Fresh State of Affairs Issue 12 by Fresh State

june

12 2012

ISSN: 1838-7829

Message in a bottle:

Where is it?

issue 12

june 2012

what’s on: 14

Relocation:

Market Diners:

Where is the message in the bottle? The Government’s Allocation paper for Epping?

18 Carbon Tax: Is your head in the sand or are you carbon tax ready?

24 members only. A waiting list. Inside the 50 year old wholesale market club.

The Dykes Brothers: 4 brothers pioneered importing fresh produce from Northern Queensland.

Exports:

Q&A – The Happy Apple:

Fresh fruit and vegetables. What you need to know to get started.

Hamish and Paul run an online and market green grocer store.

CONTENTS 2 | What’s on

12 | Around the markets

23 | Holman Fresh

3 | President’s message

16 | Top 10 feature

24 | MMCS

8 | Market history

17 | FC 2012 highlight

11 | Colourvision

22 | Calendar of events

Published by:

www.freshstate.com.au tel: 03 9689 3233

Fresh State CEO: John Roach john.roach@freshstate.com.au Editor / Advertising: Sonja van Eijk sonjav@freshstate.com.au Contributors: Sally Piper sallyp@freshstate.com.au

Design: Flying Dog Designs www.fddesigns.com.au Photography: Michael Lamond admgr.gfv@ruralpress.com Peter Casamento www.casamento.com.au

Print: King Print www.kingprint.com.au Distribution: Fresh State of Affairs is produced by Fresh State Ltd and is a free publication.

president’s message:

Shane Schnitzler From the President The Government’s Allocation Paper - Where is it? Last July, after being in office for over eight months and having completed an “extensive review”, (that no one in industry has seen or had input into), Dr Denis Napthine, Minister for Major Projects stated in his media release when confirming the relocation of the Melbourne Wholesale markets to Epping, “Unlike Labor, who continually failed to properly consult market users, the Coalition Government will be work-

In the meantime our business values have diminished. Who wants to buy a premises that has the words “MAY NOT GUARANTEE AN ALLOCATION OF SPACE AT EPPING”? So no one is buying. On the other hand for those that still have the 2008 lease, they can’t borrow any money because they have no security of tenure. All this is achieving is that a viable market at Epping is just a dream…

Well Minister, the market tenants want to know where the Allocation Paper is. Will it need a Tsunami to wash it up or are the market tenants destined to remain drifting in a “sea of uncertainty”? ing hand-in glove with market users to make sure their relocation issues are resolved in a cooperative manner”. Well Minister, the market tenants want to know where the Allocation Paper is. Will it need a Tsunami to wash it up or are the market tenants destined to remain drifting in a “sea of uncertainty”?

On a more positive note, the Australian Chamber and PMA A-NZ are co-hosting the Fresh Connections Conference 26-28 June here in Melbourne. And for the first time our traditional Australian Chamber Conference is interwoven with Fresh Connections. This provides wholesalers with the opportunity to talk with many of their

retail buyers and growers and see the latest that companies have to offer in new varieties, packaging and value added products. I would encourage you all to experience the biggest industry networking opportunity our industry has seen! This edition includes our features on the top 10 veggies with the most antioxidants to help you through the winter, and the carbon tax – are you ready for 1 July? We trace the Dykes family’s involvement in the industry starting in the old market right through to their current A store at Footscray Road. And talking about the old market, we add another chapter of interesting reading in our continuing series on market history. And two retailers have some interesting surprises in this edition’s Q & A page!

Shane Schnitzler President Fresh State Ltd. We extend our apologies for incorrectly publishing in Issue 11 April 2012 that the Brancatisano family started the wholesale business Fresh Cut Processors. Fresh Cut Processors was in fact started by Ken Alush in 2004.

Disclaimer: Fresh State Ltd makes this magazine available on the understanding the users exercise their own skill and care with respect to its use. Before relying on, or altering any business practices, users should carefully evaluate the accuracy, completeness and relevance of the information for their purpose and should obtain appropriate professional advice relevant to their particular circumstances. This magazine contains views and recommendations that do not necessarily reflect the views of Fresh State Ltd. Fresh State does not in any circumstances accept responsibility for the accuracy or suitability or otherwise of any in-

formation published in Fresh State of Affairs. Fresh State Ltd specifically disclaims all and any liability for loss or damage of any nature whatsoever and however arising, whether due to accuracy, error or omission or any other cause. In addition, by using the information in this magazine, each user waives and releases Fresh State, its staff and agents from any and all claims relating to the use of this document. In no event shall Fresh State Ltd be liable for any consequential damages resulting from using the information in Fresh State of Affairs. © Fresh State Ltd 2012

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior permission from Fresh State Ltd. Requests and inquiries concerning reproduction and rights should be addressed to: The Editor Fresh State of Affairs Magazine Market Box 113, 542 Footscray Road West Melbourne VIC 3003

relocation:

OF AFFAIRS

issue 12

june 2012

Message in a bottle: ‘Tenants still lack the basic information needed for them to make a decision on relocation’, Auditor General’s Report February 2012.

Where is The most basic of information for current leasehold tenants is an ‘allocation of space’ at Epping. The Allocation Paper was negotiated in November 2010 but this Government obviously wanted a second opinion with their discussion paper of February 2012.

them to sell their Footscray Road leases to a willing buyer and for the buyer to be certain of their Epping allocation right. It means that they are not buying a lease for the next two years but are buying the right to transfer / continue their business at Epping.

On the following pages are the Summary of Submission Papers on Allocation and the Wholesalers and Growers

What is currently happening? Tenants can’t sell their businesses. An example is we have several current merchants

How do those wishing to sell their business for either economic reasons or because of their age or health exit the industry? Advisory Committees Submissions on Allocation papers. They make for interesting reading in that they reinforce the November 2010 Allocation Paper. Why is this so important? Under the allocation paper, current leaseholders are granted a transferable right. This transferable right allocates them a similar space at Epping to their lease holding at Footscray Road. This allows

with significant health issues. How do these merchants sell their businesses when a potential buyer has come along only to find they are not guaranteed an equity right to transfer to Epping? So how do those wishing to sell their business for either economic reasons or because of their age or health exit the industry?

What are the impacts? Leaseholders’ equity is being significantly diminished and the value of lease holders business greatly impacted as anyone wanting to buy a premises is not willing to pay for an uncertain future. This process continues to undermine the confidence of the industry, not just because it has taken eight years to date, but because businesses can’t sell, expand (buy) or borrow from banks. And banks are not willing to lend funds because there is no security of tenure! The current situation is deterring expansion and consolidation and is deterring new entrants to the industry. And it certainly is discouraging younger people from graduating from being employees to purchasing a business. The economic impacts so far in 2012 are crushing businesses enough without something like not issuing an allocation paper getting in the way. All this is achieving is that a viable market at Epping is just a dream.

Individual Store Holders

it? Form

Form Responses (store allocation)

ISSUE

SUPPORT

1. Like for like:

Other

Peak Body

Stand Allocation

Peak Body

Flower Market

4 Hybrid Businesses

SUMMARY OF SUBMISSIONS ON ALLOCATION

62 NOT SUPPORT

NO COMMENT

Internal store space

2. Payment for loss of space: $4,000 per square metre 3. Increase of space: Sunset clause and values at the

4. +/- 15 percent

Gov’t error: 34 do NOT support

time of sale

5. No Graduated thresholds 6. Capping: Full entitlement to compensation – $4,000 per square metre

7. Warehousing: Recognition of current incumbents 8. Rents: Only charge on internal store space 9. Stands: Consideration to those who are penalised under store model

relocation:

Store Allocation

relocation:

OF AFFAIRS

Wholesalers Advisory Committee Submission on Allocation The Wholesalers Advisory Committee is pleased to provide its comments on the discussion paper “Allocation of Fruit and Vegetable Stores in the Epping Wholesale Market”. The Committee notes that the biggest response received on the allocation papers has come from store holders (45 out of a total of 62 submissions, 73 per cent of all submissions received). The Committee also wishes to record its appreciation to Fresh State for the support it has given to its members in enabling store holders to put their position. Based on discussions the Committee has had with current business owners in the trading stores area of the fruit and vegetable market, the following advice is offered for the consideration of the Minister for Major Projects: 1. Rents The Committee supports the consistent theme expressed by leaseholders that it is urgent that information on rents be released to market businesses. 2. Store space The Committee: • Supports the allocation principle of “Like for Like” whereby as far as possible (recognising that stores in the new market are standard sizes and store sizes in the current market are widely variable), the allocation of stores for Epping is based on the internal store size in the current market. Where a leaseholder has more than one store, the internal store size of both stores is to be added together to derive the new internal store space at Epping; and • S upports recognition of store transactions that have occurred after November 2010 as well as those that are yet to transact their businesses. 3. Loss of space The Committee: • Opposes the application of a +/-15 per cent tolerance for loss of space and the adoption of a graduated threshold as set out in the discussion paper; and • S upports a dollar value per square metre (based on records of sales over a three year period) applied across the entire lost area. This means that for any loss of space, the leaseholder will receive the same dollar value per square metre for the entire loss of space.

4. Increased space The Committee: • Supports the sliding sunset clause as outlined in the discussion paper. Values need to be based at the time of sale for fairness; • S upports consideration being given to those who are penalised under the store model where they currently have stand space (i.e. they lose store space and lose stands); and • R equest that where a leaseholder receives increased store space but loses stands, they should not be penalised. 5. Capping Where a leaseholder has had a limit applied to the number of stores to be allocated, (where they may have been eligible for three stores, the offer is proposed to be reduced to two), the leaseholder should receive full entitlement of a dollar value per square metre to be paid for every square metre of space lost. 6. Warehousing The Committee supports the principle that current warehouse leaseholders must be recognised for their warehousing premises in the current market. 7. Rents The Committee supports retention of the current system of charging rents for stores. That is that rents should only be charged on internal store space. 8. Placement of leaseholders to specific locations The Committee notes that some submissions have asked that consideration be given to those who currently have premium positions. The Committee expresses no preference for either option (the open ballot or ballot for stores within segments). Stephen Wirtz Chairman Wholesale Advisory Committee Committee Members: Grant Nichol, Shane Schnitzler, Vince Brancatisano, Harry Kapiris

issue 12

june 2012

Submission on Allocation The Growers Advisory Committee welcomes the opportunity to comment on the discussion paper “Allocation of Fruit and Vegetable Stands in the Epping Wholesale Market”. The Growers Advisory Committee requests that the recognition be given to genuine Growers who trade on the trading stands of the market. Unlike the wholesalers markets around Australia, the Melbourne Wholesale Fruit, Vegetable and Flower Market has a “Grower’s floor”. This distinguishes the Melbourne Market and Growers wish to remain a priority in the new market. Based on discussions the Committee has had with current business owners and operators in the trading stands area of the fruit and vegetable market, the following advice is offered for the consideration of the Minister for Major Projects: 1 Stand numbers and sizing The Committee: • Wishes to express its disappointment at the decision back in 2004 to reduce the size of the trading stands area of the new market. While the Committee notes that the proposed increased state sizes are appropriate, it believes the new stands area is compromised by its overall reduced space. Consequently, the number of stands available is significantly reduced (216 stands available); • Remains concerned that the demand for stands may exceed the available supply and notes that if all 1st Rights stand holders wish to preserve the approximate same amount of space at the new Market, then 394 stands are required for each of Monday, Wednesday and Friday and 344 for each Tuesday and Thursday; • I s concerned that there may not be sufficient stands of occasional users, for example fruit growers; • S upports stand holders being able to retain the same number of stands they presently have for the new market; • I s strongly opposed to any reduction in stand sizes; and • S tore holders with stands should not be able to have both at Epping. The Committee notes that approximately 30 store holders between them account for around 80 stands.

2. Rents The Committee recommends that rents at the current market be retained for the first three years of operation at Epping or at the very least, rents for stand holders should reflect the cost of construction of the trading stands area compared with the stores area. 3. Licences The Committee wishes to record its opposition to the proposal contained in the discussion paper that “stand holders at the new Market will not have the right to sell their licence. If a stand holder no longer wants to trade at the new Market, they will have to relinquish the licence to the MMA”. The Committee supports tradeable rights for licences. The Committee also requests that consideration be given to issuing leases for stands rather than licences as they provide greater security. The Committee would like to know what rental compensation will be available when grower trading at Epping becomes not viable. David Wallace Chairman Growers Advisory Committee Committee Members: Vince Doria, Luis Gazzola, David Kelly, Alec Berias

relocation:

Growers Advisory Committee

market history:

OF AFFAIRS

issue 12

june 2012

Melbourneâ&#x20AC;&#x2122;s

69 9 1 â&#x20AC;&#x201C; 0 196 part 2 1.

With 21 acres under roof and a central clear span of 270 feet, the Melbourne Wholesale Market became the largest in the southern hemisphere at the time. Once building began on 24 May 1967 it went full steam ahead with the actual construction time only taking 18 months. The build was not all smooth sailing with geographical problems occurring early due to the swampy conditions of the site. With the number of supporting columns limited to 32 to provide minimum obstruction to vehicles there was a risk of the columns sinking due to the load of such a large span and limited columns. A system was therefore developed to drive piles (800 in total) through layers of silt, clay and heavier deposits in the ground suitable for load bearing purposes. The actual construction time was 18 months and various changes were made to the design during the construction. Grower stands were reduced from 724 to 640 and facilities and services were fitted into the main building as opposed to having separate buildings. Type A stores which formed the north and south boundaries of the pavilion also caused some issues. In a similar twist to current day relocation issues, the amount of stores to be leased, the space required and the

The actual construction time was 18 months and various changes were made to the design during the construction. Grower stands were reduced from 724 to 640. exact location could not be decided before the initial contract was signed. The building was therefore designed so that none of the roof load would be carried on dividing walls and could be built later at 10 foot (or multiples thereof ) intervals. Careful design also had to be considered with drainage and the surface of the structure (asphalt) due to the nature of the site. Today there is no visible evidence that the site was once a swamp. Footscray Road was updated concurrently with the construction of the new building which included a divided highway with four lanes over the old swamp. Provision for

traffic entering and leaving the market was all completed in time for the opening of the market. Legislation was passed during construction for tenants who were trading at the Queen Victoria Market to be provided with accommodation of the same type as they had and not less in floor area, unless they asked for a different type or a smaller area. Non tenants with rights had to be provided with accommodation equivalent to that of a tenant with a business of similar type and volume. The Official Opening Premier Sir Henry Bolte opened the market in an official ceremony on 30 October 1969.

Market History m e t s tores y s largest s o w t t e h llo the be mixed upopwpitohsitt e one another. a B e Th placement of storessinystem diagonally included in the balleovter

, how ballot s were ut the ll tenant hoice of location he space To sort o ray Rd market, a e at the A tsc on of c ose t new Foo d as had been d rkets but for order t could only cho g on a e t n M p a o dependin and ten toria d h ic e c t V a was ad a e n c e o e ll nd Qu been a d above Eastern a t variation. they had quirement (liste een paid) e h r g b re ired we with a sli their size rge deposit had he market. izes requ s e la t r a d o t n h s u f o ty o he in whic ttered ar a c s The varie ho had t e w r t e n w a h n e ic t h w , the one hoice of mixed: example ontage had no c space A r e o p F y T r ts fo als ten e that foot fr 66 tenan only ten t had to go wher store equ e n (o e r bu one sto location ed. • 1 for ntage) at c o ted was all foot fro e conduc 68 r e w s e s r e July 19 s for sto two stor All ballot Hall in June and me for • 3 for s e r o t s fra wn r three at the To ers given a time ithin each • 28 fo sw rad res with all t xchange of store r four sto • 17 fo e y r s volunta ontage size. five store fr • 3 for class and es r o ) t e s g ix a t s ot fron • 2 for s (120 fo e r o t s 2 1 d the 2. • 2 for requeste o s t n a h c r t e s e m g e a h t et on Therefor rrange for the fr a o t council

Merchants stores were not fitted out in time for the official opening so only growers transferred to the new market on 1 December 1969 with merchants remaining at the Queen Victoria Market until their stores were ready. The retailers discovered that the council had instigated large parking fees at the new market without consultation with stakeholders and, coupled with the fact that only growers were present for the first few weeks, the retailers were not happy with this additional expense and took action.

After meetings, boycotting, picketing and protesting, the council agreed to provide free casual parking at the new market until merchants transferred and agreed to the possibility of reduced parking fees thereafter. And so the new market located at 542 Footscray Road, West Melbourne officially started trading in mid December 1969 and peace was restored to the kingdom at last … or was it? Stay tuned for the next chapter in the History of the Melbourne Wholesale Markets in Edition #13.

Images: (1) The Official Opening of the new market. 30 October 1969. (2) Supporting columns for the roof trusses at the new market. Source: Melbourne Markets (1841-1979).

market diners:

The Market Diners Club

There is a little black book lurking around the market with the names of those involved in a Market Diners Club within the market. The club has been operating for approximately fifty years and with it brings a wealth of memorable moments and history. Alan Dykes, the current President, Secretary and Treasurer thinks nothing of the fact that it is a men’s only club. “That is just the way it is and has always been” he says. “The market is historically a male dominated industry and we have found that females are not inclined to want to attend anyway.” Allan recalls the first time Robert Millis turned up to a Market Diners Club

join o t k ee hs 0 a wix mont eek. 1 $ been (about s $15 a w s y a s alw recently eased to a h is t h c i t r h r c I e w is in ev imit aiting l l how , this fee r e w b ago) mem ty and a ing. 4 2 a ci in f re is at capa ed in jo e ent oe h m e T rently terest anag ustry ar m cur hose in e th nd for t d in arket i e v l invo in the m e s o nice y o Th panies oin. j n to “e lenty of com ble to j s i b p eligi e clu nd talk rs Club h t f e a im o drinks ent Din a e Th d, nice a curr foo #” says The Club #%# ber. was started mem dinner and brought his wife Kay along, not realizing it was ‘men only’. Apparently Kay enjoyed a lovely dinner downstairs, on her own that night, whilst Robert was whisked upstairs to the private dining area. At the end of the day, the Market Diners Club is just that. It is a group of men from the wholesale market who get together six times a year to enjoy a good meal at a nice Melbourne restaurant. Wives and partners are invited however to attend the Christmas dinner – lucky them!

by the vegetable merchants through the Vegetable Merc.hants Association. Back then dinners were held at the one venue throughout the year – the Royal Shakespeare Hotel in North Melbourne with the Ladies Christmas Dinner held at the Collingwood Social Club. “The Market Diners Club is a great way to get together outside the market for purely social reasons” says Allan. “And the success of the social club is testament to the clubs longevity as well – it has really lasted the test of time.”

Pierre with the Internal Grading unit or Internal Sweetener.

It’s a long way for a boy from Paris, but Pierre Giasoul loves it.

Pierre is currently in Australia working at Colour Vision Systems in Bacchus Marsh as part of a three month work experience placement for his marketing degree. Staying at a local boarding house, Pierre is enjoying the laid back Australian hospitality. “Everyone here is friendly and every morning they say good morning and are very nice to me.” There is no photocopying or making cups of coffee for this work experience student. Pierre has been assigned with some major marketing projects. “I am working on projects that will make a difference at Colour Vision and which are related to my studies so it all integrates well. The management team is much more open minded and less judgmental than other places I have worked”. General Manager Lou Acevski couldn’t be happier. “We are really pleased

to have Pierre here with us. He has some great ideas and is young and enthusiastic. It is a win win for both of us. We are definitely keen to have more students like Pierre through the doors here”. Pierre will be playing an integral role with the Colour Vision team in setting up their exhibition space

Also on display at Fresh Connections will be the well renowned Colour Vision Internal Defects test unit together with their Internal Sweetener. “Many of Australia’s top tier producers are now using our machines” continued Lou. “We really enjoy coming along to Fresh Connections

On display at Fresh Connections will be the well renowned Colour Vision Internal Defects test unit together with their Internal Sweetener. at the upcoming conference Fresh Connections 2012 in which they are Gold Sponsors. “I am working on a new website which will be ready to launch at Fresh Connections 2012 as well, which is exciting” says Pierre.

and supporting the industry as both an exhibitor and sponsor. It is a great opportunity catch up with everyone in the one place at the one time”. Check out Pierre, Lou and the Colour Vision team at Fresh Connections!

colourvision:

Boy from Paris makes his mark on the Marsh

around the markets:

OF AFFAIRS

issue 12

june 2012

10.

11.

01. Frank and Pip. 02. Sonny and Frank have something to smile about. 03. Phillip and Tony sharing the love. 04. Sam Pignataro. 05. The AMV Fresh Crew. 06. Con Gavas from Opaljade. 07. Barkers Damien Flannery. 08. Fruit Avenueâ&#x20AC;&#x2122;s Patrick Lamanna and Tony Madafferi. 09. Anthony shows off E&R Produce wares. 10. Alex from Camptara. 11. Gilbert and Kon from VB Veg check out the Chamber Conference. 12. Adam working hard at Geelong Citrus. 13. Ben from Tresco is all smiles.

12.

13.

OF AFFAIRS

issue 12

june 2012

Left to right: Alan, Brian, Chris and Mark Dykes at the market floor, 1984.

The Dykes brothers are what some would say old hands in the fresh produce wholesaling business. It all started with their grandfather Mark Dykes who started off carrying produce by horse and cart from the docks to the Victoria Market. He eventually purchased a business in the market and his two sons Mark and Harry worked for him and took over the business.

“Dad was the first trader to source bananas from Tully in Northern Queensland. They were grown around Coffs Harbour at the time but its mountainous terrain meant you were limited with quantity. Dad followed a Tweed grower when he relocated further up North and the rest is history” says Alan.

After active duty in the Second World War and the birth of his eldest son, Mark decided it was time for a pay rise. As the story goes, Mark Senior did not agree on a pay rise, and so Mark Junior took matters into his own hands, borrowed ten pounds from his mother in law and set up his own store on the back of his father’s parting words “You’ll be back”.

The Dykes boys were also at the forefront of sourcing the freshest beans from Northern Queensland for the Victorian market. “Fred Atherton was a big bean grower in Gympie. In those days farms only grew enough for their family in between dairy farming. Fred was the

“Dad set up as a pea and bean merchant which were big selling lines in those days” says eldest son Alan. “There were no processed products and not the variety we have now”.

portation from Southern Queensland. Packs of 24 trays of strawberries were placed in plastic sleeves and insulated with blocks of dry ice and styrofoam like a sandwich. The dry ice evaporated releasing carbon dioxide which meant the strawberries were travelling in an inert atmosphere all the way down to Melbourne, arriving fresh and crisp. This successful trial was pivotal in the development of the Dykes strawberry line. “A month after the dry ice was introduced, it was wet in Queensland for four or five days” remembers Brian Dykes. “Because we were the only wholesalers using the dry ice system, our strawberries arrived in the Market in very good condition and we received a great price compared to other merchants. I was a 17 year old kid at the time selling these nice looking strawberries and got a lot of publicity”. Brian still handles the strawberry lines today.

The Dykes Bros were one of the pioneers of importing fresh produce from Northern Queensland and paved the way for many Melbourne wholesale businesses today.

His four sons – Alan, Mark, Chris and Brian all started working in the business once they reached the age of 16 years and eventually took over the business. “Dad let us make our own decisions and use our initiative” continued Alan. The Dykes Bros were one of the pioneers of importing fresh produce from Northern Queensland and paved the way for many Melbourne wholesale businesses today.

first grower to grow large quantities of beans and employ labour to pick them” says Alan. “He organised road transport instead of using rail. A Saturday morning bean picking would arrive in our store on a Monday by road instead of the normal Thursday by rail. With a two day advantage it caused a real stir at the time. It was the beginning of the end of rail transport”. Dykes Bros were also involved in the successful trials of strawberry trans-

Within four years of selling Queensland strawberries their bean line went from 95% of their main sales to only 5%. At their busiest time they had orders for 340 trays of strawberries but only 317 trays on hand which averaged 18 punnets per customer. “Our busiest day was when we sold the first legal mangoes allowed into Victoria on the floor which happened to be two days before Christmas.” Says Brian. “I was just standing in a small

the dykes brothers:

Minister for Agriculture Eric Kent (left), chats with Mark Dykes (second from left) at the Melbourne Market.

corner about four to five pallets in size for the whole day collecting money, with an average of 30 to 40 customers per hour. It was crazy.” However after an unsuccessful investment, the Dykes were forced to sell the original business. The boys went on to work in a number of other wholesale businesses in the Market as a ‘Dykes’ package taking their network of suppliers with them wherever they went. Second youngest brother Chris, remained independent but also worked in many businesses across the market until his retirement. Chris sadly passed away two years ago. Mark and Brian purchased their new business Dykes Bros in 2004 and

remain in the same A corner store to this day.

the best way to go in this fast paced climate we now live and work in.

The business continues to grow under the experienced eyes of the three brother team with Mark’s son Jonathon also in the mix as a potential heir to the throne.

From a beginning in peas and beans, the business has now diversified and specialises in the tropical produce of avocados, strawberries and passionfruit together with the fastest selling line in the market – blueberries.

“We are always modifying the business” says Alan. “You cannot afford to be static – even if it is just fine tuning”. Suffice to say Alan still tallies up and records the daily sales of all their lines manually which he believes remains

Us wogs taught you one thing – how to eat!’

blueberries avocados

With their years in the business Mark has seen a lot of change in the industry especially the multicultural influence which has been the main trigger of diversity of fresh produce coming into the market. “The best sign I have ever seen was on a toilet wall – it read “Us wogs taught you one thing – how to eat!’” he says.

Mark Dykes 0417 545 456 Brian Dykes 0417 545 455 Alan Dykes 0419 892 791

strawberries passionfruit

Store A338-340, Melbourne Wholesale Markets

top 10 new feature:

OF AFFAIRS

issue 12

june 2012

TOP TEN ANTIOXIDANT VEGETABLES

top

1. Kale 2. Spinach 3. Brussel sprouts 4. Alfalfa sprouts 5. Broccoli 6. Beetroot 7. Red Capsicum 8. Onions 9. Corn 10. Eggplant

Antioxid ct your body fr om th ant-Rich Vegetables to prote e win ter ch ills There are many different types of antioxidants that can protect our bodies from different types of damage, so it makes sense to eat a wide range of antioxidant-rich foods including lots of fresh fruit and vegetables. And it’s a win win for everyone. Eating lots of fresh fruit and vegetables is great for our industry, great for fighting off winter bugs and great for our overall health and well being!

One cup of boiled kale is packed with vitamins A, C and K, as well as potentially cancer-fighting isothiocyanates and anti-inflammatory flavonoids. Researchers at Tufts University Human Nutrition Research Centre in the US have ranked the Top 10 most antioxidant rich vegetables as represented above. Fresh Fruit that made the Top Ten Fruit List included berry varieties blueberries, blackberries, strawberries and raspberries plus plums, oranges, red grapes and cherries. “All Top Ten Vegetables are available in our market” says Tony Nigro our resident Price Reporting Officer at Fresh State. Tony believes that many consumers are already well aware of the antioxidant properties that some of these fruits and vegetables have as demand for top ranking produce has

been strong. “I am told blueberries have had a major impact on the market floor, doubling in sales from one year to the next. “ And it is no surprise given its Number One ranking that Kale is having an impact too. “We keep selling Kale and can’t keep up with demand” says Steve from Meadow Hills Marketing. “We have sold nearly twice as much as last year.” An unknown vegetable to many Australians, Kale belongs to the brassica family and is eaten similarly to silverbeet. One cup of boiled kale is packed with vitamins A, C and K, as well as potentially cancer-fighting isothiocyanates and anti-inflammatory flavonoids. And it can taste fantastic especially when prepared properly - try these serving suggestions: 1. Combine with comfort food like mashed potatoes or bacon. 2. S autéed and seasoned with a squirt of lemon juice and crushed red pepper. 3. Layer chopped, sautéed kale into a lasagna with squash and walnuts or sausage. 4. D rink the liquid from boiled Kale or add Kale leaves to your veggie juice for a tasty and healthy beverage! 5. Add chopped Kale to a frittata or omelette.

Baked Kale Chips • 3 large handfuls Kale, torn into shreds • 1 to 2 tablespoons extra-virgin olive oil • Seasoning: 1/2 teaspoon salt, 1/4 teaspoon smoked paprika, 1/4 teaspoon granulated garlic Preheat the oven to 350°. Combine the seasoning in a small bowl. Wash, rinse and spin the kale leaves. Dry with paper towels so the leaves are dry. Put the kale leaves in a large bowl. Drizzle over olive oil and mix well. Arrange the kale chips onto a baking try and bake until the leaves are crisp to the touch but still a dark green. (When they turn brown, they turn bitter.) Check at the 12-minute mark, to be sure. Remove them from the oven, sprinkle with seasoning and enjoy!

Melbourne Convention and Exhibition Centre

HOSTED BY

26 - 28 June 2012

Benefits across the whole value chain With Fresh Connections 2012 only days away, Guest Speaker Ed Ayala, the Global Business Development Lead at Monstanto gives us a taste of what to expect from his concurrent session at the national event.

Examples launched internationally include:

maximise opportunities across the chain, it is critical we invite consumers to a seat at the table. The better the consumer appeal, the greater potential for value for the entire vegetable supply chain.

The better the consumer appeal, the greater potential for value for the entire vegetable supply chain.

• F rescada™ lettuce that combines the sweet taste and crisp texture of iceberg with the improved nutritional content and deeper colour of cos. • Belleverde® sweet tasting long stemmed broccoli, with a delicate, clean, fresh sweet taste quite unlike any other broccoli. It is also a true pure broccoli cross and therefore has all the health boosting ‘superfood’ qualities of traditional broccoli. • BellaFina™ sweet baby capsicums are small in stature but their sweet flavor and crunchy texture provide an appealing alternative in the capsicum category. • Melōränge™ is a flavorful, sweet melon that offers consumers an improved, consistent flavor, up to 30% sweeter with an appealing deep orange color.

For us, this is the next stage in developing the overall market and it will require collaboration, from the field to the fork: • s eed companies developing new varieties with improved consumer appeal; • growers continuing to deliver fresh produce of the highest quality; • produce marketers coordinating with retailers to drive differentiation; and • consumer awareness in the market place.”

Ed Ayala, Director of Business Development, Vegetable Consumer Traits at Monsanto USA, works with colleagues around the globe to identify and bring to market new produce offerings with added consumer appeal. Over his 16 years at Monsanto, he has also held business development roles in the corn, cotton, alfalfa and chemistry businesses, which have led to experiences in all the continents save Antarctica! Prior to joining Monsanto, Ed worked at Mars & Co, a strategy consulting firm, and Haagen-Dazs ice cream.

Ed Ayala

“Monsanto use plant breeding and leading technology to produce seeds that improve yields, limit spoilage, reduce chemical use and enhance flavour and nutrition.” says Mr Ayala.

Higher yields, greater uniformity, better shipping ability and protection from pests, all benefit producers as well as the entire value chain. And we’re taking our role a step further, working with retailers and produce marketers to identify their needs matching current and projected demand. To create and

To hear more on Ed Ayala’s presentation including more on new varieties and the opportunity to ask questions, register to attend Fresh Connections 2012 from 26 to 28 June 2012 via www. pmafreshconnections.com.au

fresh connections highlight:

Conference and Trade Show

issue 12

june 2012

current news:

OF AFFAIRS

Is your head in the sand or are you It takes effect from the first of July 2012 and will have an impact on all businesses and households in Australia, so the question is are you ready for the Carbon Tax? Basically as of 1 July 2012, polluters will pay per tonne of carbon they release into our atmosphere at a cost of $23 and this price will increase gradually until 2015.

Things you can do to keep you head out of the sand and be prepared:

Map your supply chain from an energy consumption perspective (electricity, gas, fuel) Undertake a full carbon footprint

(refer to previous issues of this magazine or contact the Fresh State office for more information) and identify potential risks and opportunities

Communicate with your staff and supply chain partners (you may be surprised by the potential for collaboration) Review your own systems and

processes to identify what changes may be required and the value of implementing such changes

Investigate grant opportunities

and further information via consultation with the State Government.

By this time we will shift to a trading scheme that will let the market set the cost. The carbon price will be paid by the top 500 polluters (around 60%) and will cover electricity generation, some business transport, waste, industrial processes and fugitive emissions. It does not apply to agricultural emissions. This essentially makes polluting activities more expensive and provides businesses with an incentive to create new, cleaner ways of operating. We all know by now that carbon pollution is the main cause of climate change, which is threatening our environment, our food production and our way of life. So this tax is an opportunity for the government to get the message out there by hurting what matters most to business - their back pocket! Australia will join a number of countries including the USA, UK, Canada, India and China who have either already implemented

a similar tax in some states or have plans to do so. The Australian Government will help small businesses by increasing the instant asset write off for any new asset that is worth up to $6,500 for businesses that upgrades their equipment. The Government will also improve advice to small business on energy efficiency opportunities and increase the funding for business programs that assist small and medium businesses in the clean technology industries. Special assistance will be provided to certain industries that are trade-exposed and have higher exposure to energy costs than general manufacturing businesses. Luckily for the fresh produce industry if you are a food processor you may qualify under the Food and Foundries Investment Program. Through the Program, the Government will provide grants worth up to $150 million over six years to the food processing industry to assist with the investment in energy efficient equipment and low-pollution technologies, processes and products.

The world’s only real-time end-to-end temperature management system Monitor and track temperature sensitive products like never before with Cooltrax.

carbon tax ready?

However what is the bottom line for fresh produce wholesalers? How is it really going to effect in dollar terms, your wholesale fresh fruit and veg business on the market floor? Unfortunately it is hard to qualify the answer. “If your business is either a high consumer of energy or your suppliers or customers are, you will be impacted.” says Deane Belfield from HLB Mann Judd Consultants and Joe Kaleb from Australian Biz.

carbon footprint and more sustainable business practices”. Shane Schnitzler, CEO of Kapiris Bros and Fresh State President is unsure how the tax is going to effect his wholesale business. “There are no applications, no models. No one knows. That is why the economy is so uncertain at the moment and no one is spending. It is going to be a matter of suck it and see.” he says. Ken from Alush from Fresh Cut Processors is resigned to the fact that the carbon tax is a tax we are just going to have to pay and that it will be tough. “Every commodity goes up except for the fruit and vegetable industry because of supply and demand” he says. “Because of this we get the raw end of the deal.”

Carbon pollution is the main cause of climate change, which is threatening our environment, our food production and our way of life. “This is because somewhere along your supply chain will exist one or more of the large emitters impacted by the carbon pricing mechanism and they will be focused on reducing their emission liability, including seeking to have their suppliers reduce theirs. You could be one of those businesses and already we are seeing many examples in Australia of large companies (producers and service providers) informing their suppliers that in the near future preference will be given to those that can demonstrate a lower

With a processing arm to his business, Ken was not aware of funding eligibility and the opportunity to upgrade equipment. “I am definitely interested in finding out more about this grant,” continued Ken, “anyway that we can get funding to modify our equipment so it is more economical to run is worth looking into”.

reasons to use Cooltrax ADVERTISMENT

Farmers and landowners are not forgotten either with a Carbon Farming Initiative which will provide economic rewards for farmers and landholders who take steps to reduce carbon pollution by creating credits for each tonne of carbon pollution which is stored or reduced on the land.

1. Better shelf life 2. Increase profits and performance 3. Real-time management 4. Greater transparency 5. Meet regulatory requirements 6. Future proof

See how Cooltrax can work for your business www.cooltrax.com

03 9686 6011

issue 12

june 2012

exports:

OF AFFAIRS

Exporting fresh fruit & vegetables

There are many pros and cons when it comes to exporting fresh fruit and vegetables out of Australia. But the bottom line is that the wholesale market environment as we know it, is changing – businesses are consolidating, more niche products are being introduced on supermarket shelves and consumers are more savvy than ever before, especially when it comes to sourcing products from overseas. So it pays to think outside the square and diversify your income streams – this includes the possibility of dipping your toes into the export market. The stats ‘in a nutshell’: The biggest market for Australian fruit and vegetable exports is Asia. Key markets include Japan, Hong Kong, Singapore, Taiwan, China, South Korea, Indonesia and Malaysia. Other major export markets include USA, the United Arab Emirates and the United Kingdom. Australian vegetable exports have seen a 10.2% increase over the last five

What you need to know to get started …

years with exports in 2010-11 worth $460 million while the export of fruit and nuts has seen a fall of 1.3% over the last five years with its exports in 2010-11 worth $651 million, the lowest since 1999 according to the Composition of Trade Australia 2010-11. The main vegetable products exported include the root varieties of fresh carrots, onions, potatoes and asparagus while fresh fruit lines include oranges, grapes, apples and mangoes. Australia has some supply advantage in the international market due to its ability to supply counter seasonal products to northern hemispheres

such as apples, citrus, mangoes, stone fruits, onions and asparagus. Other opportunities include the demand for high quality packaged fresh products to North and South East Asia. Exports are currently being impacted by the high value of the Australian dollar, our higher costs of production and an aversion to risk taking. But there are many beneficial aspects that can be attractive to wholesalers. Benefits of Exporting: Beyond increased sales, exporting can also deliver a range of other direct and indirect benefits such as:

Australian vegetable exports have seen a 10.2% increase over the last five years with exports in 2010-11 worth $460 million while the export of fruit and nuts has seen a fall of 1.3% over the last five years, with its exports in 2010-11 worth $651 million, the lowest since 1999 according to the Composition of Trade Australia 2010-11.

• E conomies of scale – exporting can leverage your unique product and service by increasing your customer base beyond Australia, resulting in economies of scale. Exporting can also level out seasonal fluctuations in product demand to let you use your capacity more efficiently. • Productivity – exporting can expose your business to new ideas, technologies and business processes and provide opportunities to improve your knowledge and increase your competitiveness.

• Innovation – exposure to more competition, new technologies and processes, different customer requirements and cultural environments can all help boost productivity, skills and innovation. Potential Pitfalls: There is also a need to manage a range of risks that may not be present in domestic markets, including:

• C ulture – differences such as language, religion, ethical standards and negotiation styles can influence business decisions and processes.

• Human Resources – moving beyond the domestic market may place pressure on your businesses’ resources, such as capacity and productivity constraints and the need for specific new skills.

• P olitical Environment – the political environment of the market you are considering may pose new challenges to your business. Political instability may affect the ability of the government to implement policy and enforce law. Civil unrest may also affect personal security.

• F inance – exporting will involve additional expenditure which may initially impact on cash flow – along with export financing/currency issues and the added risk of potential non-payment for goods and services supplied to foreign buyers.

• L egal systems – it is likely that overseas legal systems are different to Australia. It is important to understand what you need to do to comply with legal requirements through the export process, such as taxation, employment practices, currency dealings, property rights, protection of intellectual property and packaging/labeling requirements.

For further information on exporting visit http://export.business.vic.gov.au and http://www.austrade.gov.au

calendar of events:

OF AFFAIRS

issue 12

june 2012

Australian Chamber Conference / PMA Fresh Connections 2012 Melbourne Convention and Exhibition Centre Don’t miss out on mixing with the cream of the crop - register your attendance today at www.pmafreshconnections.com.au

Nominations open for 2012 Fresh State Awards • Wholesale Company of the Year • Wholesale Personality of the Year • Young Marketeer of the Year

Fresh State Gala Ball Twirl the night away at The Carousel in Albert Park. Tickets on Sale soon….

Fresh State AGM Featuring the lamb king Sam Kekovich back by popular demand. Laureate Room, Etihad Stadium, Melbourne

ADVERTISMENT

Smart Fresh™ – The Prudent Decision PROTECT YOUR HARVEST SmartFresh assists growers and marketers to maintain harvest quality whether in storage or the marketplace. PROTECT YOUR STORAGE SmartFresh helps manage fruit quality in storage optimising quality outturn.

PROTECT YOUR QUALITY SmartFresh helps deliver that just-picked quality consumers demand even after cold storage and transportation, encouraging repeat purchase.

Producing quality fruit requires significant time and money. The prudent decision at harvest is to protect that investment with SmartFresh™ Technology, a quality tool for internal ethylene control along the supply chain. SmartFresh works by interacting with the ethylene receptors on and in the fruit.

2COMM12535

Qld, NSW, Vic, Tas: Nick Sanders: 0 418 998 315 • nsanders@agrofresh.com WA & SA: Peter Vedeniapine: 0 417 779 133 • pvedeniapine@agrofresh.com

www.smartfresh.com

Holman Fresh hosted the 2012 Gaypak Family Picnic on their Melbourne Markets stand on 30 April 2012 offering retailers the chance to WIN $2,000 worth of local advertising for their store.

Off the back of the Gayndah Packers marketing theme for 2012 “Meet the Gaypak Family” Holman Fresh developed an independent retail program asking store owners to create an eye-catching display for their chance to win. “Our aim is to empower the independent retailer and have them create a display that is of interest to consumers and encourage them to look for the smiley face when

purchasing citrus. From our family, to theirs.” said Judy Shepherd of Gayndah Citrus Grower. Since 1892 Aussie families have been growing citrus in Gayndah. Based alongside the beautiful Burnett River Queensland, the town of Gayndah is known for producing Australia’s finest flavoured Mandarins. In 1971 the Gayndah Packers Cooperative was formed to assist growers

Holman Fresh developed an independent retail program asking store owners to create an eye-catching display for their chance to win. in the packing and marketing of fruit allowing them to focus on what they do best – growing.

holman fresh:

Holman Fresh opens 2012 Gaypak Citrus season

melbourne markets credit service:

OF AFFAIRS

issue 12

june 2012

A cashless market A surprising number of Australians only carry small amounts of money. How many times have you stood behind someone buying a can of Coke by eftpos? According to research from eftpos Payments Australia Limited (ePAL), Australia’s leading payment system, almost a third (31 %) of Australian’s carry less than $20 at any time. The research findings reveal the declining use of coins and bank notes, and indicate we are well on our way, along with countries such as New Zealand and Canada, to becoming a largely cashless society. Bruce Mansfield, Managing Director of ePAL says that all indicators point to Australians moving away from cash and favouring electronic payments. “The declining use of cash is a trend reflecting changing payment habits

and preferences and Australians’ increasing comfort levels with electronic transactions. Other countries, such as New Zealand, have long favoured the safety and convenience of electronic payment systems over cash, and it seems it’s only a matter of time before cash begins to disappear from Australian pockets too”.

Standout statistics from the eftpos research were that: 46% of Gen Y (those born from 1982 to 1995) in Australia carry less than $20 at any time 30% of Australian’s didn’t have enough cash in their wallets at the checkout to make a purchase, preferring to pay with a card instead Women are more likely than men to not have enough cash for purchases Gen Y is the group most likely to be unaware of how much money they are carrying

Bearing this information in mind, where does that leave the Melbourne Wholesale Markets and the other wholesale

markets around Australia, and in fact the world? Cash is still used on the market floor today by retailers who prefer its bargaining power and it’s a hard habit to change for wholesalers given someone is paying on the spot. With younger generations taking over from their predecessors it will be interesting to see how much this trend remains. Where credit is concerned, it is a different story! “The Credit Service is the best way in which trade can be conducted on the market floor without the

“Show me the money!” Alan and Jonathon Dykes wager their cash over the correct weight of a bag of chillies.

use of cash,” says Fresh State CEO and Melbourne Markets Credit Service advocate John Roach. “By becoming a registered Credit Service user, businesses can trade with other registered buyers and sellers easily and with a clear audit trail”. John also recognises that the days of hauling cash around will change. “The statistics clearly show that our society is changing and we are using cards more than ever before to buy goods at a retail level. This results in a flow-on effect to the market and wholesalers”.

According to research from eftpos Payments Australia Limited (ePAL), Australia’s leading payment system, almost a third (31 %) of Australian’s carry less than $20 at any time.

Daniel Scavo from Young Sang & Co believes every merchant should be part of the credit service. “It would eliminate the risk of

owe money. “Cash used to be good because it was considered a gentleman’s agreement, nowadays that is dead and means nothing”.

Whether you are using cash or credit, you still need to get paid. carrying cash, avoid underpaying and allows traceability” he says. But Daniel is not convinced a totally cashless market is the way to go. “Cash is still a great tool for negotiating and that is why it is so popular in our market”. However Veli Velisha from Veli Velisha Fresh Produce is not so sure. “Cash is no good if buyers owe you money,” he says. “I would like to see a change in the market where we all use the credit service.” Veli says that he has taken a lot of cash over the years but people still

“At the end of the day, sellers all agree on one thing - whether you are using cash or credit, you still need to get paid” says John Roach. So the jury is out on the use of cash in the market for now. Perhaps the move to the new State of the Art market facility in Epping will facilitate a new way of thinking regarding transactions on the market floor. Plastic cards to replace cash and the credit service mandatory for all – who knows?

Have your say and write to the Editor at sonjav@freshstate.com.au

Want to Know More? To become a MMCS User or for more information jump online at: www.melbmcs.com.au or contact us on: T: 9687 7333 E: customerservice@melbmcs.com.au

issue 12

june 2012

Q&A

The Happy Apple

OF AFFAIRS

Text.

Paul (left) and Hamish (right) in their shop.

After working in London for three years as an Account Manager for Denone, Paul and his mate Hamish decided to have a seachange and go into partnership to start a business.

Works:

In my spare time we enjoy:

Fresh fruit and vegetable shop and a recently launched online store.

Hamish – sleeping. Paul – footy. Both love socialising with family and friends.

As luck would have it, the Tasmanian born friends found a fruit and veg shop on the soon to be trendy Union Road in Ascot Vale. Having no knowledge of the area (or the industry) Paul says in hindsight they didn’t really know how good the shopping strip was.

Paul – Moonee Ponds. Hamish – Ascot Vale.

Paul had seen some great examples of boutique greengrocers in London and was keen to duplicate the look and feel in Melbourne. It didn’t hurt that the shop had been a going concern for the last fifty years either.

The football team we barrack for is:

And after five years in the hands of Paul and Hamish, The Happy Apple is a hive of activity. What it lacks in size it certainly makes up for in character. It is bursting to the seams with fresh produce and unique boutique style accompaniments that is every urban mum’s fantasy. It is a vibrant and thriving business but the boys are not resting just yet. They have recently launched an online store as an additional channel to their business to meet demand and keep up with the times. This can only be a good thing - for their customers, the wholesalers in the Market and the next generation of greengrocers in Melbourne. Check them out at www.thehappyapple.com.au

Lives:

Most of our day is spent: In heated debates! We start at 3.30am down at the Market then on the shop floor and managing all parts of the business. Paul – Carlton! Hamish – The Blues. Our favourite Melbourne Market moment is: We organised to meet a retailer so he could show us the ropes. We waited in the market coffee shop for four hours and he never turned up – so we went home! The quality we respect most in an employees is: Paul says honesty, punctuality and hardworking however Hamish argues that honesty covers the later qualities.

Our first job was: Paul – a paperboy. Hamish – a checkout chick! The aspect of our job we Iike the most is: Having a full shop of customers on a busy Saturday morning and feeling the buzz and vibe in the air. Also love to hear great feedback. The thing we dislike the most is: Way too early hours! If the market started later then it might attract a younger generation of greengrocer to the industry – who wants to get up at 3.00 am everyday? We are passionate about: Quality, presentation and service. Our business associates would say that we are: Good guys!

If we described our business to a stranger we would say:

The thing a lot of people don’t know about us is:

A small independent greengrocer who values service and quality.

We are not brothers!

The qualities we most enjoy about Melbourne Market are: Friendships, the mix of characters and the passion of the growers.

Our favourite fruit or vegetable is: Paul – watermelon. Hamish – fresh beans.

Bruce has over 30 years experience in your industry. Speak to him about growing your buSineSS.

Bruce and his team have a wide range of specialist knowledge in taxation, accounting and financial planning.

With 30 years experience across the wholesale fresh produce industry, Bruce takes pride in OHMâ&#x20AC;&#x2122;s attentive and individualised service. This combination of expertise and attention to detail has created long lasting relationships with OHMâ&#x20AC;&#x2122;s clients, enabling them to grow their business and their wealth.

Call Bruce on 03 9500 0911 www.ohm.com.au

www.perfection.com.au

IS MY BUM BIGGER THAN HERS?

ONLY JUST.

THE GREEN OTHER GREENS ENVY Everyone loves Broccolini® baby broccoli. Broccolini® stalks are firm and tender from flower to stem. Delicately flavoured. Gorgeous on the plate. There’s no peeling, no waste and no comparison. Visit us at our Melbourne Market Stand Stands 362-367 “A” Melbourne Markets 542 Footscray Road West Melbourne VIC 3003 Ph: 03 9687 6989