New Orchard Investment

Prepared by: Kim Wilson

GRAY PLANTATIONS

New Orchard Investment

Purpose

Not about financials, varieties, densities etc.

Show expansion in the Australian industry over recent years

Different region

Why people are investing

Looking forward based on current interest

New growing regions

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Is industry expansion good? – YES

The last few years the Australian industry struggle to produce 35,000 ton NIS – how does that make us look in the world market place?

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The biggest issue in the world macadamia industry is the inability to consistently supply large volumes of product.

The more we can plant / grow / produce macadamias in different geographic regions the better.

Is industry expansion good?

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0

50,000

100,000

150,000

200,000

250,000

300,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Trees planted / Year

HIGH NIS PRICE

LOW NIS PRICE

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0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Bundaberg Gympie NSW Costal NSW Inland NSW Other QLD SE QLD Tropics WA Other

Planting per region 2003 - 2014

Why are NEW people investing?

Many different responses – region / scale QLD - Sugar Cane to Macadamias Less intensive compared to some crops Relative low labour inputs Like the health aspects and the industry image See it as a good LONG term investment Mining workers investing Overseas investment

Obtain NIS SupplyPurchase agricultural land in Australia

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Concerns /Questions some potential investors have

Need “deep pockets”

Wait on nursery trees

Concern on “World Expansion” – 1% factor – room for expansion

New growing regions

Proximity to processorScale that is requiredNo one to share equipment / information with

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Areas of expansion over last 5 – 8 years

Northern NSW Costal areas

QLDBundaberg + surrounding areasEmeraldMackay – Surrounding areas

WASouthern area

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Interest generated over last 6 monthsEnormous interest for trees – large numbersTownsvilleMackay areaRockhamptonEmeraldMildura

The exciting part of these new areas is not only the fact that we are expanding the industry but we are bringing in new people with fresh ideas.

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Don’t be afraid of industry expansion

Encourage expansion

Spread the word howgreat this industry is.

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