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Australian Dried Fruits Board Reports 1997-98 [7th]


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Com

position O f The B oard

Mr J. M. Lester, B.A., B.Mus.,C.P.A.

Chairman

Mr H.M. Tankard, A.M.

Expertise in growing or processing of dried fruits.

MrR.H. Blenkiron

Expertise in marketing or product promotion.

MrM.L. Vawser, B.Ec.

Expertise in business management or finance.

MrD.J. Stevenson, C.M.A.

Expertise in exporting of dried vine fruits.

MrT.M. Nunan Expertise in the harvesting, handling, storing, transporting, processing or marketing of dried vine fruits.

Staff of the B oard

a s a t 30 J une 1998 a r e :

General Manager

Mr A. W. Knights, B.Comm.

Financial Accountant

MrR. E. Harvey, B.Comm, A.C.A.

Board M eetings

26 September 1997 in Melbourne

10 February 1998 in Mildura

31 March & 1 April 1998 in Mildura

16 June 1998 in Melbourne

In addition to the above Board meetings the Board conducted telephone conference meetings on th e :

8 July 1997, 7 August 1997 and 2 December 1997.

Administrative Assistant

Ms I. Gailiss

2

Legis

lation and R egulations

The Australian Dried Fruits Board (ADFB) was established under the provisions of the Australian Horticultural Corporation Act 1987 as amended by the Australian Horticultural Corporation Amendment Act 1991.

The ADFB succeeded the Australian Dried Fruits Corporation (ADFC) which was established in 1979. The ADFC succeeded the Australian Dried Fruits Control Board which was originally established in 1925.

The following is a list of legislation and regulations that relate to the operations of the Australian Dried Fruits Board:

Australian Horticultural Corporation Act 1987

Australian Horticultural Corporation Amendment Act 1991

Commonwealth Authorities and Companies Act 1997 and its regulations

Horticultural Legislation Amendment Act 1989

Dried Vine Fruits Equalization Act 1978

Dried Sultana Production Underwriting Act 1982 - inoperative

Dried Sultana Production Underwriting Amendment Act 1985 - inoperative

Dried Vine Fruits Legislation Amendment Act 1991

Horticultural Levy Act 1987

Horticultural Export Charge Act 1987, as amended by Act No.48 of 1989

Primary Industries Levies & Charges Collection Act 1991

Primary Industries Levies & Charges Collection (Consequential Provisions) Act 1991

Primary Industries and Energy Legislation Amendment Act (No.1) 1995

Australian Horticultural Corporation (Australian Dried Fruits Board) Regulations

Australian Horticultural Corporation (Dried Fruits Export Control) Regulations

Dried Vine Fruits Equalization Regulations

Primary Industries Levies & Charges Collection (Dried Vine Fruits) Regulations

Primary Industries Levies & Charges Collection Regulations

Export Control (Dried Fruits) Orders No.12 of 1987 as Amended

Licences As At 30 June 1998

Under Regulation 6 of the Australian Horticultural Corporation (Dried Fruits Export Control) Regulations, the following licences by States, to export dried fruits, have been granted under the authority of the Australian Horticultural Corporation, on the recommendation of the Board for a three-year period ending 31 December,

1998:

Victoria 8

New South Wales 1

South Australia 4

Western Australia 2

Queensland 1

Total: 16

Freedom Of In fo r m a tio n Act

During the period under review the Board met its responsibilities under Sections 8 and 9 of the Act.

The Freedom of Information Officer is Mr R. E. Harvey; telephone (03) 9 867 8322 1

Eq

ual E mployment O pportunities

The Board supports equal employment opportunities and applies merit-based principles that ensure discrimination does not occur in its recruitment and promotion.

The Board ’s Fu n c t io n s

The Australian Dried Fruits Board functions are derived from S102 of the Australian Horticultural Corporation Amendment Act 1991; functions are:

(a) to encourage, assist, facilitate, promote and co-ordinate the export of sultanas, currants and raisins.

(b) to improve:

(i) the efficiency and competitiveness of the dried vine fruits industries; and

(ii) the quality of sultanas, currants and raisins; and

(iii) the producing of sultanas, currants and raisins, whether by growing, harvesting or processing

such products; and

(iv) the handling, storing, transporting, processing or marketing of sultanas, currants and raisins;

particularly with a view to enhancing the exportability of sultanas, currants and raisins; and

(c) to promote the consumption and sale of sultanas, currants and raisins in overseas markets; and

(d) to co-operate with:

(i) persons and bodies representative of the dried vine fruits industries; and

(ii) Commonwealth, State and Territory authorities concerned with dried vine fruit industries or the

export of sultanas, currants and raisins.

The Board ’s Mis s io n Sta te m e n t

The Australian Dried Fruits Board's Mission Statement is:

Develop and protect the A ustralian D ried V ine F ruits I ndustry short and long term POSITION IN EXPORT MARKETS IN ORDER TO MAXIMISE EXPORT RETURNS TO GROWERS, AND TO ENCOURAGE GROWERS AND PROCESSORS TO EFFICIENTLY PRODUCE THE BEST QUALITY DRIED VINE FRUITS IN THE WORLD FOR THE QUALITY CONSCIOUS MARKETS.

The Board has a range of objectives, strategies, performance indicators and programmes in place so that the activity of the Board is effectively directed to achieving the Mission Statement.

4

Re

view Of Austr a lia n Dried Fr u it s In d u str y

During the 1997/98 the industry has been reviewing its structure and operations. The size of the industry is declining, in 1992 production of sultanas was 91000 tonnes and in 1998 only 36,000 tonnes. Many growers are switching to more profitable products, particularly wine grapes. Major changes are occurring and it is difficult to predict the production capability of the industry in the next decade.

The Australian Dried Fruits Association supported by producers, principal packers and exporters and assisted by a dried fruit statutory reform committee has decided, effective from the 1999 season, to operate in a deregulated environment and seek the repeal of Statutory Equalization.

It has been proposed to retain all other legislation and extend it to allow the ADFB to promote dried vine fruits in the domestic market. It is envisaged that the ADFB will cease its routine use of export marketing powers to control markets and thereafter provide a varied range of services.

Production

ESTIMATED PACKED TONNES

1998 SEASON 1997 SEASON

SULTANAS 36066 23171

CURRANTS 2175 2701

SEEDED RAISINS 2517 1565

TOTAL 40758 27437

Sultanas During 1997/98 the removal of sultana vines continued reducing the potential for production of dried sultanas. [The sultana vines were mainly replaced by wine grape varietals] Higher yields obtained in 1998 compared to 1997 together with some growers diverting sultana grapes from wine to dried compensated for the smaller growing area. Production increased from an estimated 23,171 tonnes in 1997 to 36,066 tonnes in 1998. Perfect harvest and drying conditions contributed to a top quality crop with 24% being

graded 4 crown and 56% 5 crown.

Currants Strong demand by wineries for red grapes resulted in a large tonnage of currants being diverted to wineries. Rain before harvest resulted in a loss of Zante currants. Production of dried currants is estimated at 2,175 tonnes in 1998 compared to an estimated 2,701 tonnes in 1997. This is well below the domestic requirement of about 3,600 tonnes.

Seeded R a is in s

High returns for dried raisins and reduced demand for gordo grapes by wineries resulted in production increasing from an estimated 1,565 tonnes in 1997 to 2,517 tonnes in 1998.

5

Ex

port Marketing

Sultanas

Packed Metric Tonnes

1997 Season Sultanas

[commenced 1/3/97]

Export Allocation

2/5/97

Shipments *

Germany 1600 1720

Canada 2120 2009

New Zealand 1080 1198

UK 1700 1466

Japan 500 456

Other Europe 200 497

Other Markets 200 394

Total 7400 7740

* Invoices processed by ADFB by 25/8/98

There was a carryover of unshipped export orders of 1996 season sultanas on 1 March 1997 of approximately 8,400 tonnes, this carryover supplemented the 1997 season export allocation of 7,400 tonnes. Shipments of 7740 tonnes against an allocation of 7,400 tonnes was a satisfactory result.

Total shipments of 1996 and 1997 season sultanas for the 1997/98 marketing year [1/3/97 to 28/2/98] was 16,669 tonnes.

The export allocation for 1998 season sultanas is nominally 15,000 tonnes. Total exports for the 1998/99 marketing year are expected to be in the range of 15000 to 15500 tones; which if achieved, will be a very satisfactory result.

Currants

In 1997, production of currants was less than domestic demand and sales preference was given

to the domestic market. Exports for the 1997/98 marketing year were restricted to 54 tonnes to

service some retail branded products.

Seeded R a is in s

Exports for 1997/98 marketing year were 335 tonnes at a favourable price of A$3500 per tonne.

6

Promotion in O verseas Markets

Expenditure on advertising and promotion for 1997/98 was $246,770. The major expenditure was in Germany, United Kingdom, Canada and New Zealand. These markets represent approximately 80% of total exports. The quality logo is the common theme used for promoting Australian dried fruits in all export markets.

Acknowledgments : The Board acknowledges the financial support from Austrade in receiving the Export Market Development Grant. The claim for 1997/98 is $97,482.These funds greatly assist the promotion and market development of Australian dried fruits in export markets.

Overseas Visits

During 1997, Messrs Lester, Stevenson and Knights of the Australian Dried Fruits Board attended the Conference of Sultana (Raisin) Producing Countries in United Kingdom. Market research was conducted in United Kingdom.

The Board sets detailed objectives for overseas visits and Board Members are required to submit a report with recommendations to the Board. Copies of these reports were circulated to major exporters.

Finance - D ried Fruit D omestic Levy & E xport Charge Receipt »

During the period under review the following rates of levy and export charge were applicable.

The operations of the Board are financed by these levies and export charges paid by producers in Australia of sultanas, currants and raisins. The Board [as agent] collects the levies and export charges on behalf of the Commonwealth Government.

EXPORT & DOMESTIC 1998 SEASON 1997 SEASON SALES $ PER TONNE $ PER TONNE

Sultanas 10.00 10.00

Currants 10.00 10.00

Raisins 10.00 10.00

Dried Vine Fruits E xport E qualization S cheme

The Dried Vine Fruits Export Equalization Scheme was established under the Dried Vine Fruits Equalization Act 1978. Amending legislation of 1991, gives effect to the equalization of sales returns of each exporter across all export markets.

For each season's production, the Australian Dried Fruits Board determine for each variety of dried vine fruits, each Exporters average export return and an Industry return for all export markets. Where an exporters average export return exceeds the Industry return, this amount multiplied by the tonnes to which the sales relate, is paid in to the Equalization Trust Fund.

Where the Industry return exceeds an exporters average export return, this amount, multiplied by the tonnes to which the sales relate, is paid from the Equalization Trust Fund to the Exporter. The net effect is that all Exporters receive the Industry return.

Sultanas $ per tonne Currants $ per tonne Raisins $ per tonr 1993 Season Industry Return 1463.67 2711.67 1114.28

1994 Season Industry Return 1707.57 1668.34 1678.30

1995 Season Industry Return 1956.40 2178.99 2090.45

1996 Season Industry Return 1599.44 2625.18 3241.53

1997 Season Industry Return 1910.00* 2185.62 3422.00’

* estimate

Au s t r a l ia n Pr o d u c t io n Sin c e 1925

The production of Dried Vine Fruits in Australia since 1925 is set out in the following table:

SEASON OF PRODUCTION

SULTANAS* CURRANTS RAISINS TOTAL

T o n n e s T o n n e s T o n n e s T o n n e s

7 y e a r av e ra g e : 1 9 2 5 - 1 9 3 1 3 1 , 5 9 2 1 4 , 2 6 9 5 , 4 8 8 5 1 , 3 4 9

7 y e a r a v erag e: 1 9 3 2 - 1 9 3 8 4 7 , 5 5 8 1 7 , 9 8 5 6 , 8 4 0 7 2 , 3 8 3

7 y e a r av e ra g e : 1 9 3 9 - 1 9 4 5 5 6 ,2 2 1 2 1 , 9 4 0 9 , 5 0 3 8 7 , 6 6 4

7 y e a r av e ra g e : 1 9 4 6 - 1 9 5 2 4 5 ,1 9 1 1 4 , 4 6 0 5 , 3 5 4 6 4 , 0 0 5

7 y e a r a v erag e: 1 9 5 3 - 1 9 5 9 6 2 , 4 7 2 1 2 , 6 0 2 8 , 7 1 0 8 3 , 7 8 4

7 y e a r a v erag e: 1 9 6 0 - 1 9 6 6 7 0 , 1 5 4 9 , 4 7 7 8 , 6 9 7 8 8 , 3 2 8

7 y e a r a v erag e: 1 9 6 7 - 1 9 7 3 6 5 ,8 6 1 7 , 6 8 9 5 , 5 1 8 7 9 , 0 6 8

7 y e a r av e ra g e : 1 9 7 4 - 1 9 8 0 5 9 , 4 5 8 5 , 3 9 1 4 , 8 3 6 6 9 , 6 8 5

7 y e a r av e ra g e : 1 9 8 1 - 1 9 8 7 7 1 , 5 8 9 5 , 8 3 2 4 , 7 5 5 8 2 , 1 7 5

1 9 8 8 7 1 , 7 6 6 4 , 7 3 7 2 , 2 6 5 7 8 , 7 6 8

1 9 8 9 5 7 , 3 0 3 4 , 3 7 4 2 , 7 0 9 6 4 , 3 8 6

1 9 9 0 5 4 , 8 3 4 5 , 8 3 9 4 , 3 6 0 6 5 , 0 3 3

1 9 9 1 8 0 , 4 6 0 3 , 4 6 2 4 , 7 7 1 8 8 , 6 9 3

1 9 9 2 9 1 , 2 4 7 6 , 4 5 0 4 , 2 0 4 1 0 1 ,9 0 1

1 9 9 3 4 0 , 6 2 4 3 , 3 5 6 1 , 4 5 0 4 5 , 4 3 0

1 9 9 4 4 3 , 3 7 0 5 , 5 4 0 1 , 5 8 3 5 0 , 4 9 3

1 9 9 5 3 2 , 0 1 8 2 , 8 3 8 1 , 5 8 6 3 6 , 4 4 2

1 9 9 6 5 8 , 9 4 2 4 , 3 5 4 2 , 4 2 4 6 5 , 7 2 0

1 9 9 7 e s t 2 3 ,1 7 1 2 , 7 0 1 1 , 5 6 5 2 7 , 4 3 7

1 9 9 8 e s t 3 6 , 0 6 6 2 , 1 7 5 2 , 5 1 7 4 0 , 7 5 8

Δ Excluding Naturals/Organics

8

Australian Consumption Since 1925

The quantities of Australian Dried Vine Fruits retained for domestic consumption since 1925 are as follows:

MARKETING YEAR SULTANAS4 CURRANTS RAISINS TOTAL

Tonnes Tonnes Tonnes Tonnes

7 year average: 1925-1931 7,032 3,883 2,620 13,535

7 year average: 1932-1938 8,089 4,371 3,505 15,965

7 year average: 1939-1945 13,396 5,587 4,736 23,719

7 year average: 1946-1952 13,401 5,792 3,492 22,685

7 year average: 1953-1959 10,648 4,172 3,605 18,425

7 year average: 1960-1966 12,963 3,992 4,085 21,040

7 year average: 1967-1973 14,907 4,212 3,035 22,154

7 year average: 1974-1980 18,087 3,977 3,250 25,314

7 year average: 1981-1987 23,199 4,191 3,126 30,516

1988 21,389 4,217 2,271 27,877

1989 22,201 3,883 2,677 28,761

1990 23,611 4,590 2,991 31,192

1991 22,276 3,472 2,588 28,336

1992 20,562 3,871 2,300 26,733

1993 25,409 3,537 2,727 31,673

1994 22,826 3,807 1,674 28,307

1995 21,369 4,029 1,208 26,606

1996 20,118 3,524 1,871 25,513

1997 19,823 2,437 1,998 24,258

1 Excluding Naturals/Organics

Exp o r ts Since 1925

The following table sets out the quantities of Sultanas, Currants and Raisins exported from Australia to Overseas Markets since 1925:

MARKETING YEAR SULTANAS CURRANTS RAISINS TOTAL

Tonnes Tonnes Tonnes Tonnes

7 year average: 1925-1931 24,560 10,368 2,868 37,814

7 year average: 1932-1938 39,469 13,614 3,335 56,418

7 year average: 1939-1945 42,825 16,353 4,767 63,945

7 year average: 1946-1952 31,790 8,668 1,862 42,320

7 year average: 1953-1959 51,824 8,430 5,105 65.359

7 year average: 1960-1966 57,191 5,485 4,612 67,288

7 year average: 1967-1973 50,954 3,477 2,483 56,914

7 year average: 1974-1980 40,408 1,413 1,415 43,236

7 year average: 1981-1987 48,521 1,577 1,407 51,504

1988 48,795 621 2,229 51,645

1989 37,397 153 742 38,292

1990 33,897 1,432 1,077 36,406

1991 44,619 113 779 45,511

1992 47,405 2,120 889 50,414

1993 48,581 129 958 49,668

1994 17,078 197 301 17,576

1995 13,673 481 192 14,346

1996 26,045 591 664 27,300

1997 16,669 54 335 17,058

Note: Marketing Year Is from I March to 28 February.

9

Ex

ports Season of Production

SULTANAS CURRANTS RAISINS

COUNTRY/REGION *1997 199 5 199 5 199 7 199 5 199 5 *199 7 199 6 1995

BELGIUM 20J 75" 511 19

CANADA 201 10686 1556 5' 9 149 4

CHINA

FRANCE 41 46E 336

GERMANY/AUSTRIA 1741 10215 5886 9^

GREAT BRITAIN 1466 380C 2442 156 86 151 296 132

HONK KONG 13

INDIA 2 2

INDONESIA 129 83

ITALY 83 210 166

JAPAN 457 1441 675 19 51 98 21

KENYA 11

KOREA 12 5 1

MALAYSIA 113 331 250 3 1 1

MALTA 3 7

MAURITIUS

MIDDLE EAST 22 2

NETHERLANDS 83 309 332 37

NEW ZEALAND 1198 3245 2031 49 237 108 45 102 46

NORTHERN IRELAND 7 4

NORWAY 62 205 146

PACIFIC ISLANDS 61 141 98 2 1

POLAND 21 21

PORTUGAL 62 186 21

RUSSIA

SINGAPORE 2 102 97 3

SRI LANKA 20 1

SWEDEN 32 98 56

SWITZERLAND 62 83

TAIWAN 83 310 186 1

UNITED STATES OF AMERICA 21 VIETNAM 21 31

WEST INDIES 18 23 27 3 2 10

OTHER COUNTRIES

7740 32866 15017 55 610 225 348 654 203

* Not Final

10

Ge

r m a n y

Imports of C urrants and R aisins (S ultanas and R aisins )

FOR THE YEARS ENDED 31 DECEMBER 1990 TO 1997 (TONNES)

Source 1990 1991 1992 1993 1994 1995 1996 1997

C u r r a n t s

U.S.A. 17 4 42 425 38 146 40 7

Australia 41 98 28 - 11 - 115 -

Greece 1509 1029 1182 921 1130 826 797 1025

Other Countries 217 322 519 224 73 176 179 167

TOTAL: 1784 1453 1771 1570 1252 1148 1131 1199

R a is in s

Australia 11892 13163 15303 18933 9159 4537 8097 5782

Greece 10752 5338 7094 4763 4633 7411 8435 8239

Turkey 13627 15787 10486 13200 30172 32987 29901 40700

Iran 5236 15483 9322 8079 4439 4009 2966 2355

Afghanistan 18 21 - 233 - - - -

U.S.A. 14534 15609 12902 13850 10366 10597 9334 6910

South Africa 4483 5756 6580 8902 4694 4270 4573 7240

Mexico 18 - - - - - - •

Chile 2121 3111 1132 1486 829 721 749 315

Other Countries 2193 1400 1381 967 531 605 3678 844

TOTAL: 64874 75668 64200 70413 64823 65137 67733 72385

T o t a l R a is in s a n o

C u r r a n t s f r o m

A l l S o u r c s s : 66658 77121 65971 71983 66075 66285 68864 73584

Canada

Source 1990 1991 1992 1993 1994 1995 1996 1997

C u r r a n t s

U.S.A. 410 809 637 576 555 630 810 993

Australia 396 11 399 50 4 1 21 -

Greece 177 463 162 293 267 107 98 380

Other Countries 346 401 255 255 290 188 490 855

TOTAL: 1329 1684 1453 1174 1116 926 1419 2228

R a is in s

U SA 11447 11026 10789 10908 11754 10788 10384 11752

South Africa - - - 67 599 655 390 2075

Australia 8223 9167 8447 11745 2219 1066 5039 7279

Afghanistan - - - - - 79 - 291

Turkey 7798 7847 6436 7163 12185 12258 8777 4016

Greece 271 73 428 386 330 185 240 1044

Other Countries 1290 4133 2473 2457 2259 4042 6720 8323

TOTAL: 29029 32246 28573 32726 29346 29073 31550 34780

T o t a l R a is in s a n o

C u r r a n t s f r o m

A l l S o u r c s s : 30358 33930 30026 33900 30462 29999 32969 37008

11

Un it e d Kin g d o m

Imports of Currants and R aisins (S ultanas and R aisins )

FOR THE YEARS ENDED 31 DECEMBER 1 9 9 0 TO 1 9 9 7 (TONNES)

Source 1990 1991 1992 1993

1994 1995 1996 1997

C u r r a n t s

Australia - - 346

63 - 345 200 7

Greece 24106 20139 19366

25535 29966 21894 18071 19713

Other Countries 1921 1006 1556 1321

966 3037 1010 590

TOTAL: 26027 21145 21268

26919 30932 25276 19281 20310

R a is i n s

Australia 6210 7615 8227 8380

5550 2359 3480 2625

Greece 21885 10872 10887

15384 10911 10647 6803 9974

Turkey 23629 25385 29550 30707

30180 29805 38182 36927

Iran 1551 2024 1195 2816 -

3355 4657 2692

Afghanistan 9128 5871 5655 4922

4347 945 1435 1448

U.S.A. 23506 25652 25218 24831

29293 30201 30086 25590

South Africa 3245 4983 5807 5888

4179 3222 6545 6558

Other Countries 5430 4577 3859 3390

4990 2675 6269 8832

TOTAL:

T o t a l R a i s m s a m

94584 86979 90347 96318 89450 83209

97457 94646

C u r r a n t s f r o m

A l l S o u r c e s : 120611 108124

111615 123237 120382 108485 116738

114956

New Zealand

Source 1990 1991 1992 1993 1994

1995 1996 1997

C u r r a n t s

Australia 621 74 658 80

76 201 225 59

Greece 174 276 144

464 357 193 325 685

Other Countries - 20 - - 2

182 36 40

TOTAL: 795 370 802

544 435 576 586 784

R a u w s

Australia 4053 3909 4182 5622

3164 1995 2214 2413

Turkey 1477 2377 2073 756

3111 3561 2995 2007

U.S.A 1125 1452 1566 1508

1414 1583 1500 1392

Other Countries 661 619 450 168 293

650 1036 1260

TOTAL:

T o t a l R a i s m s a n o

7316 8357 8271 8054 7982 7789

7745 7072

C u r r a n t s f r o m

A l l S o u r c e s : 8111 8727 9073

8598 8417 8365 8331 7856

12

Ja

pan

Imports of C urrants and R aisins (S ultanas and R aisins )

FOR THE YEARS ENDED 31 DECEMBER 1 9 9 0 TO 1 9 9 7 (TONNES)

Source 1990 1991 1992 1993 1994 1995 1996 1997

Ra is in s

Australia 1604 1357 1455 1507 974 557 985 969

Turkey 98 10 22 16 567 583 380 287

Greece 75 74 - 89 52 53 42 54

U.S.A. 23620 23163 23587 25506 24935 25785 27807 24582

Iran - - - - - 34 - -

South Africa 1768 1725 1966 1898 1910 2152 1434 2015

Afghanistan - - ■ - ■ - - -

China - - 98 105 - - 79 -

Other Countries 48 36 - - 11 78 91 64

TOTAL: 27213 26365 27128 29121 28449 29242 30818 27971

T o ta l R a is i n s a n d

C u r r a n t s f r o m

A l l S o u r c e s : 27213 26365 27128 29121 28449 29242 30818 27971

Open in g Pric es - A u s tr a lia n Dried Vine Fr u it s 1997 Season

CIF South East Asia

• Korea, Philippines,

Malaysia, Singapore,

Indonesia, Thailand,

Hong Kong, Vietnam and

Taiwan

Sultanas Currants Raisins

3,4,5 -C rown

AU02500 AUD3500 AUD2150

CIF Asia, Central 1 Sth America

• India, China

• West Indies

AUD2150

AUD2250

AUD2500

AUD2500

AUD3500

AUD3650

CIF Africa, Pacific Islands,

Middle East

AUD2150 AUD2500 AUD3500

C 1 F Japan AUD2200 (5CROWN) AUD2500 AUD3500

CIF New Zealand AUD2125 (4CR0WN) AUD2500 AUD3500

CIF Canada USD1675 AUD2500 USD3200

CIF EC Countries,

Other Europe and

Scandinavia

USD1675 (5CROWN) AUD2500 AUD3500

13

Au

stralian N ational Audit O ffice 628 B ourke Street Melbourne Vic 3000

Independent Audit Report

To the Minister for Primary Industries and Energy

I have audited the financial statements of the Australian Dried Fruits Board for the year ended 30 June 1998. The statements comprise:

• Statement by Members • Balance Sheet

• Statement of Revenue and Expenses • Statement of Cash Flows • Schedule of Commitments • Schedule of Contingencies, and • Notes to and forming part of the Financial Statements.

The Members of the Board are responsible for the preparation and presentation of the financial statements and the information they contain. I have conducted an independent audit of the financial statements in order to express an opinion on them to you, the Minister for Primary Industries and Energy.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion as to whether, in all material respects, the financial statements are presented fairly in accordance with Australian Accounting Standards, other mandatory professional reporting requirements (Urgent Issues Group Consensus Views) and statutory requirements so as to present a view of the Board which is consistent with my understanding of the Board's financial position, the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Audit Opinion In my opinion,

(i) the financial statements have been prepared in accordance with the Guidelines for Financial Statements of Commonwealth Authorities, and

(ii) the financial statements give a true and fair view, in accordance with applicable Accounting Standards, other mandatory professional reporting requirements and the Guidelines for Financial Statements of Commonwealth Authorities, of the financial position of the Australian Dried Fruits Board as at 30 June 1998 and the results of its operations and its cash flows for the year then ended.

Australian National Audit Office

B.A. Kaufmann Executive Director

Delegate of the Auditor-General

Melbourne 8 September 1998

14

Au

stralian Dried Fruits Board

MEMBERS' STATEMENT

In accordance with a resolution of Members of the Australian Dried Fruits Board, we state that in the opinion of the Members, the Statement of Revenue and Expenses, Balance Sheet, Statement of Cash Flows and the Statement of Account for the Dried Vine Fruits Export Equalization Tmst Fund, are drawn up to show fairly the operations for the year ended 30 June 1998, the state of affairs as at that date, the cash flows during the financial year, and furthermore:

(a) there are reasonable grounds to believe the Australian Dried Fruits Board will be able to pay its debts as and when they fall due,

(b) the financial statements present fairly the information required by the Minister for Finance and Administration's Guidelines for Financial Statements of Commonwealth Authorities, and

the accounts have been made out in accordance with applicable Accounting Standards, other mandatory professional reporting requirements, and have regard to Australian Statements of Accounting Concepts.

J. M. LESTER H.M. TANKARD

Chairman - Australian Dried Fruits Board Member - Australian Dried Fruits Board 8 September 1998 8 September 1998

Statement Of Revenues And E xpenses For the Year Ended 30 J une 19 98

Notes 1998

$

1997 φ

OPERATING REVENUES

ψ

Domestic Levies and Export Charges 2 362,656 552,237

Interest 3 193,330 212,783

Net Foreign Exchange GainsZ(Losses) 16 23,673 (2,484)

Other Income 13 137.797 160.001

TOTAL OPERATING REVENUES 717.456 922.537

OPERATING EXPENSES Goods and Services Exoenses Employees - Staff and Members 4 274,743 307,475

Suppliers Expenses 5 428,795 752,699

Depreciation and Amortisation 1 (ϋ·) 13,286 23,290

Net Losses on Disposal of Assets 14 0 4.864

TOTAL OPERATING EXPENSES 716.824 1.088.328

S U R P L U S / f D E F IC m 632 (165,791)

EQUITY INTERESTS Accumulated surpluses at beginning of reporting period 2.896.299 3.062.090 Accumulated surpluses at end of reporting period 2,896,931 2,896,299

The above Statement of Revenue and Expenses should be read in conjunction with the accompanying notes

n

Au

stralian Dried Fruits Board

Balance Sheet As At 30 J une 1998

CURRENT ASSETS

Notes 1998

$

1997 $

Cash 6 364,806 181,536

Receivables 7(i) 1,184,566 1,350,336

Investments 8(i) 258,224 0

Other 9 3.200 0

Total Current Assets 1.810.796 1.531.872

NON-CURRENT ASSETS Receivables 7(H) 1,139,970 1,131,470

Investments 8(ϋ) 99,252 357,476

Infrastructure, Plant and Equipment 10 17.814 31.100

Total Non-Current Assets 1.257.036 1.520.046

TOTAL ASSETS 3.067.832 3.051.918

CURRENT LIABILITIES Provisions and Payables 11(i) 170.901 114.362

Total Current Liabilities 170,901 114,362

NON-CURRENT LIABILITIES Provisions and Payables 11 (ii) 0 41.257

TOTAL LIABILITIES 170.901 155.619

NET ASSETS 2.896.931 _L 896299

EQUITY Accumulated surpluses 2.896.931 2.896.299

The above Balance Sheet should be read in conjunction with the accompanying notes.

No

tes To And Form ing Part O f The Financial Statements

Note 1: STATEMENT OF ACCOUNTING POLICIES

The Australian Dried Fruits Board is required to prepare its Annual Report under section 9 of the Commonwealth Authorities and Companies Act 1997.

The following summary of the significant accounting policies is given in order to assist in understanding the figures presented in the financial statements. The financial statements are a general purpose financial report and have been presented in accordance with the requirements of the Guidelines on Financial Statements of Commonwealth Authorities

July 1997 (the Guidelines), as approved by the Minister for Finance and Administration, in compliance with Australian Accounting Standards, Accounting Guidance Releases issued by the Australian Accounting Research Foundation, Concensus Views of the Urgent Issues Group and have regard to Statements of Accounting Concepts.

Industry Reform The Australian Dried Fruits Association Inc (ADFA) supported by producers, principal packers and exporters and assisted by a Dried Vine Fruit Statutory Reform Committee has decided effective for 1999 season fruit to operate in a deregulated environment and the repeal of statutory equalization has been sought.

It has been proposed to retain other legislation but extend it to allow the Board to promote dried fruits in the domestic market. It is envisaged the Board would cease its routine use of export powers to control export markets and thereafter provide a varied range of services.

The ADFA are to discuss the implementation of the above proposed changes with the Australian Horticultural Corporation and the Commonwealth Government.

In recognition of these proposals, the Board has written down its assets to estimated realisable value.

(i) Accounting Principles: The financial statements have been prepared on an accrual basis and are in accordance with conventional historical cost convention except for the Dried Vine Fruits Export Equalization Trust Fund which is prepared on a cash basis.

(ii) Period of Accounts: The financial statements cover the period from I July 1997 to 30 June 1998. The comparative figures cover the period from I July 1996 to 30 June 1997.

(iii) Infrastructure. Plant and Eouipment: Assets costing $300 or more are capitalised in the accounts. Items of lesser cost are written off in the year of purchase.

From 1996-1997 onwards, the Guidelines require that property plant and equipment be progressively revalued in accordance with the ‘deprival’ method of valuation (as set out in the Guidelines on Accounting Policy for Valuation of Assets of Government Trading Enterprises) by 1 July 1999 and thereafter be revalued progressively on that basis every three years. The application of the deprival method by the Board requires its assets to be valued at their depreciated replacement cost or the current market value. With the impending wind down (or possible closure of the Board) few assets if any are expected to be replaced and are therefore valued at their net realisable value. The effect of this change on the operating result is a charge of $5,793.

Depreciation : Depreciable property plant and equipment is written off to its estimated residual values over its estimated useful life to the Board using the diminishing value method of depreciation. Useful lives and residual values are reviewed at each balance date and necessary adjustments made.

Depreciation rates applied, to each class of depreciable assets are as follows:

Furniture and Fittings Plant and Equipment Motor Vehicle

1998 20%

1997 20%

25%-30% 22.5%

25%-30% 22.5%

18

N

ote 5: SUPPLIERS EXPENSES

Notes 1998 1997

$ $

Advertising/Promotion Services in Overseas Markets 246,770 528,484

Board Members Travel 5(a) 29,241 55,909

Audit Fees 5(b) 12,600 13,000

Australian Horticultural Corporation 5(c) 36,000 46,900

Operating Lease Expenses - Property 39,595 41,939

Other Suppliers 64.589 66.467

428*795 752,699

a) Board Members Travel: During the year ended 30 June 1998 four Board meetings were held, two in Melbourne and two in Mildura. The Board was also represented during the year at various other meetings with the Australian Horticultural Corporation, Australian Government and other Dried Fruits Industry bodies. The 1997 Conference of Sultana (Raisin) Producing Countries was held in Windsor, England during October 1997.

1998 1997

$ $

Travel within Australia 13,004 13,060

Travel outside Australia 16.237 42.849

29,241 55.909

b) Audit Fees: Remuneration to the Auditor General for auditing the financial statements for the reporting period.

No other services were provided by the Auditor-General during the reporting period.

c) Australian Horticultural Corporation: An administration fee, the amount which is prescribed by legislation, is paid to the Australian Horticultural Corporation and is a contribution to the recovery of that organisation’s administrative costs. The regulation to give effect to the payment for 1997/1998 has yet to be made.

Note 6: CASH

1998 $

1997 $

Cash on hand and at bank 6,346 7,374

Money Market and Cash Deposit Accounts 205,336 51,166

Foreign Currency Term Deposits 123,101 105,340

Foreign Currency Imprest Accounts 30.023

364.806

17.656 181,536

Note 7: RECEIVABLES

(i) Current Assets

Notes 1998

$

1997 $

Bank Term Deposits 486,672 500,014

Bank Bills of Exchange and Negotiable Certificates of Deposit 455,058 550,000 Interest 82,196 54,629

Levies 63,158 85,693

Export Market Development Grant 13 97.482

1.184.566

160.000 1.350.336

Provision for Doubtful Debts 0 0

(ii) Non Current Asset Bank Term Deposits 589,970 881,470

Bank Bills of Exchange and Negotiable Certificates of Deposit 550.000 1.139,975 250.000 1.131.470

Receivable within one to two years 1,139,970 575,503

Receivable within two to five years 0 555,967

N

ote 8: INVESTMENTS:

1998 1997

$ $

(i) Current Assets Government Securities 258.224 0

(ii) Non Current Assets Government Securities Shares in Associated Company*

Government Securities Receivable within one to two years Receivable within two to five years

99.251 357,475

___ 1 _____ 1

99.252 357.476

99,251 258,224

0 99,251

• The associated company is Sunbenry Pty. Ltd., a company which has not traded during the year. Sunberry Pty. Ltd., 50% owned by the Australian Dried Fruits Board holds the trademark for Sunberry product in Australia. The reporting date of the company is 30 June. The Boards share of associate’s: • operating profit before income tax 0

• income tax expense attributable to operating profit 0 • extraordinary items (net of income tax) 0

Amounts of accumulated results including reserves attributable to associate: • 1 July 0

• 30 June 0

Investment in associate 1 July Investment in associate 30 June No movement during the year

Note 9: OTHER CURRFNT ASSFTS

Prepayments - Property Rental

Note 10: INFRASTRUCTURE. PLANT AND EQLJIPMFNT Furniture

Gross Value at cost 1 July 1997

Fittings

13,210

Additions 0

Disposals 0

Gross Value at cost at 30 June 1998 13.210

Accumulated Depreciation/Amortisation 9,233 as at 1 July 1997 Depreciation/Amortisation Charge for 798 assets held at 1 July 1997 Depreciation Adjustment to Net Realisable 961 Value Depreciation/Amortisation Charge for additions 0 Adjustment for Disposals 0

Accumulated Depreciation/Amortisation as at 30 June 1998 10.992

Net Book Value as at 30 June 1998 2.218

Net Book Value as at 1 July 1997 3.977

1 1

1998 1997

$ $

3.200 0

3.200

P lant & M otor

Eq uipm ent V ehicle T otal

64,795 36,082 114,087

0 0 0

0 0 0

64.795 36.082 114.087

55,280 18,474 82,987

2,733 3,962 7,493

4,832 5,793

0 0 0

0 0 0

62.845 22.436 96.273

1,950 13.646 17.814

9.515 17,608 31.100

T

he Chairman and Members of the Board during year were:

Mr J.M. Lester (Chairman) Mr R.H. Blenkiron Mr H.M. Tankard Mr M.L. Vawser Mr D.J. Stevenson Mr T.M. Nunan

The aggregate remuneration of the Chairman and Members is disclosed in Note 4. The aggregate amounts recognised in respect of the following transaction types with members, member-related

Note 15: RELATED PARTY TRANSACTIONS

entities and associated company were:

Transaction Type

Receipts

Com pany D irector 1998

$

1997 $

* Receipt of Domestic Australian Dried Fruits D.J. Stevenson ) )

Levies and Export Charges Sales Pty. Ltd. ) 377,353 ) 540,967

Angas Park Fruit Company Pty. Ltd. R. H. Blenkiron )

)

) )

Share of Miscellaneous Fees Australian Dried Fruits Sales Pty. Ltd.

D.J. Stevenson 100 193

‘ Pursuant to Section 8A of the Horticultural Levy Act 1987 and Section 8A of the Horcultural Export Charge Act 1987 (Commonwealth Acts).

Payments

Reimbursements for Australian Dried Fruits D. J. Stevenson ) )

Promotion and Advertising (Europe) Pty. Ltd. ) 55,152 ) 43,062

Payments made Australian Dried Fruits D.J. Stevenson ) )

(Japan) Ltd. ) )

Promotion and Advertising Australian Dried Fruits D.J. Stevenson ) )

Payments made Sales Pty. Ltd. ) 21,823 ) 0

Angas Park Fruit Company R.H. Blenkiron ) )

Pty. Ltd. ) )

Members fees and out of pocket expenses Irymple Packing Pty. Ltd. D.J. Stevenson 4,545 1,806

Dried Fruit Purchases Australian Dried Fmits D.J. Stevenson ) )

Sales Pty. Ltd. ) 132 ) 214

Angas Park Fruit Company R.H. Blenkiron ) )

Pty. Ltd. ) )

All transactions were made on normal commercial terms and conditions.

Secretarial Services - The Board provided secretarial services at no charge and pays half the statutory charges for Sunberry Pty. Ltd.

Note 16: NFT FOREIGN EXCHANGE GAINS/(LOSSES)

1997 $

(2,484) Non Speculative

1998 $

23,673

N

ote 17: FINANCIAL INSTRtJMFNTS

a] Terms, conditions and accounting policies

Financial Instrument Notes Accounting Policies and Methods [including recognition criteria and measurement basis] Nature of underlying instrument [including significant terms A conditions

affecting the amount, timing and certainty of cash flows]

F in a n c ia l A s s e ts

F in a n c ia l A s s e ts a re re c o g n is e d w h e n c o n tro l o v e r fu tu re e c o n o m ic b e n e fits is e s ta b lis h e d

a n d th e a m o u n t o f th e b e n e fit c a n b e r e lia b ly m e a s u re d .

M o n e y M a rk e t a n d B an k

C a s h D ep o sits

6 D e p o s its a re re c o g n is e d a t th e ir n o m in a l a m o u n ts . In te r e s t is c re d ite d to r e v e n u e a s it a c c r u e s .

T e m p o ra rily s u rp lu s fu n d s , a re p la c e d on d e p o s it a t c a ll. In te re s t is e a rn e d o n the d a ily b a la n c e a t th e p re v a ilin g d a ily rate fo r

m o n e y o n ca ll a n d is p a id a t m o n th end.

L e v ie s R e c e iv a b le 7 (i) T h e s e r e c e iv a b le s a re re c o g n is e d a t th e

p re s c rib e d ra te p e r to n n e o n to n n a g e s o ld in

M a y a n d J u n e 1 9 9 8 less a n y p ro v is io n f o r b a d a n d d o u b tfu l d e b ts . P ro v is io n s a re m a d e w h e n c o lle c tio n o f th e d e b t is ju d g e d to b e le s s ra th e r th a n m o re likely.

T h e le g isla tio n re q u ire s le vie s to b e paid to th e B o ard w ith in 4 5 d a y s a fte r th e dried

vine fru it is s o ld .

G o v e rn m e n t S e c u ritie s 8 C o m m o n w e a lth a n d S tate G o v e m e m e n t B o n d s a re re c o g n is e d a t a m o rtis e d c o s t [ie a t o rig in a l c o s t a d ju s te d f o r a m o rtis a tio n to d a te o f a n y

d is c o u n t o r p r e m iu m w h e n o rig in a lly is s u e d ] In te re s t is c r e d ite d to rev en u e a s it a c c r u e s l.

T h e s e s e c u ritie s h a ve te r m s o f up to 5 y e a rs . T h e y a re g u a ra n te e d b y th e issuing G o v e rn m e n t a n d are tra d e d in a c tiv e m a rk e ts .

B a n k T e rm D e p o s its 7 D e p o s ts a re re c o g n is e d a t th e s u m in v e s te d .

In te re s t is c r e d ite d to rev en u e a s it a c c r u e s .

In te rest p a y m e n ts v a ry fr o m p a y m e n t a n n u ally o r o n m a tu rity . In s o m e ca s e s in te rest is c o m p o u n d e d . E a rly w ith d ra w a l o f fu n d s m a y b e a t th e d is c re tio n o f the B a n k o r a t th e o p tio n o f th e d e p o s ito r. P r e p a y m e n t p e n a ltie s m a y b e a p p lie d on red e m p tio n o f d e p o s its b e fo re m a tu rity .

F o re ig n C u rre n c y T e rm D e p o s its 6 D e p o s its a re re c o g n is e d a t th e ir n o m in a l a m o u n ts . In te r e s t is cre d ite d to rev e n u e a s it

a c c r u e s .

Foreign c u rr e n c y is p u rc h a s e d to p ro te ct th e A D D e x p o s u re fo r o v e rs e a s p ro m o tio n a l c o m m ittm e n ts . F u n d s are p la c e d on a 3 0 d a y ro llo v e r b a s is w ith the B o a rd ’s B a n k e r a t n e g o tia te d in te re s t rates fix e d fo r th e p erio d .

F o re ig n C u rren c y Im p re s t

A c c o u n ts

6 B a la n c e s a r e re c o g n is e d a t th e ir n o m in a l a m o u n ts . In te re s t w h e re a p p lic a b le , is c r e d ite d to re v e n u e a s it is p a id .

O v e rs ea s a g e n ts in G e rm a n y a n d N e w Z e alan d h o ld B o ard fu n d s to p a y fo r p ro m o tio n e x p e n s e s . W h e r e th e fu n d s are

ke p t in s e p a ra te b a n k a c c o u n ts , in te rest is p a id p e rio d ic a lly a t v a ry in g ra te s .

B a n k Bills o f E x c h a n g e a n d N e g o tia b le C e rtific a te s o f

D e p o s it

7 S e c u rite s a re re c o g n is e d a t th e p u rc h a s e p ric e o f th e B ills o f E x c h a n g e /C e rtific a te s o f D e p o s it T h e in c o m e th e in s tru m e n t a ttra c ts L e , in te re s t e a rn in g s , is th e a m o u n t b y w h ic h th e a g g re g a te fa c e v a lu e p a y a b le o n th e d u e d a te e x c e e d s th e p u r c h a s e p ric e. In te re s t is c re d ite d o n a p r o -r a ta tim e b a s is .

T h e re le v a n t A u s tra lia n b a n k u n d e rta k e s to p a y to th e B o a rd th e fa c e v a lu e o f th e b ili/c e rtific a te a t th e m a tu rity d a te .

B a n k B ills /N e g o tia b le C e rtific a te s o f D e p o s its a re a tra d e a b le in s tru m e n t.

2A

45

0502

250000

258224

Shares in Associated Co.

Levies Receivable

TOTAL FINANCIAL ASSETS 358460 174162 1199954 1050014 1089221 958726 150000 530219 (RECOGNISED) TOTAL ASSETS

FINANCIAL LIABILITIES

(RECOGNISED)

Note 17(b) Boating FIXED INTEREST RATE

Interest Rate Risk Interest T0 1 1 TO 2 2 TO 5

YEAR YEARS YEARS

97-98 96-97 97-98 96-97 97-98 96-97 97-98 96-97 97-98 FINANCIAL ASSETS (RECOGNISED)

Cash on Hand/at Bank

6346

Cash deposit at Call 205336 51166

Foreign Currency Deposits 123 01 105340

Foreign Currency Imprests 30023 17656

Bank Term Deposits 486672 500014 439970 150000 430968 Bank Bills of Exchange/ 455058 550000 550000Negotiable Cert.of DepositGovernment Securities 258224 9925 63158

Liabilities to Employees

73383

and Members

Liabilities to Suppliers

97518

TOTAL FINANCIAL LIABILITIES

(RECOGNISED)

TOTAL LIABILITIES

Net Fair Values: The net fair value of assets and liabilities is the carrying value disclosed in the accounts

NON INTEREST

BEARING

96-97

7374

1

85693

93068

TOTAL

97-98

6346

205336

123101

30023

1076642

1005058

357475

1

63158

2867140

3067832

57564 73383

98055

155619

97518

170901

170901

96-97

7374

51166

105340

17656

1381484

800000

357475

1

85693

AVERAGE

INTEREST

RATE %PER ANNUM

97-98

2806189

3051918

57564

98055

155619

155619

4.25

1.5-7.00

6.68-7.26

4.76-8.58

8.15-10.01

3.50

2.00-5.50

6.68-9.67

6.11-7.10

8.15-10.01

c) Credit Risk. The maximum exposure to credit risk at balance date to recognised financial assets is the carrying amount, net of any provisions for doubltful debts as disclosed in the balance sheet and notes to the financial statements.

No

te 18: DRIED VINE FRUITS EXPORT EQUALIZATION TRUST FUND - STATEMENT OF ACCOUNT FOR THE YEAR ENDED 30 JUNE 1998 1998 1997

Note Currants S ultanas Raisins T otal T otal

$ $ $ $ $

Balance at 1 July 1997 N il N il N il Nil Nil

Receipts 18 596 143,611 19,199 163,406 209,723

Payments 18 596 143,611 19,199 163,406 209,723

Balance at 30 June 1998 N il N il N il N il Nil

The Dried Vine Fruits Export Equalization Trust Fund has been established under the Dried Vine Fruits Equalization Act 1978, as amended by the Dried Vine Fruits Legislation Amendment Act 1991.

The amending legislation gives effect to the equalization of sales returns of each exporter across all export markets, effective from 1991 season. There is no statutory equalization of sales returns on the Australian market.

Generally, receipts to and payments from the Trust Fund arise as a consequence of a determination by the Australian Dried Fruits Board of an industry return for exported dried vine fruits and each exporters average export return; where an exporters average export return exceeds the industry return, this amount multiplied by the tonnes to which the sales relate, is credited to the Trust Fund. Where the industry return exceeds an exporters average export return, this amount, multiplied by the tonnes to which the sales relate, is paid from the Fund.

Industry Returns determined during the year ended 30 June 1998:

1996 Season Sultanas : $1,599.44

1996 Season Currants : $2,625.18

1996 Season Raisins : $3,241.53

THE PARLIAMENT OF THE OMMONWEALTH OF AUSTRALIA

PARLIAMENTARY PAPER No. 14 of 1999