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AU: Supafresh capsicums could become biggest product

Supafresh is a family ran company, based in Perth, that specialises in the cultivation of leaf vegetables, broccoli and aubergines.

50% of the company's baby leaf is sold under their own brand, whilst the remainder is marketed under retailers own labels. With regards to their capsicums, aubergines - both of which are new products for the company -broccoli and baby cos twin packs they supply the supermarkets directly.

Troy Cukrov, Managing Director of the company, says, "We are seeing significant growth through both aspects of our business."

The cope with the growth the company are having to expand their cultivation, including the construction of a new shadehouse.



"Stage 1, which covers 48,000 sqm, is now in full production," Troy says. "Stage 2, which will cover 40,000 sgm, is scheduled for construction next year."

The plans for future growth do not end there. Long term the company plans cultivation further North and South to optimise seasonal production.

"This won't happen immediately," Troy says, "but I would anticipate having Northern and Southern production areas within 5 years."

For the future Troy expects that the newcomer, capsicum, could become the company's biggest product in time.

"Domestically we have some over-production of baby leaf, which is often a problem. The same is true of capsicums, but they are a commodity and sales respond well to advertised sales and we can generally shift surplus, albeit at a reduced margin."

Troy reports favourable conditions domestically overall, saying, "Volumes have been stable and growth steady. We do exist in a marketplace where everyone is price conscious - our customers are price aware, because their customers are. We try to offer the best possible prices, because it is to everyone's advantage and we have experienced no shrinkage in volumes."

It is perhaps just as well because right now the export market can be a tough place. the company does export to several Asian markets, including Singapore, Hong Kong, Kuala Lumpur, but with the exception of Hong Kong, finds it difficult to compete with low cost, local produce.

"We have a long term outlook to export, but it is very difficult to compete with $AUS of $1.02US, but if the exchange rate ever returns to normal ($0.70-$0.80US) then we have a very competitive model."

For more information:
Troy Cukrov
Supafresh
Tel: +61 8 9414 3871
Mob: +61 8 9414 3872
troy@supafresh.com.au
www.supafresh.com.au


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