Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Australian Horticultural Corporation Act - Australian Dried Fruits Board - Report - 2nd, for 1992-93


Download PDF Download PDF

y v

μ ™

C H RISTM AS JAFFA P U D D IN G

V/2 cups Australian Seeded Raisins, chopped V/2 cups Australian Currants V a cup glace cherries, chopped Va cup mixed peel

Vi cup orange flavoured liqueur OR orange juice 13/a cups caster sugar 6 eggs, separated 90g dark chocolate, melted and cooled 3 A cup slivered almonds 11/2 cups self raising flour

Combine fruits, cherries, mixed peel and liqueur and allow to stand overnight. Beat sugar gradually into egg yolks until light and fluffy. Add marinated fruits, melted chocolate and almonds, combining well. Fold in sifted flour Beat egg whites until stiff, and fold into mixture. Place in a greased 8 cup pudding basin and cover with a layer of greaseproof paper and foil, tie securely. Boil for 3 hours. Delicious served with Jaffa Custard. Serves 8-10.

JAFFA CUSTARD

11 /2 cups milk

1 teaspoon vanilla essence 2 teaspoons finely grated orange rind 125g dark chocolate 6 egg yolks Vi cup caster sugar

Heat milk, vanilla, orange rind and chocolate, stirring until chocolate is melted. Remove from heat. Beat egg yolks and sugar together. Gradually pour warm milk into mixture. Place mixture in the top half of a double boiler and cook over a medium heat. Stir constantly until custard coats the back of a wooden spoon. Serve with Christmas Jaffa Pudding.

CONTENTS

Page

2 Composition of the Board and Staff

2 Board Meetings Held

3 Legislation and Regulations

3 Functions and Mission Statement of the Board

3 Licences, Freedom of Information, Disabled Persons

4 Finance - Dried Fruit Domestic Levy and Export Charge Receipts

5 Export Marketing

7 Promotion in Overseas Markets

8 Overseas Visits

8 Overseas Shipping Services and Freight Rates

9 Co-operation with Other Producing Countries

10 Dried Vine Fruits Export Equalization Scheme

10 Dried Sultana Underwriting Scheme

11 Production and Sales

12 Export Statistics

13 Import Statistics for Major Australian Export Markets

15 Opening Prices - Australian Dried Vine Fruits 1992 Season

16 Financial Statements

26 Auditor-General’s Report

One of the Board’s main functions is the promotion of Australian Dried Fruits in Overseas Markets.

The Board has introduced the logo to improve the recall by consumers of the quality of Australian

Dried Fruits. The logo is now a prominent feature on all comm unications and is included on all

Board sponsored advertising material. The logo has been registered in most major markets and

buyers must have logo accreditation to receive promotion funds.

1

THE AUSTRALIAN DRIED FRUITS BOARD

Com position o f the Board

Mr J. M. Lester, B.A., C.RA.

Chairman

Mr Η. M. Tankard Expertise in Growing or Processing of Dried Fruits

Mr V. L. Byrnes Expertise in Exporting of Dried Fruits

Mr I. Murdoch Expertise in Harvesting, Handling, Storing, Transporting, Processing or Marketing of Dried Fruits

Mr B. B. MacMillan Expertise in Business Management or Finance

Mr R. H. Blenkiron Expertise in Marketing or Product Promotion

Staff o f the Board at 30 June, 1993 are:

General Manager Mr A. W. Knights, B.Comm.

Financial Accountant Mr R. E. Harvey, B.Comm, A.C.A.

Administrative Assistant Ms I. Gailiss

Secretary Ms C. Watts

Board Meetings 14 July, 1992 at Melbourne 15 September, 1992 at Melbourne 24 November, 1992 at Melbourne

12 January, 1993 at Melbourne 9 March, 1993 at Melbourne 30/31 March, 1993 at Mildura 5/6 April, 1993 at Mildura

1 May, 1993 at Melbourne 28 May, 1993 at Melbourne

Australian Dried Fruits Board Level 2, 409 St Kilda Road Melbourne, Victoria, Australia 3004 Telephone: (03) 867 8322 Fax: (03) 867 3191 Telex: AA39479

Printed by Capitol Press Ply Ltd 484 Station Street, Box Hill, Victoria, 3128.

2

LEGISLATION AND REGULATIONS

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 Amend­ ment 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 Amend­ ment Act 1991

Horticultural Legislation Amendment Act 1989

Dried Vine Fruits Equalization Act 1978

Dried Sultana Production Underwriting Act 1982

Dried Sultana Production Underwriting Amendment Act 1985

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

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

A ustralian Dried Fruits Board (AGM) Regulations

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

T H E B O A R D ’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, proces­ sing or marketing of sultanas, currants and raisins;

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

(c) to promote the consumption and sale of sul­ tanas, 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.

T H E B O A R D ’S M ISSION STATEMENT The Australian Dried Fruits Board's Mission State­ ment is:

Develop and protect the Australian Dried Vine Fruits Industry 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.

3

LEGISLATION AND REGULATIONS

LICENCES AT 30 JU N E 1993 Under Regulation 6 of the Australian Horticultural Corporation (Dried Fruits Export Control) Regula­ tions, 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, 1995:

Victoria 10

New South Wales 2

South Australia 7

Western Australia 2

Queensland 1

Total: 22

FREEDOM OF INFO R M ATIO 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) 867 8322.

DISABLED PERSONS The Board is cognizant of the needs of disabled persons as encouraged by the Commonwealth Government. However, during the period under review the Board did not have the opportunity to implement any initiatives to assist.

FINANCE - D R IED FRUIT DOMESTIC LEVY A N D EXPORT CHARGE RECEIPTS

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

Exports only -1991 Season Fruit:

Cents per kg $ per Tonne

Sultanas 3.0 30.00

Currants 3.0 30.00

Raisins 3.0 30.00

Export and Domestic Sales -1992 and 1993 Season Fruit: Sultanas 1.9 19.00

Currants 1.9 19.00

Raisins 1.9 19.00

At the request of the Industry, commencing from 1992 Season, new domestic levy and export charge arrangements were provided for under the Primary Industries Levies and Charges Collection (Dried Vine Fruits) Regulations. These changes gave effect to a new levy on domestic sales and a continuing export charge on export tonnage, but at a reduced rate per tonne.

The operations of the Board are financed entirely by these levies and export charges paid by producers in Australia of sultanas, currants and raisins.

4

EXPORT MARKETING

1992 Season Production Sultanas: The second largest sultana crop on record was produced, estimated at 91,507 tonnes, an increase of 14% over 1991 season. The cooler than normal drying conditions combined with the large crop extended the drying period; 35% of the pack was graded 5-crown light and 42% 4-crown light.

Currants: An above average currant crop was produced estimated at 6,459 tonnes, an increase of 87% over 1991 season; 54% of the pack was graded 4-crown and 33% 3-crown.

Raisins: An average size crop estimated at 4,300 tonnes was produced, a decrease of 10% from 1991 season.

Production — Tonnes Season 1991

Sultanas...................................... 80,460

Currants.......................... 3,462

Seeded Raisins.............. 4,771

Total.......................................... 88,693

* Estimate

Season 1992* 91,507 6,459 4,300 102,266

Variance

+ 11,047 (+ 14%) + 2,997 (+ 870/o) - 471 ( - 10%)

+13,573 (+ 15%)

M arketing Exports — Tonnes — Marketing Year 1/3/92 to 28/2/93

1991 1992 Variance

Sultanas........................... 44,619 47,398 + 2,779 (+ 6%)

Currants......................... 113 2,117 + 2,004 (+1773% )

Seeded Raisins.............. 779 877 + 98 (+ 13%)

Total............................... 45,511 50,392 + 4,881 (+ 11%)

Sultanas: In March 1992 buyers were dissatisfied with the quality of the 1991 crop. Iran dumped a large tonnage of sultanas into Europe at very low prices. As a consequence our prices were too high and many buyers were overstocked with product that was hard to sell. This resulted in some cancellations and delayed shipments. To compound our problems, a near record sultana crop of 91,507 tonnes was produced. After allowing for a domestic retention of 24,000 tonnes, this left 67,507 tonnes for export plus 7,200 tonnes of the 1991 season carryover; a total of 74,707 tonnes for export. Normal export sales are around 45,000 tonnes per year. A good result was achieved - 6,000 tonnes of the 1991 carryover was sold on export and orders of the 1992 crop at the end of February were 51,600 tonnes. In total 57,600 tonnes were sold in the 1992

marketing year.

Currants: There was a strong demand for currants and the export allocation was sold at well above average prices due to high world prices established by the Greek Industry.

Seeded Raisins: Owing to the previous erratic supply and the relative high price, it is becoming increasingly difficult to market seeded raisins. There is a declining demand for this product in export markets.

Stocks on Hand Unshipped Export

28/2/93 Orders 28/2/93

Tonnes Tonnes

Sultanas..................................... 38,555 10,852

Currants..................................... 532 35

Raisins....................................... 3,570 54

Total.......................................... 42,657 10,941

5

EXPORT MARKETING

1993 Season Production Sultanas: The 1993 season sultana crop estimated at 41,179 tonnes was the smallest since 1951 due to seasonal conditions, disease losses and higher offtake to wineries. Only 17% of the pack was graded 5-crown light and 36% 4-crown light.

Currants: The currant crop estimated at 3,528 tonnes was very small due to excessive rain in January with only a token amount available for export; 34% of the pack was graded 4-crown and 28% 3-crown.

Seeded Raisins: A very small crop estimated at 1,455 tonnes was produced. Owing to a large carryover from 1992 season there will be adequate stock to supply all markets.

Summary — Estimated Production

1992 Season

Sultanas.......................... 91,507

Currants..................................... 6,459

Seeded Raisins.......................... 4,300

Packed Tonnes 1993 Season 41,179 3,528

1,455

Variance -5 0 ,3 2 8 (-5 5 % ) - 2,931 (-4 5 % ) - 2,845 (-6 6 % )

Variability of supply is of major concern to the Industry because of its significant impact on marketing and growers' income. Supply variability is caused by weather, disease, seasonal conditions and winery offtake. Demand from wineries is particularly strong at the moment and higher prices offered by wineries are attracting grapes that normally would be dried.

Marketing — O utlook Sultanas: The total world market for sultanas and Thompson Seedless Raisins (TSR) is around 750,000 tonnes. With the world recession and the political and economic changes in Eastern Bloc countries; demand is down. The world market is evenly divided between sultanas and TSRs; however, depending on price and use of the product, sultanas can be substituted for TSRs or vice versa.

Australia’s direct competition is from Turkey, Iran and Greece and a small tonnage of South African Orange River sultanas. Our major competitor is Turkey.

Total export orders to 30 June 1993 for 1992 season sultanas were 67,455 tonnes which includes 51,600 tonnes that were ordered in the 1992 Marketing year. At 30 June 1993 approximately 12,000 tonnes were unshipped. This result was achieved by the Board carefully managing pricing, sales and shipments without causing any disruption to markets and at the same time maximizing growers’ returns.

Orders and shipments for 1993 season sultanas were tightly controlled by the Board to ensure 1993 season sultanas did not enter the market before sales of the 1992 season sultanas were completed. The export allocation for 1993 season sultanas of 23,900 tonnes has been sold.

With the 1993 sultana crop already sold, the major factors that will affect 1994 are:

The global market has already adjusted to the world recession and demand is likely to have small growth.

Whilst there is no world shortage of sultanas, there is no oversupply. Due to the small 1993 crop, about 3,000 tonnes of stock will be on hand at 1 March 1994. This is the minimum stock that will provide continuity of sales until the new season crop is available in April 1994.

The Board is concerned about competition from wineries for sultana grapes and its possible impact on the size of the 1994 crop. The Board will continue to inform growers that to maintain export markets it is necessary to produce a 1994 sultana crop of around 70,000 tonnes. This will provide for exports of around 45,000 tonnes which is sufficient to service both established and developing markets.

Currants: The total world market for currants is around 50,000 tonnes per year. Australian exports from the 1992 crop were 2,117 tonnes and because of a small 1993 crop, exports will be restricted to 135 tonnes. Australia could sell up to 3,000 tonnes of currants on export markets each year if the product was available.

Seeded Raisins: Australia is the major producer of seeded raisins. Over recent years, Australia’s production has ranged from 1,500 to 5,000 tonnes. Other producers are USA 2,000 tonnes and South Africa 500 tonnes. Australian exports are around 800 tonnes per year without any real prospect of increasing the tonnage.

6

PROMOTION IN OVERSEAS MARKETS

1992/93 Advertising and Promotion Expenditure on advertising and promotion for 1992/93 was $1,216,397. The major expenditure was in Germany, Canada, United Kingdom and

New Zealand. These markets account for about 85% of total exports.

Germany Promotion of the Australian dried fruits Sunberry brand and export logo-quality seal continued in the

German market. Full colour advertisements of Sun- berry and the quality logo were placed in leading German publications in support of co-operative promotion campaigns for Australian dried fruits.

The Board continued its promotional support to the German Bakery trade.

Canada The campaign centred on co-operative advertising of products with supermarket stores.

The Board sponsored Australian Dried Fruits on the television series ‘Look who’s Cooking'. Ms Elaine Chambers, Director, ADFA Food Advisory

Services, visited Canada and presented on five dif­ ferent programmes featuring Australian dried fruit recipes. The theme of the promotion was clean- green Australia, the quality logo and Sunnygold, the Australian-owned brand.

United Kingdom The promotions focused on co-operative advertis­ ing involving joint instore promotion with major

buyers, with the Board funding display material. Full colour advertisements in popular UK maga­ zines supported the co-operative promotions.

New Zealand Co-operative and instore advertising were supported by recipes in leading women’s maga­ zines featuring Australian dried fruits. A direct mail campaign to industrial users was undertaken to

regain lost market share.

Other Markets Promotions in the form of co-operative advertising, retail packet development, diaries, posters, display material and participation in trade shows and

displays were undertaken in Malaysia, Japan, Belgium, Norway and France.

Australian dried fruits were displayed at the 1992 ‘Foodapest’ trade fair in Hungary.

Visits by Buyers and A gents to Australia As part of the Board’s marketing plan, with emphasis on training and public relations for overseas buyers, executive visitors from Malaysia and Canada were brought to Australia. The visitors

met with representatives of the Australian Dried Fruits Board, Australian Dried Fruits Association and Exporters in Victoria and South Australia.

The visitors were also given a major tour of the producing areas in Mildura and the Riverland with inspections of growers’ blocks, packing houses and repacking plants.

Export Market Development Grant A claim for the maximum entitlement of $250,000 for 1992/93 has been lodged with the Australian Trade Commission/Austrade and the Board expects to receive the full amount of the claim.

Acknowledgments The financial assistance by the Government towards promotion and publicity of dried vine fruits in all overseas markets is appreciated by the Board

and the Industry.

The co-operation and assistance received from Australian Trade Commissioners/Austrade in the various overseas markets is acknowledged and appreciated by the Board.

7

OVERSEAS VISITS

During 1992/93, representatives of the Australian Dried Fruits Board attended the Conference of Sultana (Raisin) Producing Countries in Turkey. Market research was also conducted during overseas visits. Details are as follows:

Countries Objective

Mr J. M. Lester Canada Market Research

Chairman New Zealand Market Research

Turkey Attend Sultana Conference

Mr V.L. Byrnes Canada Market Research

Member Turkey Attend Sultana Conference

Mr B.B. MacMillan Italy Market Research

Member Portugal Market Research

Turkey Attend Sultana Conference

Mr R.H. Blenkiron Italy Market Research

Member Portugal Market Research

Turkey Attend Sultana Conference

Mr A.W. Knights Canada Market Research

General Manager Turkey Attend Sultana Conference

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 are usually circulated to major exporters.

OVERSEAS SHIPPING SERVICES A N D FREIGHT RATES

Overseas Shipping and Freight Rate Agreements Pursuant to Section 103(1) of the Australian Horticultural Corporation Amendment Act 1991, the Board negotiates freight rates and overseas shipping arrangements on behalf of the Dried Vine Fruits Industry.

Cost of Shipping The Board has been extremely active in conducting negotiations and discussions with major shipping conferences, lines and cargo handlers.

The Board was able to negotiate competitive freight rates due to the present nature of international shipping and by spreading the Industry's tonnage between conference and non-conference operators, without a reduction in the quality of service required by the overseas buyers. However, freight rates to Canada and New Zealand remain relatively high making these markets costly to service. With the existing highly competitive nature of the international dried fruits industry and the proximity of Australia’s competitors to the major markets, freight movements and reliability of shipping services will impact on growers’ returns and ultimately on the ability of the Australian Industry to export.

8

CO-OPERATION W ITH OTHER PRODUCING COUNTRIES

Conferences and other meetings, as required, of the sultana (raisin) producing countries have been held each year since 1961 with the exception of 1987. In addition, regular contact with other producing countries has been maintained throughout the year.

The 1992 Conference was held in Turkey from 26 to 27 October 1992. Representatives from seven major sultana/raisin producing countries were in attendance viz. Australia, Chile, Greece, Iran, South Africa, Turkey and USA.

Press Release At the conclusion of the 1992 Conference the following press release was issued: “ Sultana and Raisin Sales expected to increase.

The 1992 Conference of Sultana (Raisin) Producing Countries was held in Izmir, Turkey on the 26 and 27 October. Delegates elected Mr John Lester of Australia Chairman of the Conference. The Conference noted that many economic and political changes that have been occurring, particularly in Europe also that most western countries, who are the major buyers, have been experiencing difficult economic conditions that has resulted in reduced demand and sales. In 1991, crop forecasts for 1991 and 1992 were estimated at 698,000 tonnes, however the final crop estimate for the producing countries is

770,000 tonnes.

Crop forecasts by the individual countries for 1992/93 are as follows:

Packed Metric Tonnes

1992 Afghanistan 55,000

Greece 36,000

Iran 75,000

Turkey 140,000

U.S.A. 300,000

1993 Australia 60,000

Chile 22,000

South Africa 30,000

TOTAL 718,000

A recent report by the OECD suggests that in OECD countries the low point in the economic cycle has passed and the OECD is predicting real gross national product to increase by 3% in 1993.

With this improvement in 1993, combined with forecasted 1992/93 production 718,000 tonnes, which is 52,000 tonnes less than 1991/92, delegates expect prices and sales of sultana and raisins to firm over the next year.

John Lester announced that the Conference has adopted a new agreement commencing 1993 which includes new aims and objectives for the Conference. It is considered this new agreement will assist the decision making process of future Conferences.

An objective of the Conference is to encourage the expansion and development of new markets for sultanas and raisins. Producing countries are expected to contribute GBP 50,000 towards the cost of generic promotion aimed at expanding the U.K. market during 1993. With many consumers changing to a healthier diet it is expected that this will again expand the market for sultanas and raisins.

The Conference was the largest ever and included 41 delegates and observers from Australia, Chile, Greece, Iran, South Africa, Turkey and the U.S.A., Afghanistan was unable to attend. Delegates appointed Mr E. Kapkac from Turkey and Mr A. Asgari from Iran as Deputy Chairmen and Dr S. Gazanfer from Turkey as

the Secretary for the Conference.

Conference delegates were addressed by the guest speaker Ms M. Vayanos from the E.C. Commission. Ms Vayanos gave an outline of the operation of the E.C. regime for dried grapes and the segmentation of the E.C. markets.

John Lester on behalf of delegates thanked Turkey for their generosity in hosting the 1992 Conference. It was agreed the 1993 Conference would be held in England on 20-21 October 1993".

9

I

DRIED V INE FRUITS EXPORT EQUALIZATION SCHEME

The Dried Vine Fruits Export Equalization Scheme was established under the Dried Vine Fruits Equalization Act 1978, as Amended.

Amending legislation of 1991, gives effect to the equalization of sales returns of each exporter across all export markets from 1991 season onwards. The legislation repealed those provisions which provided for the collection of an equalization levy and equalization of domestic and export sales returns.

For each season’s production, the Australian Dried Fruits Board determine for each variety of dried vine fruits, each Exporter’s average export return and an Industry return for all export markets. Where an exporter’s average export return exceeds the Industry return, this amount, multiplied by the tonnes sold, is paid in to the Equalization Trust Fund. Where the Industry return exceeds an exporter’s average export return, this amount, multiplied by the tonnes sold, is paid from the Equalization Trust Fund to the Exporter. The net effect is that all Exporters receive the Industry return.

Sultanas $ per tonne

1991 Season Production Industry Return 1431.73

1992 Season Production Industry Return Not yet determined.

Currants $ per tonne 2471.15

2671.75

Raisins $ per tonne 1163.48 (Seeded)

Not yet determined.

DRIED SULTANA UNDERW RITING SCHEME

The Dried Sultana Underwriting Scheme was established under the Dried Sultana Production Underwriting Act 1982 as Amended. The underwriting scheme replaced the previous stabilization scheme which operated for most seasons between 1964 and 1980.

Since 1986, underwriting has been based on average export returns at the F.O.B. level. The underwritten return is 80 per cent of the average of the preceding three seasons average export return with any underwriting payments being payable over all production.

The Dried Vine Fruits Legislation Amendment Act 1991 extended the Underwriting Scheme a further three years to include 1993 Season.

Guaranteed Minimum Export Return Rate per Tonne $

Average Export Return Rate per Tonne $

1989 Season 1990 Season 1991 Season 1992 Season

1993 Season

1341.13 1400.90 1642.66 1479.63

Not yet determined*

1734.15 2050.30 1803.69

Not yet determined Not yet determined

* Pending determination of 1992 Average Export Return.

Underwriting Payment $

Nil Nil Nil

No payment expected No payment expected

10

PRODUCTION A N D SALES

AUSTRALIAN PR O D U C TIO N SINCE 1925 (Packed Metric Tonnes) The production of Dried Vine Fruits in Australia since 1925 is as follows:

Season Sultanas Currants Raisins Total

Tonnes Tonnes Tonnes Tonnes

7 year average: 1925-1931 ........... . .. 31,592 14,269 5,488 51,349

7 year average: 1932-1938........... . . . 47,558 17,985 6,840 72,383

7 year average: 1939-1945........... . . . 56,221 21,940 9,503 87,664

7 year average: 1946-1952........... . .. 45,191 14,460 5,354 64,005

7 year average: 1953-1959........... . . . 62,472 12,602 8,710 83,784

7 year average: 1960-1966........... . . . 70,154 9,477 8,697 88,328

7 year average: 1967-1973........... . . . 65,861 7,689 5,518 79,068

7 year average: 1974-1980........... . . . 59,458 5,391 4,836 69,685

7 year average: 1981-1987........... . .. 71,589 5,832 4,755 82,175

19 8 8 ..................................................... . .. 71,766 4,737 2,265 78,768

19 8 9 ................................................... . . . 57,303 4,374 2,709 64,386

19 9 0 ................................................... . . . 54,834 5,839 4,360 65,033

19 9 1 ..................................................... . . . 80,460 3,462 4,771 88,693

1992 est............................................. . .. 91,507 6,459 4,300 102,266

1993 est............................................. . .. 41,179 3,528 1,455 46,162

AUSTRALIAN CONSUM PTION SINCE 1925 Australian Dried Vine Fruits retained for domestic consumption since 1925 are as follows:

Marketing Year* Sultanas 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 est............................................. . . . 21,402 3,914 2,465 27,781

EXPORTS SINCE 1925 Sultanas, Currants and Raisins exported from Australia to Overseas Markets since 1925 are as follows:

Marketing Year* Sultanas

Tonnes

Currants Tonnes

Raisins Tonnes

Total Tonnes

7 year average: 1925-1931 ........... . . . 24,560 10,386 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

19 9 1 ................................................... . . . 44,619 113 779 45,511

1992 est............................................. . . . 47,398 2,117 877 50,392

* Marketing Year is from 1 March to 28 February.

11

EXPORT STATISTICS

1

EXPORTS - SEASON OF PR O D U C TIO N

Country/Region

Sultanas

1992* 1991

Currants

1992 1991

Raisins

1992* 1991

Belgium 651 481

Canada 11,718 12,206 848 72 107 329

China 119 41

France 1,279 1,117

Germany/Austria 28,926 20,481

Great Britain 10,218 7,534 381 378 471

Hong Kong 26 175 5

India 58

Indonesia 288 198

Italy 361 83

Japan 1,783 1,489 131 116 97

Malaysia 683 123 15 1 3

Mauritius 121 15 9

Middle East 316 46

Netherlands 601 377 19

New Zealand 5,962 5,361 716 31 150 213

Northern Ireland 300 300 19

Norway 541 403

Pacific Islands 228 162

Poland 1,679 435

Portugal 456 228

Sri Lanka 148 210 3 6 42

Sweden 128 164

Switzerland 62 271

Taiwan 281 188

West Indies 431 302 9 1 2

Other Countries 149 158 13 4 14

Total 67,455 52,548 2,150 116 763 1,234

* Not final figures for 1992 Season Sultanas and Raisins

12

IMPORT STATISTICS FOR MAJOR AUSTRALIAN EXPORT MARKETS

GERMANY IMPORTS OF CURRANTS AND RAISINS (SULTANAS AND RAISINS) FOR THE YEARS ENDED 31 DECEMBER 1986 TO 1992 (TONNES)

SOURCE 1986 1987 1988 1989 1990 1991 1992

CURRANTS U.S.A. 165 17 17 4 42

Australia — — — — 41 98 28

Greece 1337 1942 1833 1684 1509 1029 1182

Other Countries 23 147 250 572 217 322 519

TOTAL 1360 2089 2248 2273 1784 1453 1771

RAISINS Australia 16881 16114 16806 14161 11892 13163 15303

Greece 12732 7016 6772 7701 10752 5338 7094

Turkey 5939 4960 7699 12748 13627 15787 10486

Iran 2184 8366 3819 5174 5236 15483 9322

Afghanistan 84 261 103 7 18 21 —

U.S.A. 7422 9923 8956 9798 14534 15609 12902

South Africa 3937 5893 6327 4345 4483 5756 6580

Mexico — — — 134 18 — —

Chile — — — 1154 2121 3111 1132

Other Countries 1631 3180 2860 1992 2193 1400 1381

TOTAL 50810 55713 53342 57214 64874 75668 64200

Total Currants and Raisins from All Sources 52170 57802 55590 59487 66658 77121 65971

CANADA IMPORTS OF CURRANTS AND RAISINS (SULTANAS AND RAISINS) FOR THE YEARS ENDED 31 DECEMBER 1986 TO 1992 (TONNES)

SOURCE 1986 1987 1988 1989 1990 1991 1992

CURRANTS U.S.A. 12 29 682 491 410 809 637

Australia 1089 514 149 41 396 11 399

Greece 126 706 884 605 177 463 162

Other Countries — — 767 443 346 401 255

TOTAL 1227 1249 2482 1580 1329 1684 1453

RAISINS U.S.A. 6550 8056 9192 9934 11447 11026 10789

South Africa 2389 17 — — — — —

Australia 12625 12142 11118 10150 8223 9167 8447

Afghanistan — 63 — — — — —

Turkey 6340 8776 6912 8093 7798 7847 6436

Greece 4 . 100 395 325 271 73 428

Other Countries 492 1060 1301 1766 1290 4133 2473

TOTAL 28400 30214 28918 30268 29029 32246 28573

Total Currants and Raisins from All Sources 29627 31463 31400 31848 30358 33930 30026

13

IMPORT STATISTICS FOR MAJOR AUSTRALIAN EXPORT MARKETS

UNITED KINGDOM IMPORTS OF CURRANTS AND RAISINS (SULTANAS AND RAISINS) FOR THE YEARS ENDED 31 DECEMBER 1986 TO 1992 (TONNES)

SOURCE 1986 1987 1988 1989 1990 1991 1992

CURRANTS Australia — — 4 — — — 346

Greece 37588 35653 34049 32950 24106 20139 19366

Other Countries 222 486 606 206 1921 1006 1566

TOTAL 37810 36139 34659 33156 26027 21145 21268

RAISINS Australia 4737 4753 8515 7080 6210 7615 8227

Greece 32041 28012 18241 20218 21885 10872 10887

Turkey 14001 19551 21032 25124 23629 25385 29550

Iran 346 1869 1295 239 1551 2024 1195

Afghanistan 7838 5051 5935 3073 9128 5871 5638

U.S.A. 13307 17145 21228 21731 23506 25652 25218

South Africa 5622 3701 3623 2754 3245 4983 5804

Other Countries 1929 3106 2808 2534 5430 4577 3828

TOTAL 79821 83188 82677 82753 94584 86979 90347

Total Currants and Raisins from All Sources 117631 119327 117336 115909 120611 108124 111615

NEW ZEALAND IMPORTS OF CURRANTS AND RAISINS (SULTANAS AND RAISINS) FOR THE YEARS ENDED 31 DECEMBER 1986 TO 1992 (TONNES)

SOURCE 1986 1987 1988 1989 1990 1991 1992

CURRANTS Australia 1254 662 333 104 621 74 658

Greece 69 551 487 740 174 276 144

Other Countries 6 — 48 154 — 20 —

TOTAL 1329 1213 868 998 795 370 802

RAISINS Australia 5775 5057 4346 4054 4053 3909 4182

Turkey 240 1370 741 2106 1477 2377 2073

U.S.A. 1179 1081 1109 979 1125 1452 1566

Other Countries 305 405 340 787 661 619 450

TOTAL 7499 7913 6536 7926 7316 8357 8271

Total Currants and Raisins from All Sources 8828 9126 7404 8924 8111 8727 9073

14

IMPORT STATISTICS FOR MAJOR AUSTRALIAN EXPORT MARKETS 1-----------------------------------------------------------------------------------------------------------------------------

JAPAN IMPORTS OF CURRANTS AND RAISINS (SULTANAS AND RAISINS) FOR THE YEARS ENDED 31 DECEMBER 1986 TO 1992 (TONNES)

SOURCE 1986 1987 1988 1989 1990 1991 1992

Australia 2365 1973 2174 2111 1604 1357 1445

Turkey — — 17 — 98 10 22

Greece 106 39 86 172 75 74 —

U.S.A. 23843 20289 24987 25067 23620 23163 23587

Iran 1 — — — — — —

South Africa 2000 2666 2562 1638 1768 1725 1966

Afghanistan — — — — — — —

China — — — — — — 98

Other Countries 143 104 141 115 48 36 —

TOTAL Total Currants and Raisins from

28458 25071 29967 29103 27213 26365 27128

All Sources 28458 25071 29967 29103 27213 26365 27128

OPENING PRICES - AUSTRALIAN DRIED VINE FRUITS 1992 SEASON

C.I.F.

Sultanas Currants

Australian $ per tonne Seeded Raisins

India — (Special Dry Pack) 1,600 — 1,500*

Asia/Central & South America 1,600 — 1,850

West Indies 1,700 3,100 1,950

Taiwan 1,600 — —

South-East Asia 1,600 3,200 1,850

Middle East/Africa/Pacific Islands 1,600

C&F

3,200 1,850

Japan F.I.S. (into Store)

1,650 3,200 2,300

New Zealand 1,650

(3-crown) 1,675 (4-crown)

3,200

Canadian $ per pound

1,800

Canada 0.725

EUROPE — C.I.F. PER TONNE

1.30 0.93

Country Currency Sultanas Currants Seeded Raisins

Germany DM 2,170 — —

Great Britain English Pounds 755 1,400 800

Northern Ireland English Pounds 755 800

France Francs 7,300 - —

Netherlands Florins 2,445 4,470 —

Belgium Francs 44,800 —

Italy Lire 1,638,000 — —

Denmark Kroner 8,300 — —

Republic of Ireland Irish Pounds 813 — —

Spain Pesetas 137,000 —

Portugal Escudos 187,000 — —

Austria Other Non-E.C. Countries DM 2,170

and Scandinavian Countries A$ 1,700-1,750 —

* Unseeded Raisins

15

FINANCIAL STATEMENTS

AUSTRALIAN DRIED FRUITS BOARD AUSTRALIAN HORTICULTURAL CORPORATION ACT 1987 — AS AMENDED

STATEMENT OF INCOM E A N D EXPENDITURE FOR TH E YEAR EN D E D 30 JU N E 1993

NOTES 1993 1992

$

1,231,214 386,232

1,617,446

OPERATING INCOME (before abnormal item) Domestic Levies and Export Charges.............................

Other ..................................................................................

TOTAL OPERATING INCOME (before abnormal item)

2 3

$

1,519,583 385,167 1,904,750

OPERATING EXPENDITURE (before abnormal item) Advertising — development of overseas markets......... Administration and general..............................................

O th e r......................................................................

1 (ix) 4 5

1,216,397 612,922 214

1,106,087 562,036

TOTAL OPERATING EXPENDITURE (before abnormal item) 1,829,533 1,668,123

OPERATING SURPLUS/(DEFICIT) (before abnormal item) 75,217 (50,677)

ABNORMAL ITEM Domestic Levy and Export Charge Income 2(0 231,264

OPERATING SURPLUS/(DEFICIT) 306,481 (50,677)

Accumulated surplus at beginning of financial year

Accumulated surplus at end of financial year

The accompanying notes form part of these Financial Statements.

1,749,954 2,056,435

1,800,631

1,749,954

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 Income and Expenditure, Statement of Financial Position, Statement of Cash Flows, Statement of Account for the Dried Vine Fruits Export Equalization Trust Fund, and the Statement of Account for the Dried Sultana Production Underwriting Scheme, are drawn up to show fairly the operations for the year ended 30 June 1993 and its state of affairs as at that date, 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 have been made out in accordance with the "Guidelines for Financial Statements of Public Authorities and Commercial Activities" as approved by the Minister for Finance,

and

(c) the accounts have been made out in accordance with Statements of Accounting Concepts and applicable Accounting Standards.

V. L. BYRNES Member Australian Dried Fruits Board

8 October, 1993

16

AUSTRALIAN DRIED FRUITS BOARD AUSTRALIAN HORTICULTURAL CORPORATION ACT 1987 — AS AMENDED

STATEMENT OF FIN A N C IA L POSITION AS AT 30 JUNE 1993

NOTES 1993 1992

$ $

CURRENT ASSETS Cash............................................................................. . 6 1,494,749 1,259,136

Receivables................................................................ . 7 486,499 311,296

Investments................................................................ . 8 100,000 130,000

Other ........................................................................... . 9 4,900 4,568

Total Current Assets 2,086,148 1,705,000

NON-CURRENT ASSETS Investments................................................................ . 8 130,001 230,001

Property, plant and equipment................................... . 10 (i) 78,563 68,430

Total Non-Current Assets 208,564 298,431

TOTAL ASSETS 2,294,712 2,003,431

CURRENT LIABILITIES Creditors...................................................................... . 11 193,015 193,385

Provisions.................................................................... . 12 21,560 40,543

Total Current Liabilities 214,575 233,928

NON-CURRENT LIABILITIES Provisions.................................................................... . 12 23,702 19,549

TOTAL LIABILITIES 238,277 253,477

NET ASSETS 2,056,435 1,749,954

EQUITY Accumulated funds.................................................. 1,749,954 1,800,631

SurplusZ(Deficit) for year ended 30 June 1993........ . . 1 (ix) 306,481 (50,677)

TOTAL EQUITY 2,056,435 1,749,954

The accompanying notes form part of these financial statements.

AUSTRALIAN DRIED FRUITS BOARD AUSTRALIAN HORTICULTURAL CORPORATION ACT 1987 — AS AMENDED

STATEMENT OF CASH FLOWS FOR THE YEAR E N D E D 30 JUNE 1993

Cash Flows from Operating Activities Inflows: Domestic Levies and Export Charges.............................

Interest Received..............................................................

Export Market Development Grant.................................

NOTES 1993

$

1,556,416 137,849 250,000 1,944,265

1992 $

1,290,197 140,919 250,000

1,681,116

Outflows: Advertising and Promotion..............................................

Administrative/General/Staff Payments..........................

Payment of Staff Long Service Leave.............................

1,221,192 563,311 21,392

956,739 568,443

1,805,895 1,525,182

NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES 13(b) 138,370 155,934

Cash Flows from Investing Activities Inflows: Proceeds on Maturity of Bills of Exchange....................

Proceeds on Maturity of Interest Bearing Deposits. .. . 130.000

130.000

94,694 50,000

144,694

Outflows: Purchase of Non-Current Assets..................................... 32,757

32,757 —

NET CASH FLOWS PROVIDED BY INVESTING ACTIVITIES NET INCREASE IN CASH HELD...................................

ADD CASH AT BEGINNING OF YEAR........................

CASH AT END OF YEAR 13(a)

97,243 235,613 1,259,136 1,494,749

144,694

300,628 958,508

1,259,136

The accompanying notes form part of these financial statements.

NOTES TO A N D FORM ING PART OF TH E FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF ACCOUNTING POLICIES The Australian Dried Fruits Board is required by section 49 of the Australian Horticultural Corporation Act 1987 as Amended, to keep proper accounts and records of the transactions and affairs of the Board in accordance with accounting principles generally applied in commercial practice.

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 have been presented in accordance with the requirements of the "Guidelines for Financial Statements of Public Authorities and Commercial Activities" as approved by the Minister for Finance and take account of accounting standards jointly

promulgated by the Australian Society of Certified Practising Accountants and the Institute of Chartered Accountants in Australia. (i) Accounting Principles: The financial statements have been prepared in accordance with conventional historical cost principle and the accrual basis of accounting except for the Dried Vine

Fruits Export Equalization Trust Fund and the Dried Sultana Production Underwriting Scheme Account which are prepared on a cash basis.

(ii)

(iii)

(iv)

Period of Accounts: The financial statements cover the period from 1 July 1992 to 30 June 1993. The comparative figures cover the period from 1 July 1991 to 30 June 1992.

Asset Accounting: Fixed assets costing $300 or more are capitalised in the accounts. Items of lesser cost are written off in the year of purchase.

Depreciation: Depreciation of fixed assets is calculated as follows: Rate

Furniture and fittings: — General — Leasehold Improvements Plant and equipment:

— General — Computer Motor vehicle:

20%

Over lease term

25% 30% 22.5%

Method

Reducing Balance Straight Line

Reducing Balance

(v) Financial Report by Segments: The Board operates in one industry, Dried Vine Fruits, and in one geographical area being Australia.

(vi) Foreign Currency Translation: The Board makes commitments to pay for overseas promotions in foreign currencies. It is the policy of the Board that, to protect these commitments from subsequent exchange fluctuations, foreign currency term deposits are taken out when possible, equivalent to the overseas promotional program. As a result of this policy overseas promotional expenditure is accounted for in Australian currency at the rate pertaining to the relevant term deposits. Any exchange difference arising from fluctuations in the exchange rate between date of deposit and balance date are deferred and the deposits valued at spot exchange rate in accordance with AAS 20.

(vii) Insurance: The Board insures all assets for loss or damage and also carries public liability cover.

(viii) Comparative Figures: Where amounts disclosed in the 1992-93 financial statements have changed from the previous year, either in presentation or grouping, the corresponding 1991-92 figures have been similarly reclassified or grouped in order to facilitate comparison.

(lx) Changes in Accounting Policy:

Foreign Currency Imprest Accounts — At 30 June 1993, the Board has recognized foreign currency imprest balances held by overseas agents (from which they account for promotion and advertising payments) as an asset; year-end imprest balances were previously written off as expense in the year in which paid to overseas agents. This change has the effect of increasing the surplus for the 1993 year by $42,465. Applying this change to the previous year would have resulted in a surplus for that year of $19,066. The reason for the change is to better reflect actual advertising and promotional expenditure incurred

by the Board. Domestic Levies And Export Charges — The Board has included as income, levies and export charges due on dried vine fruit sold in the months of May and June 1993 although not payable to the Commonwealth (or the Australian Dried Fruits Board as its collecting agent) until after 30 June 1993.

In prior years, only levies and charges due and payable by 30 June were brought to account as income. The change has been made to fully adopt the principles of accrual accounting in the recognition of income. The change has the effect of increasing the operating surplus for 1992/93 by $231,264.

19

NOTE 2: DOMESTIC LEVIES AND EXPORT CHARGES (i) Abnormal Item — refer Note 1 (ix).

(ii) The Board receives from the Consolidated Revenue Fund proceeds equal to the charges on dried vine fruits exported and levies on dried vine fruits otherwise dealt with in Australia.

Levy and export charges paid to the Board via the Commonwealth during year ended 30 June, 1993 were: Domestic Levy Export Charge

Per Tonne Per Tonne

1993 and 1992 Season Fruit $19 $19

1991 and Prior Season Fruit Not Applicable $30

NOTE 3: OTHER INCOME Note 1993 1992

$ $

Interest 135,167 136,232

Export Market Development Grant 14 250,000 250,000

385,167 386,232

NOTE 4: ADMINISTRATION AND GENERAL Note 1993 1992

$ $

Board Members’ Fees (all part-time) 16 51,025 45,594

Board Members’ Travel 17 56,398 50,741

Staff salaries and annual leave 174,411 167,750

Other 201,678 172,518

Superannuation Contributions: - S ta f f 18 53,281 31,691

— Members 18 1,688 911

Long service leave 12 5,209 (3,983)

Depreciation 10(ii) 22,410 20,034

Audit fees 11,500 24,000

Australian Horticultural Corporation Fee 20 35,322 52,780

612,922 562,036

NOTE 5: OTHER EXPENDITURE Note 1993 1992

$ $

Net loss on disposal of non-current assets 15 214 —

NOTE 6: CASH 1993 1992

$ $

Cash on hand and at bank 10,802 12,864

Money Market Call Account 386,017 350,060

Foreign Currency Term Deposits 1,055,465 896,212

Foreign Currency Imprest Accounts 42,465 —

Total Cash 1,494,749 1,259,136

Deferred gain on foreign currency term deposits and Imprest accounts [Note 1 (vi)] 24,411 70,800

NOTE 7: RECEIVABLES 1993 1992

$ $

Interest Receivable 5,235 7,917

Levies Receivable 1 (ix) 231,264 53,379

Export Market Development Grant Accrued 14 250,000 250,000

486,499 311,296

No provision has been made for doubtful debts as recurring debtors, in the experience of the Board, always pay the amounts owing.

20

NOTE 8: INVESTMENTS Investments, as detailed below, were held by the Board at 30 June: 1993 1992

$ $

Government and Semi-Government securites (at cost)* 230,000 360,000

Controlled Entity: Sunberry Pty Ltd - (50% Equity)** 1 1_

Total investments (at cost) 230,001 360,001

* Market Value at 30 June of Government and Semi-Government securities as quoted by a member of the Stock Exchange 255,287 395,954

* * This entity has not been consolidated for the reason that it has not traded during the year.

Of amounts held at 30 June 1993, investments totalling $100,000 (1992 $130,000) mature within the next 12 months.

NOTE 9: OTHER CURRENT ASSETS

Prepayments

1993 1992

$ $

4,900 4,568

NOTE 10(i): PROPERTY, PLANT AND EQUIPMENT 1993 1992

$ $ $ $

Furniture and fittings (at cost) 56,486 56,486

Less accumulated depreciation 27,984

28,502

20,824

35,662

Plant and equipment (at cost) 107,192 76,946

Less accumulated depreciation 68,127

39,065

58,367

18,579

Motor vehicle (at cost) 31,669 31,669

Less accumulated depreciation 20,673 17,480

10,996 14,189

78,563 68,430

NOTE 10(11): DEPRECIATION Included in the depreciation charge of $22,410 is an amount of $1,846 being additional depreciation on a computer system purchased in previous years, which is now at the end of its effective useful life.

NOTE 11: CREDITORS 1993 1992

$ $

Sundry creditors and accruals 193,015 193,385

NOTE 12: PROVISIONS ANNUAL LEAVE — CURRENT LIABILITY 1993 1992

$ $

Balance at I July 20,207 23,536

IncreaseZ(decrease) for year 1,353 (3,329)

Balance at 30 June 21,560 20,207

LONG SERVICE LEAVE — NON CURRENT LIABILITY Balance at 1 July 39,885 43,868

Provided during the year 5,209 (3,983)

Less Payments 21,392 —

Balance at 30 June 23,702 39,885

Of the Provision for Long Service Leave at 30 June 1992, $20,336 was a current liability.

21

Note 1993 1992

$ $

NOTE 13: STATEMENT OF CASH FLOWS (a) Reconciliation of Cash For the purpose of the Statement of Cash Flows, cash includes cash on hand and in banks and investments in short term deposits readily convertible to cash.

Cash at the end of the year as shown in the Statement of Cash Flows, is reconciled to the related items in the financial statements in Note 6.

(b) Reconciliation of Net Cash Flows provided by Operating Activities to Operating SurplusZ(Deficit) is as follows: 1993

$

1992 $ (50,677) Operating SurplusZ(Deficit) 306,481

Depreciation & Loss on disposal of non-current assets Movement in Assets and Liabilities 22,624 20,034

Receivables (175,203) 49,050

Other Current Assets (332) (4,058)

Creditors (370) 148,897

Employee Benefits (14,830) (7,312)

NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES 138,370 155,934

NOTE 14: EXPORT MARKET DEVELOPMENT GRANT Under the provisions of the Export Market Development Grants Act 1974, the Board lodges claims for grants in respect of expenditure incurred on overseas market research and development, advertising and promotion, fares incurred on overseas travel to promote sales and bringing buyers and agents to Australia. The maximum grant entitlement under the Export Market Development Grants Scheme is $250,000. The claim for a grant of $250,000 for the year ended 30 June 1993 has been brought to account as accrued income and treated as a current asset as it is anticipated that it will be received prior to 30 June 1994.

NOTE 15: NET LOSS FROM DISPOSAL OF NON-CURRENT ASSETS 1993 1992

$ $

Gross proceeds — —

Less book value 214 —

Net loss 214

NOTE 16: RELATED PARTY TRANSACTIONS Transactions between related parties are on normal commercial terms unless otherwise stated. Related parties include Members and the following persons were members during the financial year. Mr J.M. Lester (Chairman) Mr I. Murdoch

Mr H.M. Tankard Mr B.B. MacMillan

Mr V.L. Byrnes Mr R.FI. Blenkiron

Aggregate Remuneration of Members — Refer Note 4.

NOTE 17: MEMBERS TRAVELLING EXPENSES During the year ended 30 June 1993 nine Board meetings were held, six in Melbourne and three in Mildura. The Board was also represented during the year at various other meetings sponsored by the Australian Government and by Dried Fruits Industry bodies. The 1992 Conference of Sultana (Raisin) Producing Countries was held in Ismir, Turkey during October 1992. Talks were also held with buyers, agents, government officials and industry representatives in Portugal, Italy, Canada, England and New Zealand.

1993 1992

$ $

Travel within Australia 18,482 16,653

Travel outside Australia 37,916 34,088

Total Travelling Expenses 56,398 50,741

22

NOTE 18: SUPERANNUATION CONTRIBUTIONS

STAFF All permanent employees of the Board are contributors to either the Commonwealth Superannuation Scheme or the Public Sector Superannuation Scheme. The Board, as employer, is obliged to make contributions to the Australian Government Retirement Benefits Office in order to fund the employer share of superannuation benefits of these Schemes.

Public Sector Superannuation Scheme (PSS) The Board's present contribution rate is 12.4% of gross salaries of staff in this scheme, consistent with the most recent Government actuarial review of the fund which was completed as at 30 June 1991. The next

review is to be done as at 30 June 1994.

Commonwealth Superannuation Scheme (CSS) Following a review by the Australian Government Actuary of the scheme as at 30 June 1991, Department of Finance advised that the Board’s employer contribution rate was to increase to 33% of gross salaries for those members in the fund, retrospective to 1 July 1991. Previously, the Board's contribution was 20.7%. The advice stated that this increase has arisen on account of a change in policy; whereas previously the ADFB was aggregated with other agencies in determining fund liabilities, now the ADFB is treated as a single agency for superannuation purposes.

The retrospective increased contribution to 1 July 1991 is $21,579 and is included in the total staff superannuation charge for 1993 of $53,281 (Note 4).

The next review of the Fund is to be done as at 30 June 1994.

In addition to the above employer contributions, the Board contributes to each of the Schemes 2% to 3% of gross salaries to cover the productivity benefit requirements under the Superannuation Act 1976 and Superannuation Act 1990.

MEMBERS The Board is required under the Superannuation (Productivity Benefit) Act 1988 to make superannuation contributions for the benefit of its Chairman and Board Members.

Board Members' benefits are payable by the Board upon termination of office; Chairman’s benefits are payable in accordance with the rules of the Fund to which the contributions are made.

NOTE 19: LEASE COMMITMENTS The Board has entered into a property lease for its offices until 30 September, I996. Total commitments of $177,840 are payable under this lease as follows:

— not later than one y e a r.................................................................................................................$54,720

— later than one year but not later than two y e a rs .........................................................................$54,720

— later than two years but not later than five y e a rs .......................................................................$68,400

NOTE 20: AUSTRALIAN HORTICULTURAL CORPORATION FEE 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.

23

AUSTRALIAN DRIED FRUITS BOARD DRIED VINE FRUITS EQUALIZATION ACT 1978 — AS AMENDED

DRIED VINE FRUITS EXPORT EQUALIZATION TRUST FUND - NOTE 21 STATEMENT OF ACCOUNT FOR THE YEAR ENDED 30 JUNE 1993

1993 1992

NOTE CURRANTS SULTANAS RAISINS TOTAL TOTAL $ $ $ $ $

Balance at 1 July 1992 Nil Nil Nil Nil Nil

Receipts 21 5,389 654,235 Nil 659,624 1,995

Payments 21 5,389 654,235 Nil 659,624 1,995

Balance at 30 June 1993 Nil Nil Nil Nil Nil

NOTE 21: DRIED VINE FRUITS EXPORT EQUALIZATION TRUST FUND 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. The legislation repeals those provisions which provided for inclusion of sales returns on the Australian market in the equalization process.

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 exporter’s average export return; where an exporter’s 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 exporter’s average export return, this amount, multiplied by the tonnes to which the sales relate, is paid from the Fund.

Industry Returns determined during year — ended 30 June 1993: 1991 Season S ultanas...................................................................................................................$1431.73

1992 Season C u rra n ts...................................................................................................................$2671.75

Since 30 June 1993, the Industry Return for 1991 Season Raisins was determined at $1163.48.

24

AUSTRALIAN DRIED FRUITS BOARD DRIED SULTANA PRODUCTION UNDERWRITING ACT 1982 — AS AMENDED

DRIED SULTANA PRODUCTION UNDERWRITING SCHEME ACCOUNT - NOTE 22 STATEMENT OF ACCOUNT FOR THE YEAR ENDED 30 JUNE 1993

Note 1993 1992

$ $

Balance at 1 July 1992 Nil Nil

RECEIPTS Underwriting payment by the Australian Government 22 Nil Nil

PAYMENTS Underwriting payment distributed by Australian Dried Fruits Board Nil Nil

Balance at 30 June 1993 Nil Nil

NOTE 22: DRIED SULTANA PRODUCTION UNDERWRITING SCHEME Under the Underwriting Scheme the Australian Government guarantees a minimum return per tonne from production of sultanas.

The Dried Sultana Production Underwriting Amendment Act 1985, effective for the 1986 season onward, guarantees a minimum export return for a prescribed later season on the average gross F.O. B. sales proceeds per tonne of export sales of the previous three seasons, multiplied by a factor of 0.8. An underwriting payment is made when the average return for a season, based on the average gross F.O. B. sales proceeds per tonne

of export sales of the prescribed later season, is less than the guaranteed minimum export return.

As the underwriting rate is calculated on packed weight whereas underwriting payments are made to producers on received weight, a reduction factor is also determined for each season based on the difference between packed weight and received weight.

During the year ended 30 June 1993 the 1991 season sultana pools were finalised. The guaranteed minimum export return rate for 1991 season sultanas has been determined at $1642.66 per tonne. On finalization of the pools the average export return rate for 1991 season sultanas is $1803.69 per tonne (subject to formal determination by the Minister for Primary Industries & Energy). Therefore, there will be no underwriting

payment by the Australian Government. The reduction factor for 1991 season is at 0.9797456 (subject to formal determination).

The guaranteed minimum export return rate for 1992 season sultanas is expected to be at $1479.63 per tonne.

Under the Dried Vine Fruits Legislation Amendment Act 1991, the Underwriting Scheme was extended to include 1993 season.

25

AUDITOR-GENERAL’S REPORT

AUSTRALIAN NATIONAL AUDIT OFFICE 303 Collins Street Melbourne Vic 3000

IN D E PE N D E N T A U D IT REPORT To the Minister for Primary Industries and Energy

Scope I have audited the financial statements of the Australian Dried Fruits Board for the year ended 30 June 1993. The statements comprise: • Statement of Financial Position

• Statement of Income and Expenditure • Statement of Cash Flows • Statement by Members • Statement of Account — Dried Vine Fruits Export Equalization Trust Fund • Statement of Account — Dried Sultana Production Underwriting Scheme, 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 contained therein. I have conducted an independent audit of the financial statements in order to express an opinion on them to 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 whether, in all material respects, the financial statements are presented fairly in accordance with Australian accounting concepts and standards and statutory requirements so as to present a fair view 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 accordance with sub-section 115F (4) of the Australian FHorticultural Corporation Act 1987 (as amended), I now report that the statements are in agreement with the accounts and records of the Board, and in my opinion:

(i) the statements are based on proper accounts and records; (ii) the statements show fairly in accordance with Statements of Accounting Concepts and applicable Accounting Standards the financial transactions and cash flows for the year ended 30 June 1993 and the state of affairs of the Board as at that date; (iii) the receipt, expenditure and investment of moneys, and the acquisition and disposal of assets, by the

Board during the year have been in accordance with the Australian Horticultural Corporation Act 1987 (as amended); and (iv) the statements are in accordance with the Guidelines for Financial Statements of Public Authorities and Commercial Activities.

Tim Loughnan Executive Director Melbourne

26

12 October 1993

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

PARLIAMENTARY PAPER No 482 of 1994 ORDERED TO BE PRINTED

ISSN 0727-418