The Company
Buderim Ginger Limited 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 the world's largest and most technologically advanced manufacturer of sugar processed ginger.

Buderim Ginger Limited is the ultimate parent entity with overseas subsidiaries in the United Kingdom, United States and Fiji.

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 also maintains an award winning tourism operation comprising the sale of ginger and other retail gift and food products within the Australian tourism market. The Corporate structure of the group is detailed in the Directors' Report in Annual Reports available on this web site.

The company employs approximately 240 people globally with manufacturing facilities in Yandina, Queensland, Australia and Suva, Fiji.

Buderim Ginger maintains a strong working relationship with ginger growers. All suppliers of ginger to the company have entered into long term supply agreements which provide the company with a secure source of ginger and the growers with an outlet for their product. The company is committed to continued underpinning of a viable ginger growing industry and works with growers to lift productivity for the benefit of both growers and the company.

Strategy
Buderim Ginger's strategic focus is on consolidating the group's global leadership position in confectionery ginger, while facilitating carefully planned growth in both traditional and non-traditional areas.

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.

Continuing to develop and expand our brand will be the focus of our existing business strategy in the future. In order to seek greater growth in the future, our strategic plan gives us a mandate to look beyond ginger. 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" brand and the company's international sales and distribution infrastructure to deliver ongoing profitable sales growth;
• Investing in process improvements designed to deliver substantial productivity gains while never compromising Buderim Ginger's premium position as "The World's Finest Ginger"; and
• Progressive inventory reduction and simplification of administrative and supply chain tasks.

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 Ginger 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, Young Achievers Australia and many local charities.

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

John M Ruscoe
Chairman