Fresh State of Affairs Issue #43

2018

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issue 43 aug 2018 ISSN: 1838-7829

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DROWNING IN A SEA OF COSTS

OF AFFAIRS Revenue raising versus business sustainability.

OPENOF LETTER TO THE AFFAIRS MINISTER

NATIONAL RETAILER PROGRAM

Fresh State sends vote of no confidence to Minister.

Exciting new marketing program announced.

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11 Melbourne Insurance Brokers 12 FSL Gala Ball 31 Melbourne Markets Credit Service 32 Toyota Material Handling

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03 President’s message 11 Motor Neurone Disease 14 Public access 16 Market spotlight 18 Around the market 20 World fruit and vegetable festivals 22 Hort Connections 2018 26 Where are they now?

28 Limes 30 Featured recipe: limes

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CHIEF EXECUTIVE OFFICER: Jason Cooper jason@freshstate.com.au

DESIGN: Flying Dog Designs fddesigns.com.au

PRINT: Revolution Print revolutionprint.com.au

EDITOR / ADVERTISING: Bernadette Kelly comms@freshstate.com.au

PHOTOGRAPHY: Bernadette Kelly

DISTRIBUTION: Fresh State of Affairs is produced by Fresh State Ltd and is a free publication.

PROOFING: Tony Nigro tonyn@freshstate.com.au

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freshstate.com.au tel: 03 9408 6627

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ADVERTISING

PUBLISHED BY:

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s ’ t n e Presid MESSAGE

Welcome to the Fresh State of Affairs 43rd Edition. The mornings are still cool in the market but we’re all looking forward to putting the beanies away as the winter comes to an end.

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N this issue we are once again looking at the questionable methods used by the MMA to determine our rents and glycol usage charges, and the pressure put on wholesalers when these rising costs begin to affect the sustainability of our businesses.

Agriculture, the Honourable Jaala Pulford, on behalf of our members.

For those who were unable to make it to Brisbane for the Hort Connections conference in June, we’ve included some images and highlights from the event. Check out page 22 to see who is starring in ‘Where Are They Now’ this

WE’VE FEATURED THE NEW NATIONAL RETAIL PROGRAM, WHICH HIGHLIGHTS THE NEW ‘A BETTER CHOICE’ BRANDING. WITH A UNIFIED APPROACH, THIS PROGRAM WILL BE ROLLED OUT ACROSS AUSTRALIA TO PUT OUR INDEPENDENT FRESH PRODUCE PROVIDERS FIRMLY INTO THE PUBLIC EYE. After repeated attempts to resolve crucial issues between the MMA and tenants, Fresh State is no longer able to work with the current management and board of the MMA. On pages seven to ten we’ve published an open letter sent to the Minister for

unified approach, this program will be rolled out across Australia to put our independent fresh produce providers firmly into the public eye.

The goal is to encourage Australians to buy Australian and support their local greengrocer.

Preparations for the 2018 Gala Ball are coming together and it won’t be long until we can all dress up and celebrate another year of community at the market. Bookings are now open so get your early bird prices while you can.

I’m looking forward to seeing you all there and enjoying a great night.

Shane Schnitzler President Fresh State Ltd.

issue, and we zoom in on Ange Usai and his love of fast cars in the Market Spotlight segment.

We’ve featured the new National Retail Program, which highlights the new ‘A Better Choice’ branding. With a

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

any information published in Fresh State of Affairs. Fresh State Ltd specifically disclaims all and any liability for loss or damage of any nature whatsoever and however arising, whether due to accuracy, error or omission or any other cause.

In addition, by using the information in this magazine, each user waives and releases Fresh State, its staff and agents from any and all claims relating to the use of this document. In no event shall Fresh State Ltd be liable for any consequential damages resulting from using the information in Fresh State of Affairs.

© Fresh State Ltd 2018 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior permission from Fresh State Ltd. Requests and inquiries concerning reproduction and rights should be addressed to: The Editor Fresh State of Affairs Magazine Store 36, Melbourne Market 35 Produce Drive Epping VIC 3076

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IN A SEA OF COSTS! The MMA is once again increasing their revenue base at the wholesaler’s expense.

Another round of rent rises is due to hit the market in August, and Glycol costs have massively increased. The question has to be asked, how long can the MMA continue to burden tenants in the market with increased costs before their businesses become unsustainable?

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HE increased rents will apply to tenants who signed three year leases when the market moved to Epping. Purportedly, the Valuer General sets the rental rates by looking at ‘comparitive prices’ in the area. There is also a ratchet clause of 4% per annum x 3 years then 4% or CPI, whichever is greater.

The MMA say the Valuer General is responsible for the decision and it’s out of their hands, however, the MMA supply the information to the Valuer General to determine the assessment. Given that the market is a unique environment with no similar business model in the entire city, it beggars belief that the Valuer General can find a ‘comparative’ price.

Disturbingly, the entire model is set up on an unfair playing field. When it comes to market leases, not all things were created equal. Those wholesalers on a five year lease won’t have to deal with this issue for another two years, effectively giving them a massive advantage over their three year counterparts. Furthermore, that advantage effectively carries on for perpetuity, with the three year businesses becoming more and more disadvantaged over time.

If the rent issue isn’t enough bad medicine for wholesalers to swallow, on the 1st of July the price of glycol almost doubled. The MMA notice about the increase reads as follows:

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THE MMA SAY THE VALUER GENERAL IS RESPONSIBLE FOR THE DECISION AND IT’S OUT OF THEIR HANDS, HOWEVER, THE MMA SUPPLY THE INFORMATION TO THE VALUER GENERAL TO DETERMINE THE ASSESSMENT.

putting up the prices, once again penalising tenants, to recover the costs for their error?

‘Due to variances in demand for cooling and efficiencies of cool rooms at the market, glycol usage has been lower than originally estimated. Therefore, the revenue from glycol usage has not met the production costs incurred by the MMA.’ So what is this statement really saying? Because it seems to read that because the MMA did not accurately predict the amount of revenue they could recoup from the glycol system, they’ll be

One wholesaler put it this way; ‘The doubling of glycol costs serves to highlight the problems with the existing system. If wholesalers had the opportunity to run their own refrigeration systems they would have assurance because the control of the cooling is in their hands.

Instead of guaranteeing a system they have put into place without user consultation, the MMA force us to take out extremely costly insurance. Then, when things go wrong we are told to claim it on our insurance, when the fault is not ours.’

Continued on page 6

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IN A SEA OF COSTS! Fresh State asked a number of tenants about the overall effect of the rising costs of doing business at the market. Their responses give rise to a deeper issue.

net return regardless of where the produce is going, which means I have to work on a lesser margin than my competitors in any other state.’

‘As a business owner and manager you always have to evolve, develop and manage your business to suit the industry. We’ve always done that within the market. For the first time ever, that focus on improving and changing in business will be done outside the market.

Why? Because the environment within the market is becoming too restrictive and inhibitive.

Wholesale Fruit and Vegetables is a low cost business model.

Income is based on the price of the product.’

‘The high costs here at Epping make it much more difficult to invest in, and grow my business and also pay off debt incurred due to the extra costs involved with the move.

Prior to moving, it was touted by the MMA that Epping would deliver efficiencies above those at the Footscray Road site.

It’s true that buyers can move more produce in quicker time frames but the efficiencies are not there for the wholesalers.

At the old site we had a 5-6 hour time frame to sell produce, which has been reduced to 2-3 hours. So we have to do the same job in a smaller amount of time, requiring increased staff and costs.’

FOR THE FIRST TIME EVER, THAT FOCUS ON IMPROVING AND CHANGING IN BUSINESS WILL BE DONE OUTSIDE THE MARKET. WHY? BECAUSE THE ENVIRONMENT WITHIN THE MARKET IS BECOMING TOO RESTRICTIVE AND INHIBITIVE.

‘When market participants are loaded up with costs, the common sense thing to do is to move outside the market. Our commitment has been to grow within the market but now we’re being forced to grow the business outside. It’s not sustainable to continually carry increased overheads. It won’t affect only us. Businesses will be forced to operate outside to remain viable. The MMA, by their actions, are reducing competition and creating barriers to entry. It’s not a pure market anymore.’

‘The cost of doing business since coming to Epping is substantially higher than any of my competitors interstate. Growers demand a

These comments indicate a worrying trend.

Wholesalers are beginning to wonder how long they can hold on, and they are looking outside the market for business enhancing opportunities. If the MMA is not careful, they could end up left with an increasingly empty market, and a crisis for the Victorian Fruit and Vegetable Industry.

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OPEN LETTER TO THE MINISTER

The Hon. Jaala Pulford MLC Minister for Agriculture Level 20 1 Spring St Melbourne VIC 3000

17 July 2018

The Hon Jaala Pulford,

A. INTRODUCTION It is with great concern that we are at the point where we have no choice but to write this letter on behalf of the members of Fresh State Ltd (“FSL”), who represent the vast majority of wholesalers of fresh fruit and vegetables operating their businesses from the Melbourne Wholesale Fruit & Vegetable Market at Epping (“Melbourne Market”). Unfortunately, the current circumstances and ongoing significant unresolved issues have left us with no other apparent recourse.

In substance, the FSL members have lost all confidence in the management of the Melbourne Market Authority (“MMA”) and the MMA Board in their ability to continue to manage the Melbourne Market facility at Epping.

Progressively since the forced relocation from West Melbourne to Epping, a culture of prioritising MMA revenue over tenant (including FSL members) sustainability has become the normal and negative operating environment of the MMA.

B. RENTS UNCOMMERCIAL AND UNCOMPETITIVE The cost of doing business at the Melbourne Market in Epping is significantly more expensive than any other central market in Australia. Rents for store leases are presently as much as $100sqm higher than the second most expensive market rent being the Sydney market. The higher rents alone plus additional operating costs (further referenced below) lead to reduced available margins for wholesalers, and result in lower returns to growers, making Victoria uncompetitive and a poor choice for growers to direct their produce for sale. Since relocating to the new Melbourne Market on 31 August 2015, rents have increased due to a fixed annual rent increase provision in the tenant store leases. Surprisingly and of concern are recent representations made

by MMA staff, that a ‘substantial’ increase in rents will occur and take effect upon current store lease tenants exercising their option to renew their current store lease.

C. GLYCOL COSTS UNCOMMERCIAL AND UNCOMPETITIVE In addition, the MMA has recently informed store lease tenants that the cost of glycol (associated with operating the Central Cooling Plant that provides refrigerant cooling services to the Trading Floor Complex), will in effect double in price from 1 July 2018. As you may be aware, the Central Cooling Plant system is owned and operated exclusively by the MMA, and is the only means of refrigerating the FSL Member’s stores. The excuse for the 100% increase in the cost of operating and maintaining the Central Cooling Plant and supplying glycol coolant to the FSL member’s stores has been that the “usage demand calculation” was initially incorrect for the MMA to achieve breakeven on its costs base. Therefore, the MMA now seeks to require the store tenants to simply pay more. This of itself is extremely disappointing having regard to the representations made

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by the MMA that the Central Cooling Plant and the use of glycol would bring significant energy costs savings to wholesalers at the new Melbourne Market.

If the costs of operating and maintaining the Central Cooling Plant are truly substantial this must necessarily bring into question the procurement processes utilised by the MMA in securing third party contracts to operate and maintain the Central Cooling Plant. Any such failure of ensuring true economies of scale ought not be transferred or borne upon by the wholesaler store tenants.

We would also like to point out that there was no consultation in this process, and another example of the MMA prioritising revenue over tenant sustainability.

D. OTHER UNCOMMERCIAL AND UNCOMPETITIVE OPERATING FACTORS There have been a number of other cost increases impacting wholesaler sustainability including the electricity price increases, that also affects all Victorians. While these price increases may be outside of the direct control of the MMA, we are aware that the MMA continue to benefit from a supplier rebate that is not passed onto the wholesaler store tenants or other Melbourne Market tenants and businesses. The decision to operate an embedded network with a long-term contract, effectively removing any possibility for true competition and reduction in these already very high costs, was the responsibility of both the MMA and the Government at the time. It appears that the MMA has failed to secure truly competitive electricity supply into the Melbourne Market and the Wholesaler store tenants are precluded from seeking to source their own supply of electricity into the Melbourne Market.

E. MMA OBJECTIVES AND MISSION STATEMENT NOT BEING MET We draw the Minister’s attention to the object of the Melbourne Market Authority Act 1977 (Vic) (“MMA Act”), and specifically section 5 that provides as follows: “Object of the Authority The object of the Authority are: 5(a) to provide a commercially viable wholesale facility for the efficient distribution of fresh produce; and 5(b) to optimise returns on land and assets controlled and managed by the Authority; and 5(c) to ensure a fair and competitive environment for the wholesale trading of produce.”

Having regard to the seriousness of the matters alluded to above, it is axiomatic that the MMA by its very conduct is not meeting its required object under the MMA Act, in that it is not providing “a commercially viable wholesale facility for the efficient distribution of fresh produce” nor is it ensuring “a fair and competitive environment for the wholesale trading of produce”. These fundamental omissions have caused and continue to cause the FSL members grave and legitimate concerns pertaining to the long term commercial viability of the Melbourne Market for its principal operators, being the wholesaler store tenants.

In addition, we would like to draw the Minister’s attention to the following Mission Statement that is quoted directly from the MMA’s website: Our mission “ To maintain a vibrant and sustainable market by responding proactively to the fundamental shifts in the fresh produce trading environment and helping our clients to adapt.”

While not achieving the objectives of its own public Mission Statement, they are ineffective in even achieving its own priorities or commitments, again, taken straight from the MMA website: Our priorities •1 Financial – to grow and diversify the revenue base and minimise operating costs without compromising outcomes for tenants via initiatives such as new operating rules and recycling. [emphasis added]

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Our commitment •1 engaging regularly with our stakeholders, including all Market participants, the local community and all levels of Government •1 fostering a customer-centric culture.

The MMA’s culture of ever-increasing costs has created an uncompetitive environment for wholesalers to operate in. The stakeholder management is and remains ineffective, with many of our concerns raised and subsequently ignored over a long period of time. There is no customer centric culture in the relationship between the MMA and its tenants (principally the wholesaler store tenants). The tenants raise concerns, and the MMA do nothing or as little as possible to address and resolve them.

In addition, ongoing operational issues go unanswered, most significantly the inability of MMA management to control what happens inside the Melbourne Market land.

F. OTHER LEGITIMATE UNANSWERED CONCERNS Trans-shipping – Freight companies It is a known fact that Trans-shipping - Freight companies use the Melbourne Market facility as a drop-off and distribution point for businesses operating outside of the Melbourne Market. This is contrary to the objects of the MMA Act, the MMA’s mission statement and the MMA Market Operating Rules [and in particular Rule 5.1(b)]. Often these businesses are in direct competition to the tenants that pay rent inside the Melbourne Market to operate their businesses. This has been raised a number of times with the MMA, yet nothing has progressed or resolved. The MMA’s initial response was to accommodate a warehousing facility request from the freight companies. While this would generate additional revenue for the MMA, it would not do anything to address and resolve the real issue. Rather, it would plainly hide the problem and the problem would remain unresolved.

On one known occasion, Liquorland stock, more specifically alcohol, was permitted to be transshipped through the Melbourne Market by the MMA, which clearly contravenes the MMA’s alcoholfree rules that are within its Market Operating Rules. This is not a Melbourne Market specific issue, and other markets have dealt with issues such as these successfully. In the meantime, the MMA continues to impact wholesaler sustainability by not addressing and resolving these issues and putting in place policies and procedures to ensure that such matters do not arise in future.

Businesses operating outside the central market system Businesses continually operate in breach of the MMA Market Operating Rules by running their businesses from the car park, paying no overheads, which is in direct competition to the legitimate tenants in the Melbourne Market.

On numerous occasions, the MMA have been made aware of this, along with other issues of unauthorized sub-leasing activities happening in the Melbourne Market, with little or no progress in resolving the issue.

Many of these activities are exasperated by the relationship between PropertyLink and the MMA. The Minister will be aware that the Department of State Development, Business and Innovation (formerly known as Department of Business and Innovation) leased the majority of the warehousing space at the Melbourne Market to PropertyLink (previously Hansen Yuncken) on the long-term lease and many of these issues are a result of that decision. The MMA have lost control of the activities happening within the Melbourne Market land, with a number of businesses now operating exclusively out of warehousing space, and no apparent ability to regulate or control it – all of which is to the detriment of the wholesaler store lease tenants, who are critical to the very purpose and use of the Melbourne Market.

Relevantly, the Minister is referred to Section 26 of the MMA Act that provides as follows:

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“Use of market land 26 (1) S ubject to subsection (2) and despite anything to the contrary in a folio of the Register, the Authority [MMA] may permit the whole or any part of the market land to be used for any purpose it thinks fit.

26 (2) T he Authority [MMA] must not permit a use which interferes with or detracts from the use of the market land as a wholesale fruit and vegetable market.”

Having regard to the above, it is also axiomatic that the alternative use of the Melbourne Market land being permitted by the MMA is injurious to the businesses of the wholesaler store tenants, thereby interfering with and/or detracting from the Melbourne Market being used for its intended purpose.

Disappointingly, attempts to address these issues with the MMA have gone unheeded. We have raised these issues privately, publicly, and many times at the Advisory Committee meetings, with little or no progress on the majority of issues and legitimate concerns.

We feel that the relationship with the MMA is now irreparable. Wholesaler store tenant satisfaction and morale is at an all-time low, with many actively seeking alternative options for trading outside of the Melbourne Market.

FSL is clearly more committed to the MMA’s own mission statement than it, which is “to maintain a vibrant and sustainable market by responding proactively to the fundamental shifts in the fresh produce trading environment”.

G. VOTE OF NO CONFIDENCE Despite its best and repeated efforts, FSL are unable to continue to productively work with the current management and board of the MMA and therefore, respectfully invite the Minister to support our VOTE OF NO CONFIDENCE and remove both the Chairman of the MMA Board, Peter Tuohey, and MMA CEO, Mark Maskiell, of their duties and responsibilities until more appropriate and properly experienced and qualified personnel can be appointed.

This VOTE OF NO CONFIDENCE is supported by the FSL’s members with the attached signature page(s) representing the majority of tenants at the Melbourne Market received at a meeting held on 17 July 2018.

H. PROPOSAL TO MEET WITH THE MINISTER FSL’s representatives otherwise would welcome to opportunity to meet with the Minister (and her staff) at a mutually convenient time to further discuss and elaborate upon the matters raised in this letter.

We await the Minister’s earliest reply.

Yours faithfully,

Shane Schnitzler President Fresh State Limited Please note signature pages are not included in this magazine.

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MOTOR NEURONE DISEASE The market has a long tradition of helping charitable organisations. It might be in the form of a donation or maybe hosting an event to raise funds, or it might be helping to raise awareness.

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RESH State of Affairs would like to give a shout out to Motor Neurone Disease Australia,

Bruno and Lee Cozzella

the national voice representing all Australians who share the vision of a world without MND. Long time market user, Bruno Cozella, formerly of Cozella Brothers, sadly passed away on Friday July 6 from the effects of MND. Motor Neurone Disease (MND) is a progressive, terminal neurological disease. It can strike anyone and there is no known cure. MND is a devastating condition where muscles gradually

weaken and waste as neurons degenerate and die, with patients rarely seeing out more than a couple of years after diagnosis.

For every person diagnosed with MND it is estimated that a further 14 members of their family and their friends will live with the effect of MND forever. For more information or to support this organisation you can find them at mndaust.asn.au

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GALA BALL

SAT 01 SEP PENINSULA CENTRAL PIER DOCKLANDS

Sponsorship & enquiries comms@freshstate.com.au

or 03 9408 6627

Awards

PRESENTED ON THE NIGHT

WHOLESALE COMPANY OF THE YEAR WHOLESALE PERSONALITY OF THE YEAR YOUNG MARKETEER OF THE YEAR BUYER OF THE YEAR

Early Bird Special

$1440

+ GST per table of

tickets for the price of Purchase your table before

BOOKINGS NOW OPEN 17 AUG

Join us for a night of fine food and wine, music and dancing, and the chance to celebrate the innovation, excellence, character and enthusiasm within the Melbourne Market and fresh produce community with the presentation of the Fresh State annual awards.

Fresh State invites sponsors to support the Fresh State Gala Ball and take advantage of the Opportunity to highlight and increase your brand exposure to a targeted audience of wholesalers, growers, retailers and associated industries.

Individual tickets

$180 + GST

After Aug 17

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Bookings can be made by: The Fresh State website freshstate.com.au Emailing Ana at Fresh State ana@freshstate.com.au Drop completed form to Fresh State office (booking insert included in magazine)

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PUBLIC ACCESS WHY NOT GIVE IT A TRY?

If only we had a dollar for every time we are asked, ‘Does the Melbourne Market at Epping open to the public?’

Of course the answer is no, but a better question might be, why not?

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N fact, the MMA have been asked that question many times, most recently at the Fresh State mid-year meeting in April. They have been consistently non-committal, citing OH&S issues and operational pressures as seemingly insurmountable barriers to the idea.

But the lie to this argument is clearly demonstrated by the other states. Sydney do it. Brisbane and Perth do it. Even the relatively small operation at Newcastle does it. Hours are limited of course, as the primary purpose of any central produce market is and will always be wholesale. Sydney markets have capitalised on their opportunities on a number of fronts, by allowing public access at set times and opening up the space for other traders after the produce has been packed away.

Brisbane has done the same, with their neatly packaged, ‘Saturday Fresh’, ‘Sunday Discovery’ and more recently ‘Friday Foodies’ themes.

Perth operates a wholesale clearance market on Saturdays, giving wholesalers the opportunity to divest themselves of unsold fresh produce at the end of the week. Newcastle allows the public in for an hour every Friday between 9.30am and 10.30am.

Here at Epping, a cross section of views from wholesalers reveal similar themes. One trader felt that it might disadvantage existing customers who sell direct to retailers and it would have to be well regulated. Another felt that a safe environment would be crucial, and that forklifts and buggies

would need to be absent. ‘It wouldn’t work on the buyers walk, it would have to be in a confined area such as the trading floor.’

On the pro side the view was that some form of public access had the potential to open up more competition and become less of a buyer’s market, and would also be a great opportunity for the

IF WE TRIALED AN OPT-IN SYSTEM WE WOULD SOON KNOW. THE TIMING NOW IS GOOD WITH THE PROPENSITY OF AWARENESS THROUGH COOKING SHOWS SUCH AS MASTERCHEF.

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public to see the crucial role played by the market in the supply chain.

In terms of the best times, the other markets open on Fridays or weekends.

Melbourne wholesalers expressed THE GENERAL CONSENSUS AMONG a concern about WHOLESALERS IS THAT THE MMA’S extended ARGUMENTS AGAINST THE IDEA hours for themselves CAN ALL BE RESOLVED THROUGH and their staff.

‘Best days for EFFECTIVE SYSTEMS AND A TRIAL IS me would be THE PREFERRED WAY TO PROCEED. Tuesday or Wednesday, say, between 6am and 8am, when I have more stock on hand but I am less busy,’ said one.

Another had an alternative solution.

‘Saturday would be the optimum day but not good for existing staff. One way around that would be to have stalls available that wholesalers would have to book each time if they wanted.

That way they could choose if they wish to sell on any particular Saturday and perhaps use a different crew.

We do need to do something to get the industry going.’

Brett Collins from Perfection Fresh had this to say on the subject; ‘Perfection are already doing it in Sydney, Brisbane and Perth. The idea is to get our products onto people’s plates and I don’t believe it would be hugely detrimental to retailers. It offers

an opportunity to increase business and that has to be a good thing.

If we trialed an opt-in system we would soon know. The timing now is good with the propensity of awareness through cooking shows such as Masterchef. It’s all about increasing the consumption of fruit and vegetables and another way of interacting with the public to demonstrate the process from paddock to plate. We find in the other markets the public are curious and ask a lot of questions, and they are really keen to buy Australian grown product.’

The opportunities for public engagement to promote fruit, vegetables and flowers are endless.

For example, there is potential to promote the independent sector in the form of kids programs, workshops, cooking classes, celebrity chef guest appearances and other activities.

The general consensus among wholesalers is that the MMA’s arguments against the idea can all be resolved through effective systems and a trial is the preferred way to proceed.

All of the wholesalers who were asked expressed the view that anything that generates more business is good and that public access would definitely be worth a trial. What’s the real reason for the MMA’s reluctance? Is this yet another anti-competitive stance by the landlord?

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REV HEAD

Sometimes we’d all be forgiven for thinking that the people we know inside the market spend their whole lives with fruit and vegetables and a high-viz vest, but of course that’s not true. Every person has a life outside the market and this segment of Fresh State of Affairs offers the perfect opportunity to dig up a few gems and shine the Market Spotlight on our colleagues.

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ACK in 1982, Angelo (Ange) Usai from LA Produce began working in the Market where his dad was a partner in the wholesaling business, J.Conti & Sons. He was just filling in time between jobs at the time but ended up staying. In 1983 he and his dad bought out their partner and the business became LA Produce.

From his earliest years, Ange has had a passion for cars and motor sport. In the golden age of Australian muscle cars he and his friends played as racing cars drivers, pretending to be Colin Bond or Alan Jones. Ange had his feet firmly in the Holden camp and his first car was a Torana LH. He’s not only into touring cars, Ange loves Formula One too. His goal is to make it to Monte Carlo to see the Grand Prix there one of these days. He follows all sorts of motor sports from international to local.

Some time back, Ange’s passion for cars led him to start looking around for a special car for himself. He toyed with the idea of buying a Mustang but he didn’t really like the way they drove. Then he met retired car restorer, Laurie Bongalis at a car function. Ange asked Laurie if he would build a car for him.

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IT WAS A FANTASTIC EXPERIENCE WATCHING SOMETHING GROW FROM JUST A CHASSIS TO A FINISHED VEHICLE AND I LEARNT SO MUCH ABOUT THE ENGINEERING SPECIFICATIONS THAT GO INTO A CAR.

The pair set to work on a mission to build an AC Cobra. The car took about 4 years to build. Ange spent every Saturday helping Laurie and he has fond memories.

‘It was a fantastic experience watching something grow from just a chassis to a finished vehicle and I learnt so much about the engineering specifications that go into a car. There are so many regulations now that make building a kit car difficult.’

The final result is a rev-head’s delight. The chassis has been purpose built, it has a powerful 6 litre engine, 6 speed gearbox and a jag diff and front end. The fibreglass body makes the car extremely light.

I WORK WITH A FANTASTIC CREW OF PEOPLE BUT I DO BELIEVE

Ange is a member of the Cobra Club. He’s taken the car out to a few shows, American muscle car days and historic race meetings.

‘It’s amazing how many people are attracted to the car. People will wave and smile.

Once at Phillip Island I met a couple of Danish travellers who took a lap with me in the car. The video is up on YouTube and we have all remained friends.

‘It’s a very fast car that demands respect,’ says Ange. ‘I’m lucky that my wife doesn’t mind the time I’ve spent with that car. I built a separate garage for it – my man cave - and sometimes I open the door and just look at it. My family thinks I’m crazy but cars are my passion. I love my work at the market and I work with a fantastic crew of people but I do believe we all need a passion outside of our working lives.’

WE ALL NEED A PASSION OUTSIDE OF OUR WORKING LIVES.

You can see Ange’s AC Cobra in action on this YouTube link: https://www.youtube.com/ watch?v=Gu6E4eJgLkc

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01. Albano Battistin (R. Anguey) 02. Hide Suzuki (Lowe Farms) with Jonathon Dykes (Dykes Bros) 03. Ross Barker (Barkers Melbourne) 04. Jackson and Nick Dellios (Bacchus Marsh Apples) 05. David Whitchelo and John Gordon (MMA) 06. Ridge (La Manna Premier Group) with Joe (Latorre’s) 07. Callum Keamy (Vic Market) with Chris Louey (M&N Produce) 08. John Psarakos (Psarakos Market) with Scott Bocksette (Toyota Material Handling) 09. Carlo Granato and Maris Stanguts (Old Oak Orchard) with Ralph Bulzomi (LA Produce) 10. John Ranieri and Victor Tasopoulos (Costa Farms)

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11. Mark Kramer (Flavorite Marketing) 12. Joe (LA Produce) with Shqipe (Fresh State) 13. Van Ngo (Kim Phu Fresh Produce) 14. Tom Davidson (G.Ferlazzo & Co) 15. Neil Gallo (Office Fruit Direct) with Frank Madafferi (La Manna Premier Group) 16. Frank Maiuto and Abra Ali (Mumford) 17. The Geelong Citrus Team

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WORLD FRUIT AND VEGETABLE

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FESTIVALS

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When you spend a lot of time in a produce market, it’s easy to become a little

OF obsessed with the wonderful colours and tastes of the fruit and vegetables THE you see all around you. But there are places around the world that have taken BEST! their obsession to a whole new level. We thought it might be fun to highlight some of the world’s most famous food festivals, where a whole town gets behind a single type of produce and turns it into the star of the show.

CHESTNUT FESTIVAL ARDECHE, FRANCE

The French region of Ardeche is famous for superior quality chestnuts. Every October, they celebrate their bounty with a two day festival known as the Castagnades, in the small village of Meyras. Visitors can expect to stroll around farmers markets, see chestnut exhibits, sample local products featuring chestnuts or even enter a chestnut cooking competition and try the local chestnut beer.

Unless you’ve been living under a rock, you’ve probably heard of La Tomatina, possibly Spain’s most famous food festival. The tomato is the star of this show, but the focus is fair and square on the tomato as a weapon. For one hour, in the town square of Bunol, people pelt tomatoes at each other in the name of entertainment.

Ironically, after the fight is over and the square is washed down, the building surfaces have been thoroughly cleaned by the citric acid in the tomatoes.

LA TOMATINA, BUNOL, VALENCIA, SPAIN

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NOCHE DE RANANAS (NIGHT OF THE RADISHES), OAXACA, MEXICO

GILROY GARLIC FESTIVAL, CHRISTMAS HILL PARK, USA

On the last weekend in July, one of the United States’ largest food festivals kicks off at Christmas Hills Park, California. A celebration of the humble garlic bulb, guests can listen to bands while watching celebrity cooking demonstrations, learning how to braid garlic, and eating creations such as garlic french fries and garlic flavoured ice cream. Local charities are the beneficiaries, as they are paid for their volunteers who work during the festival.

The Night of the Radishes (Noche de Los Rábanos in Spanish) is a festival dedicated to carving radishes. It’s held in Oaxaca, Mexico, a town with a long held wood carving tradition. Radishes were introduced by the Spanish in the colonial period, and farmers began carving radishes into figures to attract customers to the Christmas markets. Since 1897, the carvings have become a formal competition, with over 100 contestants and thousands of visitors annually. The winner of the grand prize earns a total of 15000 pesos for his or her efforts.

CHINCHILLA MELON FESTIVAL, CHINCHILLA, AUSTRALIA

BATTLE OF THE ORANGES, IVREA, ITALY

This one is not for the fainthearted. Every February the town of Ivrea, in Northern Italy, turns a historical rebellion against a tyrannical government into a food fight attracting 100,000 people. Half a million kilograms of oranges are destroyed as nine combat teams throw the fruit at each other over a span of three days. Spectators are welcome, however, if you want to avoid injury it pays to hide behind the nets covering the buildings around the ‘battlefield’. All in good fun, apparently!

Twenty five per cent of Australia’s watermelon, rockmelon and honeydew are grown in and around Chinchilla, on Queensland’s Western Downs. Known as the ‘melon capital’ the district celebrates with an annual festival. Visitors can immerse themselves in all things melon. Engage in a farm tour and learn how to grow the best melons or enter the competition for the big melon weigh in. Just for fun, over 20 tonnes are smashed up and 6 tonnes of melons are eaten. Sign up for some melon skiing, pip spitting, melon bullseye, melon tossing.

Good grief, there’s even a melon rodeo – only in Australia!

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HORT CONNECTIONS 2018 WAS HELD IN BRISBANE FROM THE 18TH TO THE 20TH OF JUNE. Now in its second year as a joint industry conference and Trade Show, the event attracted 3,000 delegates confirming its position as the premier influential space for networking, education and business for Australia’s fresh produce supply chain. As naming right sponsors of the Trade Show, Fresh Markets Australia (FMA) and the Central Markets Association of Australia (CMAA) secured a 315sqm stand in the exhibition.

Under the ‘Australian Fresh Produce Markets’ banner, the Brisbane Markets® contributed toward sponsorship of the trade show and hosted a stand on site along with 200 other exhibitors.

The Australian Fresh Produce stand became the venue to launch a national retail brand known as “A Better Choice!” which is designed to encourage consumers to shop for fresh produce at up to 500 independent retailers across Australia (see pages 24-25).

Hort Connections included a busy conference program and was a great opportunity for delegates to hold meetings, showcase their wares or catch up with industry contacts who had travelled from across Australia and New Zealand to attend.

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The 2019 HORT CONNECTIONS will take place in the Melbourne Convention Centre from the 24th to the 26th of June 2019

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Announcing the program at Hort Connections.

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FR

O

RE UR G LOCAL

Y

FR

YO

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HE program objective is to provide a coordinated marketing activity with a national approach, designed to promote the independent retail sector that sells fruit and vegetablesOpurchased through the central markets.

It consists of M a targeted strategic campaign designed U Y O and awareness by F R to increase consumption L fruit U to encouraging consumers their A local R shop L Oat C shop or greengrocer.

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BUY M

After a long lead time involving in-depth research and feasibility studies, the new National Retailer Program, branded, ‘A Better Choice’, was officially announced at Hort Connections 2018.

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NATIONAL RETAILER PROGRAM

Other goals of the program include a focus on harnessing the voices of independent retailers by creating a united master brand that consumers can identify with across the country, and offering retailers the increased exposure and benefits of a national marketing strategy. A united marketing approach also offers an increased opportunity to create efficiencies through bulk purchasing and cost saving.

The three key performance indicators behind the program are retailer participation, retailer sentiment, and consumer engagement. Tasks engaged in to

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THE THREE KEY PERFORMANCE INDICATORS BEHIND THE PROGRAM ARE RETAILER PARTICIPATION, RETAILER SENTIMENT, AND CONSUMER ENGAGEMENT.

achieve the broader outcomes began months ago, with the first objective being to engage stakeholders.

the launch has involved identifying greengrocer champions, development of a website and media strategy, and

The State Chambers along with their THE PROGRAM’S KEY respective landlords MESSAGES ARE CLOSELY have reached an agreement ALIGNED TO CONSUMER and made a commitment to VALUES WITH AN EMPHASIS ON provide a funding CHOICE, VALUE, FRESH, TRUST package to launch the program of AND SUPPORTING LOCAL. around $1m.

Ongoing support will be sought from the industry identifying opportunities for promotion to carry the program forward. and creative collaboration.

Initially a steering committee, with In addition, Fresh State is looking into collaboration between the FMA, the viability of launching a television CMAA, State Chambers and market advertising campaign to enhance landlords, was formed. The committee exposure and consumer awareness was charged with the task of forming a in Victoria. strategic direction, marketing strategy, and a funding model to align with The program’s key messages are closely stakeholders, provide guidance, and aligned to consumer values with an reconcile any differences that arise. emphasis on choice, value, freshness, Further preparation in the lead up to trust and supporting local, promoting

the greengrocers as the better choice for knowledge and service, local and fresh, hand-picked produce.

Wholesalers have come on board and indicated their support for the program, but the key to this initiative gaining traction in the marketplace is support from the entire industry, in particular retailers. Retailers are at the consumer coalface. It is vital that they get behind the program and drive exposure by ensuring prominent use of marketing collateral and educating staff to engage consumers. The aim is that the message should be reflected by the customer experience, which will, in turn, direct more people to a local fruit shop or greengrocer. For local independents across Australia, the ‘A Better Choice’ campaign is set to be a game changer.

Retailers can register their interest and learn more about the program by emailing ‘A Better Choice’ at info@abetterchoice.com.au.

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WHERE ARE THEY VINCE BRANCATISANO

NOW?

There’s no denying that an organisation is only ever as good as its people. Over the years, Fresh State has been fortunate to have some very good people roll up their sleeves and take on board positions for the good of their fellow wholesalers and the wider industry. Many of them have now moved on, but they often still maintain links to the market in some form or other. In our new series, ‘Where are they Now’, Fresh State of Affairs catch up with some of our former Fresh State representatives.

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IKE many, Vince Brancatisano’s involvement ‘It’s a vibrant and dynamic job. There’s no in the market began with a family business. monotony and I never get bored with it.’

Along with his brothers, Mark and Domenic, His association with Fresh State began, Vince manages Velisha Wholesalers and Prestige somewhat ironically, after he applied for a spot Produce. As a youngster he worked alongside on the MMA board. ‘I was frustrated with the way his Dad on school holidays and helped with the things were run and thought the best way to business on a part-time help bring about change basis while he completed would be to get myself THERE IS NO BETTER his university degree in on the board.

ENVIRONMENT TO WORK IN Business Management.

I was completely taken After Uni, Vince began THAN THE MARKET. ‘IT’S A aback when I received working full-time for a call to advise me that VIBRANT AND DYNAMIC JOB. his father’s wholesale my application had business. His Dad started THERE’S NO MONOTONY AND been rejected because taking extended holidays, I didn’t meet the criteria.

I NEVER GET BORED WITH IT.’ and before he knew I was told the MMA it he was running the didn’t see any merit in business. having a wholesaler on the board and that they Vince says he’s always had an interest in business wanted people who were independent of the and commerce, and feels there is no better market. The person who took the place had no environment to work in than the market. background in the industry.’

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Vince adds that he was a bit naïve at the time. ‘I was trying to make a difference in the industry and I thought it was ridiculous that they didn’t want someone with industry knowledge.

It made me see why they acted and made the decisions they did. It was out of ignorance.’

That experience was the catalyst to get involved with Fresh State in 1998. Vince is among very few board members to have seen the full transition of Fresh State from a committee structure where the main source of revenue was subscriptions, to the establishment of corporate governance and a formal

been others stepping forward to take my place. I felt that Fresh State was now in a strong position and it was a good time to go.’

When asked about his feelings on the current state of the industry, Vince has a few concerns. ‘We have so many structures and arrangements forced upon us now that our primary function as a wholesale market has been diminished. We’ve gone from being a pure, open and true market of fruit and vegetables into an over managed, highly regulated and commercially restrictive environment. I feel that the industry is losing its function because

VINCE BRANCATISANO BUSY DOING BUSINESS

board of management. He was deputy Vice President for a period of five years.

In the later years, before the move from the Footscray Road site, Vince was a main player in the establishment and management of the two Fresh State gas stations, then went on to concentrate on managing the financial investments.

Vince stepped down from the board in 2017. With managing his own business interests in and out of the market, he was time poor and felt that after 19 years it was time to move on. ‘I probably would have gone earlier if there had

the government see it as an opportunity for revenue rather than serving its true purpose. ‘ Vince misses the Fresh State board work. ‘As much as I enjoy running my own business, Fresh State added another dimension. It allowed me to expand on my own business skills as I was dealing with government and other types of businesses. It was good to work with people outside of my family and I learnt a lot from the other directors. I’m definitely a better business director and manager due to my time at Fresh State.’

WE’VE GONE FROM BEING A PURE, OPEN AND TRUE MARKET OF FRUIT AND VEGETABLES INTO AN OVER MANAGED, HIGHLY REGULATED AND COMMERCIALLY RESTRICTIVE ENVIRONMENT. I FEEL THAT THE INDUSTRY IS LOSING ITS FUNCTION BECAUSE THE GOVERNMENT SEE IT AS AN OPPORTUNITY FOR REVENUE RATHER THAN SERVING ITS TRUE PURPOSE.

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s e im

The smallest of the citrus types, the lime originates from Southeast Asia, although the name is of Arabic extraction. The fruit is believed to have been introduced to the rest of the world by Persian and Arab traders, followed by 13th century crusaders and Christopher Columbus in the 14th century.

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RITISH sailors in the nineteenth century were given the nickname ‘Limeys’ because of their high intake of limes. Lime intake was encouraged by the British Navy because their high concentrates of vitamin C helped to prevent the men from developing scurvy.

Mexico is the world’s biggest producer and consumer of limes, followed by the West Indies, the United States, Ghana and India. In Australia, limes are mainly grown in the eastern states and to a smaller extent in Queensland and Western Australia.

There are a number of species, with the most widely cultivated being the Persian Lime, Kaffir Lime, Desert Lime and Key Lime. The trees are thorny and unlike lemons, they will not do as well in cold weather climates.

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MEXICO IS THE WORLD’S BIGGEST PRODUCER AND CONSUMER OF LIMES, FOLLOWED BY THE WEST INDIES, THE UNITED STATES, GHANA AND INDIA. IN AUSTRALIA, LIMES ARE MAINLY GROWN IN THE EASTERN STATES AND TO A SMALLER EXTENT IN QUEENSLAND AND WESTERN AUSTRALIA. The plants like full sun in well drained, fertilised and consistently moist soil with plenty of mulch to protect the roots. The tree will normally take 3 years to produce fruit. Lime varieties can be seedless or have seeds.

The tart flavor is popular for use in soups, salads, and meat dishes, and is often used in desserts, jams, pickles, and confectionary. The Mexican Lime is also known as ‘bartenders lime’ as it is the variety most commonly used in cocktails and mixed drinks. Kaffir Limes have a unique, intense flavor. They are widely used in Thai, Vietnamese and Cambodian dishes.

Kaffir Lime juice and zest is used in marinades, curries, seafood and desserts made with coconut.

The Kaffir Lime leaf is sought after for use in Thai recipes for its distinctive, aromatic flavor.

Limes are rich in antioxidants, in particular vitamin C, and the bioactive compounds known as limonoids, which act to increase the benefits of the vitamin C and help to trigger detoxification of the liver. Limes also contain potassium, calcium, iron and folic acid. They are sodium free and low in calories. The combined effects of the nutrients in limes are said to reduce inflammation, and the risk of heart disease and stroke. Consumption of limes may protect you from some microbes, virus and bacteria such as Salmonella and Heliobacter Pylori.

Care should be taken not to overconsume, however, as limes can also cause skin and food allergies, erode

tooth enamel and in some people they are a trigger for migraine headaches.

The use of limes is not limited to human consumption. They are also used in the manufacturing of cosmetics, shampoos, soaps and herbal ointments, cleaning products, and medicines used to treat diarrhea. The oil is used in perfumes and aromatherapy and is said to have a stimulating effect on mind and body. With all this versatility in one fruit, isn’t it time for a lime?

LIMES CAN BE FOUND ON THE BUYER’S WALK AT: KELLY’S CITRUS, PRODUCE TIME, R ANGUEY, BARKERS, TEN FARMS, AMV FRESH, M&N PRODUCE, LOUIS MELBOURNE.

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Featured Recipe

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GRILLED BLUE EYE SALAD WITH SWEET CHILLI AND LIME SAUCE The sweet taste of the sauce is a perfect combination with the salty taste of the grilled fish! Together the freshness of the lettuce and the characteristic taste of the avocado makes this salad a small wonder on the dinner table!

PREPARATION Slice avocado, mango and red onion into thin strips. Combine sweet chilli sauce with juice of lime. Grill fish, skin side down first for 3-4 minutes each side. Mix baby butter leaves with avocado, mango and onion. Place grilled fish and salad on plate and top fish with sauce.

INGREDIENTS > 800g Tasmanian Blue-Eye Trevalla Fillet > 1 avocado > 1 mango > 1 red onion > 8 cups of baby butter lettuce leaves > ½ cup sweet chilli sauce > 1 lime MAKES 4 Serves

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The only way of doing business

issue 43 aug 2018

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