Page 12 - Food&Drink March 2022

✷ RISING STAR
For five generations Waltanna Farms has been at the forefront of innovation.
almost one of incredulity; that we are going to pay them for the produce they’ve been putting back into the ground, help them market and sell it, and do it as a partnership,” he says.
THE NEW RIGHT WAY
The impact TUI Foods’ system could have both here and overseas cannot be overstated.
It is providing primary producers with more revenue streams higher up the supply chain; its regenerative agriculture model is protecting and making topsoil more resilient; and showcasing a processing system with almost zero waste and off grid operations.
The vegetable powders that are produced through TUI Foods’ processing are showing some of the highest nutritional levels of any ingredient powder on the market.
Over the next five years, it expects to establish 15 farming JVs across ANZ, and discussions are already underway with overseas markets looking for premium Australian ingredients for the lucrative pharmaceutical and nutraceutical industries.
TUI Foods was founded on a mission to break the current flawed food chain model and build something better.
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✷ GROWING PRAISE LOCAL MP BACKING
range of powdered and juiced ingredients can be produced at the farmgate facility.
There’s also a regenerative agriculture component to the business. To build soil health farmers plant a cover crop between the vegetable cropping, which would then be cut and composted.
Taitoko emphasises that for TUI to be successful, it must be globally competitive to make premium Australian ingredients accessible to everyone.
“A key to success is creating world-class manufacturing at the farm for minimal capital and operational costs.
“Our engineers at RMR Process are sourcing locally made process equipment and designing an energy efficient facility by utilising farm assets for heat recovery, cooling systems and energy generation, lowering both conversion costs and carbon footprint,” Taitoko says.
JOINT VENTURES FOR
THE FUTURE
Taitoko explains that each future farming participant will be set-up as a joint venture (JV).
“The JV buys the crop and cover crop from the farm.
“TUI funds the machinery and fit out and the JV pays an operational fee. The farmer receives rent from the facility and once the product is sold, the profits are split 50:50,” he says.
Cartwright adds, “TUI puts all the machinery and the expertise into the physical factory.
“Then, with our international sales channels, networks, and global brand exposure, we then sell the products from the JV direct to the end brand as an ingredient, with the farmer getting 50 per cent of the on sale.”
TUI looked at the existing flat based model farmers have with a high yield loss and power imbalance, while consumers increasingly want to know where their food comes from.
“We brought it together in an unconventional way ensuring everybody got an equal amount of value through the whole supply chain,” he says.
For Cartwright one of the interesting aspects of the project has been the “too good to be true” response from primary producers.
“It’s very much been one way for a very long time.
“When we meet with producerstheirresponseis
TUI Foods hosted Federal Minister for Trade, Tourism, and Investment Dan Tehan at Waltanna to showcase the potential of the TUI model. Waltanna is also in Tehan’s electorate, Wannon.
Tehan was impressed by the innovative food manufacturing solution, saying it not only addresses supply chain risks, but provides locally produced and competitive products that have low environmental impact.
“This venture is an excellent example of businesses working together along the food supply chain to deliver locally produced goods for consumers as well as creating local jobs and protecting our environment,” Tehan says.
Left to right: Tony Cartwright, Dan Tehan, Peter Taitoko, Mike Nagorcka, James Nagorcka and Buddy.
Crops that benefit the topsoil and bottom line are part of TUI’s model.
12 | Food&Drink business | March 2022 | www.foodanddrinkbusiness.com.au
DANIELLE THOMAS