Giant pension funds from Canada, Singapore and US private equity are behind super producers who account for half the $9.1 billion fruit and vegetable market. Bigger is better, and Australia is mirroring a global trend.
Already a subscriber?A dozen super growers, some backed by foreign private equity, supply half of Australia’s fresh fruit and vegetables, providing a counter to the power of supermarkets and challenging assumptions about struggling farmers in a $9 billion market.say scale helps to absorb rising input costs and being well capitalised means they can invest in innovative technology. Bigger is better, and Australia is mirroring a global trend.
The latest move was a $1.5 billion buyout of ASX-listed Australian berries, mushrooms, citrus fruit and tomatoes companyIn another big deal, Temasek and PSP Investments paid $500 million for mango, tomato and berries grower Perfection Fresh in March 2022.Coles and Woolworths have been under intense scrutiny over their treatment of fresh produce suppliers, with farmers fronting a Senate inquiry into supermarket prices to complain about harsh treatment.
“Scale and farm size have been growing,” he said, adding costs for fruit and vegetable production were higher than for broadacre farming.Australia’s biggest potato producer Woolworths works with about 350 of the 12,500 fruit and vegetable businesses in Australia, but Mr Banducci was keen to emphasise the scale of the big-dozen produce growers.“There are big suppliers in fruit and veg just like there are in nappies or other parts of our shop. But there is a big difference between big and small,” he told the inquiry while admitting more could be done when working with some of the less sophisticated suppliers.
Mitolo Family Farms – which runs 26 farms in SA and NSW and is Australia’s largest supplier of potatoes – sold a majority stake to a big Canadian super fund in early 2023. Pictured are Darren, Frank and John Mitolo.the managing director of Mitolo Family Farms, supplies Coles and Woolies from its 26 farms and 850 staff in SA and NSW. He said bigger size enables the group to better navigate the ups and downs of the agricultural cycle.
Neither the AFPA, nor any of its members have made a submission to the pricing inquiry, but other growers have many gripes.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why super isn’t supposed to make you super richThere were opportunities in the past to make exceptionally large contributions to tax-advantaged super accounts, but those days are over.
Read more »
Will I lose money if I switch super funds?Switching from a poor performing fund into a better one shouldn’t cost you much, but it’s important to think carefully about why.
Read more »
Superannuation: ASIC, APRA warn super funds on executive scrutinyRegulators and lawyers have warned super funds they need to get their houses in order before tough new executive accountability laws come into force next year.
Read more »
Will I lose money if I switch super funds?Switching from a poor performing fund into a better one shouldn’t cost you much, but it’s important to think carefully about why.
Read more »
Will I lose money if I switch super funds?Switching from a poor performing fund into a better one shouldn’t cost you much, but it’s important to think carefully about why.
Read more »
Super Rugby LIVE: Drua score first win over Waratahs after stunning drop goal in extra-timeThe Waratahs have suffered a heart-breaking 39-36 extra-time loss in Fiji after playmaker No.10 Tane Edmed’s match-winning drop goal attempt hit the post.
Read more »