Australian Horticulture: International Opportunities and Strategies

The report discusses the international opportunities and strategies for Australian horticulture, focusing on Bridestowe Lavender Estate. It explores the potential of lavender oil in the international market and recommends appropriate ways to enter the market. The report also provides insights into the horticulture industry in Australia and offers recommendations for the business organization.

Running head: AUSTRALIAN HORTICULTURE
AUSTRALIAN HORTICULTURE
Name of the Student
Name of the university
Author note

1AUSTRALIAN HORTICULTURE
Executive Summary
The report is based on discussing the Australian Horticulture based on the Agribusiness
sector. There is an identification of the international opportunities for chosen horticulture
based on the agriculture such as Bridestowe Lavender Estate. There is discussion of various
international strategies which are required for the business. Horticulture is measured as a sub-
set of the Agriculture industry and the further subsets are vegetables in addition to fruits. The
crops coming on the purview of the industry have description of being warmth sensitive
furthermore greatest of these crops generally have positive needs with regard to temperature
in order to expand crop of optimum yield in addition to good quality. There is higher mode of
entry to international market for the selected agribusiness. Recommendations are provided for
the business organization so that there is an increase into the strategic directions of selected
organization.

2AUSTRALIAN HORTICULTURE
Table of Contents
Introduction................................................................................................................................3
Overview of the company......................................................................................................3
International opportunities for the Bridestowe Lavender Estate................................................4
International Strategies that can be undertaken.....................................................................5
Appropriate and Inappropriate Ways to Enter the International Market...................................6
Inappropriate ways.................................................................................................................7
Recommendations......................................................................................................................8
Conclusion..................................................................................................................................8
References................................................................................................................................10

3AUSTRALIAN HORTICULTURE
Introduction
The Australian Horticulture sector comprises of many varieties of industries that
include fruits, floriculture, vegetables and many more, grown within vast stretches of lands
owing to the available micro-climates and appropriate soil quality in these regions. As per the
research done by Underhill and Rimmer (2016), the horticulture industry has a contribution
of approximately $7 billion to the country’s economy. According to this it can be said that the
horticulture sector comes second in the agricultural sector of Australia after the successful
beef industry. Horticulture is considered as a sub-set of the Agriculture industry and the
further subsets are vegetables and fruits. The crops coming on the purview of the horticulture
industry have characteristics of being temperature sensitive and maximum of these crops
generally have certain requirements with regard to temperature in order to develop crop of
optimum yield and good quality.
Overview of the company
The firm that is to be considered in this paper to analyse the horticultural sector is
Bridestowe Lavender Estate. The farm is yields lavender and is located in Nabowla,
Tasmania in Australia. Bridestowe Lavender Estate is considered to as largest commercial
plantation of Lavandula Angustifolia in the whole world. The farm was established in the
year 1922 and owes its establishment to Charles Denny. The farm like all other horticultural
farms depends on the decisions related to the location of production and crop and cultivar
selection which in turn is gets influenced by the regional temperature, accessibility and
timing of the markets, suitability of soil and the availability of water for irrigation. The
Bridestowe Lavender Angustifolia depends on irrigation and a production dependent on rain
is less. As per the research done by Underhill and Rimmer (2016), high yield in case of the
crops based on horticulture in Australia require good quality soil and as they are dependent

4AUSTRALIAN HORTICULTURE
on climate they require frequent modifications so as to save the crops from sudden weather
changes. Lavender is an aromatic shrub that is small in size and is mainly used in making
fragrances and also ahs medicinal values. Broad marketing strategies can be used by the farm
in order to gain revenue. The farm keeps in hand alternative strategies in order to be on the
safe side and entertainment farming is used by the farm in its process and annual festivals that
help in promotion of the product.
International opportunities for the Bridestowe Lavender Estate
The international opportunities of the farm are huge as it deals with Lavender that is
considered to be an essential oil. The essential oils can be used in flavouring and fragrances
in the process of manufacturing certain goods, in aromatherapy as an alternative form of
health discipline. Lavender oil has the potential to act as a medicine as it has anti-bacterial
properties (Burgess et al. 2017). It can capture the international market owing to its active
nature of fighting many species of bacteria that includes those bacteria that are resistant to
antibiotics for example methicillin-resistant Staphylococcus aureus and vancomycin-resistant
Enterococcus. It has antifungal characteristics as well thus adding to the potential of it
capturing the international market and thus benefitting the farm. Agro-tourism is another
wider aspect of Bridestowe Lavender Estatein this particular field (Ekesi, Mohamed and De
Meyer 2016). The regional areas successful in agro-tourism and food tourism have a common
tendency to display certain features that include access to accommodation, proximity and
infrastructure that is apt for the same. This kind of tourism is appealing to the visitors thereby
making the firms in the international market. The numerous processes of adaptations of the
farm in case of climatic disasters are also a positive point that affects the name of the
company positively. The concept of Agro-tourism can add to the popularity of the firm as
agro-tourism lets the outsiders to visit the firms where the production is being done and they
can see for themselves the processes involved and can connect well to the products.

5AUSTRALIAN HORTICULTURE
Following are the list of the international opportunities for the Bridestowe Lavender
Estate such as:
I. Food security: It can maximize potential region as well as help to address the food
imbalances into the horticulture industry by promoting better market access such as
improvement of price signals and storage facilities (Rockström et al. 2017).
II. There is promotion of sustainable investment approaches addressed environmental
plus social issues such as energy efficiency, climatic adaptation of changes into the
horticulture business (Hedley 2015).
International Strategies that can be undertaken
The international strategies that could possibly be undertaken by Bridestowe
Lavender Estate can be engaging in the international events that showcase the products in the
international market and thereby promoting the same and popularizing it in many countries.
There have been various international strategies that can be incorporated in the Bridestowe
Lavender Estate expansion. Some of them are mentioned below:
 Maintaining, improving and gaining market access underpinned by a strong
biosecurity system: In order to strengthen its position in the global market the farm
needs to abide by Australia’s long term agricultural trade policy goals that encourage
reduction or removal of trade and production distortions creating an open and
equitable trading environment (Tribe 2016). The farm can add to its promotional idea
by maintaining, bringing in improvements and at the same time gaining the access to
the market by the help of a strong system of biosecurity that is the department that
effectively enables trade in the agricultural products such as lavender in this case
(Maroa and Muturi 2015).

6AUSTRALIAN HORTICULTURE
 Influencing the global agenda on agriculture, fisheries, forestry, food and sustainable
resource management: The Bridestowe Lavender Estate can capture the international
market by abiding by the various laws related to the food safety standards thereby
gaining a position and popularity in the global market. The Bridestowe Lavender
Estate needs to stick to the standards related to the quality of the products so that its
brand name thus it position in the global market doesn’t not degrade. The strategies to
be incorporated by the farm should be made thinking of the consumers and this in turn
will help them certainly to gain trust in the global market.
 Reducing and removing international trade and production distortions: As strategies
need to be strong enough laced with the modern technologies may it be any sphere as
effective strategies can lead to successful implementation of the desired process or
technique. The target markets are an important parameter in case of expansion of the
market thus they should be thoroughly researched on and the local competitors
considered while making the strategies. Strategic management is effective in bringing
in transformations only when the strategies being made are planned and organized.
 Strengthening agriculture through responsible global citizenship: As per the research
done by Bauske et al. (2015), horticulture has been one of the largest contributors to
the income in Australia thus the firm can consider the case studies of those companies
or firms and their approach could be undertaken in order to expand its business.
Appropriate and Inappropriate Ways to Enter the International Market
Following are list of the ways Bridestowe Lavender Estate should enter into the
International market such as:
Joint venture: It is popular mode of entry into the international market as two of the
businesses can combine the resources for selling the products plus services. It can provide

7AUSTRALIAN HORTICULTURE
foreign companies with the partner experienced into the foreign market, therefore the
partnerships is vital to organize as well as need to provide profits to the business functions of
Bridestowe Lavender Estate (Tribe 2016).
Licensing agreement: The horticulture business can sign the contracts with the foreign
businesses which can allow the companies to sell the products of the company (Maroa and
Muturi 2015). It can pay regular licensing fees and pay the percentage of the revenue over the
time in royalties. The licensing is allowed the company to enter into the market while it is
provided with slight control over foreign marketing as well as sales of products.
Purchase the foreign assets: The horticulture company rather than launching of the
new venture into the foreign market will purchase as well as invest into the foreign market
(Underhill and Rimmer 2016). There is direct investment which can allow the investment
company to reap with the business profits which are to be integrated into the local market.
Inappropriate ways
The inappropriate ways to enter the global market is decreasing the product price in
order to get into the market and attract the customers as this may lead to loss of the company
and frequent discounts and offers on the farm products may affect the revenue of the
company. The Bridestowe Lavender Estate must review its financial status before making the
strategies in order to make its stand in the global market as spending much on advertisements
and promotions can affect the monetary asset of the company. Bridestowe Lavender Estate
needs to evaluate the impact of the various strategies being incorporated so that it does not
affect the financial condition of the firm adversely (Burgess et al. 2017). The proper
estimation of sales and the related cost, marketing costs and the expenses related to the
administration liked with the strategies would possibly help the firm to enter the global
market without facing any chaos.

8AUSTRALIAN HORTICULTURE
Recommendations
1) Strategies should be made keeping in mind the present brand value of the firm and the
future consequences of the same.
2) To enter the international market the Bridestowe Lavender Estate should not compromise
with the products’ quality and the main aim should always be kept in mind while making the
transformations.
3) The horticulture industry faces many challenges and thus the Bridestowe Lavender Estate
must try to analyze the hurdles faced by the other companies and find out whether these apply
for its firm as well.
4) Alternative strategies should be kept in hand in order that the first planned strategy does
not do well.
5) In order to capture the global market the Bridestowe Lavender Estate needs to research on
the target markets as well which will give them a better understanding of the customers they
want to reach to.
Conclusion
From the above report it can be concluded that strategic management has a vital role
in the growth of any firm. Horticulture in Australia has made its roots strong enough and to
reach the mark and set its foot in the international market the firm requires keeping a good
knowledge about the agricultural products. The first stage of the assessment is to provide
global as well as regional coordinators with information which are required to finalize the
development of the statistical standards plus guidelines for means of the technical assistance.
Reaching the target markets based outside Australia needs proper analysis of the customers
based their and their choices. The competitors of the market where the Bridestowe Lavender

9AUSTRALIAN HORTICULTURE
Estate wants to expand its territory should be analyzed and then accordingly strategies
planned or made. The various qualities of lavender must be used and the customers should be
made aware of the medicinal qualities and the promotions done properly in order to reach the
target markets. Estimations play a vital role in the strategic management thus the total costs
that will be incurred should be considered in order to bring in the required transformations
and the expansion of the market. Hence, the analysis infers that in order to spread its brand
name in the international market the firm needs to understand the future consequences of the
strategies it is planning to incorporate.

10AUSTRALIAN HORTICULTURE
References
Bauske, E.M., Bachman, G.R., Bewick, T., Bradley, L., Close, D., Durham, R. and Meyer,
M.H., 2015. The case for a national strategic plan for consumer horticulture research,
education, and extension. HortTechnology, 25(4), pp.477-479.
Burgess, T.I., White, D., McDougall, K.M., Garnas, J., Dunstan, W.A., Català, S., Carnegie,
A.J., Worboys, S., Cahill, D., Vettraino, A.M. and Stukely, M.J., 2017. Distribution and
diversity of Phytophthora across Australia. Pacific Conservation Biology, 23(2), pp.150-162.
Ekesi, S., Mohamed, S.A. and De Meyer, M. eds., 2016. Fruit fly research and development
in Africa-towards a sustainable management strategy to improve horticulture. Springer.
Hedley, C., 2015. The role of precision agriculture for improved nutrient management on
farms. Journal of the Science of Food and Agriculture, 95(1), pp.12-19.
Maroa, J.G. and Muturi, W., 2015. Influence of strategic management practices on
performance of floriculture firms in Kenya. International Journal of Economics, Commerce
and Management, 3(7), pp.497-513.
Rockström, J., Williams, J., Daily, G., Noble, A., Matthews, N., Gordon, L., Wetterstrand,
H., DeClerck, F., Shah, M., Steduto, P. and de Fraiture, C., 2017. Sustainable intensification
of agriculture for human prosperity and global sustainability. Ambio, 46(1), pp.4-17.
Tribe, J., 2016. Strategy for tourism (No. Ed. 2). Goodfellow Publisher Limited.
Underhill, E. and Rimmer, M., 2016. Layered vulnerability: Temporary migrants in
Australian horticulture. Journal of Industrial Relations, 58(5), pp.608-626.

11AUSTRALIAN HORTICULTURE