802

9008

0290

2008

1908

0290

0802

9020

0819

0802

5008

0250

2008

1908

0231

0802

32M

FNRa

te %

705

305

705

530

55

305

530

55

Turk

eyCo

de08

0211

9000

0802

1290

0020

0819

9300

0802

4000

0008

1190

9500

0802

9096

000

0802

9060

0020

0819

9500

0802

9085

0008

0290

8500

2008

1995

0008

0250

0000

0802

5000

0020

0819

9300

0802

3100

008

0232

000

MFN

Rate

%43

.243

.258

.543

.215

.443

.243

.258

.543

.243

.258

.543

.243

.258

.543

.243

.2

Isra

elCo

de08

0211

10*1

0802

110*

220

0819

3908

0240

0008

1190

9908

0290

2008

0290

2020

0819

3908

0290

2008

0290

2020

0819

3908

0250

0008

0250

0020

0819

3908

0231

0008

0232

00M

FNRa

te %

free

free

1215

*410

010

012

100

100

12fre

efre

e12

1515

Unite

d St

ates

Rate

%fre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

efre

e

Note

:* 1

For

080

2119

0 (n

ot fo

r cho

cola

te) t

here

is a

risin

g qu

ota

(at 5

30 to

nnes

in 2

006)

with

a IQ

rate

of $

1.35

/kg

and

an O

Q qu

ota

rate

at t

he le

sser

of s

pecif

ied

or le

sser

MFN

at N

S9.7

2/kg

, BNM

103

.8%

, les

s 10

%* 2

For 0

8021

290

(not

for c

hoco

late

) the

re is

a ri

sing

quot

a (a

t 2,6

50 to

nnes

in 2

006)

with

an

IQ ra

te o

f $1.

80/k

g an

d an

OQ

rate

at t

he le

sser

of s

pecif

ied

or le

sser

MFN

at N

S17.

31/k

g, B

NM 1

03.8

%, l

ess

10%

* 3 F

or 2

0081

991

ther

e is

a ris

ing

quot

a (a

t 53

tonn

es in

200

6) w

ith a

n OQ

rate

at t

he le

sser

of s

pecif

ied

or le

sser

MFN

at 1

2% +

NS4

.68/

kg, B

NM 5

0% re

duce

d by

15%

* 4 N

S9.1

1/kg

but

not

mor

e th

an 1

02%

Sth

Afric

aCo

de08

0211

0802

1220

0819

0802

4008

1190

9008

0290

0802

9020

0819

0802

9008

0290

2008

1908

0250

0802

5020

0819

0802

3108

0232

MFN

Rate

%fre

efre

efre

efre

e20

free

free

free

free

free

free

free

free

free

free

free

IQ - In Quota OQ - Out Quota NS - New Shekel BNM - but not more than NAFTA - North American Free Trade Agreement

APPLIED TARIFFS ON NUTS IN SELECTED MARKETS – DATE OF COMPILATION 26.4.06

www.nutindustry.org.au

AUSTRALIAN

COUNCIL

NUT INDUSTRY

NUT INDUSTRY COUNCIL Australia’s Nut Industry · NUT INDUSTRY Australia’s Nut Industry January...

Documents

Transcript of NUT INDUSTRY COUNCIL Australia’s Nut Industry · NUT INDUSTRY Australia’s Nut Industry January...