Australian Pineapple Products Exporting Company (Appec)
Company Background
The Australian Pineapple Products Exporting Company (APPEC) was incorporated in Central Queensland, Australia by a group of 10 top pineapple-growers and merchants (5 large individual growers, 1 large fruit merchant already exporting, 4 packing sheds representing groups of growers). These 10 pineapple-growers are among the best operators from each of the four main pineapple-growing districts, Central Queensland, North Queensland, Southern Queensland, and the Wide Bay area near Bundaberg.
John Thompson is the CEO of APPEC and the Chairman of Australian Pines Pty Ltd
Grower shareholders of Australian Pines Pty Ltd have experiences on occasional trial export shipments of whole pineapple fruit to New Zealand and visit to Asian and US pineapple plantations
Australian Pines was a major participant in a government-sponsored study of the feasibility of dried pineapple production for export, and found out that it is indeed viable but did not cover the trading issues
Problems
The size, shape and weight of the fruit are not conducive to export
Most Asian and North American markets have their needs apparently well met by local producers, in the former case at much lower costs
Australian industry has lacked critical mass and capital which would readily enable pineapple production to be done by Australians in foreign countries
Quality and consistency issues were still not resolved
Australian products suffer from a significant wage rate differential
Prospects
There was an oversupply of fruit on the local market and worthwhile profits were not being made
The Australian value-added sector is reported to be the fastest-growing sector of fresh food
Competitors
Golden Circle Cannery, Chiquita, Dole Del Monte and other large, established operators
Questions
What factors are making the Asia-Pacific region an attractive export opportunity for APPEC? What factors would make it unattractive for them?
Having 4 main districts planting pineapple,
The Australian Pineapple Products Exporting Company (APPEC) was incorporated in Central Queensland, Australia by a group of 10 top pineapple-growers and merchants (5 large individual growers, 1 large fruit merchant already exporting, 4 packing sheds representing groups of growers). These 10 pineapple-growers are among the best operators from each of the four main pineapple-growing districts, Central Queensland, North Queensland, Southern Queensland, and the Wide Bay area near Bundaberg.
John Thompson is the CEO of APPEC and the Chairman of Australian Pines Pty Ltd
Grower shareholders of Australian Pines Pty Ltd have experiences on occasional trial export shipments of whole pineapple fruit to New Zealand and visit to Asian and US pineapple plantations
Australian Pines was a major participant in a government-sponsored study of the feasibility of dried pineapple production for export, and found out that it is indeed viable but did not cover the trading issues
Problems
The size, shape and weight of the fruit are not conducive to export
Most Asian and North American markets have their needs apparently well met by local producers, in the former case at much lower costs
Australian industry has lacked critical mass and capital which would readily enable pineapple production to be done by Australians in foreign countries
Quality and consistency issues were still not resolved
Australian products suffer from a significant wage rate differential
Prospects
There was an oversupply of fruit on the local market and worthwhile profits were not being made
The Australian value-added sector is reported to be the fastest-growing sector of fresh food
Competitors
Golden Circle Cannery, Chiquita, Dole Del Monte and other large, established operators
Questions
What factors are making the Asia-Pacific region an attractive export opportunity for APPEC? What factors would make it unattractive for them?
Having 4 main districts planting pineapple,