Download to read offline
![affco Australia’s leading fruit network Winter & Spring 2011
update
Fresh Connections 2011
Key Retail Market Trends & Highlights | Conference
FRESHCONNECTIONS2011
Read my key out-takes for members on fresh produce retail
and market trend.
The importance of Independent Retailers in
today’s competitive retail environment
Lou Jardin, Managing Director, SPAR Australia
SPAR comprises ca. 300 independent retail supermarkets such
as SPAR and 5 Star banner groups in Queensland, New South
Wales, ACT, NT and Pacific Island areas. [PLP note: akin to
Foodworks with 650 supermarkets, food and convenience stores
nationally].
• SPAR’s two key points of differentiation to the big
retailers: Woolies, Coles and Metcash are they are family
run- businesses supporting other family-run businesses
with local offerings to support local producers and local
employment
• Successful supermarkets are good at fresh produce
and fresh is the key draw card to attract consumers into
supermarkets
• Today’s supermarket landscape is based on “Price War”
between the 3 retailers and market style presentation, i.e
Big Box model.
Market and Consumer Trends data: using it to
grow your business
Yahya Kanji, The Nielsen Company
• Trend in Fresh Produce last 12 months is value, not volume
growth.
• Pre-packed fresh produce grew 18% and 22% share of
fresh produce sales
• Produce are moving towards being branded
Martin Kneebone, Freshlogic
• Apples category is worth $750m
• Trends:
- Organic
- Buy local
- Free Range (20% higher price to normal)
- Average price for vegetables are $3.65/kg
- Smaller portion size (aligning with smaller
household sizes)
- Meal pulse
- New emerging channels:
- Coles Vans (250)
- Aussie Farmers Direct: $130m sales of
which 40% is Fruit & Vegetables
- Costco (new entrant) $300m sales of which
5-10% is Fruit & Vegetables
- 1.5million boxes pa. $220m sales eg $150/
week Jenny Craig, Young singles
- Technology touch screens
(NBN will give this a free kick)
- Online sales: UK 9% vs USA 7% vs Australia 1%
(if 3-4% would be equivalent to Aldi sales)
How critical is fresh produce to the retailer?
Greg Davis, General Manager, Fresh Produce, Coles
Greg Davis captivated us with his slides and stories relating his
family and lifestyle such as making Sunday breakfast with his son
to illustrate “Sunday’s, Eating at home and Eating for interaction”
as the new ways Coles marketing are engaging with consumers.
Below are some gems I took from him and encourage members
to reflect on the ramifications of those points on your business,
and how will you act on the impact:
• Consumers want to know WHO grows the food.
• Next generation is coming up with different concepts about
food with the resultant whole new foodie coming through
• Sundays are seen as opportunities, for example father and
son to cook breakfast together as an avenue for a family
interaction
• Eating at home and eating for interaction trends where in
the latter, community interacts around food
• Shopper tracker 2011/2011 highlights:
- If you provide recipes, consumers buy more and
they’re more loyal
- Voluminous display creates impulse buying and
consumers also buy more than they planned
• Challenge is to sell the story: from seed to table
Interestingly, Greg mentioned that Coles do not understand all
the costs that goes into producing a crop or produce and relies
on suppliers for education here. [An opportunity for suppliers
to interested retail buyers or a challenge to create interest in
disinterested buyers]]
Linking the above with the SPAR presentation, Fresh Produce
is unquestionably – as many of your already know - the
strategic and tactical battle grounds of the supermarkets Coles,
Woolworths and Metcash. So, packers and marketers, how good
is your offensive or defensive position with retailers? I thought it
would be good to lob in a thought provoking line!
Two other good topics available as audio recordings on the
Fresh Connections 2011website:
• How big an opportunity is Food Service by Rich Dachman
• Using fresh produce packaging as a consumer billboard by
Lisa Cork
The most important upshot is irrespective whether
you’re a grower or packer focused in your business
and not involved in marketing, I urge you to become
interested in marketing as this is the valuable part of
the chain where financial value is built and demand
created, nurtured or destroyed! Growing supply needs
growing demand and sophistication in segmenting
demand into multi-market segments.
Enjoy and ponder this!
16](https://image.slidesharecdn.com/530be2f8-2e44-45b7-99d9-26552b236aef-150623234516-lva1-app6892/85/AFFCO_NEWSLETTER_WINTERSPRING2011-25Oct11-Opt-17-320.jpg)
![affco Australia’s leading fruit network Winter & Spring 2011
update
Fresh Connections 2011
Key Retail Market Trends & Highlights | Conference
FRESHCONNECTIONS2011
Opening the doors to doing business
in Asia (China)
Raymond Jin, Managing Director, International Dept. Golden
Wing Mau Group (GWMG), China
Golden Wing Mau Group (GWMG) - established 13 years ago in
Hong Kong - is a major Chinese fruit wholesaler on 40 types of
fruits and operates 15 packing houses, 36 logistics centers and
1000+ super stores in 80 Chinese cities. This company could
be your potential China distributor and I encourage aspiring and
seasoned exporters to China to note salient market info and
insights I have captured below that may help you in your market
research or review your go-to-China-market strategies.
Mr. Jin is based in Shenzhen and has been with GWMG for 12
years.
• Guangzhou, Shanghai and Beijing wholesale markets
remain strong for sales to smaller towns.
• GWMG holds quota for Chinese fruit exports.
• GWMG is focused on Chinese retailers, which is the biggest
and most important channel in China.
• Dealing with retailers directly requires skills in dealing with
uncertainty (seems a global thing!).
• Supermarkets account for 15% of total fruit sales vs
advanced countries 70%, so there is room for expansion,
hence GWMG focus on retailers.
• Average fruit consumption in China is 46 kg per year vs 159
kg in EU => again potential for growth in fruit consumption
in China
• Market trend is towards larger players and distributors like
GWMG and supermarkets
• Import tariffs are decreasing and more protocols are being
agreed for fruit trade into China
- Australian cherries now signed. Imports into China
will be possible from this year (2011).
- Australian grapes 13% tariff vs Chilean grapes 5.5%
tariff
- Australian Government needs to work with Chinese
Government to reduce tariff to reduce the minimum
customs price, otherwise Australia will lose market
share to Chile.
• Chinese consumers aware of food safety and traceability.
• Important drivers for the Chinese retail market are as
follows:
- Country of origin
- Australia and New Zealand regarded as
clean, green and safe (high)
- Price, taste, quality, appearance and packaging
- Brand building (also referred by Martin
Kneebone as emerging trend for Australian
market)
- Chileans do not invest in any marketing whilst
Zespri has been investing in building their brands in
China and consequently after years of marketing
investments, commands twice the price of Chilean
kiwi fruit.
- [PLP note: Zespri is New Zealand’s single desk
kiwifruit marketer with NZ $1billion sales worldwide,
of which 92% of fruit are sourced from NZ. Their
branding strategies in Zespri Green, Zespri Gold and
Zespri Green Organic represent a useful successful
case study in a single desk approach to international
markets and strategic marketing, an approach I endorse after 26
years working experience in international markets].
David Ch’ng, Mosaic Consultancy
Those who attended AFFCO 2010 Leadership Development
Program would know David who led the Strategy and Innovation
session. David is a fantastic teacher who adopts wit and
historical information to bring to life salient points about Chinese
culture to help better understand Chinese culture as a precursor
to doing business successfully in Asia (China).
Raymond Jin and David Ch’ng’s presentations are available as
audio recordings on the Fresh Conmnections 2011 website.
Below are statistics on attendees
18
28.6%
11.9%
2.4%
13.5%
0.8%
3.1%
39.7%
CEO,
Owner,
Partner,
MD,
Director
General
manager,
CFO
OperaDons
Manager
Sales
Manager
Buyer
Salesperson,
RepresentaDve
Other
What
is
your
job
.tle?
8.7%
26.2%
0.0%
5.6%
8.7%
3.1%
3.2%
10.3%
15.1%
19.0%
Importer,
Exporter,
Broker
Grower
/
Packer
/
Processor
Trade
media
Government
Industry
OrganisaIon
PromoIonal
OrganisaIon
Retailer
Industry
Product/Service
Provider
Wholesaler
Other
Please
select
your
type
of
business
0%
5%
10%
15%
20%
25%
30%
<
$1
million
$1
–
10
million
$11
–
50
million
$51
–
100
million
Over
$100
million
Not
applicable
What
is
the
approx
gross
annual
turnover
(AUD)
of
your
company?
0%
5%
10%
15%
20%
25%
30%
35%
40%
Under
25
25
–
35
36
–
45
46
–
60
61
and
over
Please
select
your
age
range](https://image.slidesharecdn.com/530be2f8-2e44-45b7-99d9-26552b236aef-150623234516-lva1-app6892/85/AFFCO_NEWSLETTER_WINTERSPRING2011-25Oct11-Opt-19-320.jpg)
![affco Australia’s leading fruit network Winter & Spring 2011
update
Legal Learnings
Contractors vs Employees - It just got harder by Wisewould Mahony Lawyers
The recent Federal Court decision in the case of On Call
Interpreters and Translators Agency Pty Ltd v Commissioner
of Taxation (No 3) [2011] FCA 366 has more clearly defined the
distinction between contractors and employees, and in doing so
has highlighted the consequences for businesses that incorrectly
classify their workers as contractors.
The case concerned an appeal against an assessment by the
Commissioner of Taxation that On Call Interpreters and Translators
Agency Pty Ltd (On Call) was liable to pay superannuation in
respect of interpreters and translators that On Call had classified
as ‘contractors’. The key issue to be decided by Justice Bromberg
was whether the interpreters and translators were ‘employees’ for
the purposes of the Superannuation Guarantee (Administration)
Act 1992 (Cth).
The Test
Viewed as a “practical matter”:
(i) is the person performing the work an entrepreneur who owns
and operates a business; and,
(ii) in performing the work, is that person working in and for that
person’s business as a representative of that business and not
of the business receiving the work?
If the answer to that question is yes, in the performance of
that particular work, the person is likely to be an independent
contractor. If no, then the person is likely to be an employee.
First Element – Does the worker own and operate a business?
Bromberg J set out a number of questions to determine whether
the worker “owns and operates a business”, which are summarised
below:
• Does the “business” involve the taking of risk in the pursuit
of profits?
• Does the “business” engage in a repetitive and continuous
manner with purchasers of its services?
• Does the “business” employ or engage others?
• Does the “business possess or create goodwill (name, brand
and reputation)?
• Is the “business” promoted through advertising or other
promotional means?
• Does “business” have assets such as buildings and
equipment?
• Does the “business” have typical business systems (e.g
invoicing systems; standard terms and conditions of trade;
financial arrangements with banks) and does it comply with
the regulatory requirements of a business?
• Is the service provided of sufficient skill to be suggestive of
the pursuance of a profession or trade through a business?
Whilst many of the interpreters had multiple purchasers of their
services, they did not meet satisfy the other criteria of “contractors”.
All of the interpreters performed the work personally, and did
not delegate to others; there was no advertising or promotion of
their “businesses”; there was no goodwill created; none of the
interpreters bore business risk nor did they take out personal
indemnity insurance to cover risk; and, significantly, most of the
interpreters simply accepted the rates of pay offered by On Call
without bargaining.
Second Element – Whose business is the work being
performed in?
Whilst a worker may own and operate a business, they may still be
an employee if performing the work for and on behalf of another
business (“the receiving business”).
Bromberg J considered a number of factors which go towards
demonstrating whose business the work is being performed in.
• Does the worker’s business or the receiving business benefit
from the opportunity for profit and goodwill, and which
business bears the risk of loss?
• Is the payment made equivalent to what an employee would
have received for performing the same work?
• Is the payment negotiable and negotiated commercially, and
to what extent is the payment contingent upon the person
providing a satisfactory result?
• Which party has the capacity to manage the activity so as to
maximise the potential for profit?
• Who provides the equipment or assets required?
• Who controls and directs the manner in which the work is
carried out?
• Can the person performing the work delegate or must that
person personally perform the work?
• To whose business does any goodwill created by the
economic activity enure?
In short, if the receiving business provides the tools; controls
the work; sets the rates of pay; and takes the risk and reward of
the business activity, then it will be found that the work is being
performed in the receiving business.
Summary
The above listed factors are not exhaustive of all the factors set out
by Bromberg J, however they give a good sense of the message
conveyed in the decision. The decision is that the latest in a series
of cases that have made it increasingly difficult for businesses to
engage workers as contractors, including the recent high profile
decision in Roy Morgan Research Pty Ltd v Commissioner of
Taxation [2010] FCAFC 52.
Many businesses engage workers under the label “contractor” in
circumstances were those workers bear no risk; must perform the
work personally; have no bargaining power; and are directed in
how they must perform the work. Bromberg’s ruling is an emphatic
statement that such people are employees and will be treated
accordingly by the law.
Consequences of incorrectly classifying an employee
The financial consequences for businesses that incorrectly
classify employees as contractors extend far beyond having to
make superannuation contributions.
Businesses will be exposed to the following additional adverse
consequences:
• unfair dismissal claims;
• claims for entitlements, including annual leave, personal/
carer’s leave,parental leave and long service leave;
• civil penalties from the Workplace Ombudsman for breaches
of awards and/or the Fair Work Act 2009 (up to $33,000 per
breach for a company);
• prosecution or civil action under the sham contracting
provisions of the Fair Work Act 2009;
• claims in negligence for damage suffered by third parties;
and consequences under Occupational Health & Safety
LEGALLEARNINGS
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Uploaded byPoh Len Pek
AFFCO_NEWSLETTER_WINTERSPRING2011 25Oct11 Opt
The document provides an update from the CEO of the Australian Fresh Fruit Company (AFFCO) covering activities from May to September 2011. Some key points include: - The success of AFFCO's recent leadership development programs and plans for future programs. - The CEO's participation in industry events like Fresh Connections 2011 and efforts to coordinate opposition to New Zealand apple imports. - Updates on projects like the Well-Informed Growers program and CherryNet stem retention project. - Highlights of potential innovations like the Polynate bee pollinator and MAF Roda apple pre-sizer. - Plans to continue providing members with updates on issues impacting the fruit industry through leadership programs
AFFCO_NEWSLETTER_WINTERSPRING2011 25Oct11 Opt
- 1. update Winter & Spring 2011 AustralianFresh Fruit Company | P: 03 9676 9162 | F: 03 9676 9163 | W: affco.com.au Also inside: Leadership Development Programs Innovation with Polynate & ANFIC new stonefruit varieties National Apple Day & Apple Rally Photos Fresh Connections 2011 report Changes at AFFCO Changes at AFFCO
- 2. affco Australia’s leadingfruit network Winter & Spring 2011 CEOWELCOME update CEO Welcome 1 ceo welcome May - September 2011 2 ceo report 5 profit planner What’s In-Store for Licencees 6 leadership development The sucessful May 2011 Program Upcoming November 2011 Program 10 young leaders’ profile Brad Fankhauser 11 a leader’s way forward Gavin Scurr, MD, Pinata Marketing Australia 12 projects CherryNet 13 marketing Branding and Promotions 14 fresh connections Key Retail Market Trends & Highlights 21 new product innovation New Stonefruit Varieties from ANFIC PolynateTM Bee Polinator from Bioglobal 25 good orchard practise Handling Glyphosate-Resistant Ryegrass 26 defending our industry National Apple Day & Apple Rally 28 legal learnings Contractors vs Employees - It just got harder 30 classifieds Clearing Sales! CONTENTS Hello everyone, It’s with great pleasure that I write my first AFFCO Update as your new CEO and a privilege to be given this tremendous challenge to lead AFFCO in times of enormous change and arrival of fierce international competition on our doorstep. My first five months have gone quickly as I hit the ground learning, hosting, planning, delivering, coordinating and attending key activities and events such as those listed below. Details are provided in my “CEO Report” immediately following this Welcome note. • AFFCO Young and Senior Leadership Development Programs • AFFCO Leadership Council meeting • Fresh Connections 2011, Brisbane • National Apple Day (Federation Square), National Apple Rally (Shepparton) • National Cherries, Apples and Pears conference, Adelaide • Review and restructure AFFCO memberships and sponsorships • WIGs telephone hook-ups – 2011 and Review for coming season • Cherrynet Project CY8003 Review and Plan for this season • HAL milestone submissions • AFFCO office relocation Heeding feedback from members, popular services and forums such as the Well-Informed Growers national telephone hook-ups (albeit structured differently as HAL funding has ended in June 2011) and the Leadership Development Programs will of course continue. I will plan and hold more leadership development opportunities focused on Young & Future and Senior & Current Leaders to help prepare and build industry’s skills for growth in an internationally competitive business environment. There will be workshops, interstate and international study tours, field days focused on leadership, business, management, highly topical technical issues such as game changing commercial innovation and international market (exports) opportunities. As our industry face change, so has AFFCO this year commencing with staff changes, my joining and more recently, office relocation 60km closer to Melbourne. There is more change ahead. I am so relieved my daily 2 hours drive to Gisborne is behind me and we are geographically closer to corporate members, sponsors, HAL, APAL and suppliers but most of my team now face the travel. As with any businesses undertaking change, quick adaptation by employees is a major challenge. The best businesses know a company culture of agility, flexibility and rapid adaption to change are hard to accomplish but must haves competitive advantage under swift technological changes and global competition. If you were to rate your business and company culture on agility, flexibility and adaption to change, where would you be? More on this in future AFFCO Updates. You would have noticed this is a combined Winter and Spring edition as we didn’t make Winter publication following Sally Piper’s departure in July. I am grateful Amanda Galt, an ex-colleague have stepped in to temporarily help on membership services provision and marketing project coordination. Eleanor Bruce, our youngest team member has stepped up admirably in increased administration duties while completing her Business Apprenticeship and Year 12 studies. I am delighted at her initiative to drive new memberships through trusted referrals so we retain and protect the trust established within our AFFCO community that underpins open forum information exchange. Check out the insert and financial incentive to refer a trusted friend to take up AFFCO memberships. I would like to also introduce Sarah Davidson, an innovative young Graphic Designer with her own business who has agreed to help publish our quarterly AFFCO Update newsletter. Please ensure you have already updated our new office numbers by now as the old ones are no longer operative. Also, please remember to diarise the next AFFCO Young & Future, Graduates and Senior & Current Leadership Development Programs in Melbourne on 23-25 November 2011. I will be contacting you shortly on who – if not you – will be attending. As always, I encourage and welcome members’ feedback, contact and visit. Please stay tuned as we work towards launching, communicating and delivering the services that you have said is required and that meets with your membership expectations. Thank you for your continued membership and I hope you enjoy your read of this combined Winter & Spring AFFCO Update. Go AFFCO, Go Australia! Best wishes, Poh Len Pek Chief Executive Officer By Poh Len Pek May - September 2011 1
- 3. affco Australia’s leadingfruit network Winter & Spring 2011 May-September 2011 update CEO Report CEOREPORT AFFCO Leadership Development Program I am absolutely thrilled to report on the success of our recent AFFCO Leadership Development Programs for the Young, Future, Senior and Current leaders. Leadership is an area of immense passion for me, so heeding member and industry needs, AFFCO will continue to provide more leadership development opportunities for all Young, Future, Current and Senior leaders to increase the attractiveness and viability of upcoming talent for our industry’s future. Below are some Leadership Development Programs under planning and consideration. Leadership Development Programs Duration Frequency per year Young & Future Residential 3 days (2 nights) 2-3 Senior & Current Leaders incl. Graduates Residential 2 days (1 night) 2-3 Young & Future Leaders Europe Study Tour 12 days (August 2012-tbc) Once Young & Future Leaders Interstate Study Tours 2-3 days (tbc) 1-2 Strategic Position Assessment Workshops One-day workshop (tbc) tbc Commercial Innovation Workshops 6 x 3 hours over 6-9 months (tbc) 1 The strong positive feedback from participants of the recent AFFCO May 2011 Program is most encouraging and satisfying. I commend you to read my detailed report and participants’ testimonials with a view to reviewing your hard and soft skills for sharpening under a globally competitive business environment. Please and contact me to discuss your needs. My team and I are busy working on our next AFFCO Leadership Development Programs to be held next month! Please diarise 23-25 November 2011 and plan for your staff – if not your own – attendance. We will email and contact you over the next 1-2 weeks when the full Program is available or check www.affco.com.au Fresh Connections 2011, Brisbane Fresh Connections 2011 was held in June in Brisbane - again as a triad of conference, trade show and market tours - attended by 700+. Many AFFCO members, including a strong Western Australia contingent and sponsors attended and it was a great way to meet members in my 2nd month through the many networking moments. I was pleased we had 3 tables of AFFCO members together for the Gala dinner I was fortunate for an opportunity to address the Young Professionals Reception and pleased to learn of a good group of young professionals who are passionate and interested in a career in horticulture. There were many key retail and market trends and insights gathered over the 3-day event that I have detailed for members in this edition. I recommend your read and check the photos I have selected to depict the atmosphere. I commend this event to members for the useful information and insights on the market and retail ends, where value could be captured through marketing and points of differentiation for growers, packers and marketers. And for the possibility of meeting future Kiwi competitors who came in droves this year to check out our market! Read on about next year’s Fresh Connection 2012 in Melbourne. Fresh Connections 2012, Melbourne AFFCO will once again co-organise Fresh Connection 2012 with PMA and ACFVI. It will in Melbourne on 26-28 June 2012. I am on the Planning Committee and we are currently planning the sessions and functions. I am also thinking about AFFCO specific functions adjacent to these dates, so please diarise the last week in June 2012 to be in Melbourne! Australian Consortium – Future Orchards 3 Within very short notice in June, I quickly formed an Australian Consortium with the Victorian Dept of Primary Industry (Vic DPI) and Marcel Veens upon learning on Calls for Submissions for the delivery of Future Orchards 3. Initially, AFFCO had been excluded. This was an important project for AFFCO to garner as the majority of funded projects have ended. The Consortium quickly prepared and submitted a proposal which was the only local consortium with the skills vying against other contenders including the incumbent, AgFirst. We were disappointingly unsuccessful. The Big Fight against Biosecurity Australia’s decision July was one big fighting month on Biosecurity Australia’s decision on NZ apple import protocols. Heeding members’ call for a stronger approach, AFFCO Chair, Max Scales and I approached APAL and successfully secured agreement and APAL support for AFFCO to coordinate the “visible events” for members and industry to show their anger and displeasure at BA’s inadequate import protocol position and influence a satisfactory outcome. AFFCO also secured access to APAL’s Public Affairs resource, Libby Hay who arranged media coverage and interviews for members and participants. “Talk with your staff. Give them plenty of training, information and the tools they need to get the job done with precision” – “The future belongs not to those who know how to make things, but to those who know how to sell things. Success is no longer about production – it’s about marketing and distribution” – Bob Day 2
- 4. affco Australia’s leadingfruit network Winter & Spring 2011 May-September 2011 update CEO Report CEOREPORT “Calm seas do not make good sailors. You’ve got to go through wilderness to get to the promised land!” – Bob Day “Get an impressive facility to improve efficiency, morale and customer & supplier perception.” – Scott Hicks AFFCO coordinated discussions including chairing national phone hook-ups that were participated by leading industry players and AFFCO members to brainstorm “visual event” ideas which culminated in National Apple Day as the precursor to National Apple Rally to be held across key growing regions and major capital Australian cities. As members would know, we had National Apple Day in Victoria at Federation Square and Shepparton and in South Australia at the Adelaide Hills. I am grateful for contribution, organisation and participation by the staff and families of the Fankhauser, Armour, Montague (eg Michael Russo) and FGV’s Michael Crisera who worked hard at giving apples away at Federation Square and informing the public on the cause. Check out the Apple Day photos. It was indeed hard work stopping people at the busy Swanston and Flinders Streets intersection for a chat, but stop them we did. We estimated about 500 petition letters were given out to the public. I would also like to thank Mark Joyce and the Lenswood team for leading the many activities and flanking of the National Apple Rally in South Australia. While we did not pull off Apple Day in Western Australia, NSW and Queensland through insufficient time, I would like to thank Cassia Ferguson, Lucinda Gibblett and Daniel Nicoletti for trying. I would also like to give a huge thank you to Andrew Plunkett and the Fruit Growers Victoria’s team led by John Wilson for taking up the planning and flawless execution of the National Apple Rally on 28 July in Shepparton. What a day! For a new CEO in her 3rd month, it was an awesome event. I am small in size but definitely good to count towards the 2,000+ people who cared and marched. A number of Young and Future Leaders flew in from interstate to join the march. Check out the pictures to remind us of our fighting spirit and esprit de cor we will continue to hold. Post 17 August 2011, Kiwi Apples in our Market Our huge fighting activities achieved the goal of gaining wide media coverage but not altered BA’s intent and we later learn of their betrayal! Our spirits may have suffered a temporary set-back but not our passion to keep our industry strong and disease free. Two months on, we know Kiwi apples have made it in and no major impressions as yet, but for how long? Some defensive avenues are being explored but shhh…we will not give anything away! As the Kiwis re-couch their plans to “storm” our market, I remind AFFCO growers, packers and marketers to ponder on your tactical strategies - defensive or offensive - to stem Kiwi apples from building market share. Sure, there is now the “Aussie Apples” initiative launched by APAL which members would be across by now. But what else is under-way to prevent the potential introduction of the 3 diseases? Who’s pushing for bactericides to be registered quickly? At your own business level, how well progressed are your business risk management contingencies? Who’s has operating procedures already in-place for an outbreak situation? There are many issues to deal with and not enough time for full contingencies to be in place. Watch this space as we cover this in forthcoming AFFCO Updates. Commercial Innovation-Game Changers With international competition now at our doorstep, have you stop to reflect on what and where are the commercial innovations that would be competitive game changers for your business? If cost competitiveness, consistent high quality and reliability of consistent supply are given success factors for thriving in international markets, how do you build flexibility, agility and speed to market in rapid response to fluctuating market demands? Watch this space as I seek our sponsors and leading AFFCO members, to share in their learnings and thoughts. I will also seek sponsors to procure insights from their overseas colleagues on new products, developments, services or business model to showcase in future AFFCO Updates. Polynate In this edition, I am highlighting Polynate, a world’s first new product for increasing pollination productivity developed by Brisbane- based Bioglobal. It’s a potential game changer. Read my interview with Bioglobal CEO and note the details of the win-win promotion that runs to 30th October 2011. If I didn’t believe the product has merits, it would not have been erstwhile bringing to your attention. I hope members consider it and look forward to reporting on Polynate uptake, pros and cons and outcomes in future AFFCO Updates. MAF Roda Apple Pre-sizer Many of you who have seen the MAF RODA apple pre-sizer in action here and abroad would have no doubt as to its competitive capability. It gives packers and marketers flexibility in managing supply to fluctuating market demands. I was most impressed in seeing the French technology in action at Lenswood Coop. Soon in Tynong Victoria, a new 48 lane pre-sizer - one of our industry’s largest investments - and another at the Montague Fresh Narre Warren business, will join fellow AFFCO members: Integrity Fruits, Newton Brothers and Lenswood Coop in having the European technology. Go Australia! 3
- 5. affco Australia’s leadingfruit network Winter & Spring 2011 May-September 2011 update CEO Report CEOREPORT AFFCO Projects Well-Informed-Grower (WIG) Programs I know members are eager for the re-commencement of the popular AFFCO WIG Programs, which have been temporarily suspended since August after the cessation of HAL funding support in the last Fiscal Year. The Programs have been running for several years and invaluable – according to members’ feedback – on its relevance and criticalness in disseminating important market info, insights and issues impacting your orchard, marketing and business. Heeding members’ feedback, we are planning to continue WIGs programs to re- commence November 2011. Eleanor and I have been collating and analysing every members’ participation frequency across all six AFFCO WIGs Programs. It was a massive effort but worth the insights I’ve gained to help in my investigations on a new fully self-funding model, structure and process. I anticipate consultations with current, past and potential new WIG members to follow soon to help in setting WIG membership fees, process and invitees before we recommence the AFFCO WIG Programs for members next month. Presently, the weekly AFFCO Retail Report and bi-weekly Market Report continue to be emailed to WIG members. CherryNet Stem Retention Project It has also been a very busy time on this Project. The change in project funding - mid way through the Project’s 3 year duration - from voluntary contribution to full levy funding, raised many issues management challenges. Especially when project genesis, prior intellectual property and contributions from the originating AFFCO Victorian Cherrynet members are not well understood and fully appreciated outside of the AFFCO community. There was increased expectations and communication required, particularly after the recent National Cherry Conference presentation by Les Mitchell of Agrisearch Pty Ltd (service provider conducting the research trials). Compounding issues management was the heavy rain last season that had adversely impacted research, particularly at one of the three Victorian trial locations and changes in HAL Industry Services Manager and new CEO for the Cherry industry peak body, Cherry Growers Australia (CGA) and myself! I recently had a good meeting with Owen Connelly, HAL Industry Advisory Manager and Simon Broughey, CEO of CGA, to review the Project Year 2 methodology and outcomes, discuss this season’s final Year 3 Project Plan and heads up for the next round of Project funding. I feel the focus is now appropriately on moving forward with this season’s Research Plan and increased communications. I also have had encouraging preliminary conversations with Dugald Close at TIAR on joint collaboration to extend this important research for the next 3 years. Stem retention in cherries is rated 3.7 out of 5 among all key issues faced by the industry. I have detailed more information on this year’s Project Plan under Project Update. Membership Review & Restructure AFFCO memberships and corporate sponsorships have been restructured in line with changing company sizes as industry consolidates. You would have noticed the new tiers and fees in a letter accompanying invoices that went out to you in the new 2012 Fiscal Year. We have created two new levels of memberships: • Corporate membership for sponsors as entry level to access sponsorship opportunities and • Associate membership for those who have exited industry, i.e., sold orchards and business but still wish to remain connected with the AFFCO commercial community. Eleanor has created a financial incentive for members to drive new memberships as the industry consolidates. I refer you to details in the insert. Ideally we want members to recommend and refer your trusted friends into the AFFCO commercial network to maintain the high level of trust and integrity in our open info exchange and learning forums. On memberships, I am encouraged and pleased to report half of members have paid their dues promptly within 30 days with 80% fully paid up memberships to date. Thank you, AFFCO members for your loyal support and prompt payment. 4
- 6. affco Australia’s leadingfruit network Winter & Spring 2011 May-September 2011 update CEO Report CEOREPORT update Profit Planner What’s In-Store for Licencees What’s in store for AFFCO Profit Planner™ now that it’s fully assigned to Andrew Dick? Many members have purchased AFFCO Profit Planner™ from Andrew Dick during his tenure as GM of AFFCO. As you would already have known, we have recently assigned all license rights on Profit Planner™ to Andrew Dick, and this was formally completed in August 2011. So what future activities and workshops will Andrew plan to service the Profit Planner licenses he has previously sold? You would already know of Andrew’s new venture at nem Australia, www.nem.net.au , a national advisory company with offices across five Australian capital cities that provides advisory and consulting services to small and medium-sized businesses. Their business is typically referred from existing customers or financiers such as the Banks and Accountants. As one of 45 partners there, Andrew has access to potentially larger resources and skills to service Profit Planner™ licensees. Here is a heads up from him on his plans for Profit Planner™. “Profit Planner™ is a unique program in the world. In all workshops that have been carried out it has ALWAYS had a very high rating. In the future I am looking to provide support to growers along with a range of appointed trainers and advisors and trainers. This will help facilitate its use on farm in a confidential environment. In early September 2011, I launched the first round of workshops under the Farm Ready program – entitled “Managing Business Change – the keys to good to good decision making”. This involved focussing on decision making in an area where significant change is required. It also saw the launch of the “beta” version of Financial Planner. In the next few months the Australian version of Financial Planner will be launched.” For further info, please contact Andrew on mobile: 0467 676543 or email: adick@nem.net.au take the guesswork out of growing….take the guesswork out of growing….take the guesswork out of growing….take the guesswork out of growing…. ...want more information?...want more information?...want more information?...want more information? contactcontactcontactcontact Andrew Dick at AFFCO onAndrew Dick at AFFCO onAndrew Dick at AFFCO onAndrew Dick at AFFCO on 03 5420 7444 or 041703 5420 7444 or 041703 5420 7444 or 041703 5420 7444 or 0417 357357357357 702 or andrewd@affco.com.au702 or andrewd@affco.com.au702 or andrewd@affco.com.au702 or andrewd@affco.com.au …compare scenarios…compare scenarios…compare scenarios…compare scenarios …make informed decisions…make informed decisions…make informed decisions…make informed decisions …create budgets…create budgets…create budgets…create budgets …and save money…and save money…and save money…and save money I would also like to highlight my immense gratitude to our highly fully supportive and loyal corporate sponsors who paid memberships promptly and paid financial sponsorship support ahead of not yet defined sponsorship opportunities. Thank you. I am most grateful and certain so would AFFCO members be on your loyal support. Special mention to Visy, IHD, EEE Muir, Sumitomo Chemicals, Syngenta, AgroFresh, Netafilm, J-Tech Systems, Nufarm, ColourVision and welcome back to Dupont and Bayer. AFFCO Leadership Council AFFCO Chair, Max Scales and I hosted an AFFCO Leadership Council meeting in Melbourne in June that was well attended by Rob Cathels, Scott Montague, Mark Joyce, Michael Cox, Jon Durham and Ian Muir. There was an apology from Ben Coombs who could not attend as he was in Tasmania. Much was said by all to define the boundaries and scope of the Council and I was fortunate to present a current AFFCO position and future direction for discussion which many corporate sponsors and some members will have seen by now. AFFCO Future A major change is being planned in lieu of changes within the Apple and Pear industry as our market becomes more open to international supply. Watch this space for future announcements. AFFCO AGM AFFCO Annual General Meeting will be held at 1-2pm on Thursday, 24 November 2011 at AFFCO’s new premises building, Level 1, 262-276 Lorimer Street, Port Melbourne. Ample free car parking is available on Lorimer Street. More information and agenda will be provided shortly. 5
- 7. affco Australia’s leadingfruit network Winter & Spring 2011 The sucessful May 2011 Program update Leadership Development LEADERSHIPDEVELOPMENT The second AFFCO Leadership Development Program on 25-27 May 2011 was again a resounding success, based on participants’ feedback and visible transformation in mindset and conduct and as seen and experienced by their parents, managers and supervisors when they returned to work. Addressing an industry need to attract and develop innovators and new leaders, the Program built on the framework of the inaugural Young Leadership Program created by AFFCO last year and incorporated learnings and feedback from that Program. The skills, resources and networks that AFFCO has access in order to hold such successful events were also utilised to deliver the Programs. AFFCO also specifically assessed that not only our industry’s youth require leadership training but that growers and supply chain members irrespective of age also require the benefit of a different environment to equip them to face the future with increased confidence, enhanced knowledge and an improved ability to make positive decisions. Two separate programs were thus run concurrently this year to cater for the two target groups – the Young & Future and Current & Senior participants. Participants were typically from the businesses of AFFCO’s Top 30 industry leading members, corporate sponsors both multinationals and SMEs as well as including the wider Horticulture industry, such as Strawberry and Tomato sectors. The Program reflected events and experiences of participants’ personal and work lives and provided an opportunity for networking with industry peers. Over two and a half days at the beautiful Cleveland Winery, in Lancefield Victoria, participants were involved in lectures, in-depth case studies, workshops and group discussions with highly qualified and respected guest presenters. Topics covered were: Leadership, Communication, Succession Planning, Finance, Teamwork, Employment Law, Occupational Health and Safety, Public Speaking and Strategy. Participants completed questionnaires at the end of each session and conclusion of the Program. They provided general feedback and helped identify improvement opportunities and ideas for future Programs. A positive key finding was a strong need for a longer Senior Program and to cover more topics. The Survey outcomes for each session are tabulated below. AFFCO Leadership Program - May 2011 Survey - Session Results (MAXIMUM CORE OF 5) Presentation Clarity Content Pace Strategy 4.6 4.9 4.6 OHA 4.7 4.7 4.6 Public Speaking 4.8 4.8 4.5 Finance 4.3 4.5 4.4 Leadership 4.6 4.4 4.2 Case Study 4.2 4.3 4.3 Communication 4.3 4.3 4.2 Succession Planning 3.8 4.1 3.9 Employment Law 3.1 3.3 2.6 6 excite - engage - enjoy - evolve
- 8. affco Australia’s leadingfruit network Winter & Spring 2011 The sucessful May 2011 Program Program Testamonials update Leadership Development LEADERSHIPDEVELOPMENT It was great to be able to come back to the AFFCO Leadership Program with my wife Darlene and to this time bring my parents. Having a family business it was really important for Mum and Dad to hear the great ideas and suggestions on implementing strategic processes together with a new system for understanding finance through the Financial Fence model. The case study at the conclusion really drove home our family situation and the importance of succession planning and communication. Brad Fankhauser, Fankhauser Apples Having a family business, I found the session on finance really interesting, important, easy to understand and well paced for me to learn. I thought I was tough but broke into a sweat at the high ropes – I was able to overcome my fear and took the ‘leap of faith’ which gave me so much confidence in my ability. James Georgopolous, GV Independent Packers The group bonded together and the frank and open discussions we have had with each other have been a highlight for me. My workplace sees this as an investment in their future and it is a compliment to every participant that their employer also sees this Program as an investment in them. Kim-Lee Mildren, Customer Service, J-Tech Systems I was once again inspired and motivated by attending the AFFCO Leadership Program for the second time, I now want to focus more on strategy and setting clear goals in my workplace. I learnt that can influence people and customers through a well-prepared presentation and this is something I am keen to practice. Cassia Ferguson, Marketing, N&A Distributors I wasn’t sure what to expect coming into the program and learnt some really valuable tips to take away with me, Stuart Constable gave great advice on public speaking and practising what I have learnt in the sessions will help me to reach my goals of feeling confident to get up in front of an audience and be proud of the result. Kathryn Nieuwesteeg, Category Manager, Montague Fresh I really liked the personality profiling – how to read people and learning more about myself and where I sit in the scheme of things. Strategic planning was really good and the templates are an excellent start to implementing new processes in the workplace. Simon Doherty, Operations Manager, Integrity Fruit I enjoyed the team building activities which highlighted how much we need to communicate and trust each other to get the best results. I didn’t think I would walk away with so many new friends. I learnt my strengths and weaknesses and that everyone can stretch themselves far beyond what they think is possible. Will Joyce, Orchardist, Joyson Orchards The AFFCO Leadership Program was invaluable to me. I didn’t expect to be challenged or to be so open and honest. It was great to be around a group of people that all have the desire to self improve in their personal and business lives. Lisa Corcoran, Graham’s Factree Comments on Sessions Case study Showed how all the things we have learnt are applicable in real business Leadership Lots of ‘aha’ moments when I started to think about other people I work with, and also myself OH&S Highlighted two issues in my own team that is putting us at potential risk and I will be anchoring these upon return to the office. Strategy Agreed process model is top stuff and needs to be reviewed in our business Finance His emphasis on moving forward while trying to minimize debt. Learning a new system has made me inquisitive as to where our family business fits in. Communication Realisation of own strengths/weaknesses Great to get personal help to deal with staff issues Succession Planning Every farming family will face this issue. It’s relevant for both family members and employees alike. Nigel delivers an easy guide to preventing major ‘muck ups’. Public Speaking Loved it! So so so good! I wish I could do such an amazing job. 7 excite - engage - enjoy - evolve
- 9. affco Australia’s leadingfruit network Winter & Spring 2011 LEADERSHIPDEVELOPMENT 8 Program in Action update Leadership Development R3 L-R 1. Participants having a go at the Team Building and Leadership development exercise 2. James Georgopolous gives his experience a big thumbs up while Kathryn Nieuwesteeg prepares for her turn as Andrew Routley straps up to assist 3. You can do it Above. Young & Future leaders R1 L-R 1. Glenn McDermott taking Young & Future Leaders though Leadership Myer Briggs Type Indicator 2. Mark Rehn outlining Strategic frameworks on the flip charts R2 L-R 1. Young & Future Leaders enjoying a Leadership and Team Building exercise 2. A Leadership concept being exercised by participant on the Cleveland Winery lawns 3. Poh Len Pek summing up for the Young & Future Leaders participants what they have learnt over the 2.5 days excite - engage - enjoy - evolve You’ve heard about it. You’ve read about it. AFFCO Leadership Development Program 23 –25 November 2011 at the Rathbone Wine Centre on the Yarra, Port Melbourne, Victoria Now take up the challenge! Diarise the dates... ...and develop your leadership and business management skills in a unique environment with other Young & Future and Current & Senior Leaders.This program is supported by funding from engage - excite - enjoy - evolve engage - excite - enjoy - evolve ...Offering 2 programs: Young & Future Leaders Current & Senior Leaders
- 10. affco Australia’s leadingfruit network Winter & Spring 2011 LEADERSHIPDEVELOPMENT 9 AFFCO Leadership Development Program runs again What will be covered? Core sessions include leadership skills, strategy, finance, business management, communications, public speaking, employment law and OH&S. Professionally run team-building activities are also part of the program to put into practice many new skills and to forge team work. Why would you attend? This program has been refined and tailored to benefit people actively involved in horticulture with relevant and meaningful case studies, business scenarios and group exercises. And it’s not limited to AFFCO members as we want to encourage a cross-fertilisation of ideas and approaches within the horticulture industry. It’s an opportunity to expand your passion for the industry and take away valuable insights and tools to apply immediately and make a difference to your own business as well as your own personal life. Where it will it be held? Who will be there? For the Young Leaders Program, present and next generation AFFCO Members and Affiliates aged 18 to 40 who are seeking to enhance their competencies in business, communications and finance, develop their people skills as well as network with the best in the industry nationwide. For the Senior Leaders Program, graduates of the Young Leaders Program are perfectly positioned to benefit enormously from consolidation and extension of new skills and learnings. The Seniors Program is also ideally suited to mature people who have been in horticulture for many years and who also want to learn new skills and update their business competencies. We welcome enquiries and applications from non- AFFCO members. Numbers are limited to ensure an environment that facilitates learning and dynamic interaction between participants and presenters. Conveniently in Melbourne at AFFCO’s new office facilities on the Yarra River at Port Melbourne. Just 10 minutes from the city, you will be close to the CBD/St Kilda for your accommodation. And easy access off the freeway from the airport. Be part of your industry’s future leaders and get to know your peers from interstate. excite -‐ engage -‐ engage -‐ evolve -‐ excite -‐ engage -‐ enjoy -‐ evolve excite -‐ engage -‐ enjoy -‐ evolve -‐ excite -‐ engage -‐ enjoy -‐ evolve The highly acclaimed AFFCO Leadership Development Program will again take place this November, complete with all the valuable and pertinent sessions rated 4+ out of 5 at the recent May 2011 Program PLUS new activities and sessions requested by past attendees. Unique to the industry, this Program is offered, in two concurrent sessions, to a national audience of - Young and Future Industry Leaders - Senior & Current Leaders or Graduates of AFFCO’s Young Leaders Development Program. “The AFFCO Leadership Program was invaluable for me. I didn’t expect to be challenged or to be so open and honest.” 23 - 25 November 2011 excite - engage - enjoy - evolve excite - engage - enjoy - evolve
- 11. affco Australia’s leadingfruit network Winter & Spring 2011 YOUNGLEADER’SPROFILE 10 update Young Leader’s Profile Brad Fankhauser Name: Brad Fankhauser Business: Fankhauser Apples Location: Drouin, Gippsland, Victoria Favourite team/sport: Collingwood and V8 supercars Best farm moment: Finding a new strain of Gala amongst one of our blocks. Worst moment: Hail storm 6th March 2010. Hailstones the size of tennis balls. Favourite fruit: Has to be apples!!! How long in industry: Family has been growing fruit in Australia for over 100 years, I have been on the farm since leaving school 17 years ago. Why are you an AFFCO member: AFFCO gives us the ability to meet and talk with other growers and marketers on a regular but informal basis. (If you have a mentor) What is the key thing your mentor told you? My Father has always said ‘if we have to work weekends other than harvest, we must be doing something wrong” What would you do if you weren’t in agriculture? Never really thought about it, but something warmer over winter, by a warm beach sounds nice at the moment. What is your key non-agriculture goal? For my family to be happy and healthy.
- 12. affco Australia’s leadingfruit network Winter & Spring 2011 update A Leader’s Way Forward Gavin Scurr, MD, Pinata Marketing Australia Piñata Marketing Australia, near Mareeba, Queensland, is a highly respected leading player in the Australian fruit industry with an impressive history of business innovation and pioneering of new varieties since its beginnings in the 1960’s. Managing Director, Gavin Scurr is the third generation in the family business of growing and marketing of pineapples, strawberries and mangoes. With his brother Stephen, after taking over their father’s pineapple growing business in their 20’s, they recognised at the outset a need to move away from traditional business methods, and they steered and transformed their traditional family farming operation into a vertically integrated operation over 2 decades. After assessing the market was clearly moving to increasing imports of processed pineapple, the two brothers moved their historical business away from supplying pineapples for canning to the fresh market, and went about planning significant changes to their business. They identified and strengthened those resources and business acumen that conferred a competitive advantage over other suppliers on the domestic market. Key to this was identification of a superior eating quality fresh pineapple. Pinata Marketing today produces and markets fresh pineapples, strawberries and Honey Gold mangoes from numerous properties in Australia under the mission statement “Reliability in Fruit”. Some of the initiatives Gavin implemented to reposition his family’s traditional horticultural enterprise facing an uncertain future included: • Detailed documentation of all Pinata supply functions for everyone involved in producing and delivering fruit to market. This included transport logistics, machinery operation and specifics of picking and packing. • Proactive address of change and a realignment of business goals, investment, and farm and marketing processes. • Detailed agreements with supply chain partners to encourage positive business relationships and to meet product quality goals. • Negotiating performance indicators with freight companies on transport times and product temperatures. • Pooling of returns to the few mango suppliers within each production region to encourage positive production benchmarking between the growers, resulting in the supply of more consistent and better quality product from each group. Gavin is largely credited with the introduction of hybrid pineapples to Australia. On a holiday to Hawaii in the 1980’s, Gavin recognised a variety high in sweetness and low in acid that offered a superior natural eating experience. Fortuitously on that trip, both Dole and Del Monte were battling over PVR for this particular pineapple. Taking a punt on the future of the pineapple, Gavin found and shipped a box of top pineapple fruit back to Australia. During quarantine, tissue culturing was undertaken to multiply the available planting material. From this point onwards, the hybrid or Gold type of pineapple has been a mainstay of the fresh pineapple industry in Australia. It is the result of more than 10 years development and research and a great example of Piñata’s ongoing pursuit to give consumers the best possible fruit. The variety has an outstanding track record in the USA and following its introduction to Australia by Piñata, there was an 80% increase in consumption of fresh pineapple over three years. T h e brothers branded the variety Mareeba Gold to ensure differentiation within the market, and with their then third party producers, commenced marketing the fruit direct into Coles and Woolworths. Given the variety’s unique properties, they had about a six year jump ahead on their competitors in the local fresh pineapple industry. Today the Mareeba Gold is sold to major chain stores and to central market systems in Sydney, Melbourne, Adelaide and Perth. Now there are several ‘branded’ suppliers of the Gold type of hybrid pineapple to the market, all using the same varieties and selling to similar customers. The expansion of Piñata to grow the Mareeba Gold on its farms at Mareeba, North Queensland was undertaken to extend the period where the Gold type of pineapple was at its best for taste. Furthermore, the Atherton Tableland has similar qualities to some of the best growing regions around the world, e.g. the Philippines, in terms of climate and topography. As a result of this pioneering, the brothers were able to bring the Mareeba Gold to consumers all year round. Gavin and Stephen continues their search for new and improved ways of doing business which is ultimately experienced in the produce they present to the consumer. AFFCO wishes to thank Gavin Scurr, Andrew McKillop and the Piñata team for the thoroughly enjoyable tour and informative time spent at Piñata Marketing at Warmuran, Queensland. Top. Gavin Scurr, Managing Director Pinata Marketing and Max Scales, Chairman of affco Bottom right. Mareeba Pineapples ready for market Bottom left. Andrew McKillop, General Manager and Gavin Scurr, Managing Director of Pinata Marketing Australia ALEADER’SWAYFORWARD 11
- 13. affco Australia’s leadingfruit network Winter & Spring 2011 update Projects CherryNet PROJECTS 12 9th Annual AFFCO Cherry Workshop 2011 By Ken Gaudian, AFFCO Project Leader Attendees came from as far as Orange and New Zealand (Keynote Speaker, Earnscy Weaver) to attend the AFFCO Cherry Workshop in Alexandra, Victoria on 15th March 2011. The Workshop on a review of the national cherry season was facilitated by Andrew Dick who led discussions and drew information from participants to define the potential packed tonnage of 14,500 tonnes this season against reality of most likely 7,500 tonnes packed/sold following heavy rain damage and hail across most cherry growing regions. Healthy discussion took place on how to maximize outcomes against adverse weather and other external factors. Points raised included; the need to be export ready, MRLs, fruit fly protocols, negative media coverage and mixed retail messages, a tight mango season and falling wholesale prices post-Christmas. On lessons, a need to know: • your crop load accurately • daily market pricing and competition • export potential and pricing, and a commitment to supply • (if quality sound), • the national cherry crop potential pre-harvest. Mark Chapman presented his EXCEL program that when a representative sample of cherries is taken and assessed for size, damage and price per kilogram per size range, showed if a profit could be generated, and then a decision could be made whether a variety or block should be picked or not. Discussion around the financial implications of continuing to pick when it becomes unprofitable followed. Simon Boughey, new CEO of Cherry Growers Australia was introduced in his first meeting with mainland cherry levy payers. Simon is based in Tasmania and will visit other states and growing regions during the year. As well as giving an update on the happenings at CGA, he introduced Owen Connelly, the cherry industry manager for HAL, to provide details on AFFCO’s Cherrynet Project. Earnscy Weaver’s excellent presentation on cherry cracking and prevention noted a number of options including overhead calcium sprays during rain, rain covers, growing cultivars less susceptible to cracking, growing in the desert etc. Again question time flushed out some serious discussion, to the benefit of all. Franklin Trouw of Oak Sun Consulting presented on rain covers, his experience has been that over the last three years cherries have been successfully harvested packed and sold from under rain covers, when fruit not covered has been lost to rain cracking. Better prices and improved quality seems to also be a benefit of rain covers. Figures are available on covering on a per hectare basis, and interest on loans can demonstrate a positive outcome for a region at risk of rain damage. Using Profit Planner, Andrew Smith went on to show the difference between the financial planning of using the same block with and without covers. Lindsay Adams, from Netpro Group, presented information about their Single Row Raincovers. For the workshop a small section of Single Row Raincover was re-installed in the orchard walk at Adam Gaudion’s river block. Lindsay pointed out the features and benefits of using the covers, which created a solid talking point. The opportunity to network was invaluable as was the sharing of learnings and experiences to benefit all. Cherries on Firmtech Data from Firmtech Simon Broughey, CEO CGA addressing the AFFCO Cherry Workshop Orchard Walk - AFFCO Cherry Annual
- 14. affco Australia’s leadingfruit network Winter & Spring 2011 MARKETING 13 update Marketing Branding, Promotions, Market Trends In this edition, we showcase insights on consumer market trends from the Europe Fruit Logistica trade show in Berlin (February 2011) and Asia Fruit Logistica in Hong Kong (September 2011) as captured by Martin Kneebone from Freshlogic. Europe Fruit Logistica, Berlin, February 2011 • Portion sizes - A common theme of smaller portion sizes including many products in singles, a trend not limited to fresh produce, more apparent this year with vegetables than fruit, as the larger size fruit remains positioned as premium product. • The packaging to support Portion sizes - A myriad of packaging options are used to give effect to this portion size trend, ranging from plastic in all configurations, cardboard inners and trays to wooden cartons. Smaller cups providing portion and retail ready/processing solutions. The use of packaging introduces an important communication medium for communication to consumers, while smaller portion sizes increases the packaging component per tonne of product and feeds the packaging set-up investment • Product form - Increasing array of product forms, with some important food service “plate ready” innovations being introduced as retail products. This includes more part-processed products which introduces scope for investments in mechanisation to reduce labour cost. These play to the advantage of those participants in shorter supply chains. • Managed variety - Expansion of the “managed variety approach” across fruits and some vegetables, involving full supply chain involvement from variety owners. While increasing category value, supply chain margin is now being captured by plant owners asserting their influence. It is not clear what this has done for the producer margin, which has typically carried all the risk. • Expanding the logistics business model - More “supply chain partners” seeking to do much more than move boxes - offers include IT systems, packaging solutions, new product support and inventory management. This is reflective of the need to expand operations and range of solutions to clients - or be fazed out of a role. • Sustainability evolving well past being a standalone issues into the fabric of everyday business and earning acknowledgement in the essence of many tier 1 corporate brands. The equipment to process fruit & vegetables has improved further to service and expand the demand for “fresh meal ready & waste free” products. • Organics - There were more organic products from organic specialists, rather than as line extensions from suppliers of conventional products. This is potentially reflective of the scale and systems required to support the brands and supply chain to maintain these types of products, as demand reportedly remains soft. Asia Fruit Logistica, Hong Kong, September 2011 • Focus on Trading Volume growth in Chinese market is driving a focus on trading unlike the focus at the larger Berlin event on innovation and new product • Sales shift from Wet Markets to Supermarkets The shift is running at 1-2% market share pa • Rapid Expansion of Grocery Retailers In selecting distribution options, aspiring exporters to this market should understand the mix of store formats and growth plans of grocery retailers. • Eating Out in SE Asia Do not underestimate the value and extent of eating out market in SE Asia. Many younger consumers have better incomes and eat out more often and for good value. • Airfreight Capacity from Australia Export airfreight capacity 400 flights per week from Australia, supported by investments by airlines and freight forwarders in airport handling infrastructure. Martin Kneebone is a Director of Freshlogic, a specialist food market analysis and consulting firm in interpreting market and supply chain conditions. Martin recently presented “Market and Consumer trends data: using it to grow your business” at the Fresh Connections 2011 Conference. Refer my key take-outs on his talk. www.freshlogic.com.au “Aussie Apples” The “Aussie Apples” branding was a joint project between Horticulture Australia Ltd (HAL), Apple & Pear Australia Ltd (APAL) and J-Tech Systems. The initiative aims to strengthen and unify the branding of Aussie Apple’s with a highly visible brand that will be easily recognisable by the consumer all year round. APAL launched the new “Aussie Apple” labels in stores in July 2011. J-Tech Systems – established suppliers of fruit labels in Australia and New Zealand – assisted on the project as developing a fruit label is a fundamental and key component of the initiative. It is a visual means by which a consumer can quickly identify product origin. The success of this initiative requires industry support of the Aussie Brand – which means using the label - so that it gains maximum exposure on retail shelves and a prominent brand position to differentiate from imported apples. Growers and Packhouse Operators have been sent an information pack from APAL which outline the full campaign and details on how to use the new logo. For questions or comments, please contact; - Horticulture Australia Ltd, Luke Westley (Project Manager) T: 02 8295 2375 - J-Tech Systems Pty Ltd, Philip Webb, T:02 6049 5000 (Labels and Labelling Equipment)
- 15. affco Australia’s leadingfruit network Winter & Spring 2011 update Fresh Connections 2011 Key Retail Market Trends & Highlights FRESHCONNECTIONS2011 AFFCO once again partnered with PMA and ACFVI to host Fresh Connections 2011, a big three days, three-pronged event comprising conference, trade show and market tours at the Brisbane Convention and Exhibition Centre in June 2011. Several AFFCO members including a strong Western Australian contingent, Max Scales, Sally Piper and myself were among the 700+ delegates from the local and New Zealand fresh produce industry who attended the 3 day event. Conference In the Conference, a wide range of topics were presented by Australian and international speakers, business leaders and trainers. 14
- 16. affco Australia’s leadingfruit network Winter & Spring 2011 update Fresh Connections 2011 Key Retail Market Trends & Highlights FRESHCONNECTIONS2011 OPPOSITE PAGE R1 L-R 1. Lecture Hall - asking questions from the floor 2. Lecture Hall - attendees listening to session R2 L-R 1. One of the Plenary Session 2. Max Scales with a gift of appreciation to Cole’s GM Fresh Produce R3 L-R 1. FreshLogic slide - Fruit & Veg weekly spend range per household 2. Gala dinner with over 450+ attendees Trade Shows Colour Vision, Visy, J-Tech Systems, Agnova, Holman Fresh and Montague Fresh were among AFFCO members and sponsors who exhibited in the trade show. AFFCO shared a stand with N&A Distributors who showcased their latest apple varieties, Kanzi and Greenstar. Market Tours There was a choice of three different tours held on the morning of the first day that catered to those whose focus is Retailers, Vegetable or Fruit growing regions. AFFCO took charge of the latter and I thank Agnova for sponsoring this tour that took about 45 participants to the Brisbane Markets at Rocklea and fruit- growing region in the Glass House Mountains north of Brisbane. The Fruit Tour visited Smerdon Enterprises’ state-of-the-art avocado pack house and avocado and custard apple orchards and was hosted by CEO, Mrs Ros Smerdon (2008 Rural Women’s Award). We then visited Piñata Marketing’s pineapple and strawberry farms in Wamuran, where our host, Managing Director, Gavin Scurr enthralled and inspired us with his story of his journey on how he and his brother built the business following an effective succession plan handover from his father, who stepped aside and handed complete reins of the family business to his two (then) young sons. Their journey is impressive and inspiring. Read about Gavin’s journey in A Leader’s Way Forward. Functions and Networking The Conference scheduled many fun and interesting networking functions such as the Coles Culinary Challenge at the Welcome Reception, strolling lunch at the Trade Show, Young Professionals Reception and coffee breaks between sessions in addition to the Gala Dinner where tickets were completely sold out. Many renewed acquaintances and friendships and forged new connections such as a few AFFCO members who managed to meet David Easton, Kiwi grower and creator of Eve apples. There were many Kiwi growers and marketers who attended to “check out” our market. Fresh Connections 2012 Next year’s event in Melbourne is being planned to be bigger and better and AFFCO will once again co-host with PMA and ACFVI. It will be at the Melbourne Convention & Exhibition Centre, Victoria on 26-28 June 2012. Mark these dates! You can register your interest at www.freshconnections-anz.com.au. There is an opportunity now for your input on Conference topics as we plan the event. How about “Does Country of Origin really matter to Australian consumers?” Do you have burning topics where you would like a world class expert’s view or researched analysis on? I encourage members to call me and discuss while we have that chance. Acknowledgements AFFCO’s involvement and attendance at Fresh Connections 2011 has been made possible through funding support from HAL. AFFCO wishes to thank HAL for their funding support of this successful project that has benefited the horticultural industry and wider community. 15
- 17. affco Australia’s leadingfruit network Winter & Spring 2011 update Fresh Connections 2011 Key Retail Market Trends & Highlights | Conference FRESHCONNECTIONS2011 Read my key out-takes for members on fresh produce retail and market trend. The importance of Independent Retailers in today’s competitive retail environment Lou Jardin, Managing Director, SPAR Australia SPAR comprises ca. 300 independent retail supermarkets such as SPAR and 5 Star banner groups in Queensland, New South Wales, ACT, NT and Pacific Island areas. [PLP note: akin to Foodworks with 650 supermarkets, food and convenience stores nationally]. • SPAR’s two key points of differentiation to the big retailers: Woolies, Coles and Metcash are they are family run- businesses supporting other family-run businesses with local offerings to support local producers and local employment • Successful supermarkets are good at fresh produce and fresh is the key draw card to attract consumers into supermarkets • Today’s supermarket landscape is based on “Price War” between the 3 retailers and market style presentation, i.e Big Box model. Market and Consumer Trends data: using it to grow your business Yahya Kanji, The Nielsen Company • Trend in Fresh Produce last 12 months is value, not volume growth. • Pre-packed fresh produce grew 18% and 22% share of fresh produce sales • Produce are moving towards being branded Martin Kneebone, Freshlogic • Apples category is worth $750m • Trends: - Organic - Buy local - Free Range (20% higher price to normal) - Average price for vegetables are $3.65/kg - Smaller portion size (aligning with smaller household sizes) - Meal pulse - New emerging channels: - Coles Vans (250) - Aussie Farmers Direct: $130m sales of which 40% is Fruit & Vegetables - Costco (new entrant) $300m sales of which 5-10% is Fruit & Vegetables - 1.5million boxes pa. $220m sales eg $150/ week Jenny Craig, Young singles - Technology touch screens (NBN will give this a free kick) - Online sales: UK 9% vs USA 7% vs Australia 1% (if 3-4% would be equivalent to Aldi sales) How critical is fresh produce to the retailer? Greg Davis, General Manager, Fresh Produce, Coles Greg Davis captivated us with his slides and stories relating his family and lifestyle such as making Sunday breakfast with his son to illustrate “Sunday’s, Eating at home and Eating for interaction” as the new ways Coles marketing are engaging with consumers. Below are some gems I took from him and encourage members to reflect on the ramifications of those points on your business, and how will you act on the impact: • Consumers want to know WHO grows the food. • Next generation is coming up with different concepts about food with the resultant whole new foodie coming through • Sundays are seen as opportunities, for example father and son to cook breakfast together as an avenue for a family interaction • Eating at home and eating for interaction trends where in the latter, community interacts around food • Shopper tracker 2011/2011 highlights: - If you provide recipes, consumers buy more and they’re more loyal - Voluminous display creates impulse buying and consumers also buy more than they planned • Challenge is to sell the story: from seed to table Interestingly, Greg mentioned that Coles do not understand all the costs that goes into producing a crop or produce and relies on suppliers for education here. [An opportunity for suppliers to interested retail buyers or a challenge to create interest in disinterested buyers]] Linking the above with the SPAR presentation, Fresh Produce is unquestionably – as many of your already know - the strategic and tactical battle grounds of the supermarkets Coles, Woolworths and Metcash. So, packers and marketers, how good is your offensive or defensive position with retailers? I thought it would be good to lob in a thought provoking line! Two other good topics available as audio recordings on the Fresh Connections 2011website: • How big an opportunity is Food Service by Rich Dachman • Using fresh produce packaging as a consumer billboard by Lisa Cork The most important upshot is irrespective whether you’re a grower or packer focused in your business and not involved in marketing, I urge you to become interested in marketing as this is the valuable part of the chain where financial value is built and demand created, nurtured or destroyed! Growing supply needs growing demand and sophistication in segmenting demand into multi-market segments. Enjoy and ponder this! 16
- 18. affco Australia’s leadingfruit network Winter & Spring 2011 update Fresh Connections 2011 Trade Show FRESHCONNECTIONS2011 R1 L-R 1. Colour Vision Stand at the Trade Show; a happy GM, Lou Aceski and his team 2. Colour Vision staff showing the sorting capability of their equipment at the Trade Show R2 L-R 2.J-Tech System Stand 3. J-Tech Systems Stand - Stuart Abbot and Team R3 L-R 2. Visyboard Stand at the Trade Show - Kim Ziersch & Team 3. Test the strength of Visyboard table and chairs made of cardboard at their stand! R4 1. Plant & Food Research Stand with Honeymoon and Jazz apples on display 2. Colour vision display at the Trade Show 17
- 19. affco Australia’s leadingfruit network Winter & Spring 2011 update Fresh Connections 2011 Key Retail Market Trends & Highlights | Conference FRESHCONNECTIONS2011 Opening the doors to doing business in Asia (China) Raymond Jin, Managing Director, International Dept. Golden Wing Mau Group (GWMG), China Golden Wing Mau Group (GWMG) - established 13 years ago in Hong Kong - is a major Chinese fruit wholesaler on 40 types of fruits and operates 15 packing houses, 36 logistics centers and 1000+ super stores in 80 Chinese cities. This company could be your potential China distributor and I encourage aspiring and seasoned exporters to China to note salient market info and insights I have captured below that may help you in your market research or review your go-to-China-market strategies. Mr. Jin is based in Shenzhen and has been with GWMG for 12 years. • Guangzhou, Shanghai and Beijing wholesale markets remain strong for sales to smaller towns. • GWMG holds quota for Chinese fruit exports. • GWMG is focused on Chinese retailers, which is the biggest and most important channel in China. • Dealing with retailers directly requires skills in dealing with uncertainty (seems a global thing!). • Supermarkets account for 15% of total fruit sales vs advanced countries 70%, so there is room for expansion, hence GWMG focus on retailers. • Average fruit consumption in China is 46 kg per year vs 159 kg in EU => again potential for growth in fruit consumption in China • Market trend is towards larger players and distributors like GWMG and supermarkets • Import tariffs are decreasing and more protocols are being agreed for fruit trade into China - Australian cherries now signed. Imports into China will be possible from this year (2011). - Australian grapes 13% tariff vs Chilean grapes 5.5% tariff - Australian Government needs to work with Chinese Government to reduce tariff to reduce the minimum customs price, otherwise Australia will lose market share to Chile. • Chinese consumers aware of food safety and traceability. • Important drivers for the Chinese retail market are as follows: - Country of origin - Australia and New Zealand regarded as clean, green and safe (high) - Price, taste, quality, appearance and packaging - Brand building (also referred by Martin Kneebone as emerging trend for Australian market) - Chileans do not invest in any marketing whilst Zespri has been investing in building their brands in China and consequently after years of marketing investments, commands twice the price of Chilean kiwi fruit. - [PLP note: Zespri is New Zealand’s single desk kiwifruit marketer with NZ $1billion sales worldwide, of which 92% of fruit are sourced from NZ. Their branding strategies in Zespri Green, Zespri Gold and Zespri Green Organic represent a useful successful case study in a single desk approach to international markets and strategic marketing, an approach I endorse after 26 years working experience in international markets]. David Ch’ng, Mosaic Consultancy Those who attended AFFCO 2010 Leadership Development Program would know David who led the Strategy and Innovation session. David is a fantastic teacher who adopts wit and historical information to bring to life salient points about Chinese culture to help better understand Chinese culture as a precursor to doing business successfully in Asia (China). Raymond Jin and David Ch’ng’s presentations are available as audio recordings on the Fresh Conmnections 2011 website. Below are statistics on attendees 18 28.6% 11.9% 2.4% 13.5% 0.8% 3.1% 39.7% CEO, Owner, Partner, MD, Director General manager, CFO OperaDons Manager Sales Manager Buyer Salesperson, RepresentaDve Other What is your job .tle? 8.7% 26.2% 0.0% 5.6% 8.7% 3.1% 3.2% 10.3% 15.1% 19.0% Importer, Exporter, Broker Grower / Packer / Processor Trade media Government Industry OrganisaIon PromoIonal OrganisaIon Retailer Industry Product/Service Provider Wholesaler Other Please select your type of business 0% 5% 10% 15% 20% 25% 30% < $1 million $1 – 10 million $11 – 50 million $51 – 100 million Over $100 million Not applicable What is the approx gross annual turnover (AUD) of your company? 0% 5% 10% 15% 20% 25% 30% 35% 40% Under 25 25 – 35 36 – 45 46 – 60 61 and over Please select your age range
- 20. affco Australia’s leadingfruit network Winter & Spring 2011 update Fresh Connections 2011 Coles Welcome Challenge and Young Professionals Reception FRESHCONNECTIONS2011 CONFERENCE SESSIONS 1B Far left. Poh Len Pek addressing the Young Professionals Reception. COLES WELCOME RECEPTION & CULINARY CHALLENGE R1 L-R 1. Coles Welcome Reception - everyone gets a Masterchef apron on arrival at the Reception; what leverage for Coles Masterchef sponsorship! 2. Tom Price checking out Eve apples at the Montague Eve Apple stand with Darren Barber and David Easton engrossed in conversation. 3. Culinary Challenge; Rowen Little on the left. R2 L-R 1. Culinary Challenge part of Coles welcome Reception - spot the Masterchef Clock 2. Eve Apples stand - Darren Barber, Rowan Little and David Easton 3. Rowan Little preparing a dish at the Cullinary Challenge part of the Coles Welcome Reception 19
- 21. affco Australia’s leadingfruit network Winter & Spring 2011 update Fresh Connections 2011 Fruit + Market Tour - Smerdon Enterprises & Pinata Marketing FRESHCONNECTIONS2011 The tour hosted by AFFCO Chair, Max Scales and sponsored by Agnova, had an enjoyable and interesting morning commencing at the Brisbane Rocklea Market and then onto the Glass House Mountains where Smerdon Enterprises CEO, Mrs Ros Smerdon showed and explained the packing and marketing of avocado and custard apples at their state-of-the-art pack house. It was a good opportunity to see avocado and custard apple orchards first hand and learn how relatively “young” growers united a young industry and made brave investments into marketing and a state-of-the-art pack house. We then toured Pinata Marketing’s pineapple and strawberry farms and pack houses. See separate story on Pinata Marketing’s MD, Gavin Scurr. R1 L-R 1. At the custard apple orchard 2. Tim Lister with Pinata Marketing produce R2. L-R 1. Harvey Giblett. 2. Chris Dunoon and Agnova’s Darren Thomas at Pinata’s stravberries farm. 20 R1 1. Brisbane market at 7am 2. Mrs Ros Smerdon CEO, Smerdon Enterprises 1. Here’s Jazz apples R2 2. Maurice Lister with Agnova’s Darren Thomas 3. Avocado orchard
- 22. affco Australia’s leadingfruit network Winter & Spring 2011 21 update New Product Innovation New Stonefruit Varieties from ANFIC NEWPRODUCTINNOVATION Profitable Northern Hemisphere Varieties (that are well adapted to Australian conditions) by Gavin Porter, CEO Australian Nurserymen’s Fruit Improvement Company (ANFIC) Ltd Fourteen new varieties from AC Fruits/Rene Monteaux-Caillet Breeding Program, France These new stonefruit varieties come from the French stonefruit breeder, Rene Monteux-Caillet (retired) located in southern France. The main principle of this European breeding program is a full season series of white and yellow flesh, peach and nectarine varieties. The focus is consumer satisfaction based on one type of stonefruit that all look and taste great throughout the season. Apricot and cherry breeding has also commenced with new selections becoming available for trial. Fruit quality is equivalent to current USA stone fruit varieties. The stonefruit varieties from this exciting breeding program in France can be grouped into several categories which include white and yellow flesh peaches and nectarines with High chilling (600-800 chill hours) and Medium to high chilling (500-700 chill hours); White and yellow flesh, low to medium chilling nectarines (400-500 chill hours) and low chilling nectarines (350-450 chill hours). Early apricot selections have produced some selections with red/orange skin and flesh, aromatic apricot taste and firm fruit. Some early development work has produced some initial selections of red fleshed peaches and nectarines. While these red-flesh selections have both high sugar and acid, they may find a place for consumers who like full, flavoured stonefruit. Grower friendly characteristics include tolerance to wet seasonal weather conditions as experienced last season eg Brown rot and Bacterial Spot tolerance, less fruit cracking and improved skin finish even after rain or high humidity. These stonefruit varieties also have high productivity early in the tree’s life (2+ trays/tree in 2nd year), high productivity when mature (breeders aim for 45- 50 tonnes/ha min.), even fruit maturity and size on both young and mature trees and firm flesh to assist in harvest maturity and picking, transport and shelf-life. Yellow Nectarine varieties include Monsur cv. (SF 98-082) and Orion™ (SF 88-119). White Nectarines include Beryl™ (SF 99- 110), Mica™ (SF 01-018), Cristal™ (SF 01-017) and Turquoise™ (SF 99-105). Yellow Peaches include Coraline™ (SF 94-064), Azurite™ (SF 99-109) and Corindon™ (SF 98-081). White Peaches include Gypse™ (Mongros cv.), Onyx™ (SF 96-062), Ivoire™ (SF 97-040) and Opale™ (SF 86-117). The newest French Apricot variety is Tenor™. Three new apricot varieties from East Coast USA, Rutgers, New Jersey Breeding program The stonefruit varieties from this breeding program includes medium to high chilling Apricots (500-700 chill hours) with early to mid season harvest maturity, tolerance to wet weather conditions and high sugars. Grower friendly characteristics include tolerance to wet seasonal weather conditions eg Brown rot and Bacterial Spot tolerance, less fruit cracking and improved skin finish even after rain or high humidity. These apricot varieties have high productivity with fruit 55-60mm (90g) and 16-20+ Brix, attractive fruit with firm flesh and good eating quality with sweet flavour. The H80- 77 apricot variety matures with Tenor, J1-139 matures just after Solar Nugget and NJA-105 matures just before Solar Sweet. Please refer to further information on www.anfic.com. au, Variety Names or Variety Evaluations (past seasons) or contact Gavin Porter ANFIC CEO Ph. 02-6332 6960 Email: info@anfic.com.au Tenor - French apricot Cristal - French white nectarine Orion - French yellow nectarine Onyx a - French white peach Corindon - French yellow peach
- 23. affco Australia’s leadingfruit network Winter & Spring 2011 update New Product Innovation PolynateTM Bee Polinator from Bioglobal POH LEN: Hi Ken, it’s a pleasure arriving at a win-win deal on Polynate with you where AFFCO communicates the benefits of Polynate to AFFCO members. Thank you for an opportunity to work with you on this amazing product. I understand it’s a world’s first and newly launched in Australia in May 2011. We sent some information out to AFFCO members in August to learn about your product and above all buy and benefit from it this season. I’m even more excited that it was an AFFCO pear grower in the Goulburn Valley, Chris Georgopoulos who successfully trialed Polynate last season. So, tell us what is Polynate? KEN: Well, Polynate is an environmentally friendly product for enhancing bee activity in flowering fruits such as apples, pears, cherries, apricots, plums, other stone fruits and berries such as blueberries. You could say it’s a “bee magnet”! POH LEN: So, it’s a good “bee magnet” for all tree fruits and summer fruits. That’s neat as it means all AFFCO growers can use this product. Now, why do you say Polynate is environmentally friendly? KEN: Polynate is made up of a synergistic combination of bee attractants, floral perfumes and worker bee pheromones, so it’s all good stuff. Secondly, there is no spraying or application of any chemicals involved. POH LEN: So, there’s no chemical aftermath ramification to deal with, other than removal of Polynate product from the tree at appropriate juncture. That’s good. Now those floral perfumes you’ve got on it, they smell wonderful! I love it! It reminds me of being in the vast rose gardens of Versailles! I can imagine bees busily buzzing away pollinating flowers with Polynate. Now, will Polynate work with all bees or only attract some types? KEN: Polynate works on two major types of bees in Australia, i.e., honey bee (cultivated European bee) and our native bee. It also works with bumble bees in Tasmania. I know Chris Georgopoulos who has trialed Polynate on his pear crop, swears by its benefits. Packham pear flowers in particular are not very attractive to bees so this has been very successful indeed. POH LEN: Yes, I know Chris was thrilled with his results using Polynate. I overheard that it’s even more critical to use Polynate this season in the Goulburn Valley given last season’s very heavy Packham pear crop. Why is that so? KEN: The tree would have spent a lot of energy last season, so it’ll be lighter flowering this season, which makes it critical to use Polynate to ensure flowers set to fruit. POH LEN: That’s interesting. Where else have you validated Polynate and what were the numbers? KEN:We have had several successful trials in USA too: on almonds in California with 29% improvement in flower set, on blueberries, apples and cherries in Michigan, which all gave outstanding results too. On cherries for example with 25% yield increase, that would amount to $18,000 per hectare of additional fruits that more than covers a small Polynate cost outlay of $275/hectare. POH LEN: Let’s talk more on numbers later; meanwhile were there trials that didn’t work well? KEN: Ah yes, strangely we didn’t see any marked difference on apples in Stanthorpe! POH LEN: Maybe they didn’t stick with the recommended rate of application? KEN: Oh we don’t know, but that raises a critical point. We want to emphasize to growers the importance of sticking with the recommended amount per hectare. We have trials comparing different application rates and have worked out a cost effective optimal rate. We strongly recommend growers stick with our recommended rate. AFFCO recently entered into a commercial arrangement with Bioglobal on their world’s first bee pollinator product, Polynate. Read my interview below with Bioglobal’s CEO, KEN Ingbritsen, for details of this win- win deal for AFFCO members which benefits members and AFFCO. Polynate Pack, Applicator & Wand NEWPRODUCTINNOVATION 22
- 24. affco Australia’s leadingfruit network Winter & Spring 2011 update New Product Innovation PolynateTM Bee Polinator from Bioglobal For example on the Californian trial on almonds, we compared the recommended usage level with half the recommended rate. The results can be seen in Figure 1: 29% increase in fruit set on the recommended rate of 1,000 dispensers per ha (2 packs) compared to 12% increase in fruit set on 500 dispensers per ha (1 pack). We have also seen that at 500 dispensers per ha, there is no difference to the control (no Polynate) when closer to the hives. POH LEN: Sounds compelling. So, what is the exact recommended usage rate? KEN: We recommend 2 packs (2 x 500 dispensers = 1,000 dispensers) per ha. Each pack contains 500 dispensers so that’s 1,000 dispensers per hectare, spread evenly throughout the orchard. POH LEN: Apart from yield increase through increased fruit set and increased bee activity, why would fruit growers use Polynate? KEN: Polynate also helps reduce incidence of misshapen fruit. I refer AFFCO members to the results in Figure 2 which show a 30% decrease in misshapen fruit in Chris Georgopoulos’s Packham pear trial in the Goulburn Valley. What’s also interesting is that the pear fruits were physically larger and contained more seeds. POH LEN: Are there any special conditions where Polynate would be very useful? KEN: Definitely yes, in several situations such as with (a) weak or low beehive populations, (b) varieties such as Pink Lady under hail netting particularly to encourage bee activity in the centre of a block under netting, and plum varieties that traditionally have poor fruit set, (c) cool/windy/overcast conditions, (d) unattractive crop varieties such as Packham pear and competing crops/weeds. POH LEN: Having learnt recently at the National Apple and Pear conference about the 3 different types of buds:, spur, terminal and auxiliary and the need to remove auxiliary buds which don’t give the best fruit, doesn’t it make it even more crucial to ensure fruit set from lesser number of buds? KEN: Good to see you’ve been paying attention to the presentations! Yes, with lesser buds l left on trees, growers will want to make sure they set to fruit and Polynate will help. POH LEN: Is there any situation where growers shouldn’t use Polynate? KEN: Where growers don’t want to encourage over cropping! POH LEN: Now, how easy is it to apply Polynate? KEN: Polynate is very easy to use. The Polynate dispenser comes as 2 straps of plastic which can be simply pulled apart by hand and slipped over a branch either by hand or by using the applicator. Applying the dispensers just above head height removes the need for a ladder. The dispensers need to be about 8” to 12” from the end of the branch so that they are secure and will not blow off. Then the dispensers are left on throughout flowering for the duration of bee activity, say over 4 -6 weeks and remove them afterwards. POH LEN: Are there any special tricks to the application? KEN: No, Polynate looks after itself. It is rain resistant so there is no need to add more after a rainfall. It lasts about 6-8 weeks and is good for one season use. POH LEN: OK, let’s talk numbers. How many should growers apply per hectare, and what is the cost? KEN: Polynate comes in a Unit pack of 500 dispensers. We recommend 2 packs per ha, i.e., 1,000 dispensers per ha, evenly spread throughout the orchard. RRP of Polynate is $275 per ha. NEWPRODUCTINNOVATION 23
- 25. affco Australia’s leadingfruit network Winter & Spring 2011 update New Product Innovation PolynateTM Bee Polinator from Bioglobal POH LEN: Where can growers buy Polynate? KEN: Polynate can be purchased through our appointed distributors such as EE Muir and the IHD Group (e.g. I.K Caldwell in Goulburn Valley and Serve-Ag in Tasmania) who are also AFFCO members. POH LEN: Great, I hope AFFCO members purchase from within the AFFCO community. I know you have other appointed distributors but I won’t give them a plug as they’re not AFFCO members! Now tell me how AFFCO members can enjoy special privileges in our win-win arrangement? KEN: I’d be happy to give a FREE pack for every 10 packs AFFCO members buy from our distributors. The free product(s) will be sent directly from Bioglobal. To access this, AFFCO members have to • Quote “AFFCO” as the promotional code on their order form to the distributor • And fax a copy of their order to both Bioglobal and AFFCO: Bioglobal Fax: 07 3340 9900 AFFCO Fax: 03 9676 9163 POH LEN: How will you send AFFCO members their free product? KEN: Bioglobal will post the FREE product directly to AFFCO members to the address on the order. POH LEN: Thank you KEN. I also appreciate that AFFCO will receive marketing support from Bioglobal for each order that states “AFFCO” as the promotional code, that is faxed to you. Thank you. KEN: I’m very pleased to work with AFFCO on this arrangement. AFFCO member must remember to fax us and you with their orders as these are administered outside of Bioglobal distributors. POH LEN: Yes, KEN, AFFCO members should take heed of these actions which benefit their AFFCO membership and AFFCO. For more information on Polynate visit Bioglobal’s website at www.bioglobal.com.au Polynate™ has shown efficacy with: • - Cherries • - Apricots • - Plums • - Apples (under netting) • - Pears Regalis® Technical Manual for Apples and Cherries Regalis®, a popular Nufarm product launched 5 years ago for use on apples is now updated to include cherries - following registration for cherries in November 2010. The update also includes all the key learnings of the past 5 years on apples and new testimonials in getting the best out of Regalis® and canopy management. We are pleased to assist Nufarm in disseminating a copy of the Updated Regalis ® Technical Manual for Apples and Cherries with our newsletter. The absolute minimum read according to Ben Coombe are the following two sections: - Frequently Asked Questions – Page 12 - Regalis® Product Use Checklist - Page 14 Controlled release bee attractant dispensers management solutions sustainableinsect A new tool for fruit and nut growers where pollination limits yield he first time and is available on exclusive Introductory Offer to 11. Form” ail/fax back to: .au Fax +61 7 3340 9900 Maker & distributor of the Isomate range nagement solutions sustainableinsect NEWPRODUCTINNOVATION 24 Polynate™ has shown efficacy with: • Cherries • Apricots • Plums • Apples (under netting) • Pears AFFCO Polynate Offer Receive 1 bag FREE for every 10 bags purchased • Write “AFFCO Promotional Code” on your Order. • Place your Order with your Distributor as normal. • Also Email or Fax your Purchase Order to both: o Bioglobal Fax No: 07 3340 9900 o AFFCO Fax No: 03 9676 9163 Free product(s) will be sent directly from Bioglobal. AFFCO receives marketing support from Bioglobal each time “AFFCO” is quoted in your Purchase Order. This offer ends 31st October 2011 for this season.
- 26. affco Australia’s leadingfruit network Winter & Spring 2011 update Good Orchard Practice Handling Glyphosate-Resistant Ryegrass by Gereon Schnippenkoetter CASES of annual ryegrass resistance to glyphosate herbicide are on the increase in Australian orchards, with resistance now documented in four NSW orchards (in the Murrumbidgee, central west and southeastern fruit-growing regions), and in one orchard in South Australia. The last case was confirmed and listed in 2010 by the Australian Glyphosate Resistance Register. Weed control in Australian orchards has depended heavily on glyphosate herbicides, which, until recently, have provided excellent and cost-efficient weed control. However, increasing numbers of growers are finding that glyphosate no longer provides effective control of annual ryegrass. All cases of glyphosate-resistant weeds confirmed to date share three common factors: • Intensive (year to year) use of glyphosate • Lack of rotation with other herbicide modes of action • Little or no tillage following glyphosate application How resistance develops A small number of weed plants may be naturally resistant to a herbicide, surviving an application, and setting seed. Repeated use of the same herbicides means susceptible plants are killed, while resistant plants continue to survive and become an increasing proportion of the weed population. Signs of glyphosate resistance? Growers will notice that a scattering of single plants or patches of plants will have survived a glyphosate application. Resistant plants might initially appear to be affected by the spray, but recover after a few weeks. Quick control of these patches will prevent them from setting seed and spreading the resistance problem further. If you suspect herbicide-resistance, testing of surviving weeds is advised. Mode of action matters Australia was the first country to classify herbicides in groups, according to their mode of action (indicated by a letter code on the product label), and to reflect the resistance risk. Herbicides in Group M are all glyphosates. Key aspects of an effective strategy to control resistant ryegrass are: • to use other herbicide options, and to rotate herbicides from different mode-of-action groups, including residual herbicides. • to minimise the potential of resistant annual ryegrass to set seed. Successful control of herbicide-resistant ryegrass In 2010, herbicide options for controlling glyphosate-resistant ryegrass were investigated in trials in the Barossa Valley and Coonawarra. Crop Care research and development officer Gereon Schnippenkoetter said the results were heartening, even at the Barossa Valley site where the incidence of resistance was considered particularly high. “The objective of the trials was to investigate herbicides with different modes of action to glyphosate (Group M). Herbicides included in the trial were Alliance (Group L & Q), Shirquat (Group L) and Stomp (Group D), singly and in combination. “Effective control of glyphosate-resistant annual ryegrass was obtained with Alliance, and with a combination of Shirquat plus Stomp. Left. POOR control of glyphosate-resistance annual ryegrass after a glyphosate application. Right. GOOD control of glyphosate-resistant ryegrass provided by Alliance (4L/ha) followed by an application of Stomp 440 (9L/ha) plus Shirquat (2L/ha). “Stomp provided effective pre-emergent control of resistant ryegrass, with continued control for 3 to 4 months after application. “Control of other key weeds was assessed at the same time, with Alliance providing good control of capeweed, prickly lettuce, sowthistle and medic, as well as resistant ryegrass.” Mr Schnippenkoetter recommended a higher spray volume (250L/ ha) for effective control of annual ryegrass. For more information about the identification and management of resistant annual ryegrass, visit these websites: www.glyphosateresistance.org.au www.croplifeaustralia.org.au CONTACT: Gereon Schnippenkoetter Research & Development Officer 08) 8444 6300 0438 862 896 Gereon.schnippenkoetter@au.nufarm.com Critical Planning Tips when Ordering Fruit Trees from Commercial Nurseries By Dr Gavin Porter, CEO Australian Nurserymen’s Fruit Improvement Company (ANFIC) Ltd. Growers need to be cognisant that weather related challenges faced by growers are also faced by fruit tree nurseries. Poor weather conditions can affect the production of fruit trees for 2 years or more. This emphasizes a need for growers to consider timing of ordering your fruit trees in your orchard planning. More so when fruit tree nurseries no longer produce fruit trees ‘on spec’ but propagate trees to order. Thus ensuring rootstock availability requires PLANNING up to 1 year ahead before you order your fruit trees. This is very important. No rootstocks, no fruit trees! • Growers need to FORWARD ORDER the number of rootstocks they require with later confirmation of the choice of variety. • Growers must place orders for ‘Spring bud’ trees well before December each year as budding is normally finished by the end of December for delivery in the following winter. • Orders for ‘2 year old’ trees should be placed before the end of February each year prior to budding to ensure trees will be ready for winter delivery 1 year later. The ‘take home’ message is order fruit trees, or at the very least rootstocks, as early as possible to ensure the best possible lead time for the nurseries to produce the best trees possible for you, the grower. GOODORCHARDPRACTICE 25
- 27. affco Australia’s leadingfruit network Winter & Spring 2011 update Defending Our Industry National Apple Day, 22 July at Federation Square DEFENDINGOURINDUSTRY 26
- 28. affco Australia’s leadingfruit network Winter & Spring 2011 update Defending Our Industry National Apple Rally, 28 July at Shepparton DEFENDINGOURINDUSTRY 27
- 29. affco Australia’s leadingfruit network Winter & Spring 2011 update Legal Learnings Contractors vs Employees - It just got harder by Wisewould Mahony Lawyers The recent Federal Court decision in the case of On Call Interpreters and Translators Agency Pty Ltd v Commissioner of Taxation (No 3) [2011] FCA 366 has more clearly defined the distinction between contractors and employees, and in doing so has highlighted the consequences for businesses that incorrectly classify their workers as contractors. The case concerned an appeal against an assessment by the Commissioner of Taxation that On Call Interpreters and Translators Agency Pty Ltd (On Call) was liable to pay superannuation in respect of interpreters and translators that On Call had classified as ‘contractors’. The key issue to be decided by Justice Bromberg was whether the interpreters and translators were ‘employees’ for the purposes of the Superannuation Guarantee (Administration) Act 1992 (Cth). The Test Viewed as a “practical matter”: (i) is the person performing the work an entrepreneur who owns and operates a business; and, (ii) in performing the work, is that person working in and for that person’s business as a representative of that business and not of the business receiving the work? If the answer to that question is yes, in the performance of that particular work, the person is likely to be an independent contractor. If no, then the person is likely to be an employee. First Element – Does the worker own and operate a business? Bromberg J set out a number of questions to determine whether the worker “owns and operates a business”, which are summarised below: • Does the “business” involve the taking of risk in the pursuit of profits? • Does the “business” engage in a repetitive and continuous manner with purchasers of its services? • Does the “business” employ or engage others? • Does the “business possess or create goodwill (name, brand and reputation)? • Is the “business” promoted through advertising or other promotional means? • Does “business” have assets such as buildings and equipment? • Does the “business” have typical business systems (e.g invoicing systems; standard terms and conditions of trade; financial arrangements with banks) and does it comply with the regulatory requirements of a business? • Is the service provided of sufficient skill to be suggestive of the pursuance of a profession or trade through a business? Whilst many of the interpreters had multiple purchasers of their services, they did not meet satisfy the other criteria of “contractors”. All of the interpreters performed the work personally, and did not delegate to others; there was no advertising or promotion of their “businesses”; there was no goodwill created; none of the interpreters bore business risk nor did they take out personal indemnity insurance to cover risk; and, significantly, most of the interpreters simply accepted the rates of pay offered by On Call without bargaining. Second Element – Whose business is the work being performed in? Whilst a worker may own and operate a business, they may still be an employee if performing the work for and on behalf of another business (“the receiving business”). Bromberg J considered a number of factors which go towards demonstrating whose business the work is being performed in. • Does the worker’s business or the receiving business benefit from the opportunity for profit and goodwill, and which business bears the risk of loss? • Is the payment made equivalent to what an employee would have received for performing the same work? • Is the payment negotiable and negotiated commercially, and to what extent is the payment contingent upon the person providing a satisfactory result? • Which party has the capacity to manage the activity so as to maximise the potential for profit? • Who provides the equipment or assets required? • Who controls and directs the manner in which the work is carried out? • Can the person performing the work delegate or must that person personally perform the work? • To whose business does any goodwill created by the economic activity enure? In short, if the receiving business provides the tools; controls the work; sets the rates of pay; and takes the risk and reward of the business activity, then it will be found that the work is being performed in the receiving business. Summary The above listed factors are not exhaustive of all the factors set out by Bromberg J, however they give a good sense of the message conveyed in the decision. The decision is that the latest in a series of cases that have made it increasingly difficult for businesses to engage workers as contractors, including the recent high profile decision in Roy Morgan Research Pty Ltd v Commissioner of Taxation [2010] FCAFC 52. Many businesses engage workers under the label “contractor” in circumstances were those workers bear no risk; must perform the work personally; have no bargaining power; and are directed in how they must perform the work. Bromberg’s ruling is an emphatic statement that such people are employees and will be treated accordingly by the law. Consequences of incorrectly classifying an employee The financial consequences for businesses that incorrectly classify employees as contractors extend far beyond having to make superannuation contributions. Businesses will be exposed to the following additional adverse consequences: • unfair dismissal claims; • claims for entitlements, including annual leave, personal/ carer’s leave,parental leave and long service leave; • civil penalties from the Workplace Ombudsman for breaches of awards and/or the Fair Work Act 2009 (up to $33,000 per breach for a company); • prosecution or civil action under the sham contracting provisions of the Fair Work Act 2009; • claims in negligence for damage suffered by third parties; and consequences under Occupational Health & Safety LEGALLEARNINGS 28
- 30. affco Australia’s leadingfruit network Winter & Spring 2011 update Legal Learnings LEGALLEARNINGS 29 Contractors vs Employees - It just got harder by Wisewould Mahony Lawyers legislation. Practitioners in the workplace relations field are experiencing a marked increase in cases involving the employee/ contractor distinction. The issue is not going to go away, and all parties involved in the engagement of workers under the label “contractor” need to assess the legal reality of their arrangements. If you have any questions about employment law or workplace issues please contact Richard Thompson or Josh Strong of Wisewould Mahony Lawyers. There is no charge for an initial discussion about any workplace matter. Richard Thompson Head of Employment and Workplace Relations Josh Strong Solicitor Employment and Workplace Relations Department Wisewould Mahony | Lawyers +61 3 9629 8333 ADVERTS // FLYERS // POSTERS // PUBLICATIONS // BUSINESS CARDS LOGOS // SIGNAGE // STICKERS // INVITATIONS // PACKAGING Please contact Sarah Davidson for all your graphic design needs
- 31. affco Australia’s leadingfruit network Winter & Spring 2011 update Classifieds Clearing Sales! CLASSIFIEDS 30 Clearing Sales! Thurs 20th Oct 2011, 10.00am 1260 Manley Road, Merrigum on account of Geoffrey Thompson Holdings Ltd Contact: Paul Durden m 0437 312 221 Youngs Real Estate FOR SALE -‐ DPA Fruit Drencher ·∙ 2000 L DPA tank ·∙ with 6000 L pre-‐wash chlorinator ·∙ approx 80 bins per hour ·∙ located in NE Victoria In good working order -‐ for genuine sale at $15,000 +GST ono Call Andrew Prentice on 0418 570921 AFFCO MEMBER CLASSIFIED ADS Prepared 30 September FOR SALE -‐ DPA Fruit Drencher ·∙ 2000 L DPA tank ·∙ with 6000 L pre-‐wash chlorinator ·∙ approx 80 bins per hour ·∙ located in NE Victoria In good working order -‐ for genuine sale at $15,000 +GST ono Call Andrew on 0418 570921
- 32. affco Australia’s leadingfruit network Winter & Spring 2011 CLASSIFIEDS 31 update Classifieds Clearing Sales! Clearing Sales Thursday 20 October 2011, 10am at 1260 Manley Road, Merrigum Young & Co Real Estate will be conducting a major clearing sale on account of Geoffrey Thompson Holdings Limited Contact: Paul Durden: 0437 312 221 Youngs Real Estate Apple Grader: GP Apple Grader with Drying box 20 horse hair x 900 wide, radius belt 930 wide, cross belts 10 x 380 wide, stone fruit grader single lane 6 drop GP weight sizer. Pear Grader: Mallard 927 Pear Grader, 3 lane weight sizer with 2 lane mushroom belt (2nd), dry bin tipper x 36ins brush washer, 15 brushes, 8 cone horse hair x 1200 wide inspection table, PVC roller x 890 wide 6 person platform, 600 wide 900 high rotary bins, x11 cross belts, x11 at 380 wide. Tractors and Tractor parts: Fiat tractor 70-60DTF 12, Fiat tractor gear box, Ford tractor 3000, Ford tractor 4100, Ford tractor 4600, Fordson Major tractors, Ford & Fiat tractor parts, Grey fergie front end & rear end, Fordson Major tractor rear end Trucks & Trailers: Kenworth Prime Mover, Bedford tipper truck, Various Bin trailers, Bogie trailer, Auto load bin trailer, Low loader trailer, Nissan Urvan, Trailer, Platform trailer, Tri axle trailer, Ford Falcon XG, Ford Meteor 1983. Farm Equipment: EDP Picking/pruning powered platforms, Silvan 900lt tank on wheels, 3PL Silvan spreader, 3PL Rotary drainer, 3PL furrow plough, 3PL ground aerator home made, 3PL tow bars, 4 row cultivator, 6 inch PTO pump, 2,000Lt spray tank on wheels, 2,000Lt spray tank on frame, Air compressor tank in metal cage, Air operated double bin packing tipper, Air operated hydraulic double bin tip packing station, Antique spray pumps, Engine parts, Packing stands, Plumb fittings, Wooden bins, Au- ger, Crain jib tines, Chris grow 11.5 foot slasher, Daniel Harvey disc’s, Davidson spray pump, Ditch Witch 64hp, Double bin tip packing unit, Fabricated half bin adaptors, Fork mounted bin tipper, Freon compres- sor & condenser unit, Furphy delver, Furphy fork mount bin tipper, Gal green house frames, Gal platform & steps, Gal tank on stand, Hardie plastic tank 900lt, JD FEL back hoe, Jolosapedes, Karcher floor sweeper parts, Komatsu FG10 forklift, Merbeen plough, Wire rolls, Mitsubishi FG25 forklift, Pasture harrows, Pres- sure washer & ramps, Quad bike front end, Carton tape sealers, Refrigerated evaporators ammonia, Rolls poly pipe, Sabroe SMC116S 1986 ammonia refrigeration compressor, Shelving sides, Shopping trolleys, Slasher parts, Sorting tables, SS cleated conveyor on frame, Tape carton sealers, Rims & tyres, Truck bull bar, Endless scrap, guttering, barrels, pine posts steel & sundries. Terms: ID required and number system applies Payment: Strictly cash or cheque only GST sale, no buyers premium. Directions: Travel North through Merrigum, turn right onto Manley Rd & follow signs. Contact: Chief Engineer Michael Parker - 0429908080 business hours only
- 33. affco Australia’s leadingfruit network Winter & Spring 2011 NOTES 32
- 34. Chief Executive Officer PohLen Pek 0417 007 118 plpek@affco.com.au Founding Corporate Sponsors & Members Corporate Sponsors & Members Project and Strategic Partners AUSTRALIAN FRESH FRUIT COMPANY | P: 03 9676 9162 | F: 03 9676 9163 | W: affco.com.au We welcome your contributions, advertisements and suggestions. Please send any requests or information to memberservices@affco.com.au or call 03 9676 9162 with your enquiries. The deadline for the Summer Newsletter is Monday 16 January 2012 DISCLAIMER: AFFCO and/or SDDesign cannot be held responsible for the accuracy of this newsletter - “AFFCO Update” or the validity of technical or market comments. In many cases, the contents reflect individual comments on hookups. AFFCO members need to make sure their own commercial decisions. All opinions stated are the view of AFFCO and do not necessarily reflect the views held by members Administration Eleanor Bruce eleanorb@affco.com.au Accounts Kay Brassil accounts@affco.com.au Member Services Amanda Galt memberservices@affco.com.au CONTACT DETAILS Affco New Address Level 1, 262-276 Lorimer Street Port Melbourne, VIC 3207 P: 03 9676 9162 F: 03 9676 9163