Fresh Produce Group has consolidated its export operations into Mildura-based unit. GM of exports Brian Charles talks to Asiafruit Magazine about the reasons for the move

We understand Fresh Produce Group recently restructured its exports operations and you now head up all exports for the group. Can you explain the background to the changes, what the new structure looks like and what benefits are likely to result?
 
Fresh Produce Group (FPG) has traditionally operated two separate Export Business Units (EBU). One was covering Queensland and New South Wales (NSW), which focused on handling mixed loads of air-flown produce, such as Queensland mangoes, mandarins and table grapes as well as cherries and Stonefruit from NSW The second EBU in Mildura mainly handled seafreight exports, focusing on table grapes from Sunraysia region and citrus from the “southern” growing areas, namely Sunraysia, the Riverland and the Riverina regions.
 
The new structure is a single EBU with one general manager (myself), one senior trader, Alex Taylor, and two active traders- Vaughn Graham and Andrew Fitzpatrick. The changes were driven by several different factors. The size of Australia and the vast geographical differences between the growing areas, coupled with the seasonal nature of fresh fruit, have made optimum staff usage and cost minimisation a constant challenge. The new structure will allow all export staff to be more fully utilised over a larger part of a year and hence lead to lower per unit costs.
 
The changes were also driven by a strong belief that our traders needed to be closer to the supply volumes and therefore better equipped and more informed when dealing with our significant worldwide customer base. During the upcoming 2009 table grape season, all grape traders will be based in the Mildura office and they will therefore be able to constantly observe quality, varietal changes, and other specific issues. These can then be quickly communicated to our customers. We believe that such a pro-active approach allows us to prevent unsuitable product being shipped and therefore minimises the potential for quality problems on arrival. This will also allow our traders to gain valuable insight into the issues faced by growers and from this they will be able to convey a more balanced assessment of the product to the customer. We will be aiming to deliver the right product for the right market, and the traders will no longer be just salesmen. They will take ownership of the whole transaction, ensuring that not only that the customer is happy but also all other key participants in the supply chain.
 
How many table grape growers does Fresh Produce Group work with, over which different regions and on what kind of basis?
 
FPG is transacting with in excess of 100 growers over a season across all of Australia’s major growing regions, though by bar the largest volumes come from the Sunraysia area in Victoria/ New South Wales. The majority of these growers have had long-term relationships with us and this has allowed many of them to gain a far greater knowledge of the “full equation” when it comes to marketing their product. It is what I would classify as a partnership approach. The supplier, marketer and customers are all partners in the transaction, attempting to gain a result that is beneficial to all.
 
How do you source the fruit to meet export requirements?
 
For many years FPG has had a very hands-on approach in the procurement area. We have a team of experienced qualified field representatives that are in vineyards all throughout the harvest period liaising with the growers. We actually start these visits two months prior to the commencement of harvest so we can get a feel for some of the unique seasonal peculiarities that may occur.
 
What type of volume of table grapes are you exporting each year and what is your target for the coming season?
 
Our grape volumes peaked in 2006 at 400-forty foot equivalent containers (FEUs). Over the last two seasons the effects of the drought, rationalisation of plantings and some seasonal quality issues have led a substantial reduction in our export volumes. In 2009 we should achieve export table grape volumes of around 250 FEUs.
 
What are your main export markets and which ones will you be targeting for growth in the coming season?
 
In line with other Australian exporters, FPG is very strong in the main Asian Markets, such as Hong Kong, Singapore, Indonesia and Malaysia. With the exception of 2008 (which was disrupted by weather) we have also been a large shipper of grapes to Europe. In the last two years we have also been able to develop strong volume growth in Vietnam and Thailand.

Article kindly provided by Asiafruit Magazine
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