Value chain business models for the hub

The venture

A traditional horticultural product business adds value to fresh produce by washing and packing and to the preparation of ready-to-cook or ready-to-eat products (levels 1, 2 or 3 processing, respectively).

This venture will take value adding a step further to the production of powders, oils, bioactives, proteins or other specialty ingredients as a level 4 processor.

The core business will be to add value to fresh horticultural produce for premium and speciality ingredients for the food, beverage and nutraceutical industries (B2B).

Ownership and governance models

This proposed venture may be either centralised or decentralised.

Possible ownership arrangements include proprietary, public, co-operative, partnership control, leasing, regional, government or employee.

Further work is needed to refine the decision on company structure, based on a detailed financial model to be prepared in a detailed feasibility study.

A strong governance framework and practices will protect owners’ assets and deliver long-term business sustainability.

Risk assessment

The key areas of risk are associated with the venture’s initiation, financial and business execution risk, and market delivery/expectation.

Risk mitigation strategies have been identified for development during further feasibility stages.

Competitiveness

Key Australian fruit and vegetable export markets are intensely competitive and price-driven. Improving the competitiveness of the hub will require a sectorial approach.

Sectorial competitiveness includes addressing:

• branding
• provenance and traceability
• supply chain control
• veracity of product specifications
• critical scale of production
• industrial R&D strength
• transparency and stability
• access to the Asian market
• support infrastructure.