AUSTRALIA’S progressive macadamia industry has made a big move on the lucrative Chinese market, launching a million dollar consumer marketing campaign in Beijing, Shanghai and Guangzhou this week.
Aiming to drive home the message that Australia is cleanest, greenest and most reliable supplier of the premium nut which comes packaged in health benefits, the campaign represents the largest investment the industry has made in an offshore market.
It comes hot on the heels of a China-Australia Free Trade Agreement which will see 24 per cent nut tariffs phased out over five years and extensive marketing in Japan, Korea and Taiwan.
More than 50 per cent of Australia’s crop is now exported to Asia and industry projections are for a $1 billion nut export figure by 2020.
Exports to China have grown 86 per cent in the past 24 months.
Market development manager at the Australian Macadamia Society, based in Lismore, Lynne Ziehlke said while that was from a low base, growth was expected to continue strongly.
The china campaign, which involves social media, television, newsletters and promotions focusing on occasions like Chinese New Year, has been funded by Australia’s 650-plus macadamia growers via an industry marketing levy through Horticulture Australia.
Two years in the making, it was developed on the back of extensive research and substantial investment in retail sales and trade data.
Ms Ziehlke said research showed Chinese consumers were already aware of macadamias and perceived them as premium, gift-worthy and exotic with anti-aging benefits.
This week’s launch events brought together more than 100 industry and government representatives including most of the major Chinese retailers and a large cross section of Australian growers and exporters.
Grower Trevor Steinhardt, from the family-owned farming enterprise “Macadamias Australia” in Bundaberg, Queensland, said the China campaign was the most exciting marketing development he had seen in his time in the industry.
Originally specialising in vegetables, the Steinhardts diversified into nuts in 2004, planting 137,000 macadamia trees. Today, they export to 14 countries.
“This campaign represents a massive opportunity to showcase the native Australian macadamia, strengthen our already very good relationship with China and leverage the new China-Australia free trade agreement,” Mr Steinhardt said.
“Importantly, it gives confidence to growers to reinvest in their existing crop and for Greenfield startups, either with existing or new investment funds.”
On the Steinhardt farm, better drying facilities have been installed and work is going into studying how new varieties more suited to the Chinese market can be incorporated into the farming system
Mr Steinhardt was part of the Australian team at the launch in China this week.
He said the main message he was hoping to get across to the Chinese was that Australia was a trusted, reliable source of the premium product and had a large and long-term commitment to supplying good quality product consistently
“That commitment is backed by a multimillion dollar research and development program that is the best in the world,” he said.
The looming potential in Asia, particularly China, has sparked a big focus on increasing supply, with up to 1000 hectares of new plantings now underway in Northern NSW and Queensland.
“Our focus on productivity and new investment has begun to ‘bear nuts’ in the past few years and we expect production to continue to rise in coming years,” Ms Ziehlke said.
“Thanks to strong prices and global demand, we are this year seeing an unprecedented amount of restoration work by growers in orchards in all regions which will increase productivity and place us in a good position over the coming years to take advantage of big opportunities like these.
“What we need to do is make sure we have the high value market segments ready to consume these increases.”
