Gavin`s - Business in Focus Magazine

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Quality and Freshness for
Three Generations
Piñata Farms is one of Australia’s leading growers of fresh tropical fruit. The company is the largest
pineapple grower and ranks third in Australia for the volume of its strawberries and mangoes. Now third
generation pineapple growers, the business was started by the father of current Managing Director Gavin
Scurr. This industry is rife with challenges, but through extensive research and development, Piñata Farms
has not only survived but thrived, with good business management and a solid plan for the future.
Gavin and Stephen Scurr
Managing Director and NQ Operations Manager
-Written by Mark Golombek
G
avin’s father Geoff started farming pineapples in the
late 1960s and the business is presently run by his
two sons – Gavin and Stephen. The company did
not, however, start by plan; as a builder in the 1960s, Gavin’s
grandfather, Jack bought a half dozen blocks of land on which
he built houses. Not being able to sell them at the time, he
swapped two of those blocks for a farm and became a farmer
until the economy improved. More than fifty years later, Piñata
Farms is still here.
“Piñata Farms is focused on
growing quality fruit with great
flavours.”
Piñata Farms is focused on growing quality fruit with great
flavours. The key here is to have consistent volume with consistent flavour. “Fruit that people eat and enjoy and want to
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Lindsay Hewitt
Mango Production Manager
come back and buy again. If you can do that on a consistent
basis, the consumers like it and, more importantly, the retailers
like it. You can build a relationship and grow a business. This
doesn’t happen in five minutes. We have been working on it
for 20 years.”
Gavin explains that the company separates itself from the competition through flavour, taste and consistency of volume and
quality. Rather than having too much or too little fruit at any
one time, the constant supply comes from having different
growing regions and different varieties.
“The company’s constant supply
comes from having different
growing regions and different
varieties.”
Piñata farms grows most of its own produce, however, it also
uses third party growers. These are selected based on an ability
to fit in with a supply chain that may not need them to grow
fruit all year. They can, however, grow an agreed volume and
quality when needed. “We use third party growers to bolster
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our production, but try to grow our own fruit throughout the
year in different regions,” says Gavin. “Due to the scale of production needed, we don’t see ourselves ever growing it all.”
The third party growers the company uses are all family farmers.
“Family farmers are excellent farmers. They are very passionate
when compared to corporate growers who don’t have the
same flexibility or passion for their product. We see third party
family farmers as integral to the ongoing expansion of Piñata.”
The relationship is mutually beneficial. By growing large tracts
itself, Piñata understands production issues. From the third
party grower’s perspective, they appreciate that Piñata understands the challenges of what is involved. “From a marketing
perspective, the customers appreciate that they are actually
dealing with us as growers, rather than a marketing company
that doesn’t have a vested interest in the production side.”
“It’s a challenge for us, is as Australian farmers with our high
costs. We believe that wherever it comes from, it should be
written on the package. If it comes from China, then put China
on it. Don’t hide behind this local and imported bit. Don’t
mislead people or hide behind it!” Consumers want to know,
and do care, yet there are no requirements for companies to
put the relevant information on the fruit that is packaged.
One of the biggest challenges faced involves the cost of production. Australia has some of the highest labour and farmer
costs in the world. These run at about $22 to $27 per hour. That
is considered a standard wage for people who pick and pack
tropical fruits like pineapples and mangoes. Because these
fruits mainly grow in the tropics, it also means that the third
world countries are the main producers and have low labour
costs at a fraction of what is paid out in Australia. These might
be in the area of $2 to $8 per day compared to the Australian
equivalent of approximately $200 per day.
To keep up with the latest trends and stay ahead of competi-
“We will never be an exploitative company. We will give the
people what they deserve for the work they do, and we
should.” Unfortunately, high labour costs makes Australian fruit
and vegetables very expensive on the world scene due to the
amount of labour required. These fruits are still hand harvested
because of their delicate nature. Machines have yet to be developed that can handle them gently enough.
Another challenge has to do with Australian labelling on the
process side of the industry. “The game we play most is in the
fresh side of the business where people buy whole fruit. There is a
requirement whereby the country of origin has to be on the ticket.”
In this way, the consumer is aware of where the fresh fruits and
vegetables are coming from and can decide what to purchase.
For any fruit or vegetable that’s processed as frozen or canned,
however, there is no requirement to state the country of origin
on the packaging. It will simply say: ‘Made from local and
imported ingredients’. Consumers have no idea where processed fruits and vegetables come from.
tion, the research and development department is one of the
most important facets of any company. Piñata has extensive
research and development projects in mangoes and pine-
Gavin Scurr
Managing Director
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apples. For pineapples, there is a breeding program with new
varieties of pineapple. Part of this is within the framework of a
co-investment with the Australian government through Horticulture Innovation Australia which matches investment funds
on genuine production research and development.
“We are looking at trying to understand the fruit fly’s cycle
so that we can grow mangoes with less chemicals. Also with
mangoes, we are looking at ways to increase the market-
able yield and develop a better quality.” Piñata spends about
$400,000 per year on research and development and, as the
business grows, that amount will go up accordingly.
“One of the biggest challenges
faced involves the cost of
production.”
Looking to the future, Piñata wants to expand its pineapple
program. This part of the business has grown by eight per cent
to ten per cent per year, and there are no signs of a slowdown.
Now production is happening in the off season as well. “Rather
than grow when it’s easier to grow, we try to grow on the
shoulder seasons when there is less competition and a gap in
the market. We have been working on doing year-end strawberries as well.” Lulls in strawberry production occur in Oct/
Nov and again in April/May, leading to market opportunities.
At these times, the slower production means that expansion
is something to seek out in order to even out supplies and
produce more consistent produce volume. Piñata is relatively
new in the market to mango production which has been a part
of the business for only twelve years. Mangoes take five years
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Gavin Scurr
Managing Director
“The third party growers the
company uses are all family
farmers.”
to produce and eight to ten years before the trees are in
full production.
Social media is a good way to promote the company and its
product. Piñata is still feeling its way through this and in the last
twelve months a concerted effort has been made. Its website
has also been revamped to make it far more interactive and
updated. There is a recipe section on its web page; the most
popular are contingent upon the season. Consumers in general
are looking for new ideas for things to do with fruit.
Pineapples are incredibly versatile. “You can eat them raw, cook
them, puree them, put them in smoothies, freeze them for ice
blocks, have them for breakfast, lunch and dinner, drink them.
For strawberries, it’s more how you can actually cook with
them. One of the simplest ones that I like is to fry them in a pan
with port or sherry, stir them through to soften up and within
two minutes you can pour them on ice cream. It’s absolutely
fantastic!”
Now excuse me, while I go out to get some strawberries!
Pinata Farms
382 Scurr Road
Wamuran Q 4512
P: +61 7 5497 4295
F: +61 7 5497 4296
www.pinata.com.au
PROJECT SUPPORTERS
www.multisteps.com.au
www.pinnaclehpc.com.au
www.labelpressaustralia.com.au
www.harrisrefrigerated.com.au
Level 11, Suite 11.01, 60 Castlereagh St, Sydney, NSW 2000, Australia
Phone: 02 8412 8170 | ABN 93 143 238 126