This week’s Australian Nut Conference projected a prosperous outlook for the country’s tree nut industry.
Delegates at the two-day event, held in Melbourne over Tuesday and Wednesday (28-29 March), heard the sector had already experienced a period of unprecedented growth over the last decade. Jolyon Burnett, chairman of the Australian Nut Industry Council (ANIC), said the farm gate value of Australian tree nut production had risen to around A$1bn, while exports had quadrupled since 2011.
“Nuts are ticking all the boxes for consumers right now,” Burnett explained. “We are healthy, versatile, tasty and fit almost any diet regime.”
Health claim
Burnett said nut consumption was growing exponentially on the back of well-documented research into the health properties of nut varieties.
Australian producers can now lay claim to this health messaging on their packaging under a General Level Health Claim, launched at the conference. The claim allows nuts to be marketed as heart healthy without causing weight gain.
The claim can be applied to raw and dry roasted nuts, produced by growers that are contributors to Nuts for Life, a nutrition and health education initiative established for the Australian tree nut industry.
Retail growth
The conference also shone the spotlight on consumer behaviour. Myla Santos of market research company Nielsen Retail Solutions revealed 85 per cent of Australian households buy nuts annually. Neilsen’s research also shows the potential to add A$30m to retail sales by converting shoppers classed as light–medium consumers to medium–heavy consumers.
Continuing on the retail front, Paul Schadel of retail giant Woolworths provided an insight into developing trends towards the packaging and merchandising of nuts in his company’s supermarkets. Schadel said a recent review of Woolworths’ snack pot range, which included re-branding and changes to the shape and size of tubs, had resulted in increased sales since their launch in November 2016.
In an insightful session on Australia’s changing retail landscape, Tristan Kitchener of Kitchener Partners made the revelation that Australia’s “big two” retailers, Coles and Woolworths, are paying more attention to heavy discounter Aldi than they are one another. The move comes as Aldi continues to win over market share, with Kitchener predicting the German-owned retailer will make up around 10 per cent of Australia’s grocery market by 2020.
Export expansion
Looking further abroad, Australian nut exports continue to grow on the back of recent free trade agreements. Burnett said the industry had capitalised on tariff reductions in Japan, South Korea and China, with exports to these countries rising from A$44m in 2014 (pre-FTA) to A$114m in 2016.
Loren Puette of market research and analytical firm China Ag provided delegates with an update on the rapidly growing Chinese market. Puette highlighted a preference for in-shell nuts amongst Chinese consumers and distributors, but said there was growth potential for shelled almonds and macadamias.
