1. World Macadamia Symposium
European Market – for the long haul

2. Preamble
• At just under 6,000 MT, the EU (collective) is
the second largest consumer of macadamias
• During the first decade of the 21st century, the
macadamia industry enjoyed unparalleled
growth due to the geographic expansion of
the snack market
• However, today we face some significant
challenges in Europe

3. Comparative Market Share - COO
EU MACADAMIA IMPORTS BY FY BY COO
6,000
5,000
4,000
Volume (MT)
2,513 2,591
3,000 2,766
2,000
1,000 2,006 1,945 1,644
0
FY09 FY10 FY11
AUSTRALIA SOUTH AFRICA KENYA MALAWI OTHER

4. Germany’s Impact
MACADAMIA IMPORTS TO GERMANY
3,500,000
3,000,000
2,500,000
Volume (kg)
2,000,000
1,500,000
1,000,000
500,000
0
FY10 FY11 FY12

5. Comparative Values – Tree Nuts
Wholesale price of tree nuts imported into the European Union - %
difference to the average
200%
% difference to the average wholesale price
150%
100%
50%
0%
-50%
-100%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Almonds Cashews Macadamias Pistachios (NIS) Walnuts Average/Index

6. RETAIL SALES IN GERMANY – av. RSP
800 25.00
700 €19.89
€18.91 €19.45 20.00
600 €17.01 €17.21 €16.96
Price per kg (Euro)
Volume (000s kg)
500 €13.78 €13.84 €13.94 €14.47 15.00
400
300 10.00
200
5.00
100
0 0.00
Mar Qtr Jun Qtr Sep Qtr Dec Qtr Mar Qtr Jun Qtr Sep Qtr Dec Qtr Mar Qtr Jun Qtr
2010 2010 2010 2010 2011 2011 2011 2011 2012 2012
VOLUME (TOTAL ALL BRANDS) AVERAGE PRICE

7. Market Development
New product launches using macadamias
2002-2011: Europe
Dairy
Food
Bakery 4% Ice Cream
and 12%
Cereals
13%
Confectionery
19%
Savory Snacks
52%

8. The long haul
• All of the element exist for long term
consumption growth – wealth, cultural nut
consumers, premium food consumers and an
aging population
• The industry must diversify its interests
beyond the snack category – AMS initiative
• The challenge is to better understand and
communicate our product’s usp to the
broader European food industry