SPC Canned Fruit Company is in trouble, like Holdens

 
  awsgc24 Minister for Railways

Location: Sydney
The SPC cannery in Shepparton, Vic, which is apparently the last Australian-owned cannery in Australia, is in trouble due to falling sales.

Farmers are pulling out large numbers of fruit trees, which are no longer needed.

It is a bit like Mitsubishi, Ford, Holden, and perhaps Toyota.

RPers can help by buying more SPC (and IIRC Goulburn Valley) canned fruit, pears, peaches, tomatoes, and mixtures, if they are not already doing so.


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  a6et Minister for Railways

The SPC cannery in Shepparton, Vic, which is apparently the last Australian-owned cannery in Australia, is in trouble due to falling sales.

Farmers are pulling out large numbers of fruit trees, which are no longer needed.

It is a bit like Mitsubishi, Ford, Holden, and perhaps Toyota.

RPers can help by buying more SPC (and IIRC Goulburn Valley) canned fruit, pears, peaches, tomatoes, and mixtures, if they are not already doing so.


The RP Search function failed to find any earlier threads on this topic.
awsgc24
This is interesting especially after SPC signed a contract with Woolworths to supply all the fruit for canning under the Select brand.

I am also uncertain about how Australian SPC is, as there was also recent report linking SPC/Ardmona with an overseas company, when the news broke about them being in trouble.

http://www.theland.com.au/news/agriculture/agribusiness/general-news/spc-rattles-the-can/2682458.aspx?storypage=0

Notice also in the side bar next to the story, that Coles has also signed up to get its canned fruit from SPC/Ardmona.
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
Thanks for starting a thread on this topic, it's something I feel passionately about.

SPC Ardmona are owned by Coca Cola Amatil and have been playing this game for some years; like Holden they were good at getting capital grants to keep going but it finally looks like they're ready now to actually pull the pin (like Holden).  There's over a thousand jobs in the Gouburn Valley going to disappear and (probably) what's left of the orchards.  I haven't heard any reaction so far from Barnaby Joyce but I'm betting the Nats will be putting pressure on their coalition partners to cut them a deal to keep them going - SPC growers and workers are better connected with the coalition than those silly (unionised) Adelaide production workers.

No manufacturing and (apparently) no food production.  Fair enough that it's what a 'level playing field' demands, that if it can't compete it should go.  But what are we going to be left with?  Who will actually have jobs?  In twenty years how are we going to keep any sort of reasonable balance of trade if everything we use and eat is imported?
  a6et Minister for Railways

Thanks for starting a thread on this topic, it's something I feel passionately about.

SPC Ardmona are owned by Coca Cola Amatil and have been playing this game for some years; like Holden they were good at getting capital grants to keep going but it finally looks like they're ready now to actually pull the pin (like Holden).  There's over a thousand jobs in the Gouburn Valley going to disappear and (probably) what's left of the orchards.  I haven't heard any reaction so far from Barnaby Joyce but I'm betting the Nats will be putting pressure on their coalition partners to cut them a deal to keep them going - SPC growers and workers are better connected with the coalition than those silly (unionised) Adelaide production workers.

No manufacturing and (apparently) no food production.  Fair enough that it's what a 'level playing field' demands, that if it can't compete it should go.  But what are we going to be left with?  Who will actually have jobs?  In twenty years how are we going to keep any sort of reasonable balance of trade if everything we use and eat is imported?
don_dunstan
Do not expect much from the Nats on this one at all, the die is set especially with the amount of flack jocky got in preventing the wheat board take over.  Where did the nats cry out with the various other Australian companies that got taken over by U.S & other O/seas interests, then allowed to downsize, change the product, & finally close down & move to NZ to allow imported products to be sold here, that are not allowed direct into Australia.

Australia has been sold off now for that many years its not funny, both land & companies, all they say in the nations interests. The worst part of so many of them is how they are allowed to flaunt the Australian owned logo's on their products, & SPC/Ardmona is a classics case of this.

The sorrow is that the farmers/orchardists in this country & like so many other growers have been doing things tough but also producing products at a quality level as well as the prices were ok, but overseas buyouts have killed off so many its not funny.  Who pushed the aspect of we have to have out of season products 12 months a year, the only way to get them was to import from the Northern Hemisphere, especially the U.S with their hugely federal subsidised rural growing industry?

The problem with it all is that with the demand being orchestrated & regulated from overseas, many of the canneries & other end of line factories have been closed down, owing to the new owners calling costs & wages as the problems, yet the same imported products are produced by workers & growers who get far more subsidies than the Oz ones do.
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
a6et:

I think we're on the same page with this.  My fundamental objection is that nobody in authority seems to care what the 'end game' of all this is; the fact that Holden (for example) were actually competing against rival imports that were in most cases heavily government-subsidised and tariff protected in their country of origin didn't seem to worry people like Hawke and Keating all the way through to Abbott and his off-sider Jockey - who dared Holden to leave the day before they actually pulled the pin (love your nick-name by the way, do you mind if I steal it!).  Holden (like SPC) were not competing on a level playing field, that concept is pure fiction when you look at the heavy subsidies and trade barriers our clever competitors employ - even with the so-called 'free trade agreements' in place.

Added to this was the extremely high AU$, deliberately put into the stratosphere by a currency war between the EU, USA and China - all printing money like there's no tomorrow in an effort to stave off their own recessions.  What was the policy response by both political parties?  Zip.  In the meantime our agriculture and what's left of manufacturing continues to be decimated by dumped imports, high-cost housing and logistical infrastructure progressively falling apart because there's no money being spent on it.

If we don't have any sort of manufacturing or agricultural base in this country then we're certain to fulfil Lee Kuan Yew's prediction of the "White trash of Asia". Anyone who believes that mining will save our a** in the longer term is dreaming - iron ore and natural gas are not going to hold up our GDP, with or without a resources crash.  And the fact is that the majority of Australians can't get by serving lattes and selling over-priced housing to each other forever... it just won't work.
  allan Chief Commissioner

The word that we need to find here is "sustainability". Water is not necessarily an infinite resource, hence the degradation of the Murray River, though competent management can minimise the impacts.

The Californian fruit growing industry is entirely unsustainable, relying on a diminishing water supply and a labor force of immigrants (some illegal) working for, at best, a minimum wage of $US7.50 an hour (that's $US300 for a 40 hour week...). Plus federal subsidies.

The Chinese have over committed their water supply already, and are busy poisoning what is left.

I'm unaware of the situation in South-Eastern Europe and the Middle East with regard to water, but, for the most part, labor is cheap, though water may be scarce.

I should like to know more about horticulture in Southern Africa and South America - the latter has had little impact here, as yet.

Tropical and cool temperate fruit growing is, I suspect, rather more independent of limited water supply. While the former has very inexpensive labor, the latter is highly mechanised, regulated, and approaching sustainability.

The outlook is bleak for stone fruit orchardists world wide, until the least sustainable regions collapse, leaving only regions with good quality management - and for that we will have to pay sustainable prices for tinned fruit, well in excess of what we pay now.

As for who owns the canneries, does it really matter. We all live on the same planet, and if there is a real quid to be made, then new canneries will be established.
  cootanee Chief Commissioner

Location: North of the border!
There's also Simplot (Birds Eye, Edgells) rearranging operations with associated job losses. How long before it finally goes? Rolling Eyes
  a6et Minister for Railways

There's also Simplot (Birds Eye, Edgells) rearranging operations with associated job losses. How long before it finally goes? Rolling Eyes
cootanee
Bids eye is a Swiss company, while Edgell's is a U.S based one. However both have been in Australia for years, I wonder if it was primarily to take over many of the other Australian companies & brands. A lot of well known brands no longer exist as a result of the Multi nationals taking over.
  a6et Minister for Railways

The word that we need to find here is "sustainability". Water is not necessarily an infinite resource, hence the degradation of the Murray River, though competent management can minimise the impacts.

The Californian fruit growing industry is entirely unsustainable, relying on a diminishing water supply and a labor force of immigrants (some illegal) working for, at best, a minimum wage of $US7.50 an hour (that's $US300 for a 40 hour week...). Plus federal subsidies.

The Chinese have over committed their water supply already, and are busy poisoning what is left.

I'm unaware of the situation in South-Eastern Europe and the Middle East with regard to water, but, for the most part, labor is cheap, though water may be scarce.

I should like to know more about horticulture in Southern Africa and South America - the latter has had little impact here, as yet.

Tropical and cool temperate fruit growing is, I suspect, rather more independent of limited water supply. While the former has very inexpensive labor, the latter is highly mechanised, regulated, and approaching sustainability.

The outlook is bleak for stone fruit orchardists world wide, until the least sustainable regions collapse, leaving only regions with good quality management - and for that we will have to pay sustainable prices for tinned fruit, well in excess of what we pay now.

As for who owns the canneries, does it really matter. We all live on the same planet, and if there is a real quid to be made, then new canneries will be established.
allan
While we can look at a lot of this as scare mongering & put down the call for retentions of the various Australian companies, along with production here, & say that we are part of a global village etc, it will not take long to find as many of the O/seas companies who are also looking at our land & what remains of our companies, that they will end up taking the produce from the land they own.

One only has to look at the current auction that is going on to take over control of the Warnambool  Cheese & Butter WCB, with China now making a bid, the reason to secure the future provisions of the products from there.  Its not a matter of just the water & its sustainability, its more to look at producing food for the overseas market, & when overseas companies especially those owned or part owned by their governments, they can control what they want especially if they own property with the water that's needed.

The case point of water is how much is needed to grow cotton, with at least the huge Coby Station in QLD going to overseas interests, rather than grow cotton, they can use the water for food, as well as sheep, which provides both food & wool for clothing that replaces cotton, which also wrecks the land.  As they have rights to the water, they will use it, denying those downstream more than they do now.

Stone fruit can survive easier than you think, many of the newer varieties are more able to sustain dry periods than the older varieties.  

In the end though, with all these companies buying out the businesses just to close them down & import from overseas, once complete, the cheap prices will disappear, the overseas cheap labour will be the same, but the unemployment here will be much greater, with many of them being forced to life under 3rd world conditions, meaning this country will be as bad as so many others were, & will remain, who we used to be able to support during droughts & famine, that is the wonder of equality where two tiers exist, & the world goes back to the feudal system of England, when you swore loyalty to the Lords & their predecessors in order to be given food & subsistence.
  Braddo Deputy Commissioner

Location: Narre Warren
I certainly won't be supporting them as their products are halal certified.
  Jim K Train Controller

Location: Well west of the Great Divide in NSW but not as far as South Australia
Bids eye is a Swiss company, while Edgell's is a U.S based one. However both have been in Australia for years, I wonder if it was primarily to take over many of the other Australian companies & brands. A lot of well known brands no longer exist as a result of the Multi nationals taking over.
a6et
Both Birds Eye (Australia/NZ) are owned by the one company: Simplot,
  allan Chief Commissioner

So how is Halal a problem?
  awsgc24 Minister for Railways

Location: Sydney
I'm unaware of the situation in South-Eastern Europe and the Middle East with regard to water, but, for the most part, labor is cheap, though water may be scarce.
allan

The Saudis have/are phasing out the watering of crops like wheat using non-replaceable ancient ground water.

Better to buy wheat from land they acquire is say Africa.

Could use SG rail to get such wheat from farm to user. Smile
  a6et Minister for Railways

Both Birds Eye (Australia/NZ) are owned by the one company: Simplot,
Jim K
http://www.simplot.com.au/about/introducing-simplot-australia/

Introducing Simplot Australia Simplot Australia is a leading Australian food manufacturer and the home of Australia's favourite food brands. We are a family owned company focused on Bringing Earth's Resources to Life in a sustainable way so that Australians can always eat well.
This desire has seen us build long term partnerships with Australian farmers and our supply chain, invest in our people, and commit to the long term sustainability of earth's natural resources. Underlying all we do is a spirit of innovation.
Our Company had its humble beginnings as a one man farming operation, founded in 1929 by the energetic J.R. (Jack) Simplot in Boise, Idaho. Since then the J.R. Simplot Company has grown to become a multinational agricultural business with annual sales of more than $US 5 billion.
The Simplot Australia story began in 1995 when the J.R. Simplot Company expanded into Australia, acquiring iconic brands like Birds Eye, Leggo's, Chiko and Edgell. Our Company has continued to grow with the addition of brands like John West, Lean Cuisine, and Quorn.
Today our uniquely diverse business includes vegetable, meat and seafood manufacturing operations that supply chilled, frozen and shelf stable products to Australia's major supermarkets and Foodservice customers. We are proud of the investment we are making in the future of Australia through our Australian manufacturing operations.
  David Peters Dr Beeching

Location: "With Hey Boy".
Most of these companies simply buy the rights to a brand name and then get it made and distributed here. Nestles and Cadbury/Schweppes are others like this as well. You might get a surprise at some of the brand names that are owned by companies here. So much for brand loyalty. Arnotts Biscuit's for instance is wholly owned by an American company so they are no longer Australian owned.
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
There's also Simplot (Birds Eye, Edgells) rearranging operations with associated job losses. How long before it finally goes? Rolling Eyes
cootanee
They've already closed a large potato processing plant in Penola this year - there's an interesting article about it here.  That plant was an extremely modern operation and a large employer in the district, very sad.

Apparently they say they can't compete against imported processed potatoes.
  a6et Minister for Railways

Most of these companies simply buy the rights to a brand name and then get it made and distributed here. Nestles and Cadbury/Schweppes are others like this as well. You might get a surprise at some of the brand names that are owned by companies here. So much for brand loyalty. Arnotts Biscuit's for instance is wholly owned by an American company so they are no longer Australian owned.
David Peters
David.

The point is, where does the profits go?  These companies such as Cadbury's/Schweppes & all the others, do not invest in buying the brand name, without taking the primary profits.

The Arnotts case is a classic, when Campbells first approached for the purchase it was for 10%, then it grew to 25%, & what is it now? The family of Arnotts founder when agreeing to the buy out (in part), determined that the company was to stay in primary Australian ownership, & no changes to their product line was to be made, with agreement in place they recommended the share sale to their shareholders.

Nothing really happened for a while, but Campbells started the promotion of made in Australia, exporting to the world, within 15 odd months it was noticed that a fair range of Arnotts cream biscuits & their top brands were coming in being Made In Malaysia. This was stopped but they now are made in other countries & brought here based on the "parallel import" agreements.  

Over time Campbells have also tried to change the biscuit range & recipe not for Australian consumers but for the overseas trade, the agreement was also that all the biscuit range was to keep the recipe's for them, the greatest example was the attempt to change the Ginger Nut biscuits as to the new owners they were too hard, the new type was soft & worse than the other cheap rip offs.  The biggest protest came from consumers & started in Victoria.
  awsgc24 Minister for Railways

Location: Sydney
..
  David Peters Dr Beeching

Location: "With Hey Boy".
What I am getting at is though people my mother included will still buy something because it has a brand name on it, if that same brand also made a generic brand that was exactly the same product with a different label on it she would not buy it. There are thousands like this buying stuff and not realising they are buying it from an overseas company virtually. Our local Pura milk that my mother buys because it is South Australian is actually owned in full by a French Company.

A friend years ago told me he would not shop at Myer or Coles because he did not like them. So I asked him where he bought clothes etc, he replied Target, which was a wholly owned subsidiary of the then Coles-Myer company, but he did not know that. I had to tell him the fact and he did not believe it at all. A couple of days later I proved it to him and he was not very happy.

My mother is like this as well, you will never see a home brand or generic thing in her cupboards because to quote her it is not the same stuff. She buys Tip Top bread but would not buy a home brand one which comes out of the same plant and is identical in all respects except for the plastic bag it is put into. There are at least a dozen or more breads like this here but she buys Tip Top come hell or highwater because it is better quality. I have tried to tell her but she will not listen.

I will buy anything I like and brand be damned ,just as long as it is cheap and in the case of food tastes alright.

As I said check who owns what in the way of brand names in Australia and then work out who you get stuff from when you buy things and it comes down to the very few big companies all the time and most would be owned by oversees companies now!

Arnotts biscuits are not what they used to be either they have all gone to pot since Campbell's took them over, now they are just a brand name, not much more! Try getting the old Bush biscuits of years gone by, not made anymore I got told!
  a6et Minister for Railways

What I am getting at is though people my mother included will still buy something because it has a brand name on it, if that same brand also made a generic brand that was exactly the same product with a different label on it she would not buy it. There are thousands like this buying stuff and not realising they are buying it from an overseas company virtually. Our local Pura milk that my mother buys because it is South Australian is actually owned in full by a French Company.

A friend years ago told me he would not shop at Myer or Coles because he did not like them. So I asked him where he bought clothes etc, he replied Target, which was a wholly owned subsidiary of the then Coles-Myer company, but he did not know that. I had to tell him the fact and he did not believe it at all. A couple of days later I proved it to him and he was not very happy.

My mother is like this as well, you will never see a home brand or generic thing in her cupboards because to quote her it is not the same stuff. She buys Tip Top bread but would not buy a home brand one which comes out of the same plant and is identical in all respects except for the plastic bag it is put into. There are at least a dozen or more breads like this here but she buys Tip Top come hell or highwater because it is better quality. I have tried to tell her but she will not listen.

I will buy anything I like and brand be damned ,just as long as it is cheap and in the case of food tastes alright.

As I said check who owns what in the way of brand names in Australia and then work out who you get stuff from when you buy things and it comes down to the very few big companies all the time and most would be owned by oversees companies now!

Arnotts biscuits are not what they used to be either they have all gone to pot since Campbell's took them over, now they are just a brand name, not much more! Try getting the old Bush biscuits of years gone by, not made anymore I got told!
David Peters
Good post David & true.  I refuse to buy the brand name breads these days, as I do not know who owns them either, gone is the knowledge of who owns who & what, however the worst part of the bread industry is the amount of preservatives that goes into the bread in order to keep it fresh. As a result they have also been able to manipulate things so that they no longer have to have a use by date but, use a best by stamp, the plastic tags also indicate the day of the week it was baked on, which in general the breads are at least 24 hrs old when they hit the supermarket shelves.

I have 2 wonderful bakeries nearby that I buy all my bread from, one costs $3.00 a loaf for 680grams, while the other is $2,50 for a 900 gr loaf, & its the best bread I have tasted in years.

I always check the "Product of" part of the label, & if I do not find it, I put it back, I try to buy Australian owned &/or Australian products where possible but, I draw the line with one particular brand from a well known person who made his fortune on cheap electronic imports from Japan & now advocates the buy Australian to keep jobs here, didn't matter while he made his money, worst part is that his name branded products, are usually more expensive than the same product from the same company that produces his.

I will not buy frozen food from New Zealand either as most of that comes from other countries that use NZ as a back door for the Australian market, likewise the brands that have closed up factories here & gone to NZ.
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
I will not buy frozen food from New Zealand either as most of that comes from other countries that use NZ as a back door for the Australian market, likewise the brands that have closed up factories here & gone to NZ.
a6et
As you allude, NZ has a Free-Trade Agreement with Asian countries that is very lax and allows people to import fruit and veg from China and repack it as 'product of New Zealand'.  If it was actually grown there it will say 'produce of New Zealand'.

Weighing in to the 'who owns what' or 'supermarket private labels' debate, I'm not so much worried about who actually owns the brand you are buying as I am about the quality or origin of the actual product.  For example, I've got a really strong aversion to Chinese foods because the standards are simply not as high or rigorous as ours when it comes to things like organic phosphates, mercury and other toxins.  Those kind of things worry much much more than the ownership of the brand, especially when it comes to food.
  bingley hall Minister for Railways

Location: Last train to Skaville
I certainly won't be supporting them as their products are halal certified.
Braddo
You're funny.

Do you feel the same way about kosher certified foods?
  Braddo Deputy Commissioner

Location: Narre Warren
You're funny.

Do you feel the same way about kosher certified foods?
bingley hall

No, because the proceeds from kosher certification are not used to fund terrorism. I do believe that both halal and kosher methods of killing animals are nothing short of barbaric though, and I would never knowingly buy either of them.
  allan Chief Commissioner

No, because the proceeds from kosher certification are not used to fund terrorism. I do believe that both halal and kosher methods of killing animals are nothing short of barbaric though, and I would never knowingly buy either of them.
Braddo

Hmmm... A vegetarian, no less. Don't go near an Australian butcher or supermarket!
  Groundrelay Chief Commissioner

Location: Surrounded by Trolls!
No, because the proceeds from kosher certification are not used to fund terrorism. I do believe that both halal and kosher methods of killing animals are nothing short of barbaric though, and I would never knowingly buy either of them.
Braddo

Well you may need to start stocking up now. More and more products are sold in both the Middle East and Australia and the manufacturers are not as hung up about it. Cloves of garlic might be what you need Laughing

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