One of New Zealand’s biggest tomato producers, Status Produce started exporting five years ago. Today Status’ products receive a premium in Australia and its tomatoes are found on McDonalds’ hamburgers and Subway sandwiches throughout Japan.
A wholly owned subsidiary of Turners and Growers, Status has grown tomato exports to about 1.8 million kilos annually, achieving $4 million in foreign exchange in 2006, says CEO Piers Gascoine.
Status grows its tomatoes on approximately 20 hectares of high-tech glasshouses in the greater Auckland region. It exports with the assistance of the export arm of its parent company, and by managing exported volumes, has been able to consistently get a premium for its tomatoes in New Zealand.
Although international sales are an integral part of Status’ business, 70 per cent of its produce is sold domestically. A key challenge has been not to over promise and under deliver to either its local market or export clients – a lesson Mr Gascoine says it learnt the hard way when it first started exporting.
Australia was selected as its main export market, because of its proximity and the demand for New Zealand tomatoes. It uses agents in every main centre to supply the local wholesale market, which sells into supermarket chains and retailers. The tomatoes are sold under the Status brand in 10kg cartons which were developed specifically for export in consultation with Carter Holt Harvey.
“Status is now widely recognised as the market leader in Australia,” says Tim Jacometti, Tomato Exports Manager, Turners and Growers International. “We achieve this premium based purely on consistently better quality and grading standards. It’s very easy to become production originated when growing a product like tomatoes, but we put our effort into being service orientated and supplying what the market wants.”
Status’ other key export market is Japan, where it has several important competitive advantages, including a strategic relationship with Kagome Ltd, the largest glasshouse grower in the country.
“Japan only allows fresh imports from a small number of countries and has strict guidelines with chemical residues. This closed market access to low cost tomato producers made Japan a perfect market to target, enhanced by the fact that we could offer Kagome exactly what they wanted in our summer period,” explains Mr Jacometti.
“We are committed to providing a variety of tomato that Kagome has selected, enabling them to supply the same variety to their customers for 12 months of the year. This is important in Japan, where the primary objective is standardisation and conformity.
“The stringent chemical residue limitations the Japanese authorities place on tomatoes is a sufficient barrier to entry for our competitors. By managing the crops using IPM (integrated pest management) practices and our world class growing operation we can keep ahead of our competitors.”
Since Status began exporting to Japan five years ago it’s grown the business at over 100 per cent annually through its relationship with Kagome. It’s strengthened this relationship by offering its Japanese client more than just a raw commodity.
“We worked with Carter Holt Harvey to get Kagome’s tomato tray made in New Zealand so that we can pack into the same brand,” says Piers Gascoine. “We have subsequently developed a 10kg carton for airfreight with the same branding. We also add value to Kagome by offering them expert knowledge on growing and marketing their own production.”
He says Status has worked with all of its suppliers so that the supply chain is mutually sustainable and profitable. This includes raw material suppliers as well as Air New Zealand and Kuehne and Nagel for their freight and freight forwarding capabilities.
Growing tomatoes is labour intensive, and during the peak summer season Status can employ up to 300 glasshouse and packhouse workers. “Despite all of the technology and systems and all our knowledge, unless the people who work on the plants do their jobs well, we will fail as an exporter and as a business,” says Mr Gascoine.
“Glasshouse work is typically low paid, dirty and hot and consequently staff turnover is high. To overcome this we’ve developed a new performance-based strategy – from this our workers are able to earn more and are happier, which gives us a more stable, experienced and higher performing workforce.”
Mr Gascoine says horticultural companies have traditionally struggled with forecasting and planning due to external climate conditions. He says Status has put considerable effort and resources into ensuring they meet the demands of their export clients in quality, size, weight and colour.
“The risks are enormous when dealing with perishables and if something doesn’t work out right you can be looking at dumping. But if you do your homework and assess those risks you can overcome them, and it’s very rewarding to be involved in work that is benefiting your company and your country.”
Image: Status Produce staff inside glasshouse.
Contact: Piers GascoineManaging DirectorStatus ProducePhone: +64 9 255 4444Email: piers.gascoine@statusproduce.co.nzWebsite: www.statusproduce.co.nz
Contact: Tim JacomettiTomato Exports ManagerTurners and Growers InternationalPhone: +64 9 573 8984Email: tim.jacometti@turnersandgrowers.comWebsite: www.turnersandgrowers.com
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