Fresh Produce Industry

1. TheProduceCollective...engagingtheindustryfromfieldtotable Agricultural Competitiveness White Paper – Submission IP242 Produce Collective Submitted 14 April 2014

2. ProduceCollective.com paulD@ProduceCollective.com 10thApril2014 POBox154 BringellyNSW2556 paulD@producecollective.com.auwww.producecollective.com MrPaulDeNardi ManagingDirector ProduceCollectivePtyLtd • ProduceCollectiveSubmissionfor AgriculturalCompetitivenessWhitePaper • References • TermsofReferenceasat'www.agriculturalcompetitiveness.dpmc.gov.au/terms-of-reference'. • ProduceCollectiveStrategicAnalysisReport. • Introduction • Thisproposalrecognisesthesignificanceoftheagriculturalsectorandoffersavibrant, innovativeandhighlycompetitiveinitiativetoleadfarmerstobetterreturns,increase employmentopportunities,moreinvestmentandstrongerregionalcommunities. • ProduceCollectivehassinceitsestablishmentin1995,recognisedthatAustraliaisa leadingagriculturalproducerandexporterofferingconsiderableopportunitiesfor futuregrowth.Asanationwemustencourageastrongagriculturalsector,withprimary producersthatarethemostinnovativeintheworld. • ProduceCollectiveacknowledgesthecriticalroleforGovernmentinestablishing stable,strategicpoliciestoimproveproductivityandgrowth.Consequently,this submissionforAustralia'sAgriculturalCompetitivenessdetailsastrategytoimproving thecompetitivenessandprofitabilityoftheagriculturesector,expandingitscontribution totradeandeconomicgrowth,andenhancingcapacityinordertoincreaseproductivity throughinnovation. • ProduceCollectiveintendstoestablishanargumentthatsolidifiesthefoundationof anindustryinitiativethatpromotesinvestmentandemploymentgrowth.The substantivebenefitsinherenttotheplatformdesignwillsignificantlycontributetothe Australianeconomyandregionalcommunities. TheProduceCollective...

3. ProduceCollective.com paulD@ProduceCollective.com • Aim...theaimoftheproposalistoidentifythedeficiencieswithintheagricultural sector,detailahighlyinnovativesolutionwithlong-termeffect,aswellasdescribethe methodofimplementationandthemeansofdeterminingsuccess. • Scope...thesubmissiondetailsthedeficienciesexperiencedintheindustry,product designconsiderations,benefitsoftheproposedsolutionandthemethodofgauging success.Inrelationtothebenefitsthefollowingsummarisesthefundamentaloutputs ofthesystem: • MeansofachievingfoodsecurityinAustraliaandtheworldthroughthe creationofastrongerandmorecompetitiveagriculturesector. • Meansofimprovingmarketreturnsatthefarmgate,includingthrough betterdroughtmanagement. • Accessinginvestmentfinance,farmdebtlevelsanddebtsustainability. • EnhancingcompetitivenessoftheAustralianagriculturesectorandits relationshiptofoodandfibreprocessingandrelatedvaluechains,including achievingfairreturns. • Contributingtoagricultureinrespecttoregionalcentresandcommunities, includingmethodsofincreasinginvestmentandemploymentgrowthin thesectorandassociatedregionalareas. • Enhancingefficienciesandcompetitivenessofinputstotheagriculture valuechainwithparticularreferencetotraining,educationandhuman capital;researchanddevelopment;andcriticalinfrastructure. • Enhancingtheeffectivenessofregulationsaffectingtheagriculturesector, includingtheextenttowhichregulationspromoteorretardcompetition, investmentandprivatesector-ledgrowth. • Developingopportunitiesforexpandingagriculturalexportsandnew marketaccess. • Enhancingtheeffectivenessandeconomicbenefitsofexistingincentives forinvestmentandemployment. TheProduceCollective...

4. ProduceCollective.com paulD@ProduceCollective.com • Deficiencies • TheProduceCollectiveteamhasconsultedtoabroadrangeofpeople,thathave workedintheagricultureindustrysector.Throughoutstakeholderengagementsand liaisonwithcustomersthefollowingdeficiencieswereandregrettablycontinueto impedeanotherwisevibrantandiconicindustry: • AccesstoBusinessintelligence...absenceofameanstoacquire andanalyseconsumerbehaviourincludingdemandandthereforeinform businessdecisionmakingincludingcropselectionandmarketcapacity. • Antiquated business practices ...frustratedbylimitedoptionsin relationtotechnologicallyenabledbusinessmanagementsystems,farmers contendwithantiquatedpracticesandprocesseswhichimpedebusiness development,contributetooverheadanddegradequalityoflifeingeneral. • Globalisation...enablescompaniesandconglomeratestosubstantially influencethewayconsumersdecidewhatfoodtobuyandhow.This makesitdifficultforindependentgrowerstopromoteproduceto wholesalersandretailersletaloneachieveafairmarketprice.The independentoperatorstrugglestocompetewithcorporateentitiesthat leverlargemarketandsupplynetworks. • Limitedmarketingopportunities...farmersgrowcropsthenwaitin thehopethatthewholesalerswillgetagoodpriceatmarket.Thisrelates tothelackofsoundbusinessintelligenceandthedislocationbetween growerandconsumerwhichisleveragedbyintermediaries. TheProduceCollective...

5. ProduceCollective.com paulD@ProduceCollective.com • Design • ProduceCollectivehasdevelopedaportalthatfacilitatesavarietyoffunctionswhich complementacoreserviceforfarmersandgrowersamarketingandtradingplatform. Theplatformis: • AshopfronttoAustraliaandtheworld...offeringfarmersawider rangeofbuyers,andtheopportunitytoachieveahigherreturn.This meanstheirfarmbusinessismoreprofitableandmorevaluable,giving farmersanewhopeforthefuturefortheirbusinessandtheirfamily. Critically,thesiteprovidesthefreshproduceindustryagenuine opportunitytoachievesustainablegrowthaswellastheopportunityto keepownershipoffarmsinAustralianhands. • Acentralmarketingandtradingplatform...thecorefunctionis 'Marketlink'wherethetradingofproducetakesplace.Registered GrowerslisttheirstockandBuyerscansearchandorderproduce,noting thatpricecanbeagreedto,offeredornegotiated.Tradingcriteriaincludes countryandlocalityofwheretheproduceisgrown,whenitisavailable andwhenharvested,Grower,variety,brand,size,packtype,ripeness, quality,palletandtransportalldetailsrecordedandlogged.Thishelps reducewastageandconsequentlytheensuinganguishthataffectsthe growerindividuallyandtheindustryasawhole. SampleTransactionInterface TheProduceCollective...

6. ProduceCollective.com paulD@ProduceCollective.com • c. Ameansofenablingtheagriculturecommunity...byconnecting growersandbuyerstoengageinamoretransparentmannerandtherefore promoteandsupportcustomers.Modulesinclude,abusinessdirectory, ajobcentregivingaccesstoworkers,aclassifiedsmoduleforagricultural equipment,adiscussionforumtoconnectonissuesthatmattertothem, aswellasasocialmediasiteforgrowerstomarkettheirproduce.Market newsandreportswillenablethecollatingofinformationtosupport operationaldecisions,creatingefficienciesateverylevel. • Theportalisdesignedto: • Emulateexistingbusinesspractices,whilestreamliningtheprocess,noting thesubstantialemphasisonautomation,reductionofdataentryduplication andminimisingtransactionactivity. • Enableintuitivenavigationofthemenusincludingcomprehensive'Help' and'Search'functions. • Ensureprivacyofinformation. • Facilitatedetailedtransactions. • Provideaccurateandusableinformation. TheProduceCollective...

7. ProduceCollective.com paulD@ProduceCollective.com • CompetitiontoProduceCollectiveincludeslimitedenterprisessuchasgenericretail companiesandfarmingco-operatives.Theseorganisationsgenerallymarketproducts andservicesthatareconstrainedby: • Geographicboundaries. • Productrange. • Supplier'scapacity. • AcriticalconsiderationfortheAustralianFederalGovernmentandtheagriculture sectoris... whowillcontroltheglobalmarketingplatformintermsofthe commercialentityandmostimportantlythehostorsponsoringnation. TheProduceCollective...

8. ProduceCollective.com paulD@ProduceCollective.com • IndustrySolution • Thinking Big - the solution is the Produce Collective platform specificallydesignedtoservicenationalandinternationalmarkets offeringthefollowingbenefits: • Foodsecurity...Marketintelligencebasedondemandbyconsumers andbuyers,willgivefarmerstheinformationtheyneedtomakesound businessdecisions,abetterintegrationofproducevarietiesandquantities ofwhichcropstogrow.Thiswouldhelpreduceglutandshortagesand theensuingwastageandlargepricefluctuationsandallowsfoodtomove towhereitisneeded. • AsstatedintheAgriculturalCompetitivenessIssuesPaper‘meetingthese challengeswillrequiretheAustralianagriculturesectortobeflexibleand resilientandpatternsofproductionmayneedtochange’andProduce Collectivewouldbecatalysttogetthemostoftheavailableresources. • The Produce Collective team is perfectly placed to promote the developmentofglobalmarketsandexportingtechnologyandknow- how. • Improvingmarketreturns...farmersandgrowerswillhaveamore directaccesstoagreaternumberofbuyersresultinginsignificantlybetter returnsfortheirproduceatthefarmgate.Thisgreaterprofitabilitywill attractandencouragenewfarmerstosuccessfullytakeupagriculture. • ProduceCollectivecalculatesthatfarmerandgrowersusingtheprogram couldshowa25-40%greaterprofitatthegate,throughtrainingonhow tobestutilisemarketingtechniquesthroughtheinternet. TheProduceCollective...

9. ProduceCollective.com paulD@ProduceCollective.com ThisProduceCollectiveinformationcentreoffersanexcellentplatform fordisseminatinginformation,programsandsupportforfarmersand growersandhowtheycanbestcombatdroughtandtheirdevastating effects. Investmentfinance,farmdebtlevelsanddebtsustainability... Theincreasedprofitabilitywillsoonattractnewcapital,allowingformore marketingofnicheproducevarietieswhichtheProduceCollectivewill assisttosuccessfullymarket. ProduceCollectivewillalsoprovidefarmersandgrowersaccesstogroup purchasingpowerforinsurance,finance,water,electricityandother services,thiswillhelptoreducerunningcosts. Enhancingcompetitiveness...thereducedrunningcostswillmake farmingmoreprofitable.ThediscussionforumontheProduceCollective isdesignedtogivebothgovernmentandfarmersamoreunifiedvoice andapproach,wherebothgroupscanexpresstheirviewspublicly.This wouldresultinbettersolutionsandbetteracceptanceofchangesin regulations. TheProduceCollective‘Marketlink’transactionmoduleisdesigned specificallytotakeboththebuyerandsellerintothedigitalageandusing thismarketingopportunitytotheadvantageofthefarmersandgrowers, theagriculturesectortoimproveitscompetitivenessrelativetoother sectorsintheAustralianeconomyaswellasimprovingagricultural competitivenessglobally. SampleTransactionInterface TheProduceCollective...

10. ProduceCollective.com paulD@ProduceCollective.com Itisanopportunitytoratethebusinessexperience,tofurtherenforce goodandethicalbehaviourandpracticesinbusiness.Thisisnotamarket daywhereyouhopepeopleturnupwithcashandanotiontobuy,Produce Collectivemarketseveryitemofproduce24-hoursaday,allyearround, localandworldwidetobuyerswithinternetconnection.Thiswould e. Regionalcentresandcommunities...theincreasedprofitsandmorale boostfromthesupportingprogramswouldprovidecontinuingcontact withthefarmercreatingthebasisfortrustandcommunication.Thispro- activeapproachenablesbetteraccesstofarmerswiththeintentionof reducingsuicidesandthedevastatingimpactonthosewhoareleftbehind. TheProduceCollective...

11. ProduceCollective.com paulD@ProduceCollective.com Thepro-active12monthprogramhasacontinuingcontactbias,designed togivesupporttoexistingandnewfarmers,sothattheywillnotfeelso marginalisedbytheeffectsofisolation.Theprogramteams’marketing planistosetupeachparticipant,inotherwordsactuallydothisaspectof theworkforthem,thengivethemtheinformation,thetraining andsupport soastoensureabetterreturnfortheirefforts. Inturn,thiswouldimpactthecommunity,raisingmorale,increasingthe valueoffarmersbusiness,jobsgrowth,boostinvestmentinregional communities,includingindigenouscommunities...thiswillnaturallyattract thenextgenerationoffarmers. Enhancingefficiencies...ProduceCollectiveisdesignedtostreamline andenhanceallaspectsofthesupplychain.Everystepofeachtransaction isrecordedandanaudittrailiscreatedforaccuratereporting. Transportwillalsobemoreefficientasproducewillbeabletobe deliveredmoredirectlytobuyers.Theshipmentformincludestransport andpalletinformation.Wewillseesmallermoreefficientdistribution centresdevelopedtomoreaccuratelyservicebuyersneeds. f. SampleMarketingApproach TheProduceCollective...

12. ProduceCollective.com paulD@ProduceCollective.com immediateattentionisacomprehensiveinternetmarketingsystemfor theagriculturalsector. TheProduceCollectivehascreatedaMarketingTrainingProgramfor Farmers,whichalsoincorporatesamentalhealthaspecttohelpreduce suicideanddepression.Thegovernmentisideallyplacedtoco-sponsor thisgreatandpracticalmodelandmakeitasuccess.Thegovernment wouldberecognisedandreceiveacknowledgementforthispro-active program. The12monthprogramwouldbeforthefirst500farmersonly.There wouldnotbeanyfurthercosttothegovernment,ProduceCollective wouldcoverthecostfortheprogramthereafter. Thiswillattractworkerstoagricultureandgiveyoungerfarmworkers theopportunitytogainbroaderindustryexperience,andpromotecareer pathwaysfortheagriculturesectorparticularlyinremoteareas. g. Enhancingtheeffectivenessofregulations...bothbuyersand growerswouldbeflaggedastoanystateandfederalregulationsrelating tospecificlinesofproduce.Asstatedpreviously,thediscussionforum willgiveavoicetoallinterestedparties.Thiswillgiveparticipantsthe opportunitytodiscusshowtoreduceineffective,inefficientregulations, andregulationsthataredisproportionatetotheriskstheyaresupposed toaddress,withthebenefitoftheruralindustry’sinvolvementtofind better,morepracticalandacceptablesolutions. TheProduceCollective...

13. ProduceCollective.com paulD@ProduceCollective.com h. Developingmarketopportunities...theProduceCollectiveplatform isdesignedtoactasa‘shopfront’andtotakeadvantageoftheexpanding Australianexportmarkets,particularlyKorea,JapanandChinaby providingdirectaccesstoawiderrangeofbuyers,includingthe internationalexportmarkets. FortheAgriculturalindustrytotakebestadvantageofthegovernment’s multilateralandbilateraltradenegotiations,itrequiresaplatformfor internationalbuyerstobeabletofindproduceandvarieties,thatmeet specificcriteria.Otherwisebuyerswillberestrictedtolinearconnections, andreducetheadvantageforfarmerstoreceiveabetterpriceatthe gate. TheProduceCollectiveisreadynow,torespondtothekeychallenges andopportunitiestoincreaseorenhanceexportsandadvancetheinterests oftheagriculturalsector.TheProduceCollectiveisperfectlyplacedto actasanindependentimpartialplatformforbothindustryandgovernment toengageonmarketaccessprioritiesforAustralianagriculturalproducts beimproved,includingtoinformnegotiationsonFTAs,andchanges thatcouldbemadetobiosecurityarrangements,bothinAustraliaandin othercountries,thatwouldenhanceglobaltradeinagriculturalproducts. TheProduceCollective...

14. ProduceCollective.com paulD@ProduceCollective.com Enhancingtheeffectivenessandeconomicbenefits...theportal formsthebasisforstreamlinedandtransparenttradingpractices.Awider rangeofmarketsandbuyerswillhelptominimisewastage,sothatcrops neednotbeploughedbackintotheground. TheProduceCollectivecontainsaJobCentre,perfectformarketing thegovernments’programsandincentivesforinvestmentandjobcreation agriculturesectormeetingtheirobjectives,intermsofbotheffectiveness andefficiency,suchas,thegovernmentvisaarrangementsandprograms likerelocationassistance,theSeasonalWorkerProgrammeandHarvest LabourServiceseffectiveatchannellingworkersintotheagriculturesector. TheProduceCollectiveoffersaninnovativeapproachtomarketproduce nationallyandinternationally,nosimilarindustrybasedplatformexistsin theworld,ItwouldbeanAustralianassaultontheworldmarket,giving Australiaahugemarketingadvantage. i. Performanceindicators 12. Performanceindicatorsinclude: a. b. Numberofparticipantsaccessingandregisteringontheplatform. NumberoftransactionsconductedinAustralia/Asia-PacificRegion/ Internationally. Numberofhits. Numberofproductsregistered. Totalrevenuetradedbygeographiclocation,industrysectorandservice providertype. c. d. e. • SupportRequirement • ProduceCollectiverequiresthefollowinginordertoestablishtheproductwithinthe marketplace: • Accesstoagriculturalassociationsandcontacts. • Granttoleveragetheinitialcosttofarmersinaccessing,registeringand utilisingthesite. • Limitedlegislativesupportinordertoredressoutdatedregulationsin relationtofacilitatingagriculturaltransactionsonline. TheProduceCollective...

15. ProduceCollective.com paulD@ProduceCollective.com Conclusion TheagriculturalsectorhasbeenafoundingpillarfortheAustralianeconomy,andthe communityitsupports.Thedeficienciesidentifiedareimpedingandlimitingthe competitivenessandsuccessoffarmers.Thisismadeallthemorefrustratingknowing thatsolutionsareavailable...tothatend,theProduceCollectivewillassistsignificantly inredressingmanyoftheissuesconfrontingfarmersandtheassociatedbusinesses thatrelyonthisindustry. TheAustralianFederalGovernmentisseekingopportunitiesforinnovationandthisis whattheProduceCollectiveportalwillprovide.Theagriculturalsectorhasestablished atraditionofperformance.However,competinginaglobalmarketdemandsthat farmersandindustrymarketeffectivelywhilsttransitioningtothedigitalage.This givesrisetomanyconsiderations,buttherenowisanofftheshelfproductwhichwill enablethefirststepstobetakentoeffectivelyprojectthefreshproduceindustryinto theglobalmarketplace. Further,afundamentalconsiderationoftheAustralianFederalGovernmentisthe accessingofanoperationalproductwithminimaltechnicalriskinrelationtodesign anddevelopment.Theseandmanymoreissuesareaddressedbythisofftheshelf solutionthatisindependentlymanagedforthebenefitoftheagriculturalindustry. TheProduceCollectivewelcomestheopportunitytoaddressthissubmissionorany othermatterarisingfromthisFederalGovernment'sinitiative. Wewouldliketothankyoufortheopportunitytopresentthissubmission,andwelcome anyquestionsorfurtherdiscussion.Additionally,weextendourappreciationforthe timeextendedtotheProduceCollectivemanagementbytheHonourableAngusTaylor andMsJacintaChaffey,fromtheAgriculturalCompetitivenessTaskforcewhomet withusinGoulbourn. FormoreinformationabouttheProduceCollective, youarewelcometocontactourteam or visit http://about.producecollective.com TheProduceCollective...