Fresh State of Affairs Issue 3

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MARKET RELOCATION QUESTIONS CONTINUE december 03 2010 MARKET MEDICINE FORKLIFT FACTS EMISSIONS TRADING Q&A WITH CAMERON PAXTON S O L U T I O N S F O R E V E R Y P A L L E T ® 1800 425 438 www.toyotamaterialhandling.com.au It really is no surprise that Toyota Material Handling sells more forklifts than any other company in the Australian Fresh Fruit and Vegetable Markets. With Australia’s biggest range of forklifts and the commitment to customer service and after-sales support you’d expect from the market leader* , we guarantee to deliver the best quality material handling solutions all year round, no matter what the season. So give us a call and get a fresh forklift deal today. Guess who’s the number one forklift choice in the Australian markets? *Source: Logistik Journal 2009 12 CHRISTMAS SPECIAL MESSAGES

description

Fresh State of Affairs is the bimonthly flagship magazine of Fresh State Ltd. It is produced for Fresh State members and the fruit and vegetable industry to keep them up to speed with the latest information available in the market place and the industry.

Transcript of Fresh State of Affairs Issue 3

Page 1: Fresh State of Affairs Issue 3

market relocation questions continue

dece

mbe

r 032010

Market Medicine

ForkliFt Facts

eMissions trading

Q&a with caMeron PaXton

S O L U T I O N S F O R E V E R Y P A L L E T ®

1800 425 438www.toyotamaterialhandling.com.au

It really is no surprise that Toyota Material Handling sells more forklifts than any other company in the Australian Fresh Fruit and Vegetable Markets.With Australia’s biggest range of forklifts and the commitment to customer service and after-sales

support you’d expect from the market leader*, we guarantee to deliver the best quality material handling solutions all year round, no matter what the season. So give us a call and get a fresh forklift deal today.

Guess who’s the number one forklift choicein the Australian markets?

*Source: Logistik Journal 2009

TMH0011 Markets_FP_Final_3mm_bleed.indd 1 29/7/10 4:06:29 PM

12

christMas sPecial Messages

Page 2: Fresh State of Affairs Issue 3

Fresh State CEO:John [email protected]

Editor / Advertising:Sonja van [email protected]: Megan Mcnaught

Design:Flying Dog Designswww.fddesigns.com.au

Photography:Wuttke Photography www.wuttke.com.auCasamento Photography www.casamento.com.au

Print:King Printwww.kingprint.com.au

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

president’s message:

03

Welcome to our third edition of Fresh State of Affairs – the Christ-mas edition! This edi-tion features Christ-mas greetings and wishes from members

around the markets and a snapshot of all the goodies available for Christmas and the

New Year.

We follow up our feature on carbon foot-printing with the ins and outs of emissions trading schemes and see how New Zealand is coping. And our guest economist looks the Australian economy – what happened in 2010 and what to expect in 2011.

Do you know how many forklifts there in the Melbourne Markets and in each of the central markets around Australia? The answer is inside along with what ‘Medicines are in the Markets’. And our Q & A guest this edition is Cameron Paxton, the State Manager for Toyota Material Handling.

Thank you all for your phone calls following edition two. It is great to get such a positive response and I would encourage you to put pen to paper with your ‘letters to the editor’ – good or bad!

2010 – The year in review

It was a big year for Fresh State in 2010. We held our first Pit Stop in March to find out how we are doing health wise. The results were not too good but it is pleasing that so many of us have followed up with our own GPs and that we are taking action where needed.

The Young Executives presented the Market Hours Review paper to the Minister in May. They did not receive an official reply but we would encourage the new Minister to be decisive and act quickly.

The first Forklift Challenge tested the ‘forkies’ skill in June and it was no time at all before September arrived. We seemed to squash a whole year of activity into the month with firstly, the Blood Bank drive, closely followed by the launch of Fresh State of Affairs Magazine, and the inaugural Gala Ball – what a great night!!

Electioneering for a position on the Fresh State board consumed the rest of the month before the all important polling day arrived. An emphatic endorsement of the present board was delivered by members on the day!

October and November saw us focus on securing members equity in their invest-ments at Footscray Road in preparation for relocation.

2011 – The Year Ahead

The big ticket item will be Relocation – what will be our cost of doing business at Epping and making sure it is affordable.

We will be making further changes to the Credit Service with a new range of terms and systems to make it easier for users and to complement the move of the Credit Service into the Fresh State office.

Our Young Executives are scoping up a marketing program that will enhance and support the independent Green Grocers with consumers in the first quarter of the year. And we are looking at a program for restaurateurs around mid-year!

Calender wise, we have our second Pit Stop in February; the Australian Chamber Conference together with a Fresh Forum in Newcastle in March; a ‘bigger and more difficult’ Forklift Challenge in May; and June will see the Fresh Connections Conference in Brisbane.

The feature event of the year will be the Gala Ball in September!

On behalf of the Board and management I would like to thank you all for your sup-port through the year and wish each of you a very Merry Christmas and a safe, happy and prosperous New Year!

Shane Schnitzler – President Fresh State Ltd

Fresh State Ltd makes this magazine available on the un-derstanding 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 neces-sarily reflect the views of Fresh State Ltd.

Fresh State does not in any circumstances accept respon-sibility for the accuracy or suitability or otherwise of any in-

formation 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 2010

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 EditorFresh State of Affairs MagazineMarket Box 113, 542 Footscray RoadWest Melbourne VIC 3003

Disclaimer:

2 | What’s on

3 | President’s message

6 | Market relocation

12 | Christmas special messages

25 | Market Medicine

28 | Q&A: Cameron Paxton

30 | Melbourne Markets Credit Service (MMCS)

32 | Economic Forecast

contents

34 Vale dizney crombie: We pay tribute to the passing of Market Veteran Dizney Crombie.

29 sydney cherry auction: Charity Cherry Auction’s record breaking result at Sydney Markets.

26 Forklift Facts: Safety issues to be mindful of and information on Forklift fatalities in Victoria.

Published by:

www.freshstate.com.au

what’s on:

10 emissions trading: Emissions Trading Scheme and the NZ Experience (Part 2).

4 Market relocation: Where does the new Premier Ted Baillieu sit? What is the solution?

8 christmas Produce: Plenty of berries coming in to season over Summer, and interesting facts about them.

issue 03 december 2010

From the President

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05issue 03 december 2010OF AFFAIRS

One of the most controversial projects proposed by the Brumby Labor Government, the forced relo-cation of the markets from its prime site on Footscray Road to distant Epping, has been nothing but a stuff-up. So where does the new Premier sit?

The biggest complaint by merchants on relocation has been the drawn out, frustrating process that has taken place for the last six years. It has held their businesses in limbo with uncertainty, unknown costs and has acted as a major inhibitor to them investing in plant and facilities either at their Footscray Road premise or outside the markets.

A look at industry direction demonstrates why wholesalers have been frustrated by Government direction and inactions with relocation.

What Direction is Industry Taking?

Investment in wholesale facilities is not by accident. It is been driven by the consum-ers wanting cheaper and better produce – they, consumers, want their dollar to go further than ever before!

The need to take costs out of business has meant that investment in facilities has occurred so as to handle larger vol-umes of produce more cheaply. It is the same reasoning that led us away from employing lots of storemen to hand load and unload trucks some thirty years ago whereas one forklift operator can now unload a semi trailer in twenty minutes and do it more safely.

The investment has come in the form of cool room and warehouse facilities as industry provides cold chain manage-ment from harvest through to consumers. Wholesalers have been installing cool room facilities in their stores at the markets for the past twenty years to manage their produce. Larger investments in warehous-ing and equipment have occurred in the last ten years.

This has been concurrent with the verti-cal integration taking place in industry. The wholesale sector has been buying up and/or joint venturing production to both ensure supply and to meet their marketing requirements. As well, wholesalers have been buying into the retail sector to com-plete the integration loop. We are now see-ing more specialisation of products, more

competing varieties in most categories and more competition based on pricing than ever before.

The result is that we need a “low cost model” at Epping with future industry be-ing ‘high volume and low cost’ at one end and ‘smaller and specialised’ at the other.

Public vs Private – Why is Government Involved Anyway?

All central markets in Australia were established by Government to ‘facilitate for the orderly trade of fresh produce’ which was seen as an essential industry to the growing cities around Australia at the time. It was about ensuring producers had a ‘place of trading’ for fresh produce to reach consumers and came under the jurisdic-tion of the then powerful departments of agriculture. This model has disappeared in most states with only Melbourne and Perth markets still being run by a Government authority.

Sydney, Newcastle, Adelaide and Brisbane are privatised and are successful with Perth looking at privatising at the moment. The State Governments covering these markets viewed that they had no role in this sort of ‘marketing / facilitation.’

Where does the new Premier ted Baillieu sit?

What Direction is inDustry taking? Public vs Private – Why is

government involveD anyWay?What is the solution?

Prior to the last Victorian State election in 2006, the then Opposition leader Ted Baillieu cate-gorically stated to a packed crowd at the Mel-bourne Wholesale Markets that he would not

move the markets if he became Premier.

Is there any place for Government in private enterprise industries such as ours – history shows not!

We need a “low cost model” at Epping with future industry being ‘high volume and low cost’ at one end and ‘smaller and specialised’ at the other.

market relocation:

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0706 issue 03 december 2010OF AFFAIRS

Sydney

The NSW Government made the decision in the 1990s to remove itself from ‘market-ing’ in a number of areas including seafood and fresh produce as well as deregulating the dairy industry.

Sydney Fish Markets (SFM): This was sold to a consortium of industry participants in 1994 very cheaply! Its own-ership is by way of the two shares in SFM being owned, one each, by the NSW Fisher-mans’ Trust and the Tenants and Merchants of SFM. The NSW Government leased the site to SFM on a 50 year lease.

Sydney Markets: In 1997, the NSW Government basi-cally gave the management company for

Sydney Markets to industry along with approximately $3m in working capital. The transaction included an extended com-ponent which resulted in Sydney Markets Ltd (SML) purchasing the land and facilities over a longer period. SML is owned by the wholesalers of the Sydney markets.

Brisbane The QLD Government sold the Brisbane Markets to wholesalers in 2004. Brisbane Markets Ltd (BML) is owned 30% by Brismark (Fresh State’s equivalent), 50% by wholesalers in the Brisbane Markets and 20% by outside investors. BML have been making significant improvements to the site over the last five years to better service its tenants – the owners of the market.

Newcastle This is a privatised market, owned and op-erated by a consortium of seven wholesal-

ers. They employ a management company in Newcastle Markets P/L to manage the market on their behalf.

Adelaide This was the first privatised market in Aus-tralia when it opened at the present site in Pooraka in 1988. It is owned by a consor-tium of wholesalers, growers and retailers with investment in and around the facilities since that time.

Perth Moved to its present site in 1989 and has been negotiating with wholesalers on privatisation for the past twelve months.

Melbourne The site is operated by the Melbourne Market Authority (MMA) on behalf of the

Victorian State Government. Initial discus-sions with Government on relocation involved an industry operating / ownership model (privatisation) but this is uncertain country at the moment.

For example, earlier this year the Victorian Government announced that the MMA would deliver the new market at Epping and be the operator. Government talks about industry having the ‘opportunity to operate and the opportunity to own’ the new markets but this appears to be at odds with their actions.

Key points on Privatisation for Melbourne

The factual point is that as Government is delivering relocation then they bear the risks in relation to costs. But industry does not want an expensive, stuffed up model

especially for the first 5 to 8 years at Epping as this would be at odds with industry direction (above). And we certainly do not want to be left in the insidious position of wanting privatisation but not having the ability to meet obligations (high costs, unprofitable model).

It is no small wonder that the Melbourne Wholesale Markets have stagnated for the last six years as Government has vacil-lated on relocation while elsewhere mar-kets in Australia are powering ahead. Both Brisbane and Sydney have been investigat-ing Melbourne as they look to expand their market share and with good reason. Their privatised models are working and they view Melbourne like kids in a lolly shop!

What is the Solution?

The smart solution is that the Government has carriage of relocation to Epping, bears the cost risks and operates on “day 1”. On “day 2”, we take over the operating com-pany with an agreement to lease the site and facilities (Head Lease) from Govern-ment and consider purchasing the land and facilities further down the track.

This raises the broader question of whether there is any place for Government in private enterprise industries such as ours – history shows not!

Over to the new Premier!

Sydney, Newcastle, Adelaide and Brisbane are privatised and are successful with Perth looking at privatising at the moment. The State Governments covering these markets viewed that they had no role in this sort of ‘marketing / facilitation.’

market relocation:

Relocation ScoRe caRd

iSSUeSQUeSti

onS

anSWeRS

EquityThe Board requested answers to 4

main questions on equity transfer:

Deadline 11 November 2010.

The State’s final proposal arrived on 25 November for Fresh

State Board consideration. At the time of writing, value

figures for stores and warehouse rates were not included.

1. Fresh State to receive the

Governments’ allocation model

/ or models (who gets what at

Epping). “Like for like and no

trade ups.”

Government Position:

1. Each leaseholder will be allocated space at Epping as close as

possible to their current holding and all 50 current A lease-

holders and 67 current B leaseholders will be allocated space

based on their existing internal store sizes a

t Footscray Road.

2. Where a leaseholder currently holds more than one store

(two or more ‘A’ or ‘B’ stores or combinations of A and B

stores) the areas have been added together.

3. Stand space is not taken into account in determining new

space allocation for stores.

4. If there is a difference from their internal space in the cur-

rent market, the space differences will be recognised and a

formula applies to both increases and decreases in space.

2. Fresh State to receive the

Governments’ warehouse al-

location model, and if there is

more warehousing at Epping

than currently, then an expla-

nation of how Government

intends to deal with current

warehouse tenants equity.

Government Position:

1. Current warehousing incumbents will be given first pick on

position of warehousing at Epping, and a rent reduction

over a specified period will apply.

3. Some form of commitment to

transfer our current leases from

Footscray to Epping so that

members have certainty in plan-

ning their businesses, including

buying or selling leases at Foot-

scray and security of tenure.

Government Position:

1. The MMA will send a letter to all leaseholders seeking

confirmation of current leaseholder space and company

details. The will be followed be an ‘offer for space’.

2. the allocation of specific store positions will follow and

include an Agreement for Lease.

4. The $$$ amount of the IAP (In-

dustry Assistance Package) and

what portion will go to current

leaseholders.

Government Position:

1. The amount of the Industry Assistance Package was

$34.2 million with approximately $19m remaining.

Note: This is prior to space adjustments for stores

and warehouse lease recognition.

Allocation Where you will be?NoAction

RentsHow much you will pay?

NoAction

Warehousing Land adjoining the market complex. NoAction

ForkliftAccess

Is it one rule for all?NoAction

Page 5: Fresh State of Affairs Issue 3

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Cherries

There was a delay to the start of the season with only light consignments available up to early December. Supplies have been mainly from Renmark (SA), Cobram/Shep-parton (VIC) and Griffith (NSW). Some fruit was rain affected and quality has been mixed which has been reflected in the very wide selling price range.

Supply should increase during December and prices will adjust as more quantity is available on the market and quality improves. Under normal conditions we anticipate the market will be well supplied leading into Christmas and New Year with consignments from Tasmania becoming available in early January and maintaining through Chinese New Year. The season normally runs out late February / March.

Did you know?• Theheaviestrecordedcherrywas21.69g

inItalyin2003.• Cherrieshaveonly224kilojoules(54

calories)per100gramsandvirtuallynofat.

• Australiansconsumedaround11,000tonneslastyear.

• Approximately40%areproducedinNSWand30%inVictoria.Tasmaniaproducesaround15%ofthecropwithagoodportionofthisbeingexported,mostlytoJapan.

Blueberries

Blueberries are now at season’s end from Coffs Harbour (NSW) but supplies are now becoming available from the Bright District (NE VIC) with NZ imports expected from early December to support local produc-

tion through Christmas. Production in the Yarra Valley should kick in by early Janu-ary which should ensure good availability throughout summer.

Did you know?Australiansconsume1200tonnesofblue-berriesannually.

Raspberries

Raspberries have been in limited supply from Coffs Harbour and with consignments now available from local areas such as the Yarra Valley and the Mornington Peninsula, quantities are building and prices should start to moderate. It is anticipated that good supplies will be available for Christ-mas and throughout the current local season which should continue through summer.

Strawberries

The strawberry market is currently well supplied from the Yarra Valley and Morn-ington Peninsula growing areas. Weather will always be a major factor in determining the supply but under normal conditions we are expecting a good level of supply again for Christmas at very afford-able prices. Supply should continue through the summer months.

Did you know?• Strawberriesare

producedallaroundAustraliawithQLDandWAproducingap-proximately

50%oftotalproductionthroughwinterandspringandVictoriaproducingabout33%ofthecropfromlatespringthroughtotheendofautumn.

• TotalAustralianproductionisaround60,000tonnesfromover70millionplantsandapproximately650producers.

Blackberries, Boysenberries, Gooseberries

These should all become available in early December with a constant supply continu-ing throughout summer.

Red Currants

Normally red currants have a very limited availability of supply and fortunately this falls across the three to four weeks over the Christmas period.

Grapes

Red & White seedless grapes from Emerald (QLD) have started and will soon be fol-lowed by consignments from the Munda-berra (QLD) area. Through November and early December supplies have

in season: cherries, Blueberries, strawberries, Blackberries, Boysenberries, gooseberries, red currants. grapes, lychees, rockmelons, honeydew and watermelon to name a few …

issue 03 december 2010OF AFFAIRSchristm

as produce:

christmas Goodies from the market

chinese new Year: Year of the rabbit28 January to 13 February 2011

The year of Rabbit covers people born in 1927, 39, 51, 63, 75, 87, 99, and 2011.

been light with prices higher than usual. Due to growing conditions, supply is expected to be only moderate this season but qual-ity will be excellent! Some black seedless varieties are also expected to appear on the market by early December with good supplies of most varieties available over Christmas / New Year.

Did you know?•Theconsumptionofgrapesdatesbackasfaras5000BC.GrapeswerebroughttoAustraliawiththeFirstFleetin1788byCaptainArthurPhillip.•TheAustraliantablegrapeindustry

producesabout120,000tonnesannuallywithabout55%be-ingconsumeddomestically.

Lychees

Very light supplies arrived from the Mareeba area

(FNQ) over November with prices being high but will ease as more supplies become available from

early December. There should be good availability leading up to Christmas /

New Year and this should continue during the summer months.

Rock-melons

The market is currently being sup-

plied from Bundaberg and South West QLD. Quantities increased as the Mildura area started in late November and prices adjusted accordingly. Increased supply should hold over the summer including through the Chinese New Year period in late February.

Fact or Fiction?Womendonotbuyrockmelonsbiggerthantheir“cupsize”?

Honeydew

Honeydews have been in very short supply and the situation will not improve until production from the Victorian and SA Riverland area starts in January.

Watermelon

A moderate supply of watermelons has been arriving from the Northern Territory and Far North QLD with prices remaining stable. This will change when new season melons start in Bundaberg and South West QLD and with the SA Riverland and Central NSW growing areas starting production in mid December. Good supplies should

be available to cater for the

anticipated increased demand during the

warmer summer months and prices could possibly moderate. The season normally winds down in late autumn.

Did you know?• CantaloupeistheAmericannamefor

rockmelon!• 92%ofaWatermeloniswater.• MelonsareagoodsourceofvitaminC

andpotassiumandarerelativelylowinkilojoules,beingfatandcholesterolfree.

• MelonsareverypopularwithAsianandChineseculturesandarenormallycon-sumedasanafterdinner‘sweetener’.

Page 6: Fresh State of Affairs Issue 3

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and risk around the emission estimates for forests and relying on forestation is only deferring the issue since when the forests are cut down there will be a comparable liability to be met by a future generation.

New Zealand has, to some degree, em-barked on a “world first” in an area with a great deal of risk for the economy. The benefits of the scheme are unclear as are the costs. Ultimately what is needed is behaviour change e.g. consumers move to goods with lower embodied emissions and efficient modes of transport. Other countries have pursued other mechanisms which are often a mix of regulation e.g. lower exhaust emissions in cars and stricter building regulations, and taxation.

Any lessons for Australia – what are the politicians arguing about?

While there were price increases where providers e.g. power companies sought to recover the costs of their emission units, very few people noticed anything different, the lights didn’t go out and life carried on as before.

Australia has a different emissions profile and greater reduction commitment com-pared to New Zealand. Forestation does not provide the opportunity for shorter term credits that it does in New Zealand.

Conversely, agriculture at about 16% for Australia, compared to 47% for New Zea-land does not provide a significant source

of emissions to be legislated for. Different profiles require different actions.

Australia has the opportunity to observe a number of schemes underway internation-ally and to identify one appropriate to its circumstances, and that will drive effective behaviour change. However, the devil is always in the detail and good analysis is required. If you are going to design and implement a market mechanism, it is important that you do it well.

What does this mean for the fresh produce supply chain?

If, and it’s a “big if”, Australia were to imple-ment an ETS in a form similar to New Zealand, there may be a moderate impact on costs for the produce sector. This would be largely from direct input costs, such as electricity and diesel increases and the price increase flow on through other inputs such as fertilisers. For whole-salers and the supply chain, increased costs of transportation and packaging as well as things like increases in electricity will be the main impacts. However, an unknown factor is how major retailers will address their increased costs and how these will either be passed on to consumers or back through the supply chain – again, devil in the detail!

Malcolm Garnham and Gerard McEvilly, CATALYST R&D Ltd

www.catalystnz.com

Want to Know More?

CATALYST® R&D Ltd advises businesses on how to deliver competitive advantage through sustainable innovation. We have been undertaking carbon footprinting projects for five years and have specialist knowledge of the produce sector. CATA-LYST® R&D was established in 2000 and has offices in New Zealand and Sydney.Article References:

1. NZ Emissions Trading Scheme fact sheet.

issue 03 december 2010OF AFFAIRS

emissions trading scheme and the nZ experience

The New Zealand ETS in a Nutshell

The New Zealand ETS is a market based system

which aims to create a finan-cial driver to reduce emissions by

imposing a cost on carbon for all sectors and gases, above a set limit or cap.Participants are required to measure their emissions and hold a number of permits (or carbon credits) equivalent to their emissions and “pay” those permits to the Government each year. Participants who need to increase their emissions must buy permits from those who require fewer permits, or make direct payments.All Greenhouse Gases (GHG’s) will be included and all sectors of the economy will be covered by 2015.

Under the Kyoto Protocol, the “developed” countries undertook to stabilise their emis-sions of Greenhouse gases at levels that would prevent dangerous interference with the earth’s climate.

What has happened in NZ?

The NZ ETS became law in December 2009. From 1st July 2010 New Zealand has started to implement the ETS across the sectors as shown in the table below.

The scheme as it currently stands is unique for its inclusiveness of all sectors and all

gases as no other scheme has included agriculture. The Government has the ability to allocate sectors “free” permits to emit and free units have, or will be, provided to the following sectors, for example:

• Upto90%allocationtoenergyinten-sive, trade exposed activities that meet thresholds.

• Anuncappedallocationtoagriculturewhen it enters in 2015.

These permits must be surrendered to the Government, but this is over a lengthy phase out period at 1.3% per annum from 2013. In addition, the price of carbon is fixed initially at $NZ25/tonne CO2e until 31 December 2012 and the surrender obliga-

tion is of 1 unit per 2 tonnes CO2e until 31 December 2012 (i.e. an effective price for carbon of $NZ 12.50/tonne).

Will a market model work in reducing emissions?

The jury is well and truly out on this. The ul-timate test for NZ will be whether it reduces its emissions to the Kyoto target (i.e. 1990 levels). The ETS as implemented is predicted to deliver a 19 million tonne reduction in emissions over the next three years.1

New Zealand’s current position is that it is in credit, i.e. net emissions is below its Kyoto target. This is because of extensive forests acting as a sink for emissions. How-ever, there is considerable annual variability

New Zealand and Australia have taken different approaches to meeting their obligations under the Kyoto Protocol. While New

Zealand (NZ) has forged ahead with an Emissions Trading Scheme (ETS), Australia has stepped back from the implementation of emissions reduction measures. Hence there is interest in what is happening in New Zealand and what the lessons may be for Australia.

PART 2

CARBON FOOT

PRINTIN

G

AND EMIS

SIONS

TRADING SCHEM

ES

Under the Kyoto Protocol, the “developed” countries undertook to stabilise their emissions of Greenhouse gases at levels that would prevent dangerous interference with the earth’s climate.

New Zealand’s current position is that it is in credit, i.e. net emissions is below its Kyoto target … Australia has the opportunity to observe a number of schemes underway internationally and to identify one appropriate to its circumstances, and that will drive effective behaviour change.

Emissions in 2008 and Kyoto targets for New Zealand and Australia in million tonne CO2e (MT CO2e)

Year / Target New Zealand Australia

Total emissions

Total emissions minus the effect of forestry and land use change*

Total emissions

Total emissions minus the effect of forestry and land use change*

2008 75 48 550 618

Kyoto Protocol annual target 62 591

* Thistakesaccountofboththeeffectofforestsactingasasinkandalsothereleaseofcarbonwhenlandusechangeoccurs,e.g.deforestation.

2007 2008 2009 2010 2011 2012 2013 2014 2015

Jan 2015

Agriculture

Jan 2013Jul 2010Jan 2008

Forestry

Liquid Fossil Fuels

Stationary Energy

Industrial Processes

Waste & Synthetic

Gases

Page 7: Fresh State of Affairs Issue 3

Season’s Greetings

from Louis Melbourne Merry Christmas to all from Regal PRoduCe (Tony, Mario, adrian and John)

Merry Christmas from the team at VB Fruit

Toourvaluedcustomerswethankyouforyourbusinessthroughouttheyear.

WewishtheMelbourneMarketsCommunityaverysafeandhappyfestiveseason.

OF AFFAIRS Christmas speCial1312

Page 8: Fresh State of Affairs Issue 3

15

me

rry

chri

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as

From all our team at Barkers

we thank the Melbourne Market

Community for your custom

over 2010 and wish you a

prosperous new year.

All the best for the festive season from BRP.

from us all at Flowerdale Sprout Farm.Season’s Greetings

SeaS n’SGreetinGS

OF AFFAIRS Christmas speCial1514

Page 9: Fresh State of Affairs Issue 3

Season’sGreetingsfromFlavorite

16 17

Wishing the Melbourne Market Community a happy festive season

and prosperous new year from Dean, Frank and Phil at Sculli & Co.

celebratingChristmas Season’s

Greetings

to all our clients

a very happy festive season

and prosperous new year.

Merry Christmas

Veli Velisha Fresh Produce

OF AFFAIRS Christmas speCial1716

Page 10: Fresh State of Affairs Issue 3

18 19

melon

onion

potato

pumpkin

garlic

ginger

Vince Brancantisano0419 582 039

Mark Brancantisano0418 338 757

Stores 307-310 Melbourne Markets, 542 Footscray Road, West Melbourne 3011 T: 03 9687 6449 F: 03 9689 7134 E:[email protected]

Dom Brancantisano0417598733

Merry Christmas and a happy

new year from the Kapiris Family.

SeaSon’S greetingS

John, Rocky and all the boys would like to thank their customers for their

continued support and wish everyone a Merry Christmas and

a safe and happy new year.

LATORRES

OF AFFAIRS Christmas speCial1918

Page 11: Fresh State of Affairs Issue 3

The Management & Staff of Fruit Avenue Australia

extend to you and your family our best wishes for a

WE LOOK FORWARD TO BEING OF SERVICE TO YOU IN 2011

FRUIT AVENUE AUSTRALIA PTY LTD Store 103-105A, Melbourne Markets

Contacts: Thomas Lamanna 0418 391 160 Patrick Lamanna 0418 255 255 Pat DiBiase 0418 255 414

Accounts & Admin 03-9846 4664 Accounts Fax No. 03-9846 2202 Orders Only Fax No. 03-9846 5615

Email: [email protected]

20 21

Season’s greetings to the Melbourne Market Community

from aVaNTI FReSh

OF AFFAIRS Christmas speCial2120

Page 12: Fresh State of Affairs Issue 3

Merry

Christmas

and a happy

new year from

Gramco.

23

Wishing our customers a

happy and safe festive season.

Season’s Greetings

Thank you to the Melbourne Market Community for your

continued support in 2010 – see you in 2011 at the Markets!

Wishing everyone a happy holiday and

prosperous new year.

Merry

Christmas!

From Nick and Philip

at Apple Arcade.

OF AFFAIRS Christmas speCial2322

Page 13: Fresh State of Affairs Issue 3

The saying “Food is medicine” might more accurately be reworded to “fresh food is medicine” because while vegetables and fruits are packed with nutrients loaded with beneficial health properties, we eat so many other ‘so called foods’ that have the opposite effect.

Within the fresh produce markets lay potent medicines that can help to reduce weight, prevent cancer, reduce the risk of heart disease, regulate high blood sugar levels, reduce inflammation, regulate hor-mones, strengthen the immune system and much more. Their potency lies within the cellular walls of brightly coloured, vibrant (and delicious) fresh fruit and vegetables that you should eat regularly – 5 serves of veggies, 2 of fruit – every day forever!

Excluding genetics and tragic accidents, good health and weight management boils down to three simple factors:

Exercise

Your body was designed to move and you should move it. If your work is sedentary make sure you get up and expend some of your own energy. If nothing else, take a walk each day for about 30 – 40 minutes.

Energy in vs. energy out

This is a simple equation. Eat as much as you need in calories (Kj) as your body expends in energy. If you eat more, you will gain weight, if you eat less, you lose it.

Nutrient dense foods

Like any other complex machine your body has specific requirements. Beyond fat, protein and carbohydrate, the mac-ronutrients required for energy, cellular structure and growth, the body needs large amounts of small nutrients known as micronutrients. Vitamins, minerals, phyto-chemicals, antioxidants, fibre, are all found within quality micronutrients and it’s these that really determine your ultimate ongoing state of health.

Medicines from the Markets – What helps What?

Ginger: A good aid for poor circulation and promoting the flow of nutrients around the body especially in osteoarthritis.

Tomatoes: Contain Lycopene an antioxi-dant that keeps the prostate healthy.

Raw spinach: A good source of lutein required for healthy eyes.

Broccoli: Great for removing excess oestro-gen in the body such as in female repro-ductive conditions like endometriosis and premenstrual tension.

Garlic: Important for a strong, healthy heart.

Sweet potatoes and carrots: A great source of beta-carotene, which is required to build healthy immune systems.

Apples: Contain pectin, a type of fibre for maintaining a healthy and clean gastroin-testinal tract.

Avocados: Most beneficial nutrient fruit for B group vitamins and are cholesterol free.

Cucumbers and watermelon: Comprised of almost all water therefore are great for helping you re hydrate during the warmer months.

Strawberries, raspberries and blueberries: A wonderful source of proanthocyanidins which help protect from free radicals and ageing.

Celery: A great source of minerals and for getting rid of fluid retention and metabolic wastes from the body.

By Judy Davie The Food Coach www.thefoodcoach.com.au

24 25issue 03 december 2010OF AFFAIRS

Fresh State Directors and staff wish the members, our corporate partners and the extended market community a safe and happy holiday season.

market m

edicine:

What’s the greatest tragedy? The person permanently disabled through some accident that was of no fault of their own or the person permanently disabled from eating too much of the wrong foods? There is no right answer but one is preventable.

Did you know? Diabetes affects about 3 million

people in Australia and up to 60% of cases can be prevented through diet and exercise.

Around 47% of Australians are overweight and one third of them obese.

Overweight and obese Austra-lians have admitted they are too lazy, time poor or are hampered by an existing condition or illness when it comes to making signifi-cant changes in their lifestyle to become healthy.

You may be surprised to know that at least 1 in 3 cancer cases are preventable. More than 13,000 cancer deaths each year are due to smoking, sun exposure, poor diet, alcohol, inadequate exercise or being overweight.

some simple rules with fruit and vegetables:

A minimum of 5 serves of veggies, 2 of fruit – every day forever.

Mix colours to ensure a spectrum of varieties and vitamins & minerals.

Consume relatively soon after buying to prevent nutritional deterioration.

Ensure you wash fruit and vegetables before consumption.

When cooking vegetables, steam them to conserve their nutrition.

market medicine

Page 14: Fresh State of Affairs Issue 3

26 27issue 03 december 2010OF AFFAIRS

It is believed that the Melbourne Markets has the largest quantity of forklifts on a single site in the South-ern Hemisphere – 866.Forklifts have come a long way since their initial debut in the late 1800’s. Clark Transmission Manufacturing Company is credited with developing a forklift which was able to move its own heavy automo-bile parts.

Back in 1917, the forerunner of the seated counterbalanced truck was called the “truck tractor”.

Toyota contributed the first electric forklift in 1974.

Simple things to look for:

Brakes: Don’t take brakes for granted – if they don’t work, don’t use the forklift.

Fluid leaks: Leaks are a sign that something is wrong – oil from motor, transmission, hydraulic system, or radiator coolant. Stop use & seek repairs.

Registration: Forklifts require the same rules for driving as cars on the road.

Forklift license: You need one to drive a forklift on the market site.

Tyre facts: Some tyres need to warm up approx 10–15 min before they perform properly. This is due to multiple compounds used within the tyre that provide for both cushioning & extended life.

Fuel types: We all know about petrol, diesel, LPG, electric, but new gas/petrol forklifts can be converted to use CNG (Compressed Natural Gas). (We are look-ing at this for the new market).

Forklifts Go Green: Hybrids could be as much as a decade off before they are cost effective for market operations. The Toyota Hybrid prototype was released 3 years ago however it is yet to become cost effective enough to see it through to mass production unlike the Hybrid Prius & Camry.

Forklifts:

String & Plastic:

When caught around the wheels it can lead to brake-fade, low

performance braking & costly brake repairs & it can damage axle seals. It causes costly damage & repairs so avoid driving over it & remove daily.

Seats:

Damaged seats can cause accidents as well as being uncomfortable for the operator..

Wiring:

Old or damaged wiring can cause fires as wit-nessed recently when a forklift was burnt out and the gas bottle exploded..

Tyres:

Like the cars we drive, worn tyres are dangerous.

Worn & damaged tyres can cause a rough ride resulting in damaged or dropped loads, or Safety issues like loss of traction, reduced braking, steering wobble & misalignment issues, and king-pin damage.

Gas Bottles:

AFL (automatic fill limiter) bottles must be aligned properly or they will not fill fully. Rocking rear mounted Gas bottles whilst filling with gas is a dangerous practice & maybe fixed by checking the alignment of the gas bottle.

These are gas bottles not jet engines! Speed limiters are an MMA requirement

for every ones safety. They also help limit engine wear & reduce run-ning costs.

Forklift Fatal

accidents in

Victoria

56 reported fatalities involving

forklift trucks in Victoria

01 Jan 1985 to 30 Jan 2006

(source: WorkSafe Victoria)

Operator overcome by exhaust fumes (1)

Fell from forklift, fork arms or load (8)

Operator crushed by unexpected

movement of forklift (7)

Operator crushed by forklift

in tip over/rollover (10)

Pedestrian crushed by

manoeuvring forklift (7)

Pedestrian struck by travelling forklift (7)

Pedestrian crushed by falling loads (16)

Do you know how many forklifts were in the main Fruit & Veg Markets around Australia in August 2010? 2794 Nationally.

(Melbourne 866, Sydney 800, Newcastle 30, Brisbane 478, Adelaide 300, Perth 320).

forklift facts:

Page 15: Fresh State of Affairs Issue 3

Works:Toyota Material Handling Australia (TMHA) General Manager Southern Region based at Dandenong with a service facility at the Melbourne Market.

Lives: In Warranwood with my beautiful wife Jen and children, Brigitte, 15, Lochie, 11 and Kieran, 8.

Most of my day is spent:In meetings - with customers or our people. There is a lot of day-to-day problem solving and planning for the future. My responsibilities include making sure that we are meeting our commitments to our customers and our shareholders. I also travel interstate regularly as I manage our operations in Adelaide and Perth.

The experience that led me to this position:

It will be 14 years in January. I started off in sales and have been fortunate enough to progress through the ranks during my time here. I originally worked for Prolift Toyota and we were purchased by TMHA in late 2005.

The football team I barrack for is:Essendon.

My favourite Melbourne Market moment is:

The inaugural Fresh State Ball. It was terrific to recognise some of the people who had contributed of the market for many years. I’d have to say the Forklift Driver competi-tion held this year was also a highlight and it was impressive to witness the calibre of drivers we have operating at the Markets.

The quality I respect most in an employee is:

The will to win, even when things are tough and not going your way, I love tenac-ity and the spirit never, ever to give up.

As I have grown older I have learnt:That it was better being younger.

If I described my business to a stranger I would say:

We sell, rent and service forklifts.

The qualities I most enjoy about Melbourne Market are:

Its history and the longevity of the people associated with the markets. The Markets really are a sub-culture and an institution in Melbourne’s rich history.

The pets I have are:Jack the West Highland Terrier and Mieka the Cavoodle.

In my spare time I enjoy:Ferrying the kids around to their numerous sporting commitments and getting away in our RV or camper trailer as often as possible.

My first job was:Apprentice landscape gardener. I lasted a couple of years but I decided manual labour and apprentice wages were not my go.

My fondest memory is….Marrying my beautiful wife Jen.

The aspect of my job I like the most is:The friendships that have evolved over the years with our people and our custom-ers. We are fortunate to have both long-standing customers and team members, which really lends itself to forging lasting friendships.

The thing I dislike the most is:I am one of those annoying people that likes everything about their job. If I had to say one thing, it would be travelling and being away from my wife and family.

One thing that irritates me in life is:Negative people. Life’s too short, have a crack and focus on the good things rather than dwelling on the bad stuff.

I am passionate about:Winning – in everything I do.

My business associates would say that I:

Hate losing and must win!

When I was a child I wanted to:Play cricket for Australia or an AFL footballer.

The place in the world I would most like to go is:

Galapagos Islands.

The thing a lot of people don’t know about me is:

I went to school with Sonja van Eijk’s sister.

My favourite fruit or vegetable is: Has to be potato. It is the most versatile vegetable in the world – you can mash it, bake it, roast it, boil it, fry it or make it into a salad, you can even turn it into alcohol! A meal isn’t a meal without a potato!

cam

ero

n P

axto

n q&a28 29issue 03 december 2010OF AFFAIRSa day in the life of retail:

Q &

A:

charity cherry auction’s record breaking result at sydney markets

Held on 21 October in front of an en-thusiastic crowd of celebrities, sporting personalities and local politicians, this year’s auction smashed all records.The annual Charity Cherry Auction run by the NSW Chamber and held at the Syd-ney Markets commenced 31 years ago when the winning bid was $65. Together with this year’s record breaking auction price, the total amount raised for local Sydney charities through this time is over $1 million.

This year’s outstanding result was due to the efforts of the “Sydney Markets Cherry Knights”, a group of 102 individuals and businesses associated with Sydney Markets. They all contributed to buy the

first box of cherries in memory of Sam Agostino. Sam was a highly regarded independent Sydney greengrocer who was very well known for his support of charitable causes. Sam passed away in July this year.

Mr Agostino bought the first box of cher-ries at the annual auction on four occa-sions from 2003 to 2007 and was known around the Markets as the Cherry King.

‘We didn’t want anyone else wearing the crown or sitting on the throne this year. Sam did so much for charity here at the Sydney Markets. We wanted to do

something special in his name’; said organizer, Lui Cicco.

In an emotional inter-view after the auction Sam’s widow, Wendy, acknowledged the gesture. ‘Sam loved the Markets and the people; he would be so humbled, by the gener-osity of his colleagues shown here today’; said Wendy.

Funds raised at this year’s Auction are being channeled through Variety, the children’s charity, to provide

two bronchoscopy machines for the Children’s Hospital and the Save our Sons charity to enable research into Duchene’s Muscular Dystrophy, a degenerative muscular disease affecting young people with a 100 percent mortality rate.

The winning box of cherries came from Hillston NSW, a cherry growing area 500km west of Sydney.

The annual NSW Chamber’s Charity Cherry Auction raised an amazing $110,000 with the auction of the season’s first box of cherries.

This year’s outstanding result was due to the efforts of the “Sydney Markets Cherry Knights,” a group of 102 individuals and businesses associated with Sydney Markets.

Funds raised at this year’s Auction are being channeled through Variety, the children’s charity.

Page 16: Fresh State of Affairs Issue 3

30 31issue 03 december 2010OF AFFAIRS

testimonials

With three members of the family working at V Brancatisano & Sons there is always a familiar face on hand to greet customers with a joke when they walk into the store.

Dealing with the same customers year after year is an aspect of the job Chris Brancati-sano enjoys most.

Chris and his brother Vince work alongside their father Joe, who took the business over from his father in 1975.

They specialise in fruit from far north Queensland.

Chris practically grew up at the market - starting with packing fruit during his school holidays at 12-years-old.

He began working full-time in 1995 and although his role holds a lot more respon-sibility these days, not much else about the business has changed.

“We haven’t really made any huge changes to our business and we don’t plan to. I think customers like the fact that they know ex-actly who they are dealing with when they come into the store,” Chris said.

“Family values are pretty important to us.”

A quick glance around the West Melbourne store gives away their other passion.

It is adorned with black and white. Chris said all family members are as committed to Collingwood as each other.

“Passionate is probably an understatement, needless to say, we have had a fantastic year,” he said.

Chris lives at Highett with his wife Marian and son Cooper, who is almost two – still a bit too young to be packing shelves.

He said membership of the MMCS allowed them to focus their energies on running the business, instead of worrying about chasing up bills.

“We have plenty to do, so knowing that the money is coming in when it should gives us peace of mind to run our business,” he said.

Anyone who walks into Altona Fresh Produce is immediately greeted by Frank Sinatra or another favourite Italian-style musician playing over the sound system.

It is just one of the many personal touches at the store.

The business is run by Phillip Patamara, brother Enzo, sister Sandra Said and her husband John Farfalla, who have made the store as homely as possible.

They took the business over from father Norman in 1990 and expanded from a fruit and vegetable business, to also include a deli and groceries.

These days it is broken into three distinct sections, with Phillip taking care of the fruit and vegetables, Enzo taking care of the gro-ceries and Sandra and John running the deli.

Phillip said they were constantly coming up with new ideas that ensured people chose them over the big supermarkets.

“The business is constantly growing and evolving. Each section has grown and changed a lot over the years.’’

He said benefit of being a family business is that they can call on each other to help out when needed.

“There is a family-run aura about the place and I think the customers appreciate that,’’ Phillip said.

They regularly conduct coffee tastings, cheese tastings and have a range of gourmet products available to taste on the weekends – an added bonus of the job, Phillip said.

Phillip lives in Seaholme with his wife Carmel and sons Julian, 22, and Damian, 19, and when he is not at work he dedicates his time to catching up with them.

He said membership of the MMCS takes the guesswork out of doing business.

“You always know exactly where you are at,’’ he said.

chris Brancatisano: V Brancatisano & sons

Phillip Patamara: altona Fresh Produce

mmcsm

elbourne markets credit service:

The Credit Service started in the Melbourne Markets in 1992. A key driver for its establishment was the banana wholesalers with many other wholesalers coming on board to support the start-up and devel-opment phase of the Credit Service prior to implementation.

Usage through the Credit Service has remained stable from the mid 1990s to today. By this we mean that the number of ‘entries’ that the Credit Service undertakes has not varied a great deal. However, the ‘value’ of throughput does vary depending on the price and volume that wholesalers sell their produce for. Seasonal variation is also quite high and is reflective of normal wholesale businesses.

Credit Services around Australia:

There is a credit service in each of the six central markets in Australia and they are run by Fresh State’s equivalents in those markets. Some markets, like Perth and Brisbane, have a very high percentage of us-age through their credit service. Our Credit Service has a lower percentage throughput compared to the total value of throughput that passes through the market each year.

Perth introduced their electronic system approximately ten years ago and virtually all of their transactions are electronic with all wholesalers fully utilising the system. They charge far higher fees for those few who want paper copies.

Brisbane introduced the latest electronic system in 2008 where wholesalers send information through on their intranet or via the web to be uploaded into the system. Brisbane retailers can access their invoices and statement over the web or where there is a dispute, they have 24 hours to lodge the issue electronically. The system also includes a pallet monitoring system for control of pallets in the Brisbane Markets.

Sydney has the highest throughput in Aus-tralia with over $1 billion passing through their system annually.

Interestingly, Sydney introduced two key points that have resulted in their strong usage. The first was that they (the whole-salers) agreed that anyone not using the credit service would be fined $10,000. They have only had to issue two such fines!

The second is that they have a ‘self insur-ance’ model that guarantees their funds through the service. A ‘self insurance’ fee is charged on top of normal commissions that will insure their funds. The wholesaler must put their entire throughput (except cash) through the credit service or the insurance will be void on the claim. This system is strongly supported

and rebates have been

distributed since a ‘pool fund’ has been established.

So what is changing with our Credit Service?

Our aim: To reduce the debt levels of our members’ customers outside of the Credit Service long before relocating to Epping and to offer members operating terms that better aligns with how they do business.

To do this there are three aspects that we are addressing:

The board, in November, resolved to merge the Credit Service operations into the Fresh State office. The Credit Service is wholly owned by Fresh State but has been run as a separate entity from inception until now. This has now been completed.

Members have strongly indicated that they want flexible terms and that they want their money guaranteed.

We are investigating different software to move to an electronic system that allows us to offer flexible terms; that has electronic data uplift capability and that it is simple and easy to use for both buyers and sellers via the web; and that has a built-in pallet monitoring system. The board will finalise their decision in December for implement-ing early in the New Year.

It is envisaged that a sliding scale of rates will apply to the different terms offered and to the self insurance model with a qualify-ing period for different levels.

Full training on the new system will take place for you, your staff and your custom-ers. And where a business does not have a computer, we are looking to offer assis-tance in this area.

The members want everyone to use the service. The Board has been investigating compulsory registration with the State and the aim is to tie the registration into gate access conditions. This does not mean compulsory usage as that is possibly a breach of ACCC rules but it means that buyers details will be reg-

istered allowing for wholesalers to charge directly through the credit service.

What the board has set out to do is reduce debt levels prior to moving; pick up the good things from other markets and offer members the things they want from the credit service. It is envisaged that the transition period will take place in the first quarter of the New Year. Ultimately the success of the changes will come down to members making sure they utilise the system.

The Credit Service is now located at East 3 Street – at the Fresh State office 542 Footscray Road West Melbourne Vic 3003

the credit service is changing!

the Facts

when is a sale not a sale?

When you don’t get paid!

what’s the biggest issue

for members?

Getting paid!

Page 17: Fresh State of Affairs Issue 3

32 33issue 03 december 2010OF AFFAIRS

A Strong Australian economy

As 2010 closes, the Australian economy looks for all intents and purposes to be humming along nicely but what is the real story? In comparison with other developed countries, the Australian economy is a good news story. Economic growth has recovered from the overseas ravishes of the global financial crisis. Full time employment has been strong as employers increased hours of employees cut back in response to weak economic growth in 2009. Unem-ployment is hovering around 5%, a figure that economists and policy makers see as close to full employment.

Resources boom underpins growth

Underpinning the economy is the strong de-mand for Australia’s mineral resources, especially iron ore and coal, from the rap-idly growing economies of Asia – particularly China. Increased export volumes and higher prices have been a feature of 2010. Australia’s terms of trade which is the relationship be-tween export and import prices is at a record high due to the mining bonanza. However prices for Australia’s key agricultural exports are also strong on world markets. Apart from Western Australia, farmers are enjoying one of the best seasons in recent times.

Baton passing from government to private sector

Government stimulus measures along with the China story carried Australia through the world economic downturn that fol-lowed the global financial crisis. These measures are now been wound back and the passing of the baton for economic growth from government to the private sector appears to be happening but with some glitches. Consumer and business confidence while not as strong as earlier in the year remains healthy. Profit share is

high, wage growth contained and corpo-rate Australia is healthy and well capitalised with low levels of debt.

But sharks are below the surface

However, below the surface all is not what it seems. Banks have tightened their credit criteria for small business and increased their margins on lending despite evidence that the level of wayward loans is minimal.

The Reserve Bank is adopting a hawkish view on the economy. It raced to the lead in the Melbourne Cup with a rise in the of-ficial interest rate. But it was pipped at the finishing post as banks raised their interest rates beyond the official rate rise, fattening margins even further.

Consumers cautious

Consumers while optimistic are more circumspect in parting with their money. They are willing to treat themselves but at the expense of other expenditure

items.

Overall retail trade remains sluggish. Discounting among retailers is more the norm than the exception. While those involved in the food chain enjoy some natural protection from the whims of consumers it is not entire-ly the case. Consumers are seeking value for money and

increased supplies of fruit and vegetables are ensuring that margins for business remain tight. The recent rise in inter-est rates will hurt consumers with high levels of household debt. Small business is being caught in a pincer movement with higher funding costs and the likeli-hood of increasingly reticent consumers particularly from an increase in internet buying.

Weak housing sector

The housing sector which traditionally plays an important part in providing under-lying strength to the economy is appearing sluggish. Approvals for new housing have been falling for six months despite a major shortage of supply. Affordability has be-come a major problem for many prospec-tive home owners.

Strong Aussie dollar

Moreover the strong Aussie dollar while reflecting the strength of the overall economy and the boost coming from the resources boom is laying waste to large sectors of the domestic economy. The tourism industry has been hit for six with Australians attracted to holidaying over-seas. The latest figures show that 725,800 Australians travelled overseas in Septem-ber. Manufacturing is being squeezed by cheaper imports. And the agriculture sector is seeing the cream taken off the

top of high prices by the appreciating Australian dollar.

Two speed economy

These factors are adversely impacting on a wide spectrum of domestically focused industry. Many Australian consumers and businesses are asking ‘what boom?’ The latest survey of business conditions by the National Australia Bank shows it slump-ing to a 15 month low and below its long term average.

In short, Australia is travelling as a two speed economy with variability in eco-nomic conditions between industries and within depending on how close business-es are to mining related activity.

Economic growth expected to acceler-ate into 2011

Both Federal Treasury and the Reserve Bank are forecasting higher economic growth in 2011 with unemployment

to fall below 5%. Australia is about to be hit by a tsunami of money from the resources boom which will boost income. The mining sector is gearing up for a massive investment binge with big ticket items given the go ahead. Tight labour market conditions will lead to fears of a wage breakout and inflationary pressures developing.

The Reserve Bank will have its finger on the interest rate trigger button to prevent this from happening. Households will be further squeezed. The income boost from the mining boom will gradually flow through the economy but many Austra-lians will continue to feel left out of the boom. For small business conditions are likely to be similar to this year. Businesses involved in the food chain are likely to face cautious consumers, higher funding costs and tight margins.

the australian economy – What’s HappeningBy Guest Economist – Ian James

economic forecast:

2.5

Sep

2008

Dec Mar Jun Sep Dec Mar Jun Sep

2.0

1.5

1.0

0.5

0.0

-0.5

-1.0

20102009GDP Food Retail Total Retail

Jan Feb Mar Apr May Jun Jul Aug Sep0

18000

15000

12000

9000

6000

3000

Total Houses Apartments

Quarterly Percentage Change

Monthly Numbers – 2010

Australia is travelling as a two speed economy with variability in economic conditions between industries and within depending on how close busi-nesses are to mining related activity.

Food retailing weak compared to all retailing and economic growth (GDP).

Residential building approvals have fallen for six straight months.

Page 18: Fresh State of Affairs Issue 3

34 issue 03 december 2010OF AFFAIRS

Dizney crombieIt was with sad tidings that we were informed of the passing of Dizney Crombie. Dizney seemed to be “part of the fabric of the markets” and although he had been struggling for some time it was still a shock to everyone. Dizney was born in Pinnaroo in South Aus-tralia during the Great Depression in 1932. He was the youngest of four children and suffered badly with whooping cough and poor lung function, a legacy that he carried all his life.

Dizney married Norma in 1957 and together they raised their three children. Norma and Dizney went on to celebrate their Golden Wedding Anniversary in 2007, the year Dizney retired.

He started working at the markets in 1955 as a wholesaler in the then Victoria Markets. Like the other wholesalers in 1969, Dizney moved across from the Victoria Markets to Footscray Road. In 1974 Dizney purchased J. Davis Pty Ltd and ran the business up

to the mid 1980s. During this time he was elected as President of the Victorian Cham-ber from 1979 to 1983 and served on the Market Trust from 1980 to 1985.

In 1986 he left wholesaling and, after a break, became the Manager / Secretary of the Victorian Chamber, a role that he held up to his retirement in 2007.

The essence of Dizney Crombie was his interactions with people both around the

markets and with his family and friends. He was often ‘instigator or willing participant’ of many of the social activities that took place whether they be official functions for the Chamber, conferences, fundrais-ers around the markets or with friends. After Norma and the kids his next love

was Essendon, a team that he always held optimistic hopes for.

Dizney was awarded Life Membership of Fresh State’s predecessor the Victorian Chamber and in doing so he joined a select few who have been acknowledged by their peers, the organisation’s highest honour.

Dizney was an ‘institution around the markets’ and he liked nothing better than shooting the breeze over a coffee (or a

scotch) of a morning with some of the wholesalers in one of the market cafes.

Our sincerest condolences to Norma, his three children Clare, Janet and David and the ex-

tended Crombie family as well as his many close friends from the market community. He will be greatly missed.

vale

The essence of Dizney Crombie was his interactions with people both around the markets and with his family and friends.

trib

utes

: