Friday, October 18, 2013

Australian Consumers Want Australian Produced Canned Fruit and Frozen Vegetables

In a stunning announcement, Woolworths has admitted that local consumers prefer /want Australian produced frozen vegetables, and that they will now source most if not all product from Australia, and not China as is the case now for many of the lower price items.

They have announced a major, near $17 million contract with Simplot, to source product from their processing plant in Tasmania, a major and possible business saving contract for the company, as well as the supplier growers, which has been discussing shutting down totally in Australia.

Media reports are focussing on the deal to grow and process in Australia, but is not the real issue that maybe, just maybe, that consumers in Australia are beginning to favour the quality, safety, health status and food biosecurity issues related to poorly supervised and often less appropriately produced product from places such as China, where there have been so many food safety alerts over food products?

And is Woolworths now tapping into that concern?  The media report from late yesterday seemed to have more focus on that aspect, yet today there is maybe a bit less emphasis on that aspect.

This is an important deal for Australian vegetable growers, and especially those in Tasmania.  And for whatever reason, Woolworths also deserve some plaudits to "use Australian".  Now lets see how it develops.

It also follows an earlier deal in which Woolworths switched to Australian canned fruit, rather than overseas product and saw a 40% sales rise in the canned fruit product.

See more here -

and here -

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