The Future of Purchasing the Market with Industry Investment

Chairman’s Update (As seen in the FMA 2021 Yearbook) The Fresh State board are currently focused on projects that will change the future of not only the Melbourne Market, but the Fruit and Vegetable industry in Victoria.

Market Sale – as the only government owned Central Market left in the country, it’s no secret that Fresh State has made several attempts to encourage the government to review to current ownership structure of the Melbourne Market. Under a privatised model, other Central Markets around the country have achieved significant growth and we feel that the same could be achieved here at the Melbourne Market. While still very early in the process, it has been encouraging to see that the State Government has been open to looking at what shared goals could be achieved under a privatised model. Like in your own states, family businesses here in the Melbourne market, both generational and new, are the heart and soul of the market. Businesses want to continue to invest in their own future, and we think that the current ownership model is holding back much of that further investment. The example that I often use is the difference between renting a house or buying as house. Like us, the current government too want a prosperous, thriving Central Market in Victoria, with ongoing investment, innovation and even more importantly, long term sustainability of the industry. Given our shared goals, we have faith that our positive discussions will result in an outcome that benefits all stakeholders.

Over the past year a number of discussions and meetings have been held to explore this opportunity. As said by Shane in his Presidents message, one of Fresh State aims has always been to keep the central market system sustainable and prosperous for years to come. Wholesalers, Growers, Retailers and Providores have all joined us in diving into this topic and what the potential of looking into privatisation has for them. “There are several reasons behind the intention to look towards a privatised model at the Melbourne Market. Among the many, financial return, business investment, sustainability, and flexibility play a significant role in providing evidence and feedback on where change needs to happen. The longevity of the Central Market System is a top priority, and this venture gives the Melbourne Market a real opportunity to achieve this in Victoria. If this doesn’t happen, the uncertainty of the sustainability of our market becomes very real,” said Jason Cooper, Fresh State Ltd CEO.

LOOKING TO THE FUTURE It is proposed that a new company be formed to give industry participants the opportunity to invest in their future by becoming shareholders in the purchase and privatisation of the Melbourne Markets from the Victorian State Government. What are the benefits of privatisation to market users and investors? Deliver an outcome that allows our industry to: ¡ Self regulate ¡ Manage change ¡ Manage growth and industry development and reputation ¡ Promote engagement with future generations and succession

¡ Strike and equitable balance between returns and costs to tenants and all market users

¡ Ensure people with relevant industry experience manage and further develop the

Melbourne Market

¡ Allow competition across the entire industry to ensure competitively priced produce ¡ Improved unity between all Central Markets nationally resulting in greater cost efficiencies ¡ Protect Victorian jobs with increased industry investment It is proposed that the new company will be a consortium of investors who are industry-based. The range of investors will range from growers to wholesalers, to retailers, and many others within the Horticulture supply chain. It will give industry participants an investment into their futures by becoming shareholders in the purchase and privatisation of the Melbourne Markets from the Victorian State Government. The company’s board and management will consist of people with a cross-section of relevant industry experience to ensure the future of the industry is in secure hands. Following a smooth transition of market operations and other key responsibilities from the MMA to this new company, the short to medium-term focus will be on achieving operational efficiencies by leveraging the knowledge and skills within the new company. While slightly longer term, future growth within the market and greater industry investment will become key cornerstones in the way the market is managed and developed for the future.

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