produce - PMA A-NZ

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A vital part of the nation’s health An introduction by Michael Worthington, CEO PMA Australia-NZ

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MA Australia-New Zealand is delighted to be associated with Retail World in this brand new section on fresh produce. There is always a lot happening in the world of fresh produce and it is such a vital part of the nation’s health and enjoyment. We are glad to see the sector gaining greater prominence in the media and in the mind of the consumer. Founded in 2009, PMA A-NZ is the first international affiliate of Produce Marketing Association (PMA), the global fruit, vegetable and floral industry’s leading trade association. PMA A-NZ’s mission is to connect, inform and deliver business solutions that enhance

members’ prosperity. PMA A-NZ is governed by a local board whose members hail from across the Australia and New Zealand fresh produce and floral supply chain.

Weather and fresh produce supply Australia experienced its wettest spring in 2010 since records began, even taking into account the drought in WA. As with all major rain events, there are winners and losers. The huge positive impact the 2010 spring rains had on the nation’s water supplies cannot be underestimated and for many products this will mean ample supplies will be available in the coming year, weather permitting of course! For some crops, however, the picture is not so good: hail or rain damage on young fruit always causes

Michael Worthington, CEO PMA Australia-New Zealand.

problems with fruit quality when it is time to harvest, so some fruit lines such as apples and grapes could be in short supply this autumn.

How important are imports in fresh produce? According to a recent Australian Food & Grocery Council stateof-the-food-industry report, the turnover of fresh produce in Australia is around $5.6 billion. Roughly split, it comprises 45 per cent vegetables and 55 per cent fruit, produced by around 25,000 enterprises. The same report indicates that around 7.5 per cent of fresh (not frozen or dried) produce is imported, which at first glance may be a lot higher than many producers would like to see. But if you analyse this further, the main fresh produce items being imported are the

Flood update

A date for your diary The annual Fresh Connections conference and trade show – the only event in Australia that attracts delegates and exhibitors from all parts of the supply chain in the fresh produce and floral industries – will be held at the Brisbane Convention Centre from June 8-10, 2011. For more information, go to www. freshconnections2011.com.au.

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The devastating floods have dominated the news for most of January and there will undoubtedly be some impact on supply over the coming months. For fruit, quality of Victorian grapes could be affected and stone fruit supplies are still reasonable. The upcoming pear and apple crops could be affected if waterlogged fruit trees are affected by root disease and fruitlet-drop. The main avocado and citrus growing regions should recover in time for their harvest in three-four months time

and bananas are expected to be in good supply. For vegetables, the big unknown will be whether the massive damage in the Lockyer Valley will affect the planting of crops, in time for their peak winter and spring season. Overall, some products will be in short supply at times over the coming year. But there is always high substitutability among fruit and vegetables and consumers will readily switch or simply do without their preferred product if the price or quality is not right.

‘counter-seasonal’ items, such as table grapes and citrus. So for the consumer who is looking for cherries, navel oranges or asparagus at times of the year when local supply is not possible, having access to this supply from the northern hemisphere is important. Producers should not be too concerned, especially as many of them sell to consumers in export markets, also counterseasonally.

Fresh produce consumption In spite of all the evidence to show how important fruit and vegetables are in a balanced and healthy diet, there has been no significant increase in consumption over the past decade. And yet all the data shows how serious obesity and other poor-diet health issues are in this country. TV Programs such as ‘Master Chef’ can undoubtedly have a positive impact on the consumption of fresh produce and probably a lot more impact than many campaigns that aim at the health message – which all goes to show that the fresh produce industry will need to do so much more on the ‘feel-good’ factors and flavour, taste and quality of its products to get the consumer wanting to eat more for the pleasure of it, not because they are being told to do so. PMA, here and in the USA, is working on a number of initiatives that attempt to use more of the ‘carrot’ (excuse the pun) than the ‘stick’ approach.

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Pre-pack sector set to continue growth By Michael Locke, Associated Director, The Nielsen Company.

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here is no question how important fresh produce is to both retailers and consumers. Representing over 12 per cent of total value, it is the third largest category in grocery, surpassed only by chilled food and dry grocery. Despite, however, the health connotations of the fresh produce category, heavy promotion, and continuous upgrading of fresh food departments by the major retailers, sales of fresh fruit and vegetables have shown only a 2 per cent value increase over the past twelve months. While Woolworths still has a stronger position in fresh fruit and vegetables than any other retailer, Coles and Aldi have seen increases in their share of market over the past year, largely at the expense of independent retailers. The independents still control a significant share of the fruit and vegetable market, especially in a number of seasonal categories, and are seen by shoppers to offer superior quality and service. The major supermarkets, on the other hand, are seen by shoppers as offering better price and convenience. Looking more closely at fruit and vegetables, we see that vegetables have performed more strongly in 2010, growing at 4.5 per cent, whereas fruit actually declined by -0.3 per cent. The dried fruit and nuts segment also saw value declines of -0.6 per cent. The major trend we have seen over the past

year is the continuing growth of pre-packaged fruit and vegetables. Pre-packs now account for some 29 per cent of fresh produce value (fruit, vegetables, dried fruit and nuts) and have grown by 12 per cent over the past year. The trend to pre-packs and value-added can also be seen in the UK and other western countries. If you’re reading this article and are a fresh produce supplier, you should be asking yourself if you have considered marketing prepack and value add solutions. The vegetable industry has been faster to move into pre-packs, with 27 per cent of their sales now in this form, against 15 per cent for fruit. Both segments are seeing strong growth for pre-packs with no sign of this slowing and more pre-packed products planned for introduction in 2011. What types of fruit and vegetables have driven value growth over the past year? In the fruit industry, mangoes are the star performer, with this result driven by a large amount of in-store promotion, displays and recipe leafleting. Citrus and stone fruits have also performed strongly. In total, these three product groups have added over $100 million to the fruit category over the past year. On the negative side, grapes are significantly below last year’s value, with bananas and avocados slightly down. The vegetable industry may be seeing a “Master Chef” effect, with the herbs category value up over 40 per cent, mushrooms up nine per cent (a lot of pre-pack activity here) and

tomatoes up 13 per cent. Even the humble potato has seen growth of seven per cent with this driven by specialty varieties. These four product groups have added an estimated $180 million to the vegetable category over the past year. Overall, the “two and five” message seems to be getting through more with vegetables than with fruit, as only onions and pumpkin have seen minor declines over the year. What’s in store for 2011? We believe pre-packs and value added products will continue to grow strongly, especially in the major grocery chains that are keen to improve their market share. Both chains appear to see the quality of their fresh offering as a potential point of differentiation and a key determinate of shoppers’ choice of store. One thing is for certain – in 2011 the major retailers will be seeking even more insights from their trading partners to assist them to deliver their business objectives. About the Nielsen Company The Nielsen Company is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related assets. The privately held company has a presence in approximately 100 countries, with headquarters in New York, USA. For more information, please visit www.nielsen.com.

February 3, 2011 Retail World

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Freshmax ripe and ready avocado By Sue Carter, Division Manager, Freshmax NZ Ltd

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Sarah at Ripening Rooms.

Avocado Samplers at Countdown.


hree years ago it was not easy for shoppers in New Zealand to buy ripe avocados on a year-round basis. Ripe and ready avocado programmes have long been implemented in Australia, and even though New Zealand is a major avocado exporter to Australia, no single supermarket chain, until recently, supported a ripe and ready avocado programme in New Zealand. That changed following the Woolworths purchase of Progressive Enterprise, who operate the Countdown, Foodtown and Woolworths Supermarket brands in New Zealand. Woolworths’ success with ripe avocado sales in Australia meant they were keen to support the introduction of a ripe and ready programme here in New Zealand. Sue Carter, the avocado Product Manager/Division Manager for Freshmax NZ, says: “The program has been so successful that the retail customer’s attitude to avocado ripening is now: “If it hasn’t been ripened, we won’t accept it. Our customers expect ripe avocados.” This new attitude puts Freshmax and Progressive streets ahead of the independent retailers in New Zealand who seem happy to purchase green fruit and let it ripen on the shelves, missing sales, Ms Carter says. Freshmax saw the opportunity to grow avocado demand in New Zealand. The company made a strategic decision in late 2007 to make a significant capital investment in building a dedicated, state of the art, avocado ripening facility in the company’s Auckland produce service centre, alongside the banana ripening rooms. In order to ripen avocados to perfection, purpose built avocado rooms are required. These rooms control temperatures and airflow prior to, during and post ripening and provide controlled release of ethylene. Ethylene is a naturally occurring gas, created in fruit when starch begins to convert to sugar. Addition of ethylene encourages the avocado to begin its own ripening process. Controlled release of ethylene and heat ensures that the fruit ripens as evenly as possible across the pack. Ripening can take up to seven days in the early part of the season, reducing to two days once the fruit becomes

more mature. The latest innovations in ripening allow the ripening process to be achieved remotely. This allows Freshmax’s ripener to monitor the avocado and banana ripening rooms from home in the evenings and on weekends. Ms Carter says: “I have heard tales in the early days of avocado ripening, when electric heaters were installed in cool rooms as a way of generating heat. They had guys sleeping next to ripening rooms overnight. They were terrified that the fruit would ripen too quickly and become worthless if they could not easily monitor and adjust its progress.” Because avocado have a high density, once ripening is underway it is hard to stop at just the right level of ripeness without the use of proper technology. In large avocado markets such as the USA, the next innovation in avocado ripening is firmness testing technology. This is used for grading ripened fruit. This technology uses tapping devices, attached to the grading line, to measure the firmness of each individual fruit. Avocados are then sorted and repacked according to customer-specific staged ripening requirements: ready to eat today, ready to eat in one day, or in three days. Ms Carter says Freshmax has trialled this technology but the local industry needs to achieve a lot more scale before it can provide real benefits in the supply chain. The combination of the investment in ripening rooms, retail chain support and marketing activities has led to great success in this category for all parties. Key components in the marketing mix supporting retail are TV and print advertising, recipes, and product sampling. Ms Carter says: “Getting up close with our end consumers on a regular basis allows us to educate shoppers about choosing avocados by colour, not through the ‘squeeze’ method. This damages fruit and leads to wastage. “Our ability to offer customers ripe avocados on a consistent year-round basis is what drives growth in this business. Other food producers have the ability to energise their brands and innovate their product offer through improvements in packaging design or ingredients. But with fresh produce, our tools are limited so we have to focus on continually improving customer satisfaction with each and every purchase,” Ms Carter says.

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No mess tomatoes By Cheryl Harty.

A value added fruit suited to modern consumer needs.

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he Intense no mess tomato has been specially bred to hold its juice and shape, resulting in a leak-free tomato that is quick and easy to cut, with, as the name suggests, no mess. Its solid structure allows for confident slicing, dicing and cutting without losing shape. This ability to retain the juices is invaluable as it results in a lasting fresh appearance after cutting. While they have the same amount of juice as the regular kind of tomato, Intense tomatoes have no gel to hold the water. The juice therefore does not leak out, but stays trapped in tiny cells inside the tomato. This means there is no dripping or sogginess even when the fruit is cut or squeezed. The Intense tomato variety first originated about 20 years ago when the waterless gene was discovered in a wild tomato by Nunhems Seeds Italian tomato breeder, Franco Vacchio. Because the tomato was very small, it had to be crossed with some bigger lines to grow the Intense tomato. In Australia, the Intense tomatoes are grown predominately by Queensland-based, family operated SP Exports, producer of field grown tomatoes and also the largest supplier of fresh tomatoes in Australia.

SP Exports grow the no mess tomatoes all year round in the great climate of the Bundaberg region, with complimentary supply from other family farms around the country, including Bowen, Victoria and Western Australia. If different regions yield at different times, a good consistent supply of new tomatoes is ensured throughout all seasons. Last year the company grew between 160 and 200ha, with most of the production in the Bundaberg and Childers region. “We have a crop also being grown in WA (AYR), Bowen during the winter and Victoria during the Summer, with trial plantings in NSW and South Australia,” SP Exports Managing Director, Andrew Philip, said. Intense no mess tomatoes have an attractive, deep red colour and fresh tomato flavour and can be eaten fresh or cooked. They are ideal for healthy salads, bruschetta and pasta sauces. Soggy sandwiches are a thing of the past – not only will the no mess tomato retain its juice and not saturate the bread, but the tomatoes will retain their fresh, firm appearance, making them ideal for pre-cut sandwich platters when catering for large numbers. The tomatoes are also ideal for cooking, frying, baking and grilling. Just like their regular cousins, Intense no mess tomatoes are full of beneficial nutrients and

antioxidants and are just as tasty. They are full of fibre which helps lower cholesterol levels, prevent colon cancer and keep blood sugars at a low level. Intense tomatoes are a good source of riboflavin and are boosted with more lycopene than regular tomatoes. Lycopene is a powerful antioxidant that helps protect the cells in the body from a variety of cancers and helps prevent heart disease, as well as slowing down the development of cataracts and macular degeneration in the eye. This versatile antioxidant is available to the body whether the tomato is eaten fresh or cooked, but if the tomato is cooked with the addition of some oil, the absorption of lycopene is greatly increased. In its first 12 months, Intense tomatoes saw sales of $7.5 million and this is expected to double in the next 12 months. SP Exports has completed the national rollout of the Intense no mess tomato in Coles and Woolworths. The next step will be rolling the fruit out through independent supermarkets and launching in New Zealand during the winter and SE Asia later in 2011. “We have also commenced small sales of a new larger round Intense tomato, that will be marketed in the similar 500g packs, as well as potentially loose for fruit,” Mr Phillip said. February 3, 2011 Retail World

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Purple carrots By Cheryl Harty.

A new colourful and nutritional addition from Premium Fresh Tasmania.

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egetable growing and packing company, Premium Fresh Tasmania, is well regarded in the produce industry for its ability to grow high volumes of quality vegetables for domestic and export markets. It is also developing a reputation for being an innovator in the field by being first to market with new products and varieties. Through the use of new technology, it focuses on increasing productivity and improving the taste and appearance of old favourites such as carrots and onions. Each year, new varieties and products are trialled and developed. The


company recently introduced purple carrots to the Australian market, an ancient vegetable that is being hailed as a new superfood because of its high antioxidant content. Owned and operated by brothers Mike, Rick and Jim Ertler, Premium Fresh Tasmania is a success story that continues to grow. Operating from a 5000sqm facility at Forth on the north west coast of Tasmania, the business grows and packs onions, carrots, swedes, turnips, shallots, broccoli and leeks. It has developed substantially from the small farming enterprise which began over 55 years ago. Director of Field Operations, Mike Ertler, said their father gave them the best start possible by establishing the farm at Forth, when he migrated from Hungary all those years ago: “We have access to abundant pure water

resources and the cleanest air in the world. The cool climate and long daylight hours in Tasmania allow the vegetables to grow slowly for the best results.” Ten years ago the brothers made a decision to expand operations by contracting local land holders and concentrated on growing carrots. More than $4 million was initially invested in state-of-the-art hydro-cooling, grading and packing facilities and the company quickly scaled up to become the largest carrot producer in Tasmania. This involved supplying the Australian wholesale market, national supermarket chains and several export markets. With an annual production of over 25,000 tonnes, Premium Fresh Tasmania now contributes approximately 10 per cent to the national annual carrot volume (ABS Volume of Vegetable

Production 2009), from just a six-month season. Since 2005 the company has invested a further $9 million into its carrot and onion production facilities. Onions were originally introduced as they could be harvested and then stored until the end of the carrot season, providing ongoing work for the company’s work force of over 140 people. It quickly became apparent that the onions not only compared favourably with product grown in other parts of the country, but also offered improved taste and shelf life characteristics. After adapting and implementing technology from Europe, Premium Fresh Tasmania refined unique harvesting and curing techniques, resulting in excellent skin colour and skin retention. It has successfully managed to stretch its Tasmanian onion

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The Erther brothers from Premium Fresh – L-R: Jim, Rick and Mike.

season to 11 months, the longest of any onion-growing region in the country. The company is expanding the onion program each year to accommodate the growing interest from Australian and overseas customers. In addition to producing large volumes of vegetables, the company continually strives to improve quality. “We want to make sure that Premium Fresh Tasmania’s customers always have the best tasting and best presented vegetables available on the market. If that means we have to trial varieties from overseas, or develop our own, we will do whatever is necessary,” Marketing Manager, Cherie Holloway, said. It was this philosophy that recently led the company to introduce echalions and purple carrots, for retail sale in Australia. Echalions are a cross between an onion and a shallot. Also known as an ‘easy shallot’ or ‘banana shallot,’ the echalion is extremely popular in the UK and other parts of Europe. It offers the sweet, mild flavour characteristics associated with the French shallot, but with the advantage of being easier to peel, slice and dice. Premium Fresh Tasmania had been growing the traditional French shallots for just two years when they were approached by the UK’s largest echalion growers to trial production in Tasmania. With the island’s latitude being similar to that of southern France, the home of shallots and echalions, Tasmania was considered the best location to source product to fill a gap in the northern hemisphere’s season. After just one year of trials, a commercial crop was grown for 2010 and over 200

tonnes was exported to the UK with resounding success. “Initially we were just pleased that we could grow French shallots, offer them for retail sale throughout the year and reduce the dependence on importing foreign product. Now that we have had such phenomenal results with the echalions, we can confidently offer Australian consumers the same range and choice of products taken for granted in Europe. We expect Australians will fall in love with echalions,” Ms Holloway said.

“Tasmania was considered the best location to source product to fill a gap in the northern hemisphere’s season.” Similar expectations are held for Premium Fresh Tasmania’s purple carrots, widely publicised as a ‘superfood.’ “Many people mistakenly think that we inject the carrots with dye to change the colour. This isn’t the case. Purple carrots occur naturally and have existed for thousands of years. The first cultivated carrot crops were purple while modern orange carrots were developed by the Dutch just 300 years ago,” Ms Holloway explained. In the past, purple carrots were only available in small quantities and from speciality retail outlets. Limited volumes are still grown

Echalions.

to produce purple carrot juice, but easy access to a variety that actually tastes good has been non-existent. Premium Fresh Tasmania has worked with seed companies for several years to develop a variety that delivers on taste, appearance and the fantastic health benefits associated with other purple fruit and vegetables. Dr Hazel MacTavish-West, a plant scientist with over 20 years of academic and commercial experience, explains that the purple colour results from the presence of a compound known as anthocyanins. It is the same compound that provides the blue and purple colours to blueberries, purple grapes and red cabbage. Anthocyanins are active anti-oxidants which can improve dyslipidaemia, glucose tolerance, hypertension and insulin resistance. Anthocyanins are not present in orange carrots and the maximum benefit is gained by eating the product raw. Purple and orange carrots both contain compounds that may protect against cardiovascular disease and inhibit the development of cancer. Purple carrots contain levels of these compounds that can be five times higher than those in orange carrots. “We could not ignore the opportunity to bring this product to Australian consumers and we believe we have the best variety of purple carrots available anywhere in the world,” Ms Holloway said. Premium Fresh Tasmania, meanwhile, will continue with its innovative vegetable production techniques, as it aims to deliver only the best quality produce to the retail market that wins on both appearance and taste. February 3, 2011 Retail World

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Europe’s favourite melon now in Australia European-style rockmelons specially bred for colour and flavour are now in Australian supermarkets.

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he new Magenta melons are grown in Australia’s traditional melon-growing regions including Bundaberg and Ayr in Queensland, Griffith in New South Wales and Mildura in Victoria. Perfection Fresh Australia has exclusive rights to produce Magenta melons, and expects them to rival other rockmelons and watermelons this summer, based on their popularity in Europe. Unlike other rockmelons which can be pale in colour and bland in flavour outside their peak season, Magenta melons retain their colour and super sweet flavour all year. Magenta melons are round and slightly smaller than other rockmelons and have distinctive green sutures which run vertically on the fruit when stood on its end. They also have a slightly protruding peduncle (stem end) – evidence they have been carefully snipped off the vine by hand on the farm. Other rockmelons are ‘slipped’ off when mature and do not retain their stem end. Picked ripe and ready to eat, Magenta melons do not ripen further. They have a minimum brix (natural sugar) content of 12 – two degrees higher than other rockmelons – and have a sweet 26 Retail World February 3, 2011

aroma, with juicy yet firm flesh surrounding a small seed cavity. Magenta melons can be sold whole or cut. They are available from all leading supermarkets and independent retail outlets nationally (except Western Australia). The melons should be stored in a cool, dry place and consumed within a few days. Once cut, they need to be stored in a sealed container and kept in the fridge. Magenta melons have a shelf life of 10-14 days when stored correctly. With their sweet flavour, and succulent orange flesh and texture, Magenta melons can add a fruity zest to a number of dishes. They can spark up a mixed leaf salad and add contrast to salty spiced foods such as feta or prosciutto. The melon can be a colourful component of fruit salad and is an easy to prepare starter, served with ham or smoked duck breast. Chunks of Magenta melon can also be eaten sprinkled with sea salt and black pepper. On a hot day, they make an elegant dessert, served with ice cream and macadamias, drizzled with liqueur. For a refreshing health drink, Magenta melons can be blended with natural yoghurt into a creamy smoothie. The Magenta melon is available year-round.

Founded in 1978, Perfection Fresh is serviced by fresh produce growers across Australia and supplies specialised fruit and vegetable lines including Broccolini baby broccoli, The Original grape tomatoes, The Original golden grape tomatoes, baby red capsicums, Vine Sweet Minicaps baby capsicums, Qukes baby snacking cucumbers, Romatherapy baby roma tomatoes, Royal Pom pomegranates, mangoes and grapes to premier food retailers, processors and distributors Australia-wide and internationally.

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