Business Overview

The Company

Buderim Group Limited (ASX:BUG) restructured to a public company on 10 October 1989. The company was previously a Co-operative, established in 1941 by five Buderim farmers. It has since expanded to be one of the world's largest processors, marketers and distributors of confectionary ginger, other ginger based products and macadamias and macadamia based products.

Buderim Group Limited is the ultimate parent entity with subsidiaries in Australia, the United States and Fiji. The company employs approximately 400 people globally with manufacturing facilities in Yandina, Queensland, Australia, Suva, Fiji and Captain Cook on the Big Island, Hawaii. 

The Group's principal activities are manufacture and distribution of a variety of confectionery ginger and other ginger-based products to both industrial, food service and retail operations throughout the world.  It is also one of the world's leading processors and marketers of macadamias through its subsidiaries: Agrimac Macadamias, based in Alstonville NSW servicing bluechip customers in Australia, Asia, Europe and North America; and MacFarms of Hawaii, based on the Big Island of Hawaii and servicing primarily North America and Europe.  Combined, these two operating companies provide the Group with excellent access to the growing macadamia market with global reach. 

In addition to its traditional ginger processing activities and speciality food business, Buderim Group operates one of the Sunshine Coast's most popular and highly awarded tourist attractions, The Ginger Factory at its Yandina site.  The Ginger Factory's position as one of the region's most popular tourist destinations is underpinned by innovative attractions include the Taste of Ginger Tour, the Overboard animated puppetry voyage, and the renowned SuperBee.

The Corporate structure of the group is detailed in the Directors' Report in Annual Reports available on this web site.

Buderim Group maintains a strong working relationship with ginger and macadamia growers. The company is committed to the continued underpinning of viable ginger and macadamia growing industries and works with growers for the benefit of both growers and the company.

Strategy

Buderim Group's strategic focus is on consolidating the group's global leadership position in food markets in which it chooses to operate, while facilitating carefully planned growth in both traditional and non-traditional areas.  These markets currently include the confectionery ginger, premium macadamias, branded speciality food products and agri-tourism in support of these markets.

Whilst the Board believes that the key to achieving prosperity is to maintain growth in profitable areas whilst containing costs, it also recognises that the global environment in which we operate is changing and the company must expand its scope to ensure ongoing success. Any expansion must be carefully planned and consistent with our capabilities and conservative investment philosophy. We must remain focussed, but flexible.

The company is committed to examining opportunities where it believes it possesses synergies with other food industries or companies, and key competencies or competitive advantages which could be exploited.

Operationally, the company's major areas for focus include:

  • Leveraging both the "Buderim Ginger" and “MacFarms” brands and the company's international sales and distribution infrastructure to deliver ongoing profitable sales growth; and 
  • Investing in process improvements designed to deliver substantial productivity gains while never compromising Buderim Ginger's premium position as "The World's Finest Ginger".
  • Investing in the macadamia segment to secure long term supply supporting profitable sales growth and product development.

Programs

The company has adopted a dual focus for its R&D program: New Product Development and Process Improvement. Process improvement encompasses an ongoing program of investment to drive both productivity improvements as well as maintain our product quality leadership position. New Product Development, on the other hand, is one of the engines for our growth.

Buderim Group has been the recipient of numerous business, export, tourism, and human resource awards and commendations. It is committed to minimising any adverse impact the industry may have on the environment through constant research and development programs. Its community awareness is demonstrated through financial support of the University of the Sunshine Coast and many local charities.

Your interest in Buderim Group as a shareholder and your support as a consumer of the company's products, is very much appreciated.

Steve Morrow
Chairman