Conversion Guide: UK Grading (WAM) to US Grading (GPA/IPK)

as presented on: http://www.fulbright.org.uk/pre-departure/academics/marks

Conversion Guide: UK Grading (WAM) to US Grading (GPA/IPK)

One important difference to be aware of is the emphasis on continual assessment. Most UK/Australia universities determine your marks based on your performance on examinations at the end of term. In the US, the papers and problem sets you complete during the term are often weighted as heavily as midterm exams and final exams.

Some classes may have weekly quizzes and daily homework, and you may not even have a final examination. Therefore, it is very important that you take these periodic evaluations just as seriously. At the beginning of each term, your professors will provide you with a syllabus detailing the assignments for the class and the weight (or percentage of the final mark) of each assignment as well as their expectations of you.

As an example, your final grade may consist of 10% class participation and attendance, 15% weekly quizzes, 15% daily homework, 20% papers (more than one per term) and 40% divided between a midterm exam and final exam. If you are ever unsure of how you are being evaluated, do not be afraid to ask!

Marks

US marks, or grades, are expressed differently than in the UK/Australia. The overall percentage (0-100%) for each class is converted into a letter grade (A, B, C, D or F), which is then recorded on the student’s transcript. Some universities also use the +/- system which allows for a wider range in determining students’ grade point averages.

The cut-off percentages vary by university, by department and sometimes by class. However, they tend to follow a system in line with the chart below. In the US, it is usual for students to receive marks in the 80-100 percentage range as this is considered the threshold for "good" work.

How to Calculate a GPA

A GPA (Grade Point Average) is one cumulative number to represent all of the marks earned during your undergraduate and postgraduate study to date. Each semester, your GPA is re-calculated to account for your most recent grades.

US Percentage	US Grade	US GPA
90-100	A	4.0 (A+ = 4.33; A- = 3.67)
80-89	B	3.0 (B+ = 3.33; B- = 2.67)
70-79	C	2.0 (C+ = 2.33; C- = 1.67)
60-69	D	1.0 (D+ = 1.33; D- = 0.67)
0-60	F	0

To calculate your GPA:

1. First the professor will convert your percentage grade to a letter grade, which is the final grade that will be reported to you
2. This letter grade is then converted into a grade point (each letter has a corresponding value)
3. Each grade point is weighted by the number of credits that class is worth
4. Each weighted grade point (for each class) is added together
5. Finally the sum of all your class grades is divided by the sum of the hours your classes are worth

For example, if you received an A- in a 4 credit class and three B+’s in 3 credit classes:

(4 X 3.67) + (3 X 3.33) + (3 X 3.33) + (3 X 3.33) /13 = 3.43

This would be a good GPA for your first term in the US. Sometimes a major GPA is calculated separately from the overall GPA. The overall GPA represents all marks the student has earned, including the general education classes, the major classes and the minor classes, while the major GPA represents only the coursework completed for the major.

Class Rank

Unlike in the UK/Australia, some US universities rank their students according to their GPA. The valedictorian is the student with the top GPA, while the salutatorian is the student with the second highest GPA.

Other students can graduate with “honours” (called by its Latin translation, cum laude) or even “great honours” and “greatest honours” (magna cum laude and summa cum laude).

Conversion Guide

A rough guide for converting between the UK/Australia and US grading systems can be found below. If you are studying in the US for a short period of time, your UK/Australia university will most likely apply its own system of grading.

UK Class	UK Percentage	US Grade	US GPA
First	70-100	A	4.0
Upper second	60-69	B+/B	3.0-3.33
Lower second	54-59	B/B-	2.67-3.0
Third	42-53	C	2.0
Pass	38-41	D	1.0
Fail	0-37	F	0

Please note that the percentage values differ greatly between the US and the UK/Australia. This is important to keep in mind when applying to a school. If asked for a percentage, do not list your UK/Australia percentage as a US percentage. They are not the same!

Mengurai Kisah Pengalaman Tugas Belajar di Negeri Kanguru

dikutip dari: http://sdm.pupukkaltim.com/node/730

August 15, 2013 by 8301982

Siapapun yang ingin belajar di Negeri Kanguru, tentu akan menjadi pengalaman baru yang menyenangkan. Betapa tidak, Australia dengan julukan Kangurunya tersebut, dalamProgram Penilaian Pelajar Internasional secara berkala selalu masuk lima besar dari tiga puluh negara maju utama (negara-negara anggota Organisasi untuk Kerjasama dan Pengembangan Ekonomi).

Karena itu, untuk mengetahui lebih jauh lagi terkait proses belajar di luar negeri, untuk kedua kalinya Selasa (13/8) PT Pupuk Kaltim (PKT) kembali menggelar sharing knowledge yang bertajuk pengalaman tugas belajar. Bertempat di Lantai 2 Gedung Diklat PKT, kali ini perusahaan industri strategis tersebut menghadirkan karyawannya yaitu, Muhammad Burmansyah untuk memaparkan pengalamannya selama belajar di Australian School of Business, University of New South Wales (UNSW), Sydney, Australia. Dalam acara itu, sekiranya dihadiri 22 orang yang terdiri dari beberapa karyawan PKT dan calon karyawan angkatan pertama 2013.

Menurut Burmansyah, sebelumnya perlu diketahui beberapa hal tentang segala tahap persiapan yang harus dilakukan, hingga bagaimana nantinya ketika telah hidup disana. Harapannya tentu agar kita lebih mudah menyesuaikan diri dengan kehidupan di Australia.

Pertama, pemilihan universitas. Di Australia banyak memiliki universitas, ada sekitar 42 universitas (39 universitas Australia, dua universitas internasional, dan satu universitas swasta khusus). Dari sekian itu, pastinya kita akan dihadapkan pada pemilihan. Namun, banyak cara yang dapat kita lakukan diantaranya, search on-line melalui google, wikipedia, dan sebagainya, pelajari website university yang akan dituju, memilih antara coursework program (perkuliahan reguler) atau research program (pengajuan proposal penelitian), serta dapat berkonsultasi dengan teman, student centre atau education agency. 

Kedua, proses acceptance letter.  Tahap ini dapat dilakukan dengan apply on-line atau melalui education agency, melengkapi persyaratan administrasi dan minimum english requirements, seperti TOEFL iBT, IELTS dan/atau Analytical Skills, seperti GMAT/GRE, serta menyetor deposit fee.

Ketiga, persiapan berangkat. Dalam tahap ini, kita diharuskan segera mengurus studentvisa dan asuransi kesehatan, komunikasi dengan student counselor di University. Sebelum berangkat pun, ada baiknya kita telah menghubungi teman-teman pelajar Indonesia di negara tujuan, dengan maksud agar segala info terkait akomodasi, makanan, cuaca, swalayan atau departemen store terdekat, dan lain-lain dapat diperoleh secara jelas. Saat packing, jangan melupakan hal mendasar yang mesti disiapkan seperti, pakaian, surat-surat penting, alat-alat listrik, uang AUD atau ATM berlogo Visa/Mastercard, serta rekening bank (international transfer). Ada empat bank utama di Australia yaitu ANZ, National Australia Bank, Westpac, dan Commonwealth Bank. Untuk peralatan listrik, kita boleh membawa masuk sembarang peralatan elektronik pribadi misalnya, handphone, iPod, komputer/laptop, dan sebagainya. Australia menggunakan sistem soket tiga pin dengan bekalan elektrik 240 volt 50 Hz AC. Contoh adaptor yang diperlukan.

Keempat, saat telah sampai di Australia kita harus dapat beradaptasi terhadap perubahan cuaca (4 iklim) datang ketika winter season. Kemudian kita pun harus mengenal rute transportasi umum (bus, train, ferry, tram), serta melakukan visit to student international centre (student ID Card, akses web-portal). 

Kelima, masa perkuliahan. Tahap ini kita akan memilih mata kuliah yang sesuai minat, mempelajari course outline, terutama pembobotan antara exam, group assignment,individual assignment, class participation, dan sebagainya. Kita juga harus pandai untuk memanfaatkan consultation hour dengan lecture in-charge, dan segala fasilitas library(komputer, booking room, printer, scanner, dll). 

Perlu diketahui jika kita memutuskan hidup di Sydney, maka kehidupan disana terbilang paling mahal di Australia. Misalnya, untuk sewa unit apartement berkisar A$ 300 – 500 per week, listrik A$ 100 – 160 per month, air gratis, pulsa hp A$ 30 – 50 per month, makanan jadi A$ 8 – 15 / porsi, cukur rambut A$ 12.

Saat di Australia, akan sangat bermanfaat pula jika kita dapat terlibat dalam Komunitas Pelajar Indonesia. Sebab, dengan keterlibatan aktif untuk berbagi info, akan dapat membantu mempermudah kita terhadap segala kesulitan dan kendala yang dihadapi disana. Ada 2 komunitas yang dapat kita temui disana, seperti PPIA (Perhimpunan Pelajar Indonesia Australia) dan KPII (Komunitas Pelajar Islam Indonesia). Pada akhirnya, melalui tulisan singkat ini semoga dapat membantu memberikan bayangan di awal kepada kita tentang Australia, sehingga siapapun yang hendak kesana tidak akan menemukan kesulitan, dan yang terpenting kita dapat menikmati proses belajar dengan baik. (*/Irma Syafni)

Ringkasan perkembangan industri pupuk di Australia

Kurs: Rp.9.400/A$

• Petani Australia mengkonsumsi pupuk setiap tahunnya sebanyak 5 - 6 juta ton dan lebih dari 50% stock yang ada diperoleh melalui impor. Oleh karenanya, kenaikan/penurunan harga bahan baku internasional sangat mempengaruhi tingkat serapan pupuk dan kemampuan produksi dari perusahaan pupuk lokal. IBIS Report Australia memprediksi selama tahun 2013-2018, industri pupuk di Australia dapat menghasilkan penjualan sebesar A$4.69 milyar/tahun dengan pertumbuhan industri mencapai 2%. 
• Konsentrasi persaingan industri di level Medium dengan 2 (dua) perusahaan pupuk terbesar di Australia, yaitu Incitec Pivot dan Wesfarmers, menguasai 57.4% pangsa pasar. Persentase ini dipengaruhi oleh persaingan bisnis di bagian hulu dan hilir (vertical integration). Sebagai contoh: Incitec Pivot, melakukan serangkaian merger dan akuisisi terhadap perusahaan tambang penyedia bahan baku rock phosphate (backwards integration) dan perusahaan Southern Cross International yang mengatur penjualan di tingkat distributor dan retail (forward integration). Hal ini membentuk rintangan  tersendiri bagi kompetitor baru yang akan masuk ke pasar Australia.
• Profitabilitas dipengaruhi oleh struktur biaya produksi yang terdiri dari pembelian bahan baku (57.7%), pembelian energi terutama gas alam (11.1%), upah tenaga kerja (6.7%), depresiasi asset tetap (3.5%) dan biaya lainnya seperti biaya angkut, biaya penjualan, dll.
• Sesuai data Australian Bureau of Statistics, pabrik pupuk sebagian besar beroperasi di tepi laut (seaboard) terutama di sentra pertanian kawasan Queensland, Victoria, Western Australia dan New South Wales. Sejak tahun 2009 sampai saat ini, empat negara bagian tersebut menghasilkan 90% dari kebutuhan pupuk dan juga produksi pertanian.

Incitec Pivot Limited (IPL) --> market share sebesar 44,2%

• Beroperasi di kawasan timur Australia yaitu di wilayah Queensland, New South Wales dan Victoria, memproduksi urea, diammonium, monoammonium, single-strength superphosphates dan anhydrous ammonia.
• Berdasarkan laporan keuangan per tanggal 31 Maret 2013, IPL memiliki pendapatan sebesar A$1426,9 juta dan laba setelah pajak sebesar A$110,2 juta (atau Rp.1,04 trilyun). Saat ini memiliki karyawan sebanyak 5.200 orang.
• IPL merupakan perusahaan hasil merger antara Incitec Fertiliser Ltd dengan Pivot Ltd dan perusahaan bahan peledak Dyno Nobel. Mengalami kenaikan grafik ekspansi usaha selama beberapa tahun ini dan termasuk peringkat 50 terbaik perusahaan yang listing di ASX (Australia Stock Exchange). Per tanggal 01 Agustus 2013, saham perusahaan diperdagangkan sebesar A$2.69,-/lembar.
• IPL tercatat memiliki multichannel distribution route dengan lebih dari 200 distributor dengan kemampuan pendistribusian sebanyak 60.000 ton per hari. Unit usaha utamanya adalah Incitec Pivot Fertiliser (IPF), Southern Cross International (SCI) dan bahan peledak.

• IPF mengoperasikan enam pabrik dengan kapasitas produksi tercatat sebesar 3,4 juta ton  yang terdiri dari single superphosphate, urea and ammonia.
• SCI, perusahaan yang diakusisi pada tahun 2006, terlibat dalam perdagangan pupuk, industri manufaktur ammonium phosphates dan industrial chemicals. Salah satu pabrik yang dioperasikan adalah Phosphate Hill, QLD dimana disana dilakukan penambangan phosphate rock yang dikombinasikan dengan sulphuric acid dari pabrik Mount Isa sehingga dapat menghasilkan pupuk ammonium phosphate.
• Unit usaha bahan peledak merupakan unit yang strategis dan IPL terlihat memprioritaskan investasi pada unit usaha ini. Saat ini menghasilkan 70% dari laba perusahaan dan diprediksi dapat naik mencapai 80% apabila pabrik Moranbah telah beroperasi yang dikombinasikan dengan Dyno Nobel Asia Pacific dan Dyno Nobel Americas.
• Untuk kedepannya, analis memprediksi IPL akan melakukan peningkatan produksi Ammonimum Nitrate (AN) melalui pabrik baru di Moranbah dengan kapasitas 330.000 ton ammonium nitrate, ammonia and nitric acid per tahun. Selain itu, IPL telah melakukan feasibility study untuk membangun world-scale ammonium nitrate plant di Kooragang Island, NSW yang diestimasi selesai April 2013. Sebagian besar hasil produksi akan dijual ke perusahaan manufaktur bahan peledak, diantaranya Orica Australia.

Wesfarmers CSBP Ltd (CSBP) --> market share sebesar 13,3%

• Wesfarmer Limited merupakan perusahaan konglomerasi Australia yang memiliki beberapa usaha selain pupuk. Divisi usaha yang menangani pupuk adalah CSBP yang menghasilkan 3% dari penjualan group secara keseluruhan. CSBP memusatkan produksinya di Kwinana, WA dengan kapasitas produksi 1 juta ton pupuk per tahun terdiri dari superphosphate pasture fertiliser (500.000 ton), Agras range of compound fertilisers (400.000 ton) dan selebihnya Cresco range of home garden fertilisers.
• Di tahun 2011-2012, secara group Wesfarmers menghasilkan penjualan sebesar A$ 57,7 milyar dan laba setelah pajak A$2,1 milyar. Analis memprediksi penjualan Wesfarmer-CSBP di tahun 2012-2013 bisa mencapai A$563 juta atau Rp.5,3 trilyun dengan kenaikan per tahun mencapai 3.7%.
• Untuk kedepannya, analis memprediksi CSBP akan meningkatkan kapasitas input phosphate rock untuk pabrik superphospate nya di Kwinana, WA dimana bahan baku ini diperoleh dari  wilayah lainnya di Western Sahara sebanyak 60-70% dari total kebutuhan. Selain itu, CSBP juga telah mempublikasikan di akhir tahun 2011, rencana peningkatan kapasitas produksi ammonium nitrate (AN3) di pabrik Kwinana sehingga bisa mencapai produksi 780.000 ton per tahun.

Impact Fertilisers Australia Pty Ltd --> market share kurang dari 5%

• Berlokasi di Tasmania, memproduksi single-strength superphosphates di pabriknya di Derwent Park, TAS. Memiliki empat distribusi center di Australia bagian timur dan sembilan depot di Tasmania. 
• Memproduksi 200.000 ton single-strength superphosphates per tahun, dan dari jumlah tersebut sekitar 120.000 ton dipasarkan ke sentra pertanian di tepi timur Australia.

Regulasi dan Peraturan Pemerintah

• Perusahaan pupuk di Australia tunduk pada peraturan the Agricultural & Veterinary Chemicals Act 1994. Peraturan pemerintah ini mengatur tentang tatacara pembuatan pupuk sampai dengan penjualannya.
• Selain itu terdapat lisensi khusus untuk membawa dan memindahkan produk yang mengandung nitrogen serta pengaturan level pencemaran udara berupa emisi karbon dari produksi amoniak yang diatur secara khusus oleh Hazardous Waste (Regulation of Exports and Imports) Act 1989.

Lampiran:

I. Fertiliser Australia, mencatat supplier pupuk yang memasok produk ke Australia, yaitu:

source: http://www.fertilizer.org.au/default.asp?V_DOC_ID=1174

II. Data perbandingan penjualan produk pupuk antara produksi lokal dengan produk import di Australia:

source: http://www.fertilizer.org.au/default.asp?V_DOC_ID=1176

III. Referensi

1. IBIS Industry Report: C2531 Fertiliser Manufacturing in Australia industry report.pdf
2. ASX Announcement during 2013 for Incitec Pivot Limited (IPL), <http://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=IPL&timeframe=Y&year=2013>
3. Fertiliser Australia: Domestic Fertiliser Market, <http://www.fertilizer.org.au/default.asp?V_DOC_ID=1176>
4. ABS, 2012, Australia Bureau of Statistics, 4627.0 - Land Management and Farming in Australia: Fertiliser Use, <http://www.abs.gov.au/ausstats/abs@.nsf/Products/4627.0~2009-10~Main+Features~Fertiliser+use?OpenDocument>
5. Incitec Pivot Limited website: Investor Home, <http://investors.incitecpivot.com.au/phoenix.zhtml?c=170340&p=irol-IRHome>

M&A: Hostile Takeover, Defensive Strategies and Merger Arbitrage

Hostile Takeover:

• Mostly are off-market purchase, can turn friendly and vise versa.
• Hostile threats have a disciplining effect on target's managers but also bring higher premium (benefit for target).
• Hostile carry element of surprise, allow bidder to take advantage of poor target valuation, reduce the likelihood of competing bidders, limit hold-out problems (target's board play for time), bypass highly entrenched board, create pressure for board to go back to the negotiation table (opportunistic benefits for acquirer).
• Costs: 
• no due diligence
• protracted (lasting longer than expected), difficult to win control, high premium.
• Tougher merger integration --> strong enough to withstand adverse conditions, lots difficulty, require great efforts. 

Merger Arbitrage

• Arbitrageur's strategy:
• Long position on target shares --> buy target shares, hoping the price will go-up since the competitive bids will drive-up acquirer's offer price and arbitrageur will earn more.
• Until the acquisition is completed, the stock of the target typically trades below the purchase price. An arbitrageur buys the stock of the target and makes a gain if the acquirer ultimately buys the stock.
• Short position on bidder shares (usually for stock deal) --> short the acquirer shares, hoping the price will go-down for unexplained reasons.
• The acquirer proposes to buy the target by exchanging its own stock for the stock of the target. An arbitrageur may then short sell the acquirer and buy the stock of the target. This process is called "setting a spread." After the merger is completed, the target's stock will be converted into stock of the acquirer based on the exchange ratio determined by the merger agreement. The arbitrageur delivers the converted stock into his short position to complete the arbitrage.
• Collar --> the exchange ratio is not constant but changes with the price of the acquirer.
• Net position is highly leveraged.
• Risks: 
• The deal will fail and the price will go down significantly.
• Degree of exposure amplified through leverage.
• Arbitrage spread:
• Difference between the offer price and the target's post announcement market price.
• Positive: higher offer.
• Roles of Arbitrageur
• Providing liquidity: merger arbitrageurs provide liquidity that target shareholders demand to avoid blow-up risk.
• Ameliorating shareholder hold-out problems: Arbitrageurs round up free float shares in the market, making the coordination problem less severe.
• Information revelation: Is another higher offer forthcoming? What is the probability of deal failure?

Takeover Defence Strategies

• Why do targets need to defend against hostile takeovers?
• Keeping management entrenched (firmly established and difficult to change)
• Protecting stakeholders (eg employees) welfare.
• Deterring (prevent the occurrence of) opportunistic and not serious bidders.
• Providing a fair M&A playground for all shareholders
• Extracting more value for target's shareholders.
• Buying more time.
• Wrestling control of the process back to the target.
• Reducing shareholder holdout by forcing target shareholders to coordinate.
• Giving the board more bargaining power at the negotiation table
• Making acquirers to offer higher premium.
• Common Strategies:
• Pre-emptive defences: 
• Implemented before a hostile bid.
• Legal mechanisms and some strategic & financial defences.
• Reactive Defences:
• Defences put in place after a hostile bid is made.
• Tailored to defeat or discourage a specific bidder.
• Defensive strategies in Australia:
• Poison pills not widely used (Takeover Panel Guidance Note 12) such as:
• issues new share/repurchase shares significantly in the context of the bid.
• Acquiring major asset or disposing one.
• Undertaking significant liabilities or materially changing terms of its debt.
• Declaring a special or abnormally large dividend.
• Significantly changing company share plan.
• Entering into joint venture.
• Staggered Board
• Board recommendations: significant impact on shareholders decisions, often accompanied by independent expert valuation reports, can be supported by marketing campaign in the media.
• Value diversion: special dividend, share buyback.
• Information management: updating profit forecasts, bring forward the release of confidential information.
• Restructuring: sale of non-core assets, increasing leverage, de-merger.
• Creating an auction environment: approaching potential white knights, setting up an auction for an asset/division.
• Taking advantage of resistance from regulators/public: Takeover Panel/Foreign Investment Review Board rulings.
• Most importantly, asking for a higher price --> pointing out that price < synergy, attacking acquirer's financing, stock price potential (in stock deals)
• Empirical Results for Australia (Maheswaran and Pinder, 2005):
• Bid resistance increases target shareholder wealth in post announcement period.
• Bid hostility associated with larger targets, weak target performance.
• Hostility unrelated to size of premium offered.
• Hostility decreases probability of success, increases likelihood of revision, does not scare off competitors.

Cheese Manufacturing in Australia

Definition and Terminology: (source: http://en.wikipedia.org/wiki/Cheese)

• Cheese is milk based food product, consists of proteins and fat from milk and produced by coagulation of the milk protein casein. However, cheese is more compact and has a longer shelf life than milk,
• Their styles, textures and flavors depend on the origin of the milk (including the animal's diet), whether they have been pasteurized, the butterfat content, the bacteria and mold, the processing, and aging.
• Cheese is valued for its portability, long life, and high content of fat, protein, calcium, and phosphorus. 
• A specialist seller of cheese is sometimes known as a cheesemonger. To become an expert in this field, like wine or cooking, requires some formal education and years of tasting and hands-on experience.

Australia's Cheese Industry (source: IBIS Australia Industry Report 2012)

• Key external drive: 
• Fluctuations in exchange rate: substantial impact as high % revenue from export.
• Demand from supermarket and other grocery stores: downstream demand trends, cheese manufacturer experience hyper competitive to win supply contract w/ major retailers.
• Level of annual rain : large impact of seasonal conditions which affected milk production (pasture and water: milk yield and herd size).
• Level of consumption : consumer attitude about health and nutrition, concern about obesity and heart disease. 

• Industry Performance:
• As one of the largest producers and exporters of dairy products, Australia plays an important role in global dairy trade, with close to 60% of all domestic cheese production destined for overseas markets. 
• The majority of exports are sold to Asian markets. Japan is the largest destination for Australian cheese products, with Singapore and China following not far behind.
• Imports have risen strongly due to drought conditions in Australia, higher feed costs and an appreciation of the Australian dollar. New Zealand (55% of total import) is expected to remain the largest source of cheese imports, given its strong dairy activity and its geographical proximity to Australia.
• The industry is also facing a long-term threat of increased competition from up-and-coming cheese exporting nations such as Argentina and the Ukraine.
• Prices will also face upwards pressure from higher feed and oil prices, low world stock levels and population growth. Growth in world dairy consumption is projected to strengthen relative to production. Profitability for the industry is expected to remain relatively static.
• Consumer demand has shifted away from cheddar cheese and towards premium and specialty types such as hard grating, fresh and blue vein cheeses. As a result, total cheddar production falling to 44.8% of industry revenue. Further, products that address the trends of health and convenience, such as low-fat, organic and natural cheese slices that may be consumed ‘on the go’ have performed strongly over the past five years.
• Merger & acquisition: Kirin’s purchase of National Foods, and the purchase of the Kraft Foods cheese business by Bega Cheese in 2008, the purchase of Tatura Milk Industries by Bega Cheese in 2007.
• Product and service segmentation: 44.8% cheddar cheese; 24.4% fresh cheese; 19.2% semi-hard and stretch cheese; 5.8% hard grating cheese; 3.2% eye cheese; 2.6% mould-ripened cheese.
• Cheese processors have continued to introduce new products to attract health-conscious consumers. For example: 
• Dairy Farmers launched different ranges of Coon cheese, including Coon Light and Tasty, which contains 25% less fat and 30% more calcium; Coon Extra Light, which contains 50% less fat; and Coon Smooth and Mild, which is suitable for kids.
• Bega has recently launched cheese in a can for export markets in the Middle East.

• Competitive Landscape:
• Market share concentration: top four major players accounted for 85.4% of industry revenue.
• Cost Structure: Raw milk (biggest expense), Labour (wages: 8.3% of revenue); SGA and Marketing costs (3.4% of revenue), other costs (9.9% of revenue).
• Basis for competition: High competition environment: players pursue for lower production costs and product differentiation and innovation. But, consumers tend to willing to pay more for speciality cheese. 
• Producers are differentiating their products through ingredients and branding.
• Ingredients: industry participants are making their cheese low-fat, low-carbohydrate or natural and organic. Others are focusing on specific nutritional content such as calcium, protein, vitamins A and C. 
• Branding: Kraft cheese is listed within Australia’s top 20 brands, whilst Bega cheese is in the top 25.
• Barriers to Entry: Strong. Dominancy of major players, such popular brands include Bega, Fonterra’s Mainland, and Dairy Farmer’s Cracker Barrel, Coon and Mil Lel. 
• Industry Globalisation: Globalisation in the industry is increasing with international trade increasing rapidly, such as:
• The major players Murray Goulburn Co-operative Limited and Bega Cheese Limited are Australian-owned companies. 
• Fonterra Australia is owned by the New Zealand company, Fonterra Co-operative Group Limited. The Japanese company Kirin Foods Holdings Pty Ltd owns Lion Nathan National Foods.
• National Foods owned half of Dairy Farmers’ cheese business, which was previously owned by Australian dairy farmers. However, there has also been some movement towards increased nationalisation with the purchase of Kraft’s cheese business by Bega Cheese Limited.
• Market share: Murray Goulburn Co-operative Co (34.7%); Lion Pty Ltd (26.3%); Bega Cheese Limited (16.9%); Fonterra Co-operative Group Limited (7.5%); Warrnambool Cheese and Butter Factory Company Holdings Ltd (less than 5%).

• Technology & Systems:
• Significant changes in cheese-making processes, include: membrane technology, especially ultra-filtration and reverse osmosis. The development and introduction of APV Siro Curd technology resulted in increased cheese yields from milk, and facilitated continuous automation with improved control over process variables.
• Another development has been the production of genetically engineered chymosin (used as a coagulant in cheese making). This reduces production costs and is suitable for the production of special-purpose cheese such as halal, kosher and vegan.
• Bega has installed a new state-of- the-art Alfomatic cheddaring machine, which includes in-line milk standardisation and upgraded milk- separator capacity, which will allow the production of high volumes of high- quality cheese. They also use speedy natural cheese-slicing technology with flexible packaging capabilities. Bega has recently introduced a new Bega/Arabic processed cheese in a can for specific export to Middle Eastern markets.
• Dairy Australia invests about $10 million per year on research and development in dairy manufacturing. Current research projects are looking at ultra-high temperature products and shelf life, cheese and starter cultures, milk components and their interactions, bioactivity, and human nutrition and health issues.

• Regulation & Policy:
• In July 2000, the Australian dairy sector was deregulated, the most significant change being the removal of price regulations on milk sold for consumption. Milk prices are now more transparent, which has stimulated intense price competition at the farmgate level for raw milk.
• Deregulation means that Australian dairy farmers receive a low price for milk by world standards and therefore they have to run very efficient production systems.
• The only government involvement in the industry is in relation to food standards and food safety assurance systems. On 20 December 2002, the Food Standards Code became the uniform law governing both Australia and New Zealand. 

M&A: Chocolate Manufacturing - Australia

In January 2010, after months of fierce negotiations, Kraft Foods Inc., the world's second-largest food company, acquired the world's largest confectioner, Cadbury plc, for an estimated $18.6 billion. Globally, the group is number one in the chocolate and sugar confectionery segments and a strong number two in the high-growth gum segment. Cadbury plc's leading brands, such as Cadbury, Trident and Halls, are highly complementary to Kraft's portfolio and benefit from its global scope, scale and array of proprietary technologies and processes. In addition, the acquisition of Cadbury significantly enhanced the strength of Kraft's presence in the confectionery market, enabling Kraft to leverage Cadbury's product development capabilities.

Established in 1824, Cadbury is the world's largest confectionery company by market share. The company has an estimated 10% share of the international confectionery market and employs more than 50,000 staff in 60 countries worldwide. Cadbury merged with Schweppes, a mineral water business, in 1969 to become Cadbury Schweppes plc. However, on 7 May 2008, the company finalised the separation of its confectionery business from the Americas Beverages business. The demerger followed a series of disposals by the company during 2007, which were intended to streamline operations. Cadbury Schweppes Australia Ltd was a wholly owned subsidiary of UK-based Cadbury plc. However, in 2009 Cadbury's Australian Schweppes beverage business was sold to Asahi Breweries for an estimated $1.2 billion.

The company has a well-entrenched position in the Australian market, with its flagship production facilities located in Claremont, TAS, and Ringwood, VIC. Cadbury owns several iconic chocolate and confectionery brands including Cherry Ripe, Crunchie, Freddo, Roses and Dairy Milk. These brands are household names and enjoy a high level of customer loyalty. Sustained new product introductions, such as Boost, Time Out and Breakaway, have also stimulated demand and consumption.

In 2011, results published at the group level reveal that net revenue increased 1.2%, driven by higher pricing and the continuing effects of the Cadbury acquisition. New product introductions such as the launch of Cadbury Dairy Milk Mousse, which targeted the premium and indulgent segment, further cemented the notion that producers within the industry are bucking the recessive trend and concentrating their products at the higher end of the market.

Given the recessive climate that dampened spending and confidence over 2009, revenue decreased 6.8% to $576.4 million. Consumers sought respite from the gloom through simple and inexpensive indulgences such as chocolate and confectionery. Cocoa and sugar prices eased, while new product introductions helped sales volumes. NPAT grew dramatically, driven by lower production costs and greater volumes of high-margin indulgent products.

In 2008, sales revenue decreased 6.3% to $618.7 million, despite world cocoa prices increasing 37.9% during the year. Growth in the Asia-Pacific region, inclusive of Australia, was driven by strong growth in the emerging markets of India and China. The deteriorating economic climates in Japan, Australia and New Zealand, however, partially offset the gains. Cost-cutting initiatives occurred during the year, with the closure of 10 of the company's manufacturing sites and the corresponding downsizing of the workforce. In addition, Cadbury announced a $135 million proposal to improve the productivity and efficiency at its chocolate manufacturing sites in Tasmania, Victoria and New Zealand.

Source: IBISWorld Industrial Report 2012

M&A in Department Store - Australia

Department stores have long been part of the Australian retail environment. Woolworths began in 1924 as a general merchandise retail operation. David Jones opened his first store in 1838 to sell imported merchandise, and the origins of Myer can be traced back to 1900 when Sidney and Elcon Myer opened their first Myer drapery store.

Maturity within this industry has been evident in the merger and acquisition activity of its major players over the past decade For example, in 1999 David Jones acquired the Aherns chain in Western Australia to expand market share. In addition, Japanese retailer Daimaru exited the Australian market in July 2002, due to poor performance within the industry, while in mid-2006 Coles Myer sold Myer to a private consortium for $1.4 billion and in November 2007, Wesfarmers acquired Coles Group, which included Kmart and Target.

In 2012, Harris Scarfe, a smaller industry player, was acquired by South African-based Pepkor. This latest acquisition is perhaps indicative of Australian department stores vulnerability to the rising possibility of globalisation.