WA carrot deal a first for Australia

Singapore's largest supermarket group, NTUC FairPrice, plans to source its carrots from WA producers, in the first carrot supply agreement between Australia and the group.

Delegates from NTUC FairPrice Co-operative Ltd visited WA in October to sign memorandums of understanding (MoUs) with two WA companies to supply carrots to Singapore.

Under the agreement, Sumich and Center West Exports will supply container loads of carrots to Singapore weekly for at least two years.

FairPrice chief executive Seah Kian Peng said the arrangement signalled a significant development in doing business with Singapore and could be the forerunner for other similar deals.

"FairPrice has chosen to source vegetables from WA farms because they are able to offer quality vegetables that meet high food safety standards with stabilised prices and supply," he said.

NTUC Fairprice Co-operative Ltd was founded in 1973, with a social mission to moderate the cost of living in Singapore.

It has grown to become Singapore's largest retailer with a network of more than 240 outlets, comprising supermarkets, hypermarkets and convenience stores.

The company's two-pronged approach to stabilise supply and prices involves contract farming and diversification. Contract farming arrangements began in the 1990s, first in Singapore then spreading to Malaysia, Thailand and Indonesia.

WA is FairPrice's first contract farming collaboration outside South East Asia.

"These MoUs reinforce that WA is a reliable supplier of horticulture products," Mr Seah said.

"Such partnership agreements allow FairPrice to further diversify our food sources while the WA industry benefits from sustained demand."

The Department of Agriculture and Food WA has been working closely with FairPrice management since 2009 to explore opportunities for agrifood supply and potential contract farming arrangements with WA fruit and vegetable growers.

DAFWA irrigated agriculture executive director Terry Hill said many countries were becoming increasingly concerned about food security, and WA's ability to provide high quality horticultural produce was attracting wider interest, particularly in the ASEAN region.

Sumich runs the largest single carrot growing and packing enterprise in Australia, producing about 50,000 tonnes a year. It has been dealing with FairPrice for about 30 years, directly and indirectly.

Its efficient operation enables refrigerated containers of fresh carrots to reach the Fremantle container terminal within a couple of hours of lifting from the field.

Center West, owned by Frank and Sheena Tedesco, has more than 400 hectares of carrots under irrigation about 100km north of Perth. FairPrice has been working with Center West through a distributor for 10 years and in 2010 began dealing with them directly.

Year-round production of Nantes-type carrots provides up to 200 tonnes a day.

Rapid cooling after harvest is an important aspect of their successful formula and carrots are packed and ready for despatch within 45 minutes of harvest.

This ensures longer shelf-life required for a wide range of export markets, particularly South East Asia and the Middle East.

Following the MoU signing and property visits, the NTUC executives also met other growers in the South West around Manjimup.

The next important stage of the partnership will involve further work by DAFWA facilitating the finalisation of a MoU between NTUC FairPrice and UTR Produce Pty Ltd for the future supply of broccoli, cauliflower, sweet corn, tomatoes and beans.

UTR Produce is a fresh vegetable broker specialising in South West broccoli and cauliflower.

All of its growers are quality-assured and produce reaches Perth for export within 48 hours of picking. It is anticipated that contracts should be signed in 2012.