That’s why we are sourcing Aussie products from local suppliers and growers.

Backing Queensland

Helping Australia Grow – Backing Australian Food ProducersII

Contents

Australian Country Choice Group

Coastal Hydroponics

Grove Juice

Homestyle Bake

Koorelah Farms

Norco

Pacific Reef Fisheries

Rocky Ponds Produce

Romeo’s Best

Rugby Farm

Sunny Queen Farms

Taste ‘n See

Wickham Farms

Coles – Backing Queensland farmers and food producers

By sourcing fresh, consistently high quality food directly from producers across Queensland, Coles has dramatically boosted the number of customers visiting our stores compared to five years ago.

Fresh produce continues to be our fastest growing category in Queensland as customers welcome our moves to source Australian-grown, fresh, quality food.

For our suppliers, a change to direct relationships and partnerships has meant increased efficiency, greater transparency in pricing and higher sales volumes.

Coles now works with nearly 400 farmers and food manufacturers in Queensland and we’re committed to providing local businesses with opportunities to grow through longer-term contracts that give them certainty to invest, expand and generate innovative new products.

This booklet provides examples of our relationships with Queensland food producers and how we’ve worked with them to grow into larger, more successful businesses through increased sales and product innovation.

Suppliers featured in this booklet include:

• Fourth generation family beef company, Australian Country Choice, whose consistent supply ensures that 50 per cent of our beef supply comes from Queensland.

• Fruit and vegetable business, Rocky Ponds, which has invested in a $2 million packing shed on the back of a direct relationship with Coles.

• Grove Juice, which has expanded its business following a contract to supply our Coles Brand juice across Australia.

• Long-standing family business, Rugby Farm, which has been working with Coles to grow baby corn and reduce reliance on imports.

• Major egg producer, Sunny Queen, which has worked with Coles to make the transition from caged eggs to cage-free eggs for Coles Brand.

• Award-winning Koorelah Farms, whose owners Wayne and Leanne Born believe the volume commitments provided by Coles increases efficiencies.

Looking ahead, we’re also keen to sign on new local food producers so we can increase the number of home-grown products on our shelves through local sourcing initiatives such as ‘Meet the Buyer’ events and by having a dedicated Local Ranging Team.

I encourage you to visit our stores to see first-hand how we are supporting not just Australian producers but also Queensland businesses who are producing excellent quality food for our customers.

Thank you.

Ian McLeod Managing Director

That’s why we are sourcing Aussie products from local suppliers and growers.

Coles beef to meet an ever changing market

With control right along the supply chain — from the paddock to the retail shelves — Australian Country Choice (ACC) is Coles’ largest fresh beef supplier.

And with one of the world’s most significant vertically-integrated supply chains, the Queensland-based company continues to deliver 100 per cent Australian beef with no hormones.

ACC Chief Executive Officer David Foote says Coles’ move to HGP-free beef in 2011 was a game changer for his company and in fact the whole of the Australian beef industry.

“While there is absolutely no question about the safety to consumers of eating beef from cattle treated with hormones, there is clear consumer sentiment toward products with fewer additives, which come from sustainable production systems and have identifiable origins,” says David.

A company so vast it incorporates 26 properties, two feedlots and a central processing, boning, packaging and distribution facility in the Brisbane suburb of Cannon Hill.

Australian Country Choice Group, Queensland

“With more than 70 per cent of Australia’s beef being produced for export, it remains vital for Coles to have a dedicated and sustainable supply chain to ensure a continuous supply of beef products attuned to the needs of their customers. It is the long-term commitment and support of Coles that has encouraged the Lee family to dedicate and grow this beef supply chain. David Foote, Chief Executive Officer

Anthony, Trevor, Cartier and

Michael Lee at one of their

cattle properties at Roma.

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SnapshotBusinessAustralian Country Choice Group

LocationOwns and manages 26 cattle properties across Queensland at locations such as Babbiloora in the Carnarvon Ranges and runs two feedlots at Roma and the Brisbane Valley

OwnerThe Lee family

ProduceFresh and value-added beef products under the Coles Finest, Coles Butcher, Coles Grill, Coles Made Easy, Drovers Pride and Aussie Bites brands

Size680,000ha of owned, leased and managed land

Processing the numbers265,000Cattle processed annually at Cannon Hill facility

110 million Kilograms of ACC processed products sold through Coles stores in 2012

1000People employed across the group

100%Proportion of HGP-free beef produced by ACC for Coles

Founded in 1958 as H.J. Lee & Sons, ACC was an early pioneer to develop a commercial beef feedlot in the 1970s and, in 1974, began supplying Coles with grain-fed cattle. Today, with fourth generation family members active in the business, ACC is Coles’ principal beef supplier, delivering over 100 million kilograms of beef products for Coles.

“With more than 70 per cent of Australia’s beef being produced for export, it remains vital for Coles to have a dedicated and sustainable supply chain to ensure a continuous supply of beef products attuned to the needs of their customers.”

It is the long-term commitment and support of Coles, that has encouraged the Lee family to dedicate and expand this supply chain, making ACC one the world’s only beef suppliers that manages not only the cattle breeding, feeding, processing and value-adding but also the packing for retail.

And the company remains proudly family owned.

“No matter what type of beef customer survey is undertaken, consumer sentiment has remained strongly in favour of beef products that are Australian grown, have reduced additives with eating quality attributes that consistently provide tenderness, juiciness, flavour, texture and value for money,” says David.

Having the supply chain and quality systems in place to deliver these attributes as the new standard platform for Coles, ACC has been working in close partnership with Coles to develop a wide range of new and exciting products for seasonal ranges.

These value-added meat products focus on providing Coles customers with a wide range of choices in flavours and cooking styles, and offer greater convenience to suit today’s time-poor but quality-conscious consumer. Over the past 18 months, 30 new products have been launched across the meat category.

Australian Country Choice Group Queensland

q&a with David Foote

Q: Does Coles’ commitment also help ACC continue to be at the forefront of new products?

A: The Coles product development team works directly with ACC to develop and bring new products to market. Over the past 18 months, 30 new products have been launched across the meat category. These value-added meat products focus on providing Coles customers with a wide range of choices in flavours and cooking styles, and offer greater convenience to suit today’s time-poor but quality-conscious consumer.

Coles Managing Director Ian McLeod

and ACC’s Trevor Lee.

From one ute to a fleet of trucks

SnapshotBusinessCoastal Hydroponics

LocationGilston, Mulgowie and Stanthorpe, Queensland

OwnerThe Moss family

ProduceWhole and baby lettuce, herbs and salad mix

Size81 ha

Number crunch24Hours of the day Coastal Hydroponics delivers to Coles stores and distribution centres

174The number of stores in Queensland supplied by Coastal Hydroponics

32The number of years that Coastal Hydroponics has been supplying to Coles

19,000The number of kilograms of salad that Coastal Hydroponics supplies to Coles each week in summer

3000The number of kilograms of herbs that Coastal Hydroponics supplies to Coles each week in summer

An unwavering commitment to providing the freshest, highest quality produce for their customers means Gold Coast family company, Coastal Hydroponics, works around the clock to deliver salad and herbs to 174 Coles stores across Queensland.

The seamless, slick operation involves deliveries in a fleet of trucks of up to 19 tonnes of salad a week and up to three tonnes of herbs a week.

A strict quality assurance program under SQF 2000 and a triple wash system for salads also means their final produce can literally go straight from the farm to the dinner table.

And recently Coastal Hydroponics manager Belinda Adams was recognised for her leadership in the horticulture industry when she was crowned AUSVEG Horticulture Woman of the Year.

Although innovation and hard work have always been characteristics of Coastal Hydroponics, the business has transformed since the days when Belinda’s parents Barry and Lyn Moss first trialled hydroponics in the early 1980s.

In stark contrast to the fleet of trucks the business now has, Barry and Lyn began their relationship with Coles 32 years ago by delivering produce to one Coles store in Pacific Fair in their ute with a red tarp.

Barry and Lyn Moss were originally broadacre farmers in central New South Wales but moved to the Gold Coast in 1981 to educate their kids.

“We moved to the Gold Coast, bought 10 acres and started hydroponics because we only had a small parcel of land and it was rocky,” Barry recalls.

Coastal Hydroponics, Gilston, Mulgowie and Stanthorpe, Queensland

“When I used to talk about the volume we supply Coles, I would talk in kilograms but now I talk in tonnages that we supply each week. It’s been gradual growth, with more and more going on the truck.” Belinda Adams, Manager

Belinda Adams and father Barry

Moss in one of Coastal Hydroponics’

hothouses.

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“The produce was grown in gravel and no-one knew how to do it. We had a lot of failures and we learnt the hard way.”

But the Moss family was determined to be successful and decided to approach Coles directly and not deal through agents in the same way they had in broadacre farming.

“We thought ‘we are going direct’ and we are not going to go through an agent. So we went to Coles and asked if we could supply to them. Coles said yes but it was through one store only and that was Pacific Fair,” says Barry.

Coastal Hydroponics was also one of the first companies to supply salad mix to Coles after Lyn decided to approach Coles with the idea.

“In around 1990, I made a salad mix in our kitchen sink and decided to take it along to Coles to see if they were interested. Initially the state produce manager at the time said no but then about six weeks later he came back to us and said he wanted it,” Lyn says.

“So we started supplying salad mixes and I would grow little bags of edible flowers to take into the store for them to sprinkle on the top.”

These days, Coastal Hydroponics supplies 12,000 kilograms of salad to Coles each week in the winter and 19,000kgs of salad each week in the summer, making up 75 per cent of their business.

In the early days of salad mixes, Lyn would also buy herbs to add to the lettuce. But challenges with sourcing herbs led them to decide to grow their own and today the herb sales comprise 25 per cent of their business.

And compared to the early days, Coastal Hydroponics now involves multiple members of the family.

Barry and Lyn’s son Shannon is farm manager at the company’s Stanthorpe and Mulgowie farms, Belinda’s husband Paul is farm manager at the Gold Coast farm and Shannon’s wife Liza works on the farm as well.

Belinda says the business has grown steadily in the past 10 years with a noticeable spike in the past four years.

“When I used to talk about the volume we supply Coles, I would talk in kilograms but now I talk in tonnages that we supply each week. It’s been gradual growth, with more and more going on the truck,” Belinda says.

“Our relationship with Coles has been great and the last couple of years have been smooth sailing.”

By buying more land in Stanthorpe eight years ago, the family was able to extend their production of growth baby leaf throughout summer while the humidity is high on their Gold Coast property.

This year the family has bought a farm at Mulgowie to supply baby leaf salads and in-ground herbs throughout winter.

“It provides us with the opportunity to spread risk across growing regions within Queensland and is also in close proximity to the Gold Coast. The new farm will also allow us to increase in volume during the winter period.” Belinda says.

On the back of increasing confidence, the business has also expanded its facilities in the past five years and installed new wash room equipment to process its produce faster and more efficiently.

“Having confidence is so important. At the moment we are upgrading our wash facility and we are looking to improve all the time,” she says.

“Our relationship is like a circle. The more confidence and trust Coles has in us, the more they give back to us.”

“For us, forward contracts mean we can invest in machinery and equipment because we can meet repayments and we can grow more produce with the knowledge it will have a home.”

Coastal Hydroponics Gilston, Mulgowie and Stanthorpe, Queensland

q&a with Belinda Adams

Q: How does your relationship with Coles help your business?

A: For us, forward contracts with Coles mean we can invest in machinery and equipment because we can meet repayments and we can grow more produce with the knowledge it will have a home.

Barry Moss and Belinda Adams.

Family business grows with a new focus on citrus

SnapshotBusinessGrove Juice

LocationMansfield and Warrick, Queensland and the Riverina, New South Wales

OwnersThe Willis and Estens families

ProductFresh juice

Crushing the numbers300,000Number of fresh oranges Grove Juice is squeezing every day

250,000+Number of extra orange trees Dick Estens is planting to ensure consistency of supply

180,000Number of fresh apples Grove Juice is squeezing every day

100%The percentage of fruit that is grown by passionate Australian farmers

Since starting as a small home-delivery fresh juice business in 1969, Grove Juice is now squeezing 300,000 fresh oranges and pressing 180,000 fresh apples every day.

And they are proud to say every single one of those 480,000 fruit is Australian, all grown by passionate, Australian farmers.

“We grew from a small family business to a large business owned by two families,” says Grove Juice’s Managing Director Greg Willis.

“Having Dick Estens and his family as part of the business has provided a new dimension in establishing a vertically integrated group that understands the need for regional development and long-term sustainability,” adds Greg.

“We feel our families’ commitment and focus provides the confidence to invest in the future as well as highlighting the need to develop long-term partnerships.”

Greg says the Australian juice industry is unique given the size of the country, population and logistical costs.

“To be competitive we must have the critical mass to drive investment and low cost production,” says Greg. “This can only come from strong retail relationships. Coles has been a major catalyst in helping us develop long-term strategies for our company and the industry as a whole.

“At the end of the day, Coles has put their hand up and said we want to partner with you in that,” says Greg. “And that’s pretty exciting for us.”

“Coles understand the need for long-term commitment in Australian agribusiness and the huge investment needed to provide year round quality products. Grove’s vertical integration and family commitment fits well with their needs and Grove’s capacity to deliver, given the inconsistency of year to year crop volumes.”

Grove Juice, Mansfield and Warrick, Queensland“Our investment in our industry and desire to push regional development and vertical integration comes from being able to hang your hat on some critical mass. Coles has given us that opportunity.” Greg Willis, Managing Director

The Willis and Estens families.

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Competing with the large multi-nationalsGrove juice started supplying fresh juice to Coles’ competitors with a very short shelf-life in the late 1980s, but found they couldn’t compete with the big companies.

Greg says one of the biggest, overlooked issues in the Australian food chain is the tyranny of distance.

“We have fewer than 25 million people living on an island bigger than the United States of America.

“The logistical cost of moving raw materials and finished goods around this country is massive — it’s not a UK, it’s not a Europe,” says Greg. “Without critical volumes our offerings become unaffordable.

“We see a trend by some to bash the big retailers — can I tell you, without the big retailers, a company like ours would not have the critical mass to distribute quality food throughout Australia. People forget about that.”

After receiving the contract to provide Coles Brand fresh orange juice in 2007 Grove Juice grew, but faced a new threat to their business with the continuity of fruit supply, price and quality volatility.

“About five years ago we had spare capacity,” says Greg. “But we needed to address our raw material issues before we could confidently grow the business.”

“With some great support from local growers we established our own apple processing plant in Stanthorpe.”

Appreciating the man on the land“I didn’t really realise until I was in a partnership with Dick, but the capital investment in either agriculture or horticulture in Australia and its risk value is outside any other parameters of any investment bank in the world,” says Greg.

“I have a brand new respect for farmers in Australia after spending some time with Dick and seeing what they do and the adversity they go through, the highs and the lows.

“I’ve got to say it’s a bit humbling.”

This respect is why Greg is really passionate about working with Dick on regional development and re-engineering the citrus industry.

“Yes it is high risk, but after 30 years in a volatile industry, dominated by multinationals, it’s more the sustainability than the financial rewards that keep you going,” says Greg.

“We are now sustainable as a committed family entity, we are quick to react to our customers’ needs and we are happy to invest with confidence.

“Coles has stood up and said ‘Greg, Dick, we believe in what you’re doing, how do we make this work?’”

Greg believes Grove Juice now has a great opportunity to not only grow their business, but with it the business of their citrus growers and the communities they support.

“Without the critical mass Coles can deliver we would not have that opportunity.”

Grove Juice Mansfield and Warrick, Queensland

q&a with Greg Willis

Q: What is the advantage of partnering with Coles?

A: One of the good things about working with Coles is that they’re a demanding customer – and I think demanding customers make you a better supplier.

Heath Estens at one of the

family orchards.

Homegrown bread underpins rising sales

SnapshotBusinessHomestyle Bake

LocationToowoomba, Queensland

OwnerThe Weber, Pascoe and Nicoll families

ProduceHomestyle Bake Country Café breads, specialty breadrolls, Well Being breads and breadrolls, Byblos Lebanese breads and pita breads

Size1.5ha

Number crunch200People employed by Homestyle Bake

124Coles stores supplied daily

1100Customers serviced daily

20,000 Loaves sold through Coles weekly

1989Year Homestyle Bake was established

In just 10 years, Toowoomba family-owned and operated company, Homestyle Bake, has gone from supplying 20 stores across Queensland to a 124 with locally grown and manufactured bread.

The company’s rapid growth — 13 per cent, year-on-year and climbing — has positioned them ideally to introduce new products to include innovative breads, exclusive to the supermarket, for the health conscious.

“We’ve been with Coles for 20 years and it’s been a case of continuing to grow and improve together,” says Homestyle Bake Director Brett Pascoe.

“We conduct continual market research and about 18 months ago found customers were telling us they wanted a healthier, more nutritional loaf of bread. Coles was also experiencing this type of feedback.”

Homestyle Bake’s Well Being bread range, developed with Coles, includes Lower Carbohydrate, Chia, Grain Fusion and Lite Rye loaves and sits between every day and gourmet or “weekender” breads.

The new range complements Homestyle Bake’s established and ever-popular Country Café range.

Coles provided the ideal nutritional requirements to meet consumer demand and Homestyle Bake offered the technical know-how to do it.

“Our focus with the Well Being breads was to enhance nutritional value. We’ve tried to provide a loaf of bread with those same nutritional value benefits as the products in the premium tier of the segment at a competitive price.”

Homestyle Bake, Toowoomba, Queensland

“Our staff share our passion and commitment. We look after our local community and suppliers and that is why we are so encouraged by the direction Coles is taking as it helps us support the values we hold so dear.” Brett Pascoe, Owner

Homestyle Bake owners Lindsay Weber

and David Pascoe in the bakery.

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Homestyle Bake now supplies Coles with about 20,000 loaves weekly, thanks in large part to the company’s willingness to respond swiftly to consumer demands.

“One of the greatest benefits of working with Coles is the volume you are exposed to. If you have a product that works and customers support, the opportunity for growth is enormous,” says Brett.

“We are experiencing 13 per cent growth year-on-year and, given our projected growth through Coles, we expect that to continue.”

It’s an impressive record from a company that started with just one bakery in Toowoomba in 1989. A second bakery was acquired in Brisbane 1992 and the businesses consolidated and relocated to a new Toowoomba site in 1995.

By 2002, Homestyle Bake was supplying 20 Coles stores across Queensland.

“It was around 2002 that things really started to heat up and it was during this time that we were able to prove ourselves. Now we supply 124 Coles stores across south east Queensland,” says Brett.

Homestyle Bake is 100 per cent owned by the Weber, Pascoe and Nicoll families and employs 200 local people.

“Our staff share our passion and commitment. We look after our local community and suppliers and that is why we are so encouraged by the direction Coles is taking as it helps us support the values we hold so dear,” says Brett.

All ingredients, including the two core components of bread, flour and yeast, are sourced locally; the grain is grown in the

Darling Downs and the yeast supplied by another Toowoomba operation.

“We are especially proud to sell our products outside of Toowoomba and to see the earnings come back to the town — so often it’s the other way around.”

In 2006, to cater for supplying Coles on a broader scale, Homestyle Bake invested in an automated bread line, lifting production capacity from 900 to 2500 loaves per hour.

They also branched out into Lebanese and Turkish flat breads and artisan breads and rolls.

However, despite this period of rapid expansion and change, the company’s traditional thick cut white bread from its Country Café range remains its most popular product, closely followed by the wholemeal and wholegrain varieties.

“With the market insight provided by Coles and our technical ability, we are now able to make any bread product the customer could want,” says Brett.

“In the case of the lower carbohydrate bread, which requires more protein and fibre to offset the lower carbohydrate level, we had the skills in house to come up with the formulation, the experience and product knowledge to develop a product that tastes good and the mechanisms to test it and get it to market quickly.”

But given bread’s staple status, Brett expects some things will never change.

“We might be more health conscious and, as a company, we know how important it is to diversify, but people will always love a classic if it is done well.”

Homestyle Bake Toowoomba, Queensland

q&a with Brett Pascoe

Q: How does working with Coles benefit your brand?

A: One of the greatest benefits of working with Coles is the volume you are exposed to. If you have a product that works and customers support, the opportunity for growth is enormous.

Homestyle Bake owners David

Nicoll, Lindsay Weber and Brett

Pascoe on the production line.

Innovative Bowen farm top of the crop

SnapshotBusinessKoorelah Farms

LocationBowen, Queensland

OwnerWayne and Leanne Born

ProductTomatoes

Number crunch850,000Approximate number of 10kg boxes of tomatoes Koorelah Farms will pack in a year

1991Year Koorelah Farms became the first pack-house in Australia to invest in colour-grading and sorting technology

180Number of people employed by Koorelah Farms through the tomato season

3Number of B-Double trucks full of tomatoes that will leave the farm each day during peak season

A commitment to innovation and sustainability saw North Queensland tomato growers Wayne and Leanne Born named the winner of the Coles Horticultural Grower of the Year in the 2012 Farmer of the Year awards.

With 270 hectares at Bowen (two hours south of Townsville), Koorelah Farm is one of the largest tomato farms in Australia, supplying produce to the domestic market.

Leanne Born says she decided to enter the awards because of her passion to communicate the reality of farming in Australia today.

“People need to realise that farming is not just any old thing. It’s a business,” says Leanne.

“In order to be successful, you have to be able to make a profit so you can then keep investing back into the business — upgrading your equipment and keeping up with the latest technology.”

The Borns aren’t Johnny-come-latelies in infrastructure and innovation, being one of the first pack houses in Australia to invest in computerised colour grading and sorting technology in 1991. This was the start of a technological transformation on the farm, which has allowed the couple to harvest a larger quantity of quality tomatoes with minimal wastage.

“We have continued to invest in a number of innovative, cutting-edge technologies, including a blemish sorter and grader for our operation in 2011,” says Leanne.

The perfect locationThe couple say their location in the sunny Whitsunday region is a great advantage because the farm has a good underground water supply and fertile soil.

Koorelah Farms, Bowen, Queensland

“The volumes Coles provide us allow for efficiencies – things just seem to run a lot easier when you’re busy. It’s easier to get staff when you’re offering them 40 to 50 hours a week, rather than 20 to 30.” Wayne Born, Owner

Leanne and Wayne Born on their

property in Bowen, two hours

south of Townsville.

That’s why 100% of our fresh tomatoes are Aussie grown.

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“Bowen’s conditions for growing tomatoes — the soil, the water and the humidity — make it ideal for growing tomatoes,” says Leanne.

The land itself is one important factor, but the management of this land has also played a role in Koorelah’s success.

“A lot of people flog their ground,” says Wayne. “We manage it.”

It started with crop planting at the end of each season to protect soil and improve its structure.

“This is important as we are situated on an alluvial plain, so the soil holds the ground together when we get a slight flood.”

This location was also the impetus for one of its significant investments in sustainability — continuous monitoring of run-off to ensure it meets environmental standards going into the Great Barrier Reef Catchment.

“During the season, we can get a lot of run-off,” says Wayne, “so we decided to put some silt traps in place to prevent this.”

A silt trap is a designated area where water that is contaminated with suspended sediment as a result of water run-off is contained. While the water is in a silt trap, the sediment can settle to the bottom of the trap until it can be removed.

Both Wayne and Leanne say there are further efficiencies and environmental benefits which can be attained through using technologies in the supply chain, such as solar power to reduce electrical consumption.

“We’re currently looking at a commercial solar system to capture our electricity so we can further reduce our costs,” says Leanne.

The innovative and environmental improvements to the farms complement the advantages the Borns offer through simple experience.

“Because I’ve been growing for so many years, I can look at a plant and say well, it needs a drink,” says Wayne. “It’s experience — knowing your ground and your conditions.”

An important part of the Bowen communityWayne says the mining boom in northern Queensland has changed the economic and demographic profile of Bowen as residents leave to chase higher wages in the mines.

“If it wasn’t for farming, there’d be so many other businesses in Bowen that would suffer,” he says.

Wayne says tomato production is a very labour-intensive industry and as a result, the business is more important to the local Bowen community.

“The amount of backpackers and others who come to work with us and other growers during the season is significant,” says Wayne.

“In two months’ time, there’ll be 300 empty houses in Bowen — and that’s due to the people who come in for seasonal work.

“You talk to the local grocer and others and they ask you when you are going to finish,” says Wayne. “If I say we’ll go an extra two weeks, they’ll say great, that’s an extra fortnight of good money to help us out before the slow season. The whole town talks about it.”

Koorelah Farms Bowen, Queensland

q&a with Leanne Born

Q: How important is the relationship with Coles in terms of investing back in the farm?

A: Knowing we can sell what we produce gives us the confidence to invest. We’re currently looking at a commercial solar system to capture our electricity so that we can further reduce our costs.

Koorelah farms employs 180 people

through the tomato season.

Milk contract secures dairy farming future

SnapshotBusinessNorco

LocationLabrador, Queensland and Lismore, New South Wales

OwnersFarmer co-operative

ProductMilk and Coles Brand ice cream

Milking the numbers5 yearsLength of the agreement with Norco, providing the co-operative with the confidence to further invest in their processing systems

60 millionThe amount of fresh milk that will be supplied by Coles each year under the new Coles Brand contract

161Dairy farming families supplying Norco

670Number of people employed by Norco, including 260 working on the production of icecream

When the dairy co-operative Norco secured a major milk supply contract with Coles in April, the announcement was hailed as a big win for its dairy farmers — the owners of the co-operative.

“This contract further strengthens Norco and supports the ongoing stability of our farm base,” says Norco Chairman Greg McNamara.

It’s a sentiment echoed by Norco CEO Brett Kelly.

“The beauty of a co-op is that it’s owned by the Australian farmer, so there’s no middle man or other entity that owns the processing side and needs to make a margin on the purchase of milk.

“It is a very honest and transparent situation, because any benefit the co-operative achieves flows straight back to the farmer — this is key to the sustainability of our company.”

Brett believes the contract for Coles brand fresh milk is not just a win for Norco and for Coles, but ultimately the consumer.

“The consumer can have great confidence in the supply chain now that there is a direct link from the farm to the supermarket shelf.”

As owners of the co-operative, farmers in southern Queensland and New South Wales will directly benefit from the new contract because it will require an additional 60 million litres of fresh milk each year.

Norco will also invest in modernising and expanding its existing plant in Labrador, Queensland.

Dairy farmers will also benefit from greater price transparency. By cutting out the middle man, Coles will pay Norco a premium for their milk, which will be passed back to farmers.

Norco, Labrador, Queensland and Lismore, New South Wales

“The key foundation to our relationship with Coles is that we are an Australian farmer-owned co-operative – so you’ve basically got the product coming direct from the farmer straight to the supermarket shelf.” Brett Kelly, Chief Executive Officer

Maverick and Scarlet t Johnston, whose parents

and grandparents all farm at “Rosewood Dairy”.

That’s why 100% of our Coles brand fresh milk is Australian milk.

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The new contract for Norco to provide milk to Coles is a reflection of the strong relationship that has developed between the two companies over the past two years through Norco’s supply of Coles Brand ice cream.

“The relationship with Coles prior to the signing of the milk contract had been building very well with the ice cream product,” says Brett.

“The foundation of the relationship was the high standard we set for quality — a quality that this company has built its name on over 117 years.”

Brett says Coles’ focus on quality rather than pricing (although admitting the need to remain competitive) demonstrates they are aware that the only way to achieve long-term stability is by producing an excellent product.

“Quality is what we’re about,” says Brett. “The biggest thing Norco and Coles share is our values and the credibility the consumer has with the brand.

“Consumers aren’t stupid,” adds Brett. “While people may be doing it tough, it is still predominately mums that do the shopping, and while they will look at the price, they’ll first and foremost look at quality.”

Brett says the relatively small size of the business also has its advantages.

“Being a small co-operative, we can do things quickly,” says Brett. “Decisions can be made in regards to processing when they need to be and we have the flexibility to move as Coles requires.”

While the co-operative may be small compared to some of the giants of the industry, its history is extensive.

The Norco story began way back in 1895 when a co-operative was established in Byron Bay. This was to become the stem of the family tree and, in the flux of time, absorb other co-operatives.

After a series of name changes the co-operative became Norco in 1926. Synonymous with the history of the north coast of New South Wales, Norco became a base that supported the region’s economy.

Today Norco remains a diverse agricultural co-operative committed to building its strength and stability, and in turn enhance the economic vitality and diversity of the rural and regional communities where they operate.

Contracts such as they ones they have with Coles for fresh milk and ice cream further help Norco to maintain a sustainable supply chain and develop win-win partnerships in the markets they serve.

Norco Labrador, Queensland and Lismore, New South Wales

q&a with Brett Kelly

Q: How does the relationship with Coles benefit the Norco business?

A: Our partnership with Coles works for both parties – it helps us in terms of volumes and it helps Coles in terms of bringing a high quality product to the consumer.

Ice cream bound for Coles.

Norco CEO, Brett Kelly.

Fishing for success at family farm

SnapshotBusinessPacifi c Reef Fisheries

LocationAyr and Guthalungra, northern Queensland

OwnersThe Mitris family

ProduceBlack Tiger prawns

Pouring over the numbers800 Tonnes of Black Tiger prawns produced annually by Pacifi c Reef

68 Hectares of prawn ponds farmed by Pacifi c Reef in 2013

359Hectares of prawn ponds to be farmed by Pacifi c Reef by 2015

100 People employed by Pacifi c Reef during peak season

In its 13-year partnership with Coles, family-owned business Pacifi c Reef has grown to be one of Australia’s largest land-based aquaculture farms.

Pacifi c Reef supplies Coles with Black Tiger prawns — a growth category that has found new favour with customers and underpinned rapid expansion of the Mitris family’s Ayr site in northern Queensland.

“The way Coles have rearranged their stores to better display and promote seafood — and the work they have done to improve consumer awareness of fresh Australian seafood — has been a major driver of growth for the category,” says Pacifi c Reef Chief Operating Offi cer Maria Mitris.

Maria’s father, Nick, bought the business in 1998 when it was just 23 hectares of prawn ponds.

Now, the business spans 68 hectares with plans to grow to a further 30, lift ing production from 800 tonnes in 2012 to more than 3000 tonnes of Black Tiger prawns by 2015.

This expansion would not have been possible without the Mitris family successfully gaining a second, larger aquaculture licence — a move Maria says they couldn’t have made without the support of a major retailer in Coles.

Pacifi c Reef Fisheries, Ayr and Guthalungra, northern Queensland“As they’ve grown, we’ve grown. Their stores are big with plenty of room to move, they are opening new stores all the time, and their set-up and presentation is so clean – it’s a much nicer way to shop and this really helps in selling fresh food.” Maria Mitris, Chief Operating Officer

Maria Mitris of Pacific Reef Fisheries

with black tiger prawns.

That’s why we are sourcing fresh Aussie seafood from great local companies like Pacifi c Reef Fisheries.

SnapshotBusinessPacifi c Reef Fisheries

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“As they’ve grown, we’ve grown. Their stores are big with plenty of room to move, they are opening new stores all the time, and their set-up and presentation is so clean — it’s a much nicer way to shop and this really helps in selling fresh food,” says Maria.

Now Pacifi c Reef is formalising their long standing relationship with Coles with a contract that will give both the producer and retailer confi dence into the future.

“We work very closely with Coles’ product technician and forecasters. We know that if we can grow it, Coles can sell it…and if we have any product left over at the season’s end, Coles know it is theirs.”

Juvenile prawns are bred at Pacifi c Reef’s $3 million Guthalungra hatchery, a separate site 65km south of the growing farm, to minimise biosecurity risk.

The prawns are then transported to Ayr at 15 days of age where they are grown out over the next 120 to 150 days on a ration of pellets and natural plankton.

Being immediately adjacent to the Great Barrier Reef, Pacifi c Reef draws fresh ocean water to fi ll its prawn ponds, storing additional water in a 35ha reservoir.

Pacifi c Reef begins growing prawns for Christmas in July, harvesting daily from December through to May. They are able to achieve two crops per year, cleaning and refi lling their ponds between every cycle.

The prawns are delivered to Coles cooked whole, their taste refl ecting the environs they are grown in.

“Because our prawns are grown in salt water and the health and temperature of the water constantly monitored for optimum growing conditions, you could never taste the diff erence between fresh and farmed prawns,” says Maria.

There are also additional — and signifi cant — environmental and health benefi ts to land-based aquaculture, especially when compared to deep-sea trawling, she says.

Not only are the prawns environmentally sustainable, highly productive and great tasting, the World Wildlife Fund has deemed them ‘responsibly sourced’.

“What many people don’t realise is that a trawler can be at sea for weeks. Our product is harvested daily and delivered to Coles within 24 hours. It is fresh and completely sustainable.”

And to further bolster its environmental credentials, Pacifi c Reef is working closely with the CSIRO and other partners as part of a Queensland Government Smartstate initiative to commercialise the domestication of the Black Tiger Prawn.

Presently, Pacifi c Reef catches wild brood stock (males and females) at the beginning of each season and breeds from these in their Guthalungra hatchery.

“Growing our own stock would make the industry truly sustainable and allow us to select the fastest growing and biggest prawns to breed from,” says Maria.

“I am very proud to say we farm in Australia with some of the strictest environmental standards in the world. It’s a big focus for us – creating a business that is not only profi table, but one that can continue to keep up with the demands of a growing population and produce quality food now and into the future.”

Pacifi c Reef Fisheries Ayr and Guthalungra, northern Queensland

q&a with Maria Mitris

Q: What are the advantages of working with a major retailer like Coles?

A: We need a relationship with a major retailer like Coles to reach our market. We want to be Australia’s largest aquaculture facility producing sustainable fresh seafood for a growing population and market – to do that, we need a retailer with reach and a partnership we can rely on.

Geraldine Hennaway is one of around

100 employees at Pacific Reef Fisheries.

Business flourishes from dealing direct

Gumlu, a small, single service station town 50 kilometres north of Bowen in Queensland, is undergoing a boom due to the opening of a nearby mine.

But gold and silver aren’t the only things coming out of the ground that are booming.

On the outskirts of Gumlu is a farm by the name of Rocky Ponds, and thanks to the support of Coles, its capsicum trade is thriving.

Owners Des and Paula Chapman say that since the farm began dealing directly with Coles 12 years ago, rather than dealing solely with market agents, business has flourished.

“Our business with Coles has continued to grow since we’ve had a direct relationship with them and we’ve been able to deal with consistent volumes,” says Des.

Knowing Coles will buy what they grow each week has provided the business with the confidence to invest $2 million in expanding and upgrading their packing shed and machinery — just in time for harvest, which runs from the end of April to the end of November.

“Our new packing shed is 2200 square metres in size, which has allowed us to increase our capsicum business with Coles significantly, while having two colour vision grading machines allows us to also maintain and increase the production of melons,” says Des.

Automated barcoding means each box is consigned directly from the packing line to the correct pallet ready for dispatch, reducing the risk of human error and saving time.

Rocky Ponds Produce, Gumlu, Queensland

“By dealing direct with Coles, we are assured we’re going to sell our produce – and it’s consistent. Coles gives us a number to grow to during the year and we work with that. And, if we get a bumper crop, they have the ability to move stock quickly.” Des Chapman, Owner

Des, Isla, Paula, Shaun, Lauren, Milla and

Evan Chapman on the family farm.

That’s why 100% of our fresh capsicums, rockmelons, honeydew and pumpkins are Aussie grown.

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SnapshotBusinessRocky Ponds Produce

LocationGumlu, Queensland

OwnerDes and Paula Chapman

ProduceCapsicums, rockmelons, honeydew melons and pumpkin

Number crunch57Hectares of land when Rocky Ponds first began

283Hectares farmed by Rocky Ponds today

500+Trials for new varieties undertaken by Rocky Ponds yearly

40% Proportion of Rocky Ponds Produce sold to Coles – a figure the business hopes to grow to 60%

$2 millionInvestment in new packing shed thanks to ongoing support from Coles

“We want to supply the best produce at the best quality and keeping up with technology ensures we can make it happen. You cannot afford to stand still in this industry,” says Paula.

It’s an attitude that is paying off, but success hasn’t come overnight for the couple who bought 56 hectares when they married 35 years ago.

“We bought here in Gumlu and thought we were going to be big farmers,” says Des.

Despite having previously operated a successful start-up business, the couple found farming to be very, very hard — particularly with drought.

“We very nearly lost it all in the very early days,” says Des.

Over time, Rocky Ponds was eventually able to secure its own water supply and things began to improve.

“Back then we could build dams and weirs to the two adjoining creeks,” says Des.

“Now we store about 1400 megalitres of water and that replenishes our underground water supply which is estimated at another 1000–2000 megalitres.”

On their initial 56 hectares, Des and Paula tried to grow everything.

“We did a lot of eggplant and cucumbers and didn’t like either, so we ended up growing capsicums,” Des says.

“We had an old Italian guy who taught us how to farm, because neither my wife nor I came from farming backgrounds.”

Fast forward 33 years and the Chapmans now have adult children of their own who have returned to the family business after gaining university qualifications.

“Today we farm 700 acres (283 hectares) per year and have been supplying Coles for more than 20 years with rockmelons, honeydew melons, capsicums and pumpkins,” says Des.

“Coles accounts for 40 per cent of Rocky Ponds’ business. We would like to build that up to 60 per cent.”

Des and Paula firmly believe their industry is one with a bright future for the next generation, but advocate a work-life balance.

“If required we can harvest a little bit later, but if not, we pack up and go fishing, before we start seeding again in the middle of January,” says Des.

Rocky Ponds Produce Gumlu, Queensland

q&a with Des Chapman

Q: How have you increased your capacity at Rocky Ponds?

A: Our new packing shed is 2200 square metres in size, which has allowed us to increase our capsicum business with Coles significantly, while having two colour vision grading machines allows us to also maintain and increase the production of melons.

Des Chapman with granddaughters Isla and Milla.

Des and Paula Chapman.

SnapshotBusinessRomeo’s Best

LocationMareeba, Emerald and St George in Queensland and Robinvale in Victoria

OwnersThe Romeo family

ProductGrapes

A bunch of numbers200+Number of people employed by Romeo’s Best

1,100Number of hectares under vine

1.35 million+Number of grape vines owned by Romeo’s Best

8Number of years Romeo’s Best has been supplying Coles directly

The quantity of Australian-grown grapes that Coles sells each year is increasing thanks to a family business that is also the nation’s largest grape producer.

Romeo’s Best has 10 members of the Romeo family working directly in the business — and succession planning is all but guaranteed with Tony (director of business) and Lindsay Romeo’s (director of farming) sons working in the business and following directly in their footsteps.

Tony Romeo’s driving ambition (and key company objective) is to grow and supply high quality Australian table grapes for Coles’ customers 12 months of the year by lengthening the growing period.

Through a strategic growing program across four properties, Romeo’s Best is almost there and can now supply Coles with fresh grapes from late-August through to July the following year.

A year-round supplyRomeo’s Best marketing manager Glenn Egan says producing a year round supply was a long term strategy that they’d been working towards, in conjunction with Coles, for some time.

It relies on a careful co-ordination of harvests that move south from Mareeba, Emerald and St George in Queensland and, fi nally, Robinvale in Victoria, from late August until July the following year.

“In the Tropics the plants don’t go dormant, so we can prune it, trigger it to start regrowth and we know fi ve months aft er that time, we can start the crop.

“Australia usually imports grapes from the US at this time of year. We’re the only company of any note taking that on with our import replacement strategy.”

Romeo’s Best, Mareeba, Emerald and St George, Queensland

“Coles’ commitment to our business is driven by a desire to provide customers with the best produce possible at all times. Due to this commitment, our business has the confidence to actively pursue the best new varieties from around the globe.” Glenn Egan, Marketing Manager

Tony Romeo among the vines.

That’s why we are sourcing Aussie fruit from growers companies like Romeo’s Best.

Longer grape supply reduces need for imports

SnapshotBusinessRomeo’s Best

reduces need for imports

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Forward planningGlenn says that Romeo’s Best has a “terrifi c” relationship with Coles, which has helped the business forward plan to achieve this constant supply.

“We have an open relationship where we sit down and discuss our planning and our programming.”

He says the Coles buying and quality teams visit Romeo’s Best properties regularly. “It’s good to get the customer in and have some fi rst-hand feedback and advice.”

On top of good advice, the assurance that Coles will buy the bulk of Romeo’s Best grapes each year lets the business invest in a variety of future goals.

“Without it we wouldn’t be investing up north; we wouldn’t be investing in new varieties; and we wouldn’t be travelling the world looking at best practice: that wouldn’t be happening.”

New varietiesGlenn says there are plans to introduce new grape varieties into the Australian market over the next few years.

“In 2013 Romeo’s will be trial-planting numerous new varieties both in the tropics and Sunraysia,” says Glenn.

Until now the development of new grape varieties has been limited. “There are still varieties today that we’ve had for 25 years.”

It’s a slow process and a diffi cult one.

“Trying to breed a fruit takes about 10 years from start to fi nish.

“During that period of time, the breeders work on 14,000 trials to get one positive outcome.

“We’re just seeing some new varieties coming into play. These are varieties that are going to allow us to extend the season, which are grower friendly, with bigger crops needing less management, and consumer friendly, with great fl avour, great shelf life and great consistency.”

Glenn says that although it is a long time between development and harvest, they’re not just sitting about waiting.

“We’ve still got our day-to-day management.”

So what does this day-to-day management involve?

Glenn explains that the management of grapes on each of the properties works on a 12 month cycle.

In Emerald, for instance, harvest begins in November on white and coloured grapes. Six weeks later, the white grapes are fi nished and by the end of February so are the coloured grapes. Once harvest ends, the vines are pruned of old wood and wrapped down in May and June for their period of dormancy.

Contractors carry out this work, which can take up to two months as each vine must be attended to individually.

Aft er two to three months, the vines start to shoot and buds emerge. Says Glenn: “Fingers crossed the frosts stay away as when they’re young and tender, they’re at their most vulnerable.”

Five months aft er this fi rst bud burst, the grapes are ready to harvest.

There’s no rest for those at Romeo’s Best, however: “Once we’ve picked it, packed it and hopefully sold it to Coles, we start all over again.”

Romeo’s Best Mareeba, Emerald and St George, Queensland

q&a with Glenn Egan

Q: How would you describe your relationship with Coles?

A: The biggest change with Coles in the last few years is a willingness to promote the product in season, they’ve been very aggressive in their promotion of grapes – I don’t think any grape grower could complain about their promotion. In terms of their commitment in selling stock, they’ve been terrific.

White seedless grapes.

An infant industry on the rebound

SnapshotBusinessRugby Farm

LocationGatton, Lowood, Fernvale, Clifton, Bowen, Ayr and Stanthorpe, Queensland

OwnersThe Hood family

ProductCorn, beans, broccoli, lettuce, cauliflower, watermelon, wombok and baby corn

Crunching the numbers4,500Number of hectares of vegetable production for Rugby Farm each year

7Number of regional communities in which Rugby Farm operates

500Number of people employed by Rugby Farm during the main winter season

101Number of years Rugby Farm has operated

180,000Number of lettuce Rugby Farm can produce in a day

Australian-grown baby corn will once again hit the shelves of Coles supermarkets this year, supplied from key growing areas in Bowen and the Lockyer Valley.

Rugby Farm’s baby corn is well and truly back in action after its early years of supply was hit hard by the 2010 year’s floods and the following year’s extended wet season.

Rugby Farm Director Matt Hood says the farm maintains 4,500 hectares of vegetable production across multiple locations, allowing the family business to diversify their product into areas such as baby corn and supply Coles 12 months of the year.

“We grow sweet corn, green beans, watermelon and baby corn in Bowen in the winter (and in southern Queensland in the summer) so we can supply everything 12 months a year. There’s really no other place in Australia except North Queensland where we can grow these sort of crops (out of summer),” says Matt.

“Between the farms we’re basically harvesting every day of the year, winter or summer.

“We grow over 1200 hectares of corn and beans near Bowen. Our baby corn is smaller but it’s a project we are doing with Coles in order to try and reduce reliance on imports, because it’s all been coming from Thailand.

“It is more expensive for us to produce because baby corn is labour intensive. It’s not mechanically harvested, it’s picked by hand and every cob has to be stripped back.”

But Matt says the business had wanted to support Coles in stocking locally-grown produce.

“We are considering some new ideas, perhaps selling the baby corn still in its husk so people can see it’s real and fresh for a point of difference.”

Coles General Manager Fresh Produce Greg Davis says Coles had been working with Matt on baby corn for a while.

Rugby Farm, multiple locations, Queensland

“Coles’ long-term commitment to Australian produce – and specifically our locally-grown baby corn product – allows us to slowly increase the level of production to make it viable.” Matt Hood, Director

Rugby Farm’s Matt Hood.

That’s why 100% of our fresh corn, beans, broccoli, lettuce, cauliflower and watermelon is Aussie grown.

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“Using Matt’s corn means we don’t have to import corn. We call it import replacement, and where we can support an Australian grower, we do it,” says Greg.

“About 96% of our entire fresh produce is locally grown and customers are always asking us to supply them with more Australian produce.

“When we didn’t have Matt’s corn following the 2010 floods we didn’t import — we went without for a few months. So it was great to have him back on board so quickly.

Delivering on a century of growthRugby Farm is a family business that began in 1912 when Rugby Farm director Matt Hood’s grandfather purchased the original farm near Gatton at the age of 19.

He named it after his parents who migrated to Australia from a district in England near the town of Rugby and the famous Rugby School.

Since then Rugby Farm has expanded across Australia and its northern Queensland sites in Bowen and Ayr allow them to grow summer crops through the winter. The sites are now key growing areas for sweet corn, green beans and watermelon.

“We’ve been in Bowen now for about 11 years, and in south Queensland for just over 100 years,” he said. “We expanded up to north Queensland originally to try to grow sweet corn 12 months a year.

“A few years later we added green beans, and baby corn about four years ago. Watermelon is a new line which we had trialled for a while in Bowen and now we’re growing that more seriously.”

“We are a family business which includes my brother Dan and father David. We have a team of nearly 500 staff who all play an important role in the future success of the business. We could not do it without them.”

Since supplying Coles over the past 14 years, Rugby Farms has grown to become one of Australia’s largest growers of both corn and beans. With their expansion into Stanthorpe, they have also become arguably the largest grower in many other lines - broccoli, lettuce, cauliflower and wombok.

Seven locations, one qualityOne of the greatest challenges Rugby Farm has faced during its expansion over the past ten years is to provide a consistency of product over a variety of locations.

“Consistency of product and paddock is something we continue to work tirelessly on,” says Matt.

“Rugby Farm has a way of doing things, but when you’re working at different locations, in different climates and with different soil types, you clearly have to amend your processes.”

Another challenge identified by Matt was working with those employees they had taken on as part of their expansion.

“These people have worked these farms before we arrived and therefore have some important knowledge we need to tap into,” says Matt.

“The challenge for us is to work this knowledge in with the Rugby Farm processes that are proven to provide the highest quality produce.

“That way, whether it’s a bean from Gatton or one from Bowen, it is of the same high quality associated with the Rugby name.

Rugby Farm multiple locations, Queensland

q&a with Matt Hood

Q: How important is Coles’ commitment in running and co-ordinating a number of properties in different locations?

A: The commitment from, and the relationship we have with Coles, is the foundation of our business. It is extremely important to our overall operation – investment, security and optimism about the future.

Australian-grown baby corn on

its way to Coles.

Cage-free eggs help industry grow

It’s a simple yet highly effective approach to doing business — find out what the consumer wants, then work out a way to provide it.

And it’s the philosophy that has underpinned the significant success of one of Australia’s largest egg producers, Sunny Queen Farms.

Founded in 1930 by Queensland’s Hall and McLean families, Sunny Queen Farms is now one of Australia’s largest egg producers, supplying almost 7 million dozen Sunny Queen eggs each year — or over 226,000 eggs per day — to Coles alone.

It is big business and it’s grown nearly 40 per cent in the past 12 months as a result of increased sales of cage-free lines and new pack sizes including 18 packs, says managing director John O’Hara.

Sunny Queen’s two main production sites are in Queensland on the Darling Downs, and in regional Victoria at Strathbogie. A number of contracted farms along the Eastern Seaboard also contribute to Sunny Queen Farms’ production.

Mr O’Hara says Australians love their eggs and consumption over the past decade has been on the increase. AZTEC Synovate figures show more than 122 million dozen eggs were sold in Australian supermarkets during the last 12 months, revealing an increase of more than 4 million dozen on the previous year.

The growth of the Sunny Queen Farms business has reflected growth in egg consumption and a commitment to produce a top quality product in a way that consumers demand.

Sunny Queen Farms, Brisbane, Queensland

“There is a challenge in keeping eggs at a competitive price while maximising the welfare for the birds. We have taken the approach of stepping the consumer through the various production options – barn, cage free, free-range and organic free range.” John O’Hara, Managing Director

John O’Hara, Sunny Queen

Managing Director.

That’s why we are sourcing Aussie eggs from local companies like Sunny Queen Farms.

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SnapshotBusinessSunny Queen Farms

LocationHead office in Brisbane, with eggs sourced from farms along the Eastern Seaboard

OwnersQueensland’s Hall and McLean families

ProductFresh eggs, including cage-free and free-range

Hatching the numbers6.9 million dozenThe number of Sunny Queen branded eggs supplied to Coles in the past year

100%The percentage of Sunny Queen’s eggs supplied for the Coles Brand that are cage-free

320The number of people employed by Sunny Queen Farms

210The number of eggs the average Australian eats each year

But Mr O’Hara says a decade ago the industry was facing significant discussion about what the future for egg production in Australia would look like.

“There was a lot of robust discussion in that period. We had to come up with a solution that made sustainable changes to the caged-farming system.

“Some took up this challenge early and Sunny Queen Farms was in this group. We began to move a proportion of our production to a barn production system, and then free-range and organic.”

In 2009, Sunny Queen looked at the research and realised that the term ‘cage-free’ resonated much more with consumers than the term ‘barn’.

“So we launched a cage-free product, which soon became the number one branded product in the market.”

Mr O’Hara says Sunny Queen’s philosophy fits well with the strategic direction of Coles which in October 2010 announced its intention to move away from the sale of caged eggs.

“We worked with Coles to develop the Coles standard and required protocols for farm assessment. We’re an industry that requires a heavy capital outlay so the shift in production systems has meant significant investment and restructuring of our business but it is a path we’re committed to and reflects the demands of the market.

“But like all systems, it has to be profitable. We have built two new farms, as well as upgraded a number of our existing farms, to facilitate the transition.”

Mr O’Hara says Sunny Queen is proud of its long-standing relationship with Coles — having supplied Coles supermarkets across the country for the past 10 years — and feels confident about approaching Coles with innovative product offerings.

“The relationship is two way. We were the first to go to Coles with a housebrand offering, and when they did a vegetarian barn line, we were able to supply it. It’s about working with them, keeping the communication open.”

It’s this proactive attitude that saw Sunny Queen Farms selected as overall winner of the 2013 Coles Brand Supplier of the Year along with two other major Australian egg producers.

The award recognised the leadership Sunny Queen Farms had shown by making the move with Coles to cage-free production.

While Mr O’Hara says the cost of producing cage-free eggs is higher than that of caged eggs, it is about meeting consumer demands.

“There is a challenge in keeping eggs at a competitive price while maximising the welfare for the birds. We have taken the approach of stepping the consumer through the various production options — barn, cage free, free-range and organic free range.”

The innovation of Sunny Queen Farms does not stop at the farm gate. For the past couple of years, the company has been producing value-added egg products into the health-care and food service sectors.

Pre-cooked and packaged omelettes, poached eggs and other egg breakfasts are a staple in the supermarkets of North America, says Mr O’Hara.

“The Australian market has a way to go. There is enormous potential in these value-added products. It’s a case of ‘watch this space’ here.”

Sunny Queen Farms Brisbane Queensland

q&a with John O’Hara

Q: What has made Sunny Farm’s relationship with Coles a success?

A: A clear communication of issues from both businesses, a commitment to work together to resolve barriers and a shared passion for putting the customer first.

Sunny Queen eggs.

A fruitful partnership

Merve Schiff ke and the late Bryan Stothart were good family friends for forty years — and both had been involved in strawberries for just as long.

Although Bryan died in early 2013, he has left behind a legacy for Taste ‘n See and the business continues to keep his memory alive by following his values and approach.

More than 20 years ago Merve and Bryan moved at the same time to neighbouring properties on Stern Road in Bellmere, near Caboolture 50 kilometres to the north of Brisbane.

“We got together to form Taste ‘n See a long time ago,” says Merve.

“And to work together as long as we did, the relationship must’ve been good. We worked together well... it was easy.”

During that time they saw plenty of changes.

“So much changed during the years — particularly in the number of varieties and how to learn and grow these new varieties,” says Merve.

Merve has also observed the changes and innovations in packaging as well as the tools of the trade, including picking trolleys and irrigation.

“There was a time when it was all overhead irrigation, but we’ve since used a number of methods, notably trickle irrigation.”

Taste ‘n See, Caboolture, Queensland

“The relationship we have with Coles has helped secure the future of our farm, and hopefully it will see the relationship between the families continue for another forty years.” Merve Schiffke, Owner

Merve Schiffke and the late

Bryan Stothart.

That’s why 100% of our fresh strawberries are Aussie grown.

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SnapshotBusinessTaste ‘n See

LocationCaboolture, Queensland

OwnersThe Stothart and Schiff ke families

ProductStrawberries

Crunching the numbers22Number of years ago the Stothart and Schiff ke families moved to their farms to start Taste ‘n See

Over 300Number of people employed by Taste ‘n See during peak season

360,000Number of trays of strawberries Taste ‘n See produces each year

100%The percentage of Taste ‘n See strawberries sold to Coles

1.4 millionThe number of plants across Taste ‘n See’s 20 hectares of strawberries

Despite the introduction of new technologies, Merve says that two factors haven’t changed. No single year is the same as the other and strawberries remain a highly labour intensive business.

A passion to growThe other factor that hasn’t changed is perhaps one of the most important.

“That is a passion to grow a good eating strawberry,” says Merve.

“It’s the passion and the will to do the best you can.”

“Consumers have always wanted a good, sweet strawberry,” says Merve. “And that hasn’t changed, nor is it likely to change.”

If all the years in the trade has taught Merve anything, it’s what the consumer wants.

“We’re focusing on the consumer when we grow, more so than focussing on Coles, ” says Merve.

“I know what I expect as a consumer.”

“I’m very much a consumer-based grower, not an agent-based grower — and that’s why we’ve done so well at Coles, because it’s all about the consumer for them also.”

Chasing the best strawberries“About eight or nine years ago, Coles chased us pretty hard,” says Merve.

“We trialled about 25 per cent of our crop in the fi rst year with them and it worked well. Within two years that fi gure had bumped up to 75-80 per cent.”

Merve says that’s when they started thinking about selling 100 per cent of their strawberries to Coles.

“There were many people advising us against it — not to put all our eggs in one basket.

“In the end we decided if we were to go ahead, it would require quite a commitment and Coles made that commitment — and that’s pretty fantastic.”

Today, Taste ‘n See provides Coles with approximately 350,000 trays of strawberries each year.

“If we could produce 500,000, Coles would take them all.”

The best out of the shedTaste ‘n See has approximately 1.4 million plants growing across 20 hectares.

But for Merve, it is all about the quality of the produce, more than the quantity.

“We strive for high quality and we’ve never gone away from that.”

“What comes out of the shed is the best we can do. Every strawberry we send to Coles is the best we can do.”

“It doesn’t matter what you grow so long as what you grow is good,” says Merve.

“If we can’t master it, we won’t grow it — even if there is money in it. We’re not going to sacrifi ce our consumer base and the confi dence they have in us for a few quick dollars.”

“It’s more than just our name — it’s our business.”

Taste ‘n See Caboolture, Queensland

q&a with Merve Schiff ke

Q: How does partnering with Coles help your business.

A: Our business is all about quality and quality costs money and at the end of the day you need to get paid for what you do. We’ve a good relationship with Coles and they look after us. We have a top quality product they want and importantly they see the value in that.

Taste ‘n See strawberries.

Direct relationship boosts spud business

SnapshotBusinessWickham Farms

LocationKillarney, Bundaberg, Atherton Tablelands, Warwick, Gatton, Ravenshoe, Queensland

OwnerBruce Wickham

ProductPotatoes

Crunching the numbers41Years Wickham Farms has been supplying Coles

50Approximate years since the farm began with “fi ve acres of spuds”

6,000Tonnes of potatoes supplied to Coles by Wickham Farms each year

1,800+Number of hectares Wickham Farms has under cultivation for potatoes

The Wickham family at Killarney in southern Queensland began supplying “fi ve acres of spuds” to Coles in the early 1970s.

At the time, brothers Peter and Angus Wickham were among the fi rst farmers in Australia to supply packed potatoes directly to Coles.

“From day one, we wanted to supply directly and not through a middle man so that’s what we did,” says Bruce Wickham, who is Peter’s son and now Managing Director of Wickham Farms.

“In the fi rst year — I think 1973 — we supplied potatoes in February, March and April from Killarney. But the next year Coles said they were so happy with the potatoes that they wanted us to supply all year round.”

Initially to supply for 12 months of the year, the Wickhams sourced potatoes from other farmers around the state but then they decided to buy more land so they could supply the volume themselves.

Such has been their growth that Wickham Farms now supply 6,000 tonnes of potatoes to Coles each year from their properties not just at Killarney but also at Bundaberg and the Atherton Tablelands.

The requirement to transport the potatoes to their customer also led to growth of another business, with the family developing Wickham Freightlines with a fl eet of trucks.

As well as transporting goods for other companies, Wickham Freightlines ensures all their potatoes are handled with the maximum care from pre-planting, right through to when it reaches the Coles Distribution Centre.

For today’s potato business, Bruce Wickham says ever-increasing production costs, extreme weather conditions and the impact of the mining industry on staff retention and wages are among the biggest challenges facing Wickham Farms.

Wickham Farms, Killarney, Queensland

“I do it because I love it and because I’m passionate about putting Australian-grown potatoes on the supermarket shelf.” Bruce Wickham, Owner

Bruce Wickham, Wickham Farms.

That’s why 100% of our fresh potatoes are Aussie grown.

SnapshotBusinessWickham Farms

Perth

Adelaide

Melbourne

Sydney

Brisbane

Hobart

Darwin

Canberra

He says that in such an environment, the advantages of going direct with a major retailer like Coles become even more important.

“It is so much easier and more effi cient to be able to deal with Coles directly, rather than through a middle-man,” says Bruce.

The Coles contract provides Wickham Farms with another of the key factors critical to its success — volume.

“Labour, fertiliser and seed costs have almost doubled, so you need volume to absorb that,” says Bruce.

“There are a lot easier, cleaner ways to earn a living I’m sure. I do it because I love it and because I’m passionate about putting Australian-grown potatoes on the supermarket shelf.

“The humble spud has had a bite taken out of its place on the dinner table by pasta and rice but I think once people try a good quality brushed spud, they’ll keep coming back for more.”

Bruce said his father, uncle and grandfather started the business 50 years ago when they bought a little bit of ground up near Queen Mary Falls.

“Being a family-owned operation, people have always been an important aspect of our business,” says Bruce.

The Wickham family place high importance on providing as many employment opportunities as possible to the small town of Killarney.

With several long term employees who’ve been with the company from 15 to 40 years, and a focus on providing employment to school leavers, Bruce hopes to ensure there are potato farmers in Queensland for many years to come.

Together, all of these strategies ensure a continual supply of the highest quality potatoes in Australia.

Killarney is classed as a high rainfall area, meaning potatoes can be grown in the highlands without needing irrigation.

“This means we can eff ectively apply best practice water management,” says Bruce.

“The red volcanic soil in which we grow potatoes is extremely nutrient rich, and combined with our crop rotation, means a reduced reliance on fertilisers.”

While always looking to innovate, Wickham Farms employs some proven methods, including rotation cropping, to ensure the quality of their potatoes is among the best you’ll fi nd anywhere in Australia.

“Each paddock is planted for only one year in every six. Aft er that, I sow it back down to pasture and graze a few cattle before coming back to it again in six years’ time,” says Bruce.

Bruce says this is important as potatoes take a lot out of the ground.

“By giving the paddocks a spell it allows the nitrogen to return to the soil and lessens the need for fertilisers.”

Wickham Farms Killarney, Queensland

q&a with Bruce Wickham

Q: How important is Coles’ commitment in running and co-ordinating a number of properties in different locations?

A: When all your costs continue to rise, you need to be able to produce in large volumes to get the efficiencies that make it viable. Going direct with Coles provides us those volumes.

as possible to the small town of Killarney.

Coles Managing Director Ian McLeod, right,

presents a framed picture of the Wickham

family to Bruce Wickham at the Ipswich store.

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