Fresh State of Affairs Issue 14

october

14 2012

ISSN: 1838-7829

y n a p e l m z o z C u p s e r e h t b s m e t e M mple co

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2012 FS Gala Ball Awards

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Packaging: fresh or fake?

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Top 10 veggies to eat this Summer

issue 14

october 2012

what’s on: 4

10

Relocation:

Restructure:

Allocation – the first serious decision by the Government.

16 Business Consolidation: Will smaller wholesalers remain sustainable or will they get eaten by the bigger fish?

12 2012 Fresh State Gala Ball:

Members vote for a restructure of Fresh State.

The ideal way to welcome the party season in Melbourne!

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Packaging:

Q&A – Osi Prestia:

Fresh produce competes with its fake counterparts confusing the consumer.

Meet the big-hearted Salesman and Company Director of Prestia Wholesalers.

CONTENTS 2 | What’s on

17 | Fresh State AGM Summary

22 | Exporting

3 | President’s message

20 | Gala ball 2012

24 | Calendar of events

8 | Market history

21 | Top 10 feature

26 | Halloween

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.

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president’s message:

Shane Schnitzler From the President The puzzle is coming together. After two years of planning, listening to expert advice and with the board focusing on the long term, members voted for the new Fresh State model in August.

It is refreshing that for the first time in many, many years the members were not asked to vote on something to do with relocation.

And the plan is simple. Members have the opportunity to purchase a share (one per member) in a new joint venture with Fresh State. Our starting point on the joint venture is part of the MMCS. The logic is simple – combined with the new Bad Debt Fund to provide certainty to the members and the introduction of the new software system, we are giving members the tools to address one of their three big issues – credit!

On relocation, we will welcome the announcement by the Minister to provide certainty for members with their allocation of space and compensation. This first part was a long time coming, some eight years,

Members have the opportunity to purchase a share (one per member) in a new joint venture with Fresh State. Our starting point on the joint venture is part of the MMCS.

There is some great reading in this edition including a look at the Eighties in our history series; the Australian dollar and what is means for trade; all the action from the Gala Ball; and be sure to read what Osi has to say in the Q & A! Shane Schnitzler President Fresh State Ltd.

and we support the meaningful decision making process that led to this decision in preference to the alternative process!

The tremendous response from members in nominating all award winners was fantastic and my congratulations to the winners and the finalists at the Gala Ball! They were all worthy contenders and it is pleasing to see their friends and colleagues sharing their achievements on the night.

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

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issue 14

october 2012

relocation:

OF AFFAIRS

ALLOCATION st Serious

1

Decision!

After eight years of indecision and Government mismanagement there is something tangible starting to emerge in relation to relocation, (besides a near completed market complex at Epping).

It is called “equity and the ability to transfer it”.

Before delving into equity transfer we need to look at what makes successful markets. All the successful markets around the world, and there are many, are based on allowing leaseholders to make unimpeded business decisions.

And the key to successful markets and businesses is their people and their ability to attract professional, qualified people to work for them allowing the owners to further invest if the opportunity arises.

By this we mean that the rug won’t be pulled from under their feet at short notice, that they have lease options in place and that they can sell and transfer their leaseholds in an unencumbered way.

Since the announcement of relocation in 2004 and the disputes from 2006,

Why? Because this allows them to invest in their business, they know what their business costs are and the banks that lend to them to finance their trade and development take comfort that they are on top of the reality and risk equation and they won’t disappear tomorrow.

the purchaser that they “may not be guaranteed an allocation of space at Epping”.

Through protracted discussions and negotiations, the Minister recently took some positive action to rectify some of the uncertainty. He instructed the MMA to issue letters to all store leaseholders

The costs of fit out remain an unknown.

What will be the Government’s contribution? the transfer of leaseholder’s equity had been placed in doubt by the (then previous) Government and the MMA. From early 2011, this was placed in extreme doubt as the MMA Deed of Transfers of current leases sold from that date included a clause for

outlining their allocation of space entitlements at Epping. Additionally, the offending clause in the Deed of Transfers has been removed.

This was a good first step as it removed doubt about members’ equity entitlement and its transferability.

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relocation:

The key to successful markets and businesses is their people and their ability to attract professional, qualified people to work for them allowing the owners to further invest if the opportunity arises.

The next step (at the time of writing) has been working through any loss of space for some leaseholders due to the design of Epping versus the design at Footscray Road.

provide 100% occupancy of stores at Epping. Although not all current tenants may relocate to Epping, the people they sell to will as they now have some certainty of tenure.

An option is being agreed that is palatable enough to move forward but noting that it doesn’t reflect the true value of a leasehold. Similarly, for those who gain space, a compromise option looks to have been achieved with the inclusion of a sunset clause over the medium term and a window of opportunity for trade before it kicks in.

But there are some “elephants in the corner”. Firstly, the cost of doing business is a big issue and any talk of rent increases or escalations are unfounded and unjustified, especially given the state of the economy and industry structural changes affecting the industry. It is a difficult operating environment out there even without an impending relocation let alone facing any increase in operating costs.

Besides the settlement of these issues for business longevity and certainty to assist members, there are far more compelling reasons for a successful and positive transition to Epping.

Pending the contents and signing of Agreements for Lease (AFLs), it will

Secondly, there is a growing concern from members about the costs of fit out as it remains an unknown. What is the Government’s contribution to fit out, how much is ear marked from the

Industry Assistance Package towards this, and how much will the rest cost are just some of the unknowns.

These issues are the first in a long line of issues that need sorting, so as to provide members with as much information as possible for their business planning. This first decision has taken some eight years but with constructive talks and an open mind maybe the next dozen or so decisions won’t take as long!

dangerous vegetables:

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OF AFFAIRS

5

A recent UK study has ranked the most dangerous vegetables by how many injuries they cause in the kitchen.

The study found that 88 percent of people injure themselves in the kitchen and that 39 percent of those cases were because of difficult to cut vegetables.

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Source: Fresh Plaza 18/06/12

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turnip

issue 14

october 2012

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OF AFFAIRS

issue 14

october 2012

Melbourne’s 1980 - 1989

market history:

08

the eighties

The 80’s were buzzing at the Footscray Road Market. The grower’s floor was thriving and the age of the forklift had arrived.

The issue of market hours was still a hot topic and causing debate and friction between market users.

After a lengthy process, members of the Market Trust finally agreed (on a five to one vote) that the market hours were a major issue in the market.

Steps were taken to formerly change the hours based on the Market Trust’s recommendation but unfortunately due to legal advice together with the threat of legal action by opposing organisations, no changes eventuated.

been unable to agree on a change of hours to this day.

Premier Bolte had proudly demonstrated the advantages of a fully enclosed market at the official market opening on 30 October 1969, by opening the

the growing popularity of forklifts, there were now hundreds in the new market. “Forklifts were good because they saved lots of manual labour” said Dick Brancatisano. “They were petrol or diesel and the enclosed market became very polluted”.

The Queen Victoria Market was thriving due to affordable inner city living, which attracted market customers.

“An injunction was granted the working day before the hours were due to change – it was so close,” said Peter Silk from Silk Bros and former Fresh State President. This outcome became a pivotal moment in the hours debate and market users have

“You couldn’t see the roof due to the fumes” remembers Alan Dykes, another former Fresh State President. “But it wasn’t what you could see but what you couldn’t see that was the problem”.

automated eight sets of huge steel doors at either end of the building.

The doors were designed so that trading would commence at the same time – once the doors opened.

Forklifts did save on manual labour however the unloading of produce such as lose watermelons, pumpkins and bags of potatoes were still done by hand.

This design however was causing issues in the modern market. With

“Rail was used a lot to transport stock” continued Peter. “Tomato cartons

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Market History Forklifts were good because they saved lots of manual labour. They were petrol or diesel and the enclosed market became very polluted. would be unpacked by hand off the train to the siding and then carriers would transport the stock to the stand. That is where the term local cartage was derived from”.

During Alan’s term as a member of the Market Trust, a Report was prepared on the air quality within the market which resulted in some big changes. Ventilation fans were installed in the market roof and the highly acclaimed automated market doors were left permanently open.

“There had been ongoing problems with the maintenance of the doors which were getting more and more difficult to open and shut” says Alan. “So the decision to keep them open was a good fix to a few problems”.

The last key change to be made to the air pollution was to ban the use of petrol and diesel forklifts in the market. “There was a lot of drama with the conversion” remembers Alan.

“People were saying that diesel was just as good as gas, which is true if the engine is clean, but this was not always the case with the forklifts”.

The Growers floor was thriving even though it was full of pseudo growers. There would be approximately 800 grower sellers in the Summer months overflowing into the car park. “It was a totally different demographic at that time” recalls Peter.

“With approx 1500 retailers in Melbourne there was a big demand for produce. ” The Queen Victoria Market was thriving due to affordable inner city living, which attracted market customers. “It was nothing to sell 80 two kilo boxes of beans to a retailer at the Queen Vic and then they would come back the next day and do it again!”

Peter says he was a novice at the time but looking back in hindsight, he realised that Wholesalers would create their own markets of supply and demand.

“Certain Wholesalers who also supplied big chains like Safeway, would purchase truck loads of produce such as lettuce and store it away creating a shortage” says Peter. “Sometimes this would pay off and sometimes they would fall on their face with too much stock.”

Images (p8): Doors left open at the market, 1969.

Buyers fight to get limited produce.

Source: Melbourne Markets (1980-1989).

“I worked at the market every single day of the school holidays without fail with my dad.

I really hated it.”

– Vince Brancatisano from Prestige Produce

“People that agree say nothing and people that don’t agree jump up and down.”

– A lan Dykes, former Market Trust member

“I remember the growers floor being choc a block back then and the siren that was rung to announce the start of trading.”

– Ken Alush from Fresh Cut Processors

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OF AFFAIRS

issue 14

october 2012

Members Company Completing the Puzzle In a momentous occasion in the history of Fresh State, members voted for a restructure of Fresh State at a Special General Meeting on 28 August 2012. To understand the significance of this decision we need to look back in time to appreciate this change.

History Fresh State’s predecessors date back a long time. Indeed the fresh produce industry sits alongside Melbourne settlement in the mid 1830s and 1840s.

In 1905 Fresh State commenced and via various names has represented members through different locations, good and bad economic times, world wars, and changing social landscapes and technologies.

Why did Fresh State change through the 2000s?

The writing has been on the wall for the past decade that industry associations needed to change or disappear. The fabric that often held associations together was people volunteering for the committee and often spending many hours of their own time organizing social events for

Fresh State was an industry association with declining membership, limited income and reliant on membership fees for a great majority of its funds.

This is not unlike many other industry associations at that time or some even today.

What changed?

Fresh State needed to change. A little item called relocation was the catalyst that brought to focus that members businesses were about to have their world turned upside down.

But the need to change had already been sweeping through.

Fresh State represented members’ interests to the operator of the markets and Government as well as broader industry and members needs.

Through all these times Fresh State represented members’ interests to the operator of the markets and Government as well as broader industry and members needs.

However, one lasting impression that past and current leaders of the organisation have said is that “they wish they did this or that – if only we did such and such it would be different today”!

members as small communities and association often do.

Most income was from members fees and occasionally the association would “gain funding” from government for a project to deliver a particular aspect of need. Some broadened a little more and would provide a fee for service to members to gain extra income.

The industry had started to undergo structural change and the advent of people from outside the fresh produce industry who had broader corporate experience was seeing an industry of opportunity but through different eyes. They saw that you need a diverse income, that businesses generated significant through put and that the industry was changing.

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This was at times confronting for the industry elders who were familiar with their induction into the industry and often spent their life in the wholesale trading environment.

With relocation came the realisation that you can’t fight or negotiate a forced relocation without two key ingredients – money and leadership!

Leaders think about strategy and find people that can help deliver their vision. Money buys expertise that assists delivery of the strategy.

By 2005-06 it was obvious that Fresh State needed new streams of money and new blood and set about putting these in place. The first change was to bring in fresh people with different ideas. This was followed by fixing the bottom line.

Fresh State changed from an association to a company limited by guarantee in 2008.

This meant that directors became responsible to ASIC as well as members.

It changed attitudes and they viewed the future not from the past but from

where we need to be in three, five, ten and twenty year’s time! This brings us to the restructure.

Restructure The board and management have worked on getting members an ‘equity entitlement’ of Fresh State for over two years. They sought extensive business and legal advice to come up with the right model – a model that will develop value for members out into the future and something that they can hold on their balance sheets!

Members have the opportunity to purchase a share (one per member) in the new joint venture with the starting point being part of the MMCS. The board’s view that it won’t end here as many other initiatives can be added to the joint venture framework.

The Fresh State board continually reinforces that it is important members are given an opportunity to gain benefits over the longer term. The model will deliver this outcome and finally complete the puzzle!

The restructure outcome is a joint venture between Fresh State and a members’ share company.

The restructure outcome is a joint venture between Fresh State and a members’ share company.

restructure:

Leaders think about strategy and find people that can help deliver their vision.

Money buys expertise that assists delivery of the strategy.

Fresh State Gala Ball Awards Wholesalers and their guests had no difficulty relaxing and enjoying the Fresh State Gala Ball which was held once again at The Carousel, on the banks of Albert Park Lake in early October.

“It looks like the popularity of the Gala Ball is back in full swing after a sensational night,” said Fresh State President Shane Schnitzler.

“We had a fantastic mix of people, lots of dancing and good old fashioned fun”. Shane said it was the ideal way to welcome in the ‘party season’ in Melbourne which kicks off with the Spring Racing Carnival and proceeds into Christmas celebrations. “We all work long hours in this industry and its been a tough winter. Fresh State wanted to give the guys an opportunity to get dressed up, mingle with colleagues and just relax”.

No one knows if they are even nominated for these awards … It brings an element of surprise and adds to the excitement. ale les ss o Whusine ear: e B he Y ourn of t Melb is Lou

The 2012 Fresh State Gala Ball has proved that it is a fixture in the calendar that is here to stay with Wholesalers buzzing in the market about its success. “We had a ball at the Ball” said Vince Natoli from AMV Fresh. “It was an ideal opportunity to catch up with everyone in our own time and in a relaxing atmosphere”.

The Fresh State Awards were once again a highlight with Nominees and Award winners announced for the first time on the night. “No one knows if they are even nominated for these awards” continues Shane. “It brings an element of surprise and adds to the excitement”.

Owned by Con Karanicolos and Chris Mertikas, Louis Melbourne has been in operation at the Melbourne Wholesale Markets for 25 years and sells grapes, citrus, apples, pears, stonefruit and kiwifruit.

Con was on hand to receive this award and says he was stunned and overwhelmed by the accolade. “We didn’t expect to win anything like this” he said. “It is definitely pleasing and we are honoured to be acknowledged as the Fresh State Wholesale Business of the Year.”

er ete k r Ma ar: ng he Ye nto u Yo of t Tara ce l u Pau Prod td TC ty L P

y alit r: n o so ea Per the Y atisan of ranc its B ru Joe VB F

Paul Taranto was shocked when he was named the winner of the Young Marketeer of the Year. “I didn’t even know I was nominated” he said. “I was not expecting this and feel humbled to be recognised in this way by my peers”.

And, as an added bonus and benefit to winning the Young Marketeer of the Year Award, Paul walked away with a fully funded trip to the United States including registration to PMA’s Fresh Summit 2013.

Working in the industry since he was a young man and with a reputation that is larger than life, it is no coincidence that Joe Brancatisano was named Personality of the Year.

Accepting his award, Joe said he was very proud and honoured to be recognised by the Markets community. “I will now be known in the Market as ‘Mr Personality’” he joked.

This is your life Award: Alan Dykes The now famous ‘This is your life’ award was presented to Alan Dykes.

“This honour was bestowed on Alan as recognition of his tireless contribution to Fresh State, the Victorian Chamber and the fresh produce industry” announced Shane to the large audience of wholesalers, retailers, growers and associated industry services.

During the presentation the audience was entertained by a commentary and photos of Alan’s life.

As a third generational wholesaler, Alan started in the market at 16 years of age and hasn’t looked back.

He has a history with strawberries, can tell a good yarn or two and plays a mean game of golf.

He has served on the Victorian Chamber Board, is a past Chamber President, served on the Wholesale Advisory Committee, was appointed to the Market Trust and is a life member of Fresh State.

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1.

Adrian Jennings (Kleenheat) & Margaret McLelland 2. Tiarna Basile & Frank Sculli 3. Faye & Alan Dykes & Shane Schnitzler

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4. Jen and Bec (Organic Growers Group) 5. Grant and Julie Nichol 6. Roy Norris (TMHA) Platinum Sponsors Mick and Lucy 7.

Brancatisano 8. Kim and Joe Granieri

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Dino and Anna Alessi 9.

(Rainfresh) 10. Viraj and Chandra (Flavorite Marketing) 11. John, Maria, Antoinette and Melina Latorre 12. Rob Cechiaro (Red Gem) and Simon Johnston (CHEP)

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13. Jimmy and Monti (WFW)

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14. Michelle and Phil Basile 15. Robert Millis, Jack McNish, Alan Dykes & Dom Dimattina – Life Members 16. Pina, Charlie & Serena (Alfresco) 17. Team Moraitis

business consolidation:

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OF AFFAIRS

issue 14

october 2012

Wholesalers search for Sustainability Fresh Connections got the industry talking about vertical integration from the risk factors to the success stories.

Consolidation is happening all around us – not just in the fresh produce industry. And it makes perfect sense.

Linking like minded companies allows for supply chain efficiencies, integration of systems and structures, optimisation of sourcing opportunities and increases growth opportunities in new regions, categories and channels.

Clothing and fashion retail is the perfect example as it happens so often – like the latest takeover by retail giant Country Road who recently bought out Witchery and Mimco. Businesses ripe for takeover are usually those that lack a sound infrastructure and ones that could be easily incorporated into a successful model.

So the question is – will smaller scale fresh produce wholesalers remain sustainable in their businesses moving forward into 2013, 2014 and beyond or will they be eaten by bigger fish if they don’t do something different?

Will smaller scale fresh produce wholesalers remain sustainable in their businesses moving forward into 2013, 2014 and beyond or will they be eaten by bigger fish if they don’t do something different?

We continue the conversation with George Haggar, Chief Operating Officer at Costa Exchange to get his thoughts on the topic…

Q1. Do you think vertical integration and consolidation of businesses are the way of the future in the fruit and vegetable industry or can small wholesalers still survive as is in this climate.

Q2. With the threat of major chains cutting out the middle man do you feel safe having your own farms as a good supply source or are the major chains all bark and no bite?

A. Statistically, we are seeing fewer customers in the wholesale sector and their share of produce sales in decline. There will always be a place for the wholesale sector but the landscape has certainly changed in recent years.

A. Our business model is founded on a vertically integrated supply chain. We have a long history of building businesses that link farming, packing and marketing activities in our chosen categories.

Our major retailer customers have both made public statements about their desire to get closer to Australian produce growers and our vertically integrated model certainly lends itself to that.

Making this a sustainable outcome really depends on your ability to continue to supply a quality and consistent product.

Q3. Costa Exchange have streamlined their lines to focus on quality product. Has this paid off in the industry and do you recommend it for smaller players?

A. Our decision to streamline our core business activities was driven by many factors but the major considerations were the challenge many business face in allocating their capital resources and personnel to cover every key element of the business.

The broader your core business base is, the thinner you have to spread your key people and capital resources. We have found that a streamlined core business categories has enabled a deeper focus on achieving excellence in each category.

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fresh state agm:

Be Australian and have a real

go!

37th AGM of Fresh State Ltd Wednesday 10 October 2012 at 9.00am

Sam Kekovich set the tone for “what Australia should do” when he kicked off the 37th AGM breakfast and AGM! As well as being entertaining, impolite at the appropriate time and absolutely in your face at other times, Sam’s message was direct – “be Australian and have a real go”!

Sam walked members through the plan for Australian lamb and his initial three year involvement that now is entering its ninth year. The increase in consumption in Australia from a well thought out and impeccably delivered promotional program was very thought provoking for fresh fruit and veggies and something we need to heed.

The highlights of the AGM were the Fresh State restructure and the positive process of the first stage of relocation discussions. In each case, both items are about the future – one providing members’ equity transferability and the other about long term members involvement.

Both of these signal a Fresh State coming of age in an era where many industry associations are closing their doors or living on a shoestring budget that stops them going forward or back.

The Young Executive Committee presented their developing ‘Healthy Bites’ program to the audience including a survey to be filled out for feedback.

Underpinning these strategic items is a bottom line that is benefiting from hard decisions over the last few years and decisions that had to be taken against significant opposition.

Fortunately good decision making and good strategy go hand in hand and we look forward to continuing success in the coming twelve months.

Members were informed of the actions being taken by the Australia Chamber including the highly successful Fresh Connections Conference and trade show in Melbourne last June and continuing work on fixing the Horticultural Code of Conduct.

2012-2013 Fresh State Board Members:

President: Shane Schnitzler | Vice President: Joe Amalfi | Deputy Vice President: Grant Nichol Board Members: Vince Natoli, Phillip Brancatisano, Steven Grillo, Vince Brancatisano, Brett Collins

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issue 14

october 2012

packaging:

OF AFFAIRS

Fresh produce competes with fake counterparts We have all heard of the fake Rolex and rip off designer label clothes but now it seems fruit and veg are getting a run for their money as well.

As extraordinary as it sounds, researchers have developed a new style of packaging that looks like fruit, tastes like fruit but is not fruit.

With the aim of reducing landfill and creating biodegradable packaging, a new concept has been designed to imitate natural

food by providing a protective outer layer or skin around food that you can eat.

The ‘skin’ is designed to take on the same shape of the imitated fruit and is created using edible plastic which is a combination of algae and calcium. This is mixed with food particles, such as cocoa or fruit puree, so that the packaging tastes like what is inside.

There have always been difficulties associated with disposing of the huge waste volumes generated by food packaging which is mostly non-biodegradable. With the food and beverage industry accounting for more than half the worldwide packaging market, creative packaging makes sense but surely not at the expense of the real deal.

Bananas, apples, grapes, oranges, kiwi fruit,

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Q

ucumbers have their own C protective skins, so why are they sometimes sold wrapped in plastic?

pumpkin, potatoes – the list goes on. So much of our fresh produce has already got its own skin – some we can eat and some we cannot.

Regardless, it is what makes fresh fruit and veg so convenient, natural and good for you.

“It seems bizarre to imitate a piece of fruit and fill it with a processed product,” says Shane Schnitzler, Fresh State President and chief executive of tomato giant Kapiris Bros.

A

Unwrapped cucumbers lose so much moisture that they become unsaleble after three days - just 1.5 grams of plastic keeps them fresh for 14 days.

Those containing liquids can be pierced with a straw and the contents drunk before they are eaten. The membranes can be washed under a tap and eaten, just like the skin of an apple.

Testing is currently taking place to understand the long term effects on the human body before the product will be available for commercial sale.

With two competing companies frantically preparing and testing the edible packaging, it won’t be long until we see this concept approved for commercial production. The first product expected to go on sale will be the Wiki Ice Cream, which is a vanilla ice cream frozen inside a cookie doughflavoured membrane.

We see this new product as just another way to confuse the consumer into thinking they are eating a piece of fruit when clearly they are not.

“The industry doesn’t need consumers coerced even more into buying alternatives to fresh produce. We want our customers eating a tomato that looks like a tomato and that is a real deal tomato”.

Edible packaging is being created for use as both a solid and liquid including soup, cheese, cocktails, fizzy drinks and coffee.

To date researchers have created examples including filling an orange membrane with orange juice, a tomatoflavoured skin with soup and minimembranes the size of grapes that are full of wine.

“We are already competing with the fast food industry” says Shane, “we see this new product as just another way to confuse the consumer into thinking they are eating a piece of fruit when clearly they are not”.

Although the edible package is biodegradable, like conventional food, it will still need packaging to go around it in order to be safe to eat.

There are also safety concerns about the materials used in the edible plastic skin.

cooltrax:

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OF AFFAIRS

The world’s only real-time end-to-end temperature management system

issue 14

october 2012

Fresh produce:

every minute counts

Costa Exchange’s Grape and Mushroom divisions are well aware that every minute counts with fresh produce.

Monitor and track temperature sensitive products like never before with Cooltrax.

Greg Blampied from Cooltrax and Oscar Dupuy from Costa Exchange Grape spread the word down at the Melbourne Markets.

reasons to use Cooltrax 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

They have recently upgraded their infrastructure and processes to ensure that their produce is brought to temperature as quickly as possible and continues to be held at that temperature by installing the Cooltrax cold chain monitoring solution.

to target temperature so they can measure batch performance. This information is vital to the process improvement program that ensures their facilities dispatch the highest possible quality of

That’s what it is all about – quality and shelf life.

Richard Hamley, General Manager of Costa Exchange Mushroom Category explains, “as soon as our mushrooms are picked they are graded, packed into trays and run through a vacuum chilling line that brings them down to 0.5°C to 2°C which is the optimum holding temperature for mushrooms”.

Costa Exchange Mushroom use the Cooltrax system to monitor the core product temperature in real time so they can be certain the produce has reached its target temperature and stays there.

The system also provides them with records of time taken from harvest

product with the longest shelf life.”

Costa Exchange Grapes led the way with Cooltrax. The Cooltrax system has become vital to maintaining key efficiencies.

“It gives us visibility on how long it takes from picking the grapes to reaching the shed and cooling down to 1.0°C” says Oscar Dupuy, National Supply Chain Manager at Costa Exchange Grape. “This impacts on shelf life and that’s what it is all about – quality and shelf life”.

21

Everyone loves bright glossy skinned juicy fleshed tomatoes full of aromas, perfect for Tomato Tapas with Basil & Bocconcini.

Simply magic!

veggies to eat this Summer Summer is at our doorstep and with that comes an increase in sales on the market floor. “Customers traditionally buy more fresh produce in the Spring and Summer months.” says Michael Cosentino at Melba Fresh.

02. Cucumbers Try our Continental Cucumber Kebabs recipe. Scrumptious!

03. Tri-coloured Lettuce

“Fresh produce like leafy vegetables, salads items and summer fruits are a big hit and rejuvenate trading”.

Colourful and comes to life when mixed with Panzanella. Delectable!

We asked Frances Tolson from the Social Salad Network, Love My Salad, about the Top 10 Salad Vegetables for the upcoming season.

04. Baby Heart Cos Lettuce

“Through ‘Love My Salad’ we are connecting salad lovers, consumers and professionals to help increase vegetable consumption and advance our industry.

used as salad boats in our Little Bateau recipe. Delightful!

05. Capsicum

Anyone with a passion for salads is invited to join our salad community by sharing and exchanging fun, tasty, and interesting salad ideas” says Frances.

Capsicum in a salad sliced thinly, either fresh or grilled, bbq’d or roasted with or without skin. Sweet!

06. Eggplant

07. Rockmelon Enjoy rockmelon with prosciutto and orange, or serve cubed rockmelon wrapped in prosciutto as a starter. Appetising!

Striped or traditional eggplants – grilled and served with fresh mint yoghurt. Mediterranean!

08. Baby Spinach Taste our Baby Spinach and Mushroom Salad recipe – delicious!

10. Carrots Grate with apples, walnuts and sultanas or snack on carrot sticks with dip.

Flavoursome!

09. Celery Partner with walnuts or cashews and oak-leaf lettuce.

Crunchy!

crea t e • s h a r e • e n j o y

top 10 new feature:

01. Tomatoes

22

issue 14

october 2012

exports:

OF AFFAIRS

How the Australian impacts on trade According to DAFF in the recently published Australian Food Statistics 2011, Horticulture is one of Australia’s fastest growing agricultural industries and our third largest agricultural sector, by value of production.

In 2009–10 the horticulture industry made up around 19% of Australian agricultural food production.

Horticulture (we know it as fruit and veg) actually consists of around 80 edible commodities including fruits, vegetables, nuts, mushrooms, nursery and greenhouse products.

Australia’s trade deficit (export value less import value) in fruit, nuts and vegetables increased to $701 million in 2010–11, 29 per cent higher than in 2009–10, because of the strength of the Australian dollar and adverse weather effects on export availabilities.

Australia became a net importer of fruit, nuts and vegetables (fresh and processed, excluding wine) in 2003–04, but has remained a net exporter of

$

fresh fruit, Australia’s trade deficit (export value nuts and vegetables less import value) in fruit, nuts and since then. vegetables increased to $701 million Imports of fruit, in 2010–11, 29 per cent higher than in nut and 2009–10, because of the strength of the vegetable products are Australian dollar and adverse weather largely tree effects on export availabilities. nuts, fresh fruit (mainly citrus, grapes, onions, cherries and asparagus grapes and tropical fruit), fruit juice are exported for the northern (mainly orange and apple juice), hemisphere winter and vice versa. vegetable oils and canned fruit and “With the Australian dollar staying over vegetables. $US 0.91 since September 2010 there is Seasonality is an important element no doubt it has been a tough two years in Australia’s trade in fresh fruit and for exporters who continue to find it vegetables - for example citrus, table difficult to compete in global markets.”

23

Exchange rates are fundamental to any business that exports or imports a commodity.

In very simplistic terms; a strong Australian dollar means importing becomes more competitive (cheaper) and exporting becomes less competitive (dearer). says Chartered Accountant Keegan Harper from WHM Partners.

To demonstrate this, say that an Australian business was exporting citrus to a US business for $AUD 5.00 per kg. If the exchange rate was $US 1.00 =

“In the face of this continued pressure, Australian exporters have been forced to focus on raising productivity to offset the reduction in competiveness – hopefully this will stand them in good stead when/if the Australian dollar begins to weaken.”

Maxwell Summers from the Australian Horticultural Exporters Association agrees. “The high Australian dollar has tested the resolve of all exporters and growers, and forced them to mostly take lower returns, and to move out of price sensitive markets like Taiwan and concentrate on less sensitive markets like Japan and South Korea.”

Maxwell says many exporters have also had to look at importing for the first time to pay their way and to remain in

$AUD 0.70, then this would cost the US business $US 3.50 per kg.

However if the exchange rate was stronger, say around the level of $US 1.00 = $AUD 0.98, then the same purchase would now cost the US business $US 4.90.

You can see why a stronger Aussie dollar makes exporters less competitive.

Keegan Harper, WHM Partners www.whmpartners.com.au

business. So most major exporters are now also importers.

“Exporters have turned to opportunities sourcing fresh produce out of New Zealand, South Africa, China, India and South America to supplement their sales, where the costs are lower and export quarantine issues are far less of concern” he says.

“For example, Eastern Australia is now considered endemic with fruit fly which has finished airfreight trade to markets such as Thailand and Taiwan where Australian exporters had a clear geographical advantage over other southern hemisphere producers.

All fruit fly host fresh produce will now have to be cold treated prior to or during shipment which will add up

to A$2.50/carton additional cost to fresh produce, and put further pressure on exporter price competitiveness.”

Additionally there are strategies, often referred to as ‘hedging options’, that businesses can also use to mitigate their risk to foreign currency exposure.

“Currency options can be used to trade foreign exchange to hedge against foreign exchange risks.” says Keegan.

“But for exporters who did not hedge their exposure to the strengthening Aussie dollar over the past few years it may be too late. Let’s face it – I don’t think anyone can say with any certainty where the Aussie dollar will be in six months’ time, let alone two or three years.”

24

calendar of events:

OF AFFAIRS

issue 14

october 2012

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Fresh State of Affairs Magazine invites you to spread some festive cheer and place a Christmas message in our special Christmas Edition of the magazine due out on 13 December 2012.

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cheer e iv t s e f f o r u o wn flav beyond ...

Spread your o d n a y it n u m com to the market

Q&A:

Osi Prestia

25

“You do what you know and you do it well.

We are salespeople. That’s what we have always been and what we will stick to.”

Osi Prestia of Prestia Wholesalers Pty Ltd.

Works:

My first job was:

Salesman and Company Director. We specialise in four lines – tomatoes, beans, zucchini and eggplant.

Part time in fruit shops in the Coburg Market.

Lives: Craigieburn.

Most of my day is spent: Working.

The football team I barrack for is: Melbourne FC and by default the Gold Coast Suns as my son is a player.

My favourite Melbourne Market moment is: When a customer who you think you have lost money on, comes back and pays.

The quality I respect most in a person is: Loyalty and honesty.

As I have grown older I have learnt: Tolerance and to switch off at the end of the day If I described my business to a stranger I would say: Share market but with perishable goods.

The qualities I most enjoy about Melbourne Market are: The general mass of people are very good and generous.

The pets I have are: An old boxer named Kahlua who is not fond of men. I think she only stays alive to spite me!!

My fondest memory is: The birth of my three children.

The aspect of my job I Iike the most is: Trying to pick the market like ‘Casino Royale’ The thing I dislike the most is: Rude customers, slow payers but most of all narrow minded people who can’t see the big picture in relation to later hours.

I am passionate about: My family, my work and our horrible working hours!

My business associates would say that I: Well it depends which brother you talk to but Ralph would say I am a soft touch and give people second chances when I shouldn’t.

When I was a child I wanted to be: A footballer.

The place in the world I would most like to go is: I would love to visit Prague – it is in my head and won’t leave. If I could live anywhere it would have to be Florence.

The thing a lot of people don’t know about me is: I was a primary school teacher before working in the markets.

In my spare time I enjoy:

My favourite fruit or vegetable is:

Watching all sports and was a keen football player and coach in my younger days.

Cherries and mangos.

Osi Prestia has a big heart. He calls a spade a spade and there is no room for an ego in his world. He loves his family, is not a fan of pets and dearly dearly wants to go on a cruise visiting Prague.

Born as the youngest of three boys, Osi spent his younger years scampering around the Queen Vic Market where his father and Uncle started Prestia Wholesalers (then known as A Prestia).

Graduating as a primary school teacher, he got married before joining his father’s business at the Footscray Market. “Teacher jobs were poorly paid in those days” says Osi, “so I decided to join Dad’s business.

I knew the hours were going to be difficult but I had the support of my wife and haven’t looked back”.

Big heart or not – Osi has a beef with the market hours. “We need new blood in this industry but we can’t get them because of the hours – they are way too early”. Osi’s answer is simple: open early for trading on a Monday morning and then 6 am onwards for the rest of the week. “I can’t understand why we have to open early every day of the week and bow and scrape to about four retailers who like it that way. It’s very lopsided.”

Osi has now been in the market for 33 years and owns his father’s business with his two brothers Frank and Ralph.

“Frank goes and visits our growers and I stick to sales” continues Osi. “Dad always said that you do what you know and you do it well. We are salespeople. That’s what we have always been and what we will stick to.

Those old boys had it spot on!”

26

issue 14

october 2012

halloween:

OF AFFAIRS

With Halloween just around the corner, Australian households are starting to embrace the festival which has been a long time favourite for our cousins across the Pacific.

This inevitably also opens up new doors for Australian growers, wholesalers and retailers alike and yes, they are catching on.

A Jack O Lantern is typically a carved pumpkin and associated with Halloween.

The top of the pumpkin is cut off, and the inside flesh scooped out.

A scary face is carved onto the outside surface, a light (usually a flickering candle) is placed inside and the lid replaced.

Emilio Lorenzetto, BGP Produce

“We were the first business to bring the Halloween pumpkin into the Melbourne Markets” says Emilio Lorenzetto of BGP Produce Pty Ltd. “These days there are three other wholesalers in the market selling them plus the supermarkets have now jumped on board as well”.

and quantity will depend on the rain, especially this year” continues Emilio.

Throughout Ireland and Britain, there is a long tradition of carving lanterns

(Pumpkin) Varieties that are good for carving include the Big Rock, Big Max and Charisma.

BGP started off importing the specialty pumpkins from the United States but now they are grown in Queensland and Western Australia. “This makes supply a little easier however quality

from vegetables, particularly the turnip, beets, and swede. The turnip has traditionally been used in Ireland and Scotland at Halloween although Scotland originally made lanterns from the thick stem of a cabbage plant!

Once the tradition moved to the United States, it was adapted to the carving of a pumpkin as these vegetables were more readily available, bigger and easier to carve. Varieties that are good for carving include the Big Rock, Big Max and Charisma.

Halloween pumpkins are now available on the market floor ready for retailers to snap up and on sell to creative customers.

zine airs Maga ff A f o e t a age Fresh St lassified P C w e n a will launch r publication. be ale in its Octo items for s e d lu c in l u wil ided by yo v o Classifieds r p s e ic al not line. and gener arged per h c s r e d a e ok – our r n or to bo io t a m r fo r in r For furthe d advertisement fo e ifi act s t your clas lease con p n io it d e e er the Octob k or Sally Piper at th ij E . n 3 9 323 Sonja va ce on 968 ffi O e t a t S Fresh

Fruit and Vegetable Wholesalers

B.G.P. Produce Pty. Ltd. Store 37 542 Footscray Rd West Melbourne VIC 3003 Tel: 03 9689 9132 Fax: 03 9687 5034 Laurie: 0418 366 013 Tony: 0417 112 588 admin@bgpltd.com.au

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