AFFCO_NEWSLETTER_WINTERSPRING2011 25Oct11 Opt

update
Winter & Spring
2011
Australian Fresh 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

affco Australia’s leading fruit 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

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

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

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

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






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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

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

Program Testamonials
update
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

8
Program in Action
update
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
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

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


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.

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

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

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)

update
Fresh Connections 2011
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

update
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.
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

update
Key Retail Market Trends & Highlights | Conference
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

update
Trade Show
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

update
Key Retail Market Trends & Highlights | Conference
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

update
Coles Welcome Challenge and Young Professionals Reception
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

update
Fruit + Market Tour - Smerdon Enterprises & Pinata Marketing
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

affco Australia’s leading fruit 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

update
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
22

update
PolynateTM
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.
23

update
PolynateTM
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
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.

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

update
Defending Our Industry
National Apple Day, 22 July at Federation Square
DEFENDINGOURINDUSTRY
26

update
Defending Our Industry
National Apple Rally, 28 July at Shepparton
DEFENDINGOURINDUSTRY
27

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

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
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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

AFFCO_NEWSLETTER_WINTERSPRING2011 25Oct11 Opt

AFFCO_NEWSLETTER_WINTERSPRING2011 25Oct11 Opt

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