Outback Spirit Bush Foods - Agrifutures Australia · Outback spirit bush foods – A learning model in marketing and supply chain management Publication No. 07/037 Project No. REC-2A

Outback Spirit Bush Foods A learning model in marketing and supply chain management

A report for the Rural Industries Research and Development Corporation by Lisa Robins January 2007 RIRDC Publication No 06/037 RIRDC Project No REC-2A

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© 2007 Rural Industries Research and Development Corporation. All rights reserved. ISBN 1 74151 300 6 ISSN 1440-6845 Outback spirit bush foods – A learning model in marketing and supply chain management Publication No. 07/037 Project No. REC-2A The information contained in this publication is intended for general use to assist public knowledge and discussion and to help improve the development of sustainable industries. The information should not be relied upon for the purpose of a particular matter. Specialist and/or appropriate legal advice should be obtained before any action or decision is taken on the basis of any material in this document. The Commonwealth of Australia, Rural Industries Research and Development Corporation, the authors or contributors do not assume liability of any kind whatsoever resulting from any person's use or reliance upon the content of this document. This publication is copyright. However, RIRDC encourages wide dissemination of its research, providing the Corporation is clearly acknowledged. For any other enquiries concerning reproduction, contact the Publications Manager on phone 02 6272 3186. Researcher Contact Details Lisa Robins Robins Environmental Consulting Canberra Phone: 02 6230 6779 Fax: 02 6230 6771 Email: [email protected]

RIRDC Contact Details Rural Industries Research and Development Corporation Level 2, 15 National Circuit BARTON ACT 2600 PO Box 4776 KINGSTON ACT 2604 Phone: 02 6272 4819 Fax: 02 6272 5877 Email: [email protected]. Web: http://www.rirdc.gov.au Published in January 2007 Printed on environmentally friendly paper by Canprint

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Foreword The case study presented in this report on bush foods presents a unique, flexible and evolving business model that enables Indigenous and non-indigenous partners to work together and develop their capacities to participate in the Outback Spirit supply chain. A diversity of partners has emerged under the ‘Outback Spirit’ brand of bush foods, which present exciting opportunities for markets both in Australia and abroad. The aim of the project was to document the perspectives of the supply chain partners from the Indigenous suppliers to the manufacturers, retailers and international interests, and to reflect upon the business model and its broader relevance to industry and to wildlife conservancies established under RIRDC’s Sustainable Wildlife Enterprises project specifically. It provides insights on the notion of an authentic Aboriginal bush food supply chain, the importance of capacity building, consumer expectations, issues confronting quality assurance and supply reliability, and approaches to marketing. The findings presented have relevance not just to the supply chain described or to the bush food industry more generally, but provide insights for other emerging industries and established industries in agriculture that wish to develop functional and rewarding business partnerships with Indigenous people and healthy domestic and international markets. This project was funded from RIRDC Core Funds which are provided by the Australian Government. This report, an addition to RIRDC’s diverse range of over 1500 research publications, forms part of our Sustainable Wildlife Enterprises project of the Rangelands and Wildlife Program, which aims to trial the commercial value of wildlife as an incentive to restore on-farm habitat. The learnings from this case study will inform the development of wildlife conservancies under the Sustainable Wildlife Enterprises project. Most of our publications are available for viewing, downloading or purchasing online through our website: • downloads at www.rirdc.gov.au/fullreports/index.html • purchases at www.rirdc.gov.au/eshop Peter O’Brien Managing Director Rural Industries Research and Development Corporation

http://www.rirdc.gov.au/fullreports/index.html

http://www.rirdc.gov.au/eshop

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Acknowledgments The author wishes to acknowledge the significant contributions of many parties to the documentation of the evolving story of the Outback Spirit brand of bush food products. Without the frank and enthusiastic participation of the partners in the supply chain, this work would not have been possible.

I would like to acknowledge the input and drive of Juleigh Robins, whom I first met when facilitating a workshop on markets for native foods at Broken Hill under the auspices of the FATE (Future of Australia’s Threatened Ecosystems) Program in November 2002. Juleigh has contributed many days to facilitate this work, and I thank her for giving so freely of her time. I should also put on the record for the curious that while I share the same surname as Juleigh, we are not knowingly related.

John Collyer of Worn Gundidj provided important insights on the supply chain, as the chair of Indigenous Australian Foods. I had the fortune of being party to his reflections at several meetings, as well as visiting the Worn Gundidj Aboriginal Co-operative office in Warrnambool (Victoria), the Tower Hill Game Reserve and other land rehabilitation sites. John’s input was highly instructive and I greatly appreciate the perspective he provided to the project, as well as his friendly and hospitable manner. I would also like to thank his team at Work Gundidj for welcoming me in their work environment and providing input and interest – special appreciation to Leigh, John, Brad and Rose in the nursery, to Penny and Jennifer in the office and to Max at Tower Hill.

Rob Tranent, District Manager of the Innisfail and Tully Tropical North Queensland TAFE, was the principal contact for organising a meeting with the Mamu Aboriginal Corporation, and their regional partners. I wish to extend my appreciation to the participants at this meeting – the members of the Mamu Aboriginal Corporation (Victor Maund as Deputy Chair, Alf Joyce as Treasurer, together with a further seven members of the Mamu community: see Figure 10), Rob Tranent (TAFE), Colin Taylor and Colin Bunt (Macro Agribusiness Consultants) and Professor Roger Leakey (James Cook University) – for sharing their insights and, especially, their cultural philosophies and aspirations. A special thanks is extended to Victor and Rob for the subsequent tour of the TAFE complex, the Canopy Walk site and associated visitor and interpretation centre site.

Napperby Station lessee and Australian Aboriginal Food Company agent, Janet Chisholm, provided a reality check for some of the practical, on-the-ground aspects of bush food supply operation in the Northern Territory. Her perspective facilitated a more critical analysis of the business model and some of the constraints to its full realisation. Janet’s candid views are welcome and respected, and my thanks are extended to her for this important contribution.

Wayne Street, of Street Ryan & Associates in Gisborne (Victoria), contributed important background information on the members of the supply chain, as well a reflections on their progress and future directions. Chris Mara, Coles Government Affairs Advisor, is a strong advocate for the Outback Spirit brand and his contribution to its success and steady growth has been critical. I wish to register my thanks for his detailed input and support for this project.

Input from Geoff Gordon of Hela Schwarz Australia and Dilip and Binay Shah of Kikapu in the United Kingdom provided important context for understanding the international dimension of the Outback Spirit supply chain. Their views and reflections were an important consideration in the analysis.

I would like to give thanks to Peter Ampt, formerly with The Australian Museum and now with the University of New South Wales as Program Manager for FATE, for introducing me to the new ideas, concepts and people that made this work possible.

Finally, my appreciation is extended to Dr George Wilson, as Program Manager of the Rangelands and Wildlife Program, for providing the opportunity to undertake this stimulating and rewarding research.

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Abbreviations AAFC Australian Aboriginal Food Company ALPA Arnhem Land Progress Association ATSIC Aboriginal and Torres Strait Islander Commission CDEP Community Development Employment Project CIFF Coles Indigenous Food Fund CJP Community Jobs Plan (Program) CRC Cooperative Research Centre HACCP Hazard Analysis Critical Control Point IAF Indigenous Australian Foods IGA Independent Grocers’ Association JCU James Cook University MoU Memorandum of Understanding NPY Ngaanyatjarra-Pitjantjatara-Yankunytjatjara (Women’s Council) RIRDC Rural Industries Research and Development Corporation SWE Sustainable Wildlife Enterprises (project) TAFE Technical and Further Education UK United Kingdom

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Contents Foreword ............................................................................................................................................... iii Acknowledgments................................................................................................................................. iv Abbreviations......................................................................................................................................... v Executive Summary ........................................................................................................................... viii 1. Introduction ....................................................................................................................................... 1

1.1 Background to the project ............................................................................................................. 1 1.2 Project objectives .......................................................................................................................... 2 1.3 Project output ................................................................................................................................ 3

2. Project Methods................................................................................................................................. 4 3. Robins Foods Pty Ltd....................................................................................................................... 7

3.1 Getting started ............................................................................................................................... 7 3.2 A business overview...................................................................................................................... 7 3.3 Product lines and quality assurance............................................................................................... 8 3.4 The consumer .............................................................................................................................. 10 3.5 Summary and future directions ................................................................................................... 10

4. Coles-Myer Ltd................................................................................................................................ 12 4.1 Getting started ............................................................................................................................. 12 4.2 The Coles Indigenous Food Fund ............................................................................................... 12 4.3 Demonstrating commercial viability ........................................................................................... 13 4.4 Supply quality and reliability ...................................................................................................... 14 4.5 The consumer .............................................................................................................................. 14 4.6 Branding and labelling ................................................................................................................ 15 4.7 Marketing strategies .................................................................................................................... 16 4.8 Summary and future directions ................................................................................................... 17

5. Indigenous Australian Foods Ltd .................................................................................................. 19 5.1 Getting started ............................................................................................................................. 19 5.2 A business overview.................................................................................................................... 20 5.3 IAF endorsement ......................................................................................................................... 21 5.4 An overview of the Indigenous IAF members ............................................................................ 23

5.4.1 Australian Aboriginal Food Company ............................................................................ 23 5.4.2 Bawinanga Aboriginal Corporation ................................................................................ 24 5.4.3 Mildura Aboriginal Corporation Ltd (in association with Murdi Paaki Regional

Housing Corporation Ltd) .............................................................................................. 25 5.4.4 Djabugai Tribal Aboriginal Corporation........................................................................ 25 5.4.5 Mamu Aboriginal Corporation........................................................................................ 26 5.4.6 Ngaanyatjarra-Pitjantjatara-Yankunytjatjara Women’s Council..................................... 26 5.4.7 Worn Gundidj Aboriginal Co-operative Ltd .................................................................. 27

5.5 Summary and future directions ................................................................................................... 27 6. Case studies of three IAF members ............................................................................................... 29

6.1 Australian Aboriginal Food Company (in partnership with Wirmbrandt Pty Ltd) ..................... 29 6.1.1 A business overview........................................................................................................ 29 6.1.2 Joining IAF..................................................................................................................... 29 6.1.3 Meeting market demand.................................................................................................. 30 6.1.4 Meeting quality requirements.......................................................................................... 30 6.1.5 Summary and future directions ....................................................................................... 30

6.2 Mamu Aboriginal Corporation Ltd ............................................................................................ 31 6.2.1 A business overview........................................................................................................ 31 6.2.2 Joining IAF...................................................................................................................... 32 6.2.3 Canopy walk.................................................................................................................... 33 6.2.4 Commercial nursery ........................................................................................................ 35 6.2.5 Summary and future directions ....................................................................................... 37

6.3 Worn Gundidj Aboriginal Co-operative Ltd ............................................................................... 38 6.3.1 A business overview........................................................................................................ 38

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6.3.2 Joining IAF...................................................................................................................... 41 6.3.3 Environmental Services.................................................................................................. 41 6.3.4 Tower Hill Services......................................................................................................... 45 6.3.6 Summary and future directions ....................................................................................... 48

7. Hela Schwarz Australia Pty Ltd .................................................................................................... 50 7.1 Getting started ............................................................................................................................. 50 7.2 A business overview.................................................................................................................... 50 7.3 Hela Outback Spirit brand........................................................................................................... 51 7.4 Supply quality and reliability ...................................................................................................... 52 7.5 Marketing strategies and the consumer ....................................................................................... 52 7.6 Summary and future directions ................................................................................................... 52

8. Kikapu Ltd (United Kingdom)....................................................................................................... 54 8.1 Getting started ............................................................................................................................. 54 8.2 A business overview.................................................................................................................... 54 8.3 The Outback Spirit brand ............................................................................................................ 56 8.4 Supply quality and reliability ...................................................................................................... 58 8.5 Marketing strategies and the consumer ....................................................................................... 58 8.6 Summary and future directions ................................................................................................... 59

9. Analysis and Conclusions ............................................................................................................... 60 9.1 The supply chain model .............................................................................................................. 60 9.2 Business diversification and leveraging resources ...................................................................... 60 9.3 Balancing supply and demand..................................................................................................... 62 9.4 Aboriginal authenticity................................................................................................................ 63 9.5 Strategic planning and capacity building .................................................................................... 64 9.6 Quality assurance and supply reliability ..................................................................................... 65 9.7 Marketing strategies and branding .............................................................................................. 65 9.8 Ecological sustainability.............................................................................................................. 66

10. Lessons and key messages for wildlife conservancies................................................................. 68 10.1 The supply chain model ............................................................................................................ 68 10.2 Business diversification and leveraging resources .................................................................... 68 10.3 Balancing supply and demand................................................................................................... 68 10.4 Aboriginal authenticity.............................................................................................................. 69 10.5 Strategic planning and capacity building .................................................................................. 69 10.6 Quality assurance and supply reliability ................................................................................... 69 10.7 Marketing strategies and branding ............................................................................................ 70 10.8 Ecological sustainability............................................................................................................ 71

11. References ...................................................................................................................................... 72 Appendix 1 ........................................................................................................................................... 73

Interview questions – Robins Foods Pty Ltd..................................................................................... 73 Appendix 2 ........................................................................................................................................... 75

Interview questions – Indigenous Australian Foods Ltd................................................................... 75 Appendix 3 ........................................................................................................................................... 76

Interview questions – Coles-Myer Ltd .............................................................................................. 76 Appendix 4 ........................................................................................................................................... 78

Interview questions – Indigenous IAF members............................................................................... 78 Appendix 5 ........................................................................................................................................... 79

Interview questions – Hela Schwarz Australia Pty Ltd..................................................................... 79 Appendix 6 ........................................................................................................................................... 80

Interview questions – Kikapu Ltd ..................................................................................................... 80

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Executive Summary What the report is about This report focuses on an operational business and community development model, the centre-piece of which is the not-for-profit Indigenous Australian Foods Ltd (IAF), a procurer of bush foods, and its associated Outback Spirit brand for retail and food services markets. IAF comprises seven Aboriginal owned organisations (embracing a wide range of Aboriginal communities, clan groups, and homelands) generally spanning different geographical and climatic zones. It is envisaged that each organisation will grow, collect, add value and/or procure native foods for sale through IAF and directly to local markets. Currently, bush foods comprise only a small part of the businesses of these member organisations. While committed to developing bush food enterprises, capacity of the member organisations to participate has limitations. Background Robins Foods is the only constituted non-Aboriginal IAF member and operates a rapidly expanding bush foods business selling to domestic and international markets. IAF, including Robins Foods, has a strategy of encouraging other businesses to work under the Outback Spirit brand, with the aim of making it the pre-eminent brand for Australian native food products. Methods and results This report documents the perspectives of the many partners in the Outback Spirit supply chain and identifies their future directions. A profile of the following partners is presented as separate chapters and has been verified by the informants as an accurate portrayal of their views: • Robins Foods Pty Ltd as the primary manufacturer • Indigenous Australian Foods Ltd (IAF) as the cental procuring and endorsement institution • Coles-Myer Ltd as the major retailer in Australia and manager of the Indigenous Food Fund • Three of the seven Indigenous members of IAF:

Australian Aboriginal Food Company near Alice Springs, Northern Territory Mamu Aboriginal Corporation in Innisfail, Queensland Worn Gundidj Aboriginal Co-operative in Warrnambool, Victoria

• Hela Schwarz Australia Pty Ltd as the Melbourne-based manufacturer of Hela Outback Spirit brand for export to its parent company, Hela International Ltd, in Germany, for distribution throughout Europe, Asia and the USA

• Kikapu Ltd as the London-based agent for Robins Foods and Outback Spirit Conclusions The analysis and conclusions drawn from the profiles represent the perspective of the author, and have been reviewed by all partner organisations. This investigation indicates that the Outback Spirit supply chain is a unique business model, well suited to developing working partnerships with Indigenous and non-indigenous people. At present, the business model itself is part reality and part aspiration, but has the institutional structure and partnership foundations needed to become fully operational over time. The flexibility in the business approach allows partners to participate at a level that matches their capacity and enables their involvement to evolve through experiential learning and in changing circumstances. The model embodies the needs of an emerging industry, where a step-by-step process is necessary and where markets are uncertain and risk-taking and compromise is necessary. While bush foods is not necessarily the main activity of many of the supply chain members, the foray of each organisation into bush foods is often supported by the successes of their other business streams, underpinned by their commitment to the ethical philosophy of the supply chain.

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The Outback Spirit partnership model presents some innovative opportunities to supply product into increasingly demand-driven domestic and international markets. However, for the supply chain to succeed in the long-term there are some substantive strategic planning, capacity building and marketing issues that need urgent attention, and some compelling reasons presented for public and philanthropic support. Lessons and key messages on supply chain development, management and marketing are provided to inform other bush food business enterprises and industry development more generally.

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1. Introduction 1.1 Background to the project This project was initiated to support the development of supply chain management and marketing strategies under RIRDC’s Sustainable Wildlife Enterprises (SWE) project within the Rangelands and Wildlife Program. The SWE is establishing landholder driven trials on the commercial value of wildlife as an incentive to restore on-farm habitat. It is based on the premise that commercial utilisation of native plants and animals, including wildlife-based tourism, could act as an incentive for biodiversity conservation and landscape rehabilitation. In realising the value of the wildlife on their land, it is suggested that land managers would have a vested interest in protecting and restoring degraded habitats. The Outback Spirit bush foods case study presented in this report is an innovative partnership model with substantive opportunities to supply product into expanding domestic and international markets for native foods. ‘Outback Spirit’ is the brand name of a line of Australian bush food products. Its supply chain provides a learning model from which to inform other businesses in the bush foods industry and other emerging and established agricultural industries more generally. The partnerships developed to supply Outback Spirit products unite Indigenous and non-indigenous businesses, small and large enterprises, bush food and non-bush food industries and domestic and international markets.

Figure 1 The logo of the Outback Spirit brand The centre-piece of the Outback Spirit supply chain is the not-for-profit procurement enterprise, Indigenous Australian Foods (IAF) Ltd (comprising seven Aboriginal owned organisations, embracing a wide range of Aboriginal communities, clan groups, and homelands), and Robins Foods Pty Ltd (the only constituted non-Aboriginal member). The Aboriginal member organisations generally span different geographical and climatic zones, and it is envisaged that each organisation will grow, collect and/or procure native foods for sale through IAF and directly to local and regional markets. IAF and Robins Foods aim to make Outback Spirit the pre-eminent brand for Australian native food products. The perspectives of the major players in the Outback Spirit supply chain are described in this report, including Robins Foods Pty Ltd, Coles-Myer Ltd and the associated Coles Indigenous Food Fund, and the not-for-profit Indigenous Australian Foods Ltd (IAF). More detailed case studies are documented on three Indigenous members of IAF – Worn Gundidj Aboriginal Co-operative Ltd (Warrnambool, Victoria), Mamu Aboriginal Corporation Ltd (Innisfail, Queensland) and Australian Aboriginal Food Company Ltd (near Alice Springs, Northern Territory). The extension of Outback Spirit internationally is investigated through interviews with the London-based agent Kikapu Ltd and Melbourne-based Hela Schwarz Australia Pty Ltd (manufacturer of Hela Outback Spirit brand and exporters to Europe, Asia

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and the USA through parent company Hela International Ltd based in Hamburg, Germany). Chapter 9 provides an analysis of these partner profiles and draws together some of the learnings from the business model, with particular emphasis on the approach to supply chain development, management and marketing. Lessons and key messages for wildlife conservancies and industries more generally are provided in the final chapter. A RIRDC report by Hele (2003) notes that ‘developing and communicating information on industry ‘success stories’… could help lift industry credibility and the level of research interest and activity’. It compiles a bibliography of around 150 references on native foods and highlights the absence of documented industry ‘success stories’. This report presents such as case study through examining the Outback Spirit bush foods supply chain model. A second case study on the marketing of native game meats is reported separately as part of the same project – ‘Native Game Meats: A case study of the Canberra region retail market’ (Robins 2004). 1.2 Project objectives The following two project objectives stated in the contract schedule have been fully satisfied: • To inform the development and operation of the marketing of sustainable wildlife enterprise

products The Outback Spirit case study presented in this report provides a wealth of material to inform the marketing development and operation of the Sustainable Wildlife Enterprises project. Importantly, the marketing of the Outback Spirit brand is intrinsically connected to the business model itself. The brand’s credibility rests in part on the authenticity of the product as ‘Aboriginal’, as embodied in the supply chain structure and approaches to governance. The marketing strategy also hinges on the products Australianness, as well as on new tastes and flavours and the perception of a ‘clean and green’ industry. Forty-six specific lessons and key messages for wildlife conservancies are documented in Chapter 10, supported by the individual partner profiles (Chapters 3-8) and a theme-based analysis of the business (Chapter 9) which provide insights on domestic and international market opportunities, specific marketing approaches and aspects of product branding.

• To outline processes for managing products down the production chain so as to maintain

quality and reliability of supply This project has undertaken extensive interview, verification and review processes with the following members of the Outback Spirit supply chain, with specific reference to quality assurance and supply reliability: • Robins Foods Pty Ltd as the primary manufacturer • Indigenous Australian Foods Ltd (IAF) as the procurer • Coles-Myer Ltd as the major retailer in Australia and manager of the Coles Indigenous Food Fund • Three of the seven Indigenous members of IAF:

o Worn Gundidj Aboriginal Co-operative in Warrnambool, Victoria o Mamu in Innisfail, Queensland o Australian Aboriginal Food Company* near Alice Spring, Northern Territory

• Hela Schwarz Australia Pty Ltd as the Melbourne-based manufacturer of Hela Outback Spirit products for export to its parent company, Hela International Ltd, in Germany, for distribution throughout Europe, Asia and the USA

*Profiles of the Australian Aboriginal Food Company (by telephone) and Kikapu Ltd (face-to-face in

London) were undertaken in addition to the contractual requirements

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• Kikapu Ltd* as the London-based agent for Robins Foods and Outback Spirit The individual partner profiles, together with the process of information analysis and drawing conclusions and specific lessons for wildlife conservancies, has highlighted a range of issues with respect to quality assurance and supply reliability and processes needed to manage these. Strengths and weaknesses of the supply chain, and its ability to maintain quality and reliability of supply from the perspective of each supply chain member are specifically documented, with future directions elicited for the short and long-term. Overarching learnings are drawn together in the concluding chapters. 1.3 Project output The contract for this project requires one bound hardcopy of the project final report in the RIRDC format, and an electronic file submitted by email. The report on the native game meats component of this project has been prepared as a separate report from the Outback Spirit component, as the readership for each of the case studies is not necessarily the same.

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2. Project Methods The approach to investigating the Outback Spirit business model involved a 13-step process. These steps and any related assumptions are described in the sections that follow. Step 1 – Identifying key partners for interview The first stage in the process of documenting the Outback Spirit supply chain as a case study was to identify the diversity of partner groups involved and establish the critical partners for interviewing. This was largely achieved through an initial telephone discussion with Juleigh Robins of Robins Foods Pty Ltd. Earlier contact was made with Juleigh in the process of developing the project proposal to establish her commitment to participating in the project, as well as that of the business partners in the Outback Spirit supply chain. This was supplemented by reviewing the Robins Foods web-site (www.robins.net.au) and downloading some supporting information. Step 2 – Undertaking a factory visit and interview with Robins Foods Pty Ltd A face-to-face interview was held with Juleigh Robins on-site at the Robins Foods office and factory in Braeside (Victoria) on 5 August 2004. This opportunity was used to become familiar with the Outback Spirit product range and the supply chain partners. The interview questions for this meeting are provided at Appendix 1. Step 3 – Undertaking interviews with Indigenous Australian Foods Ltd The face-to-face meeting with Juleigh Robins was timed to co-incide with a face-to-face meeting of key members of Indigenous Australian Foods Ltd (IAF). The participants in the meeting where Juleigh Robins, John Collyer (IAF chair and manager of Worn Gundidj Aboriginal Co-operative Ltd) and his Personal Assistant, Wayne Street (supply chain manager and Executive Chairman of Street Ryan and Associates Pty Ltd, business and management consultants) and Peter Dalton (professional fund raiser). This opportunity was used to meet some of the key partners in the supply chain and become familiar with operations and priorities of the business. Informal follow up discussions were held after the meeting with IAF chair, John Collyer, and his Personal Assistant. The interview questions for this meeting are provided at Appendix 2. Step 4 – Undertaking an interview with Coles-Myer Ltd A meeting was held at the Coles-Myer offices in Melbourne on 27 August 2003 with Government Advisor, Chris Mara. The interview focused on the role of Coles-Myer in establishing and promoting the Outback Spirit brand, the operations of the Coles Indigenous Food Fund and future priorities and prospects. The interview questions for this meeting are provided at Appendix 3. Step 5 – Participating in an IAF strategic planning workshop A strategic planning meeting was convened at the offices of Street Ryan & Associates in Gisborne (Victoria) on 30 August 2004, comprising Juleigh Robins (Robins Foods), Wayne Street (IAF supply chain manager) and John Collyer (IAF Chair). The purpose of this meeting was to discuss the supply chain and capacity building needs of the member constituents of IAF and funding opportunities to meet these needs. The key value in attending this meeting from the perspective of this project was to develop a brief profile of each of the IAF members, as the contract for this work required detailed description of only two of the seven members. These profiles are outlined in section 5.4 of this report ‘An overview of IAF Indigenous members’.

http://www.robins.net.au

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Step 6 – Conducting a site visit and undertaking interviews with Worn Gundidj Co-operative Ltd The project terms of reference required a face-to-face interview and development of a detailed profile of two Indigenous members of IAF. In consultation with Juleigh Robins (Robins Foods) and John Collyer (IAF Chair) it was decided that Worn Gundidj Aboriginal Co-operative (Warrnambool, Victoria) and either Australian Aboriginal Food Company (three hours from Alice Springs, Northern Territory) or Mamu Aboriginal Corporation (Innisfail, Queensland) could fulfil this purpose. Worn Gundidj was primarily selected on the basis of its strong horticultural base. A full-day meeting with Worn Gundidj was scheduled for 31 August following the IAF strategic planning meeting in Gisborne, but was delayed by half a day due to unforseen circumstances. Interviews took place with John Collyer and nursery staff on the afternoon of 31 August, together with a tour of the office complex, including the Product Creation workshop. Site visits to Tower Hill Game Reserve, a landfill rehabilitation site and a riparian restoration site and a prospective bush food cultivation site by the Merri River took place on 1 September. The general interview questions for this meeting and for subsequent interviews with the Mamu Aboriginal Corporation and the Australian Aboriginal Food Company are provided at Appendix 4. Step 7 – Conducting a site visit and undertaking interviews with the Mamu Aboriginal Corporation Ltd, Tropical North Queensland TAFE, James Cook University and Macro Agribusiness Consultants Negotiations to convene a meeting with the Mamu Aboriginal Corporation Ltd were pursued simultaneously with investigating opportunities to visit Napperby Station (Australian Aboriginal Food Company) near Alice Springs. Liaison with Rob Tranent (District Manager – Innisfail and Tully Tropical North Queensland TAFE) to convene a meeting with the Corporation and its partners (including James Cook University) were successful. The meeting was convened on 8 September 2004 at the Innisfail TAFE. Participants in the meeting included members of the Mamu Aboriginal Corporation (Victor Maund as Deputy Chair, Alf Joyce as Treasurer, together with a further seven members of the Mamu community), Rob Tranent (TAFE), Colin Taylor and Colin Bunt (Macro Agribusiness Consultants) and Professor Roger Leakey (James Cook University). The meeting was followed by site visits of the TAFE complex, the Canopy Walk site and associated visitor and interpretation centre site. The general interview questions for this meeting are provided at Appendix 4. Step 8 – Conducting a telephone interview with the Australian Aboriginal Food Company Ltd Preference for a telephone interview rather than a site visit was expressed by Janet Chisholm, Napperby Station lessee and agent for and part-owner of Australian Aboriginal Food Company Ltd. While the project terms of reference required detailed profiles of only two of the seven Indigenous partners in the Outback Spirit supply chain, the perspective of one of the members from Central Australia was considered worth developing. The Australian Aboriginal Food Company has been a major supplier of Bush Tomatoes and Wattleseed to the Outback Spirit supply chain and the collection is by wild harvest. The other two case studies of Worn Gundidj and Mamu represent potential suppliers rather than current bush food producers. The interview took place on 6 September 2004. The general interview questions for this meeting are provided at Appendix 4. Step 9 – Conducting a telephone interview with Hela Schwarz Australia Pty Ltd A preliminary discussion was conducted with Geoff Gordon of Hela Schwarz Australia Pty Ltd on the 12th of August to organise a face-to-face meeting to co-incide with the meeting arranged with Coles-Myer Ltd. However, overseas travel commitments precluded a face-to-face meeting, so a telephone meeting was arranged for after this time in early September. A telephone discussion was conducted on

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the 10th of September. The focus of this discussion was on the role of Hela Schwarz in extending the Outback Spirit brand internationally through their German-based parent company Hela International Ltd. The interview questions for this discussion are provided at Appendix 5. Step 10 – Verifying the partner profiles The draft Final Report was developed progressively, and each interview was written up immediately after the event in order to capture the full richness of the dialogue. The discussion with each partner has been developed as a separate chapter or profile in this report. This step entailed undertaking a specific verification of each partner profile by the interviewee(s) prior to its exposure to any other member of the supply chain or other person. In this way, the interviewee(s) had the confidence to speak freely and frankly, while having the assurance that their opinion would be accurately portrayed and that any information that they did not wish to make publicly available, particularly commercially sensitive information, could be edited. During this process Hela Schwarz Australia indicated the need for some minor amendments, but these were not received prior to distributing the draft report to the supply chain partners or finalising the report for submission. The perspective of the author is borne out in the final two chapters, based on the verified profiles presented in earlier in the report. Step 11 – Providing a draft final report for review by partners Step 11 entailed providing the complete draft Final Report, with the exception of the outcome of the interview with London-based Kikapu Ltd on 2 November 2004, to all interviewees as a commercial-in-confidence (not for distribution) draft report. This approach was to gain feedback from the group on the research as a whole, and on the analysis, conclusions and lessons drawn by the author from the process. Eleven copies of the draft Final Report was sent by Express Post on 23 September for consideration. A period of 4 weeks was provided for review and comment, with a self-addressed Express Post envelope enclosed to facilitate return of annotated reports. An extension was provided until 17 November for further responses by email. At least two reminders were sent by email, two weeks and one week before the due date, with follow up emails after the due date to non-respondents. All partners responded, with the exception of Hela Schwarz Australia, providing refinements and confirming their satisfaction with the report. Step 12 – Undertaking an interview with Kikapu Ltd (London) A meeting was opportunistically held with Kikapu Ltd in London, co-inciding with travel to the United Kingdom by the author on other business. Juleigh Robins was visiting business partners in Europe in October to develop markets for Outback Spirit. Facilitated by Juleigh Robins, a meeting was convened with Kikapu Ltd, the London-based agent for Outback Spirit and Robins Foods, on 2 November 2004. This meeting shed light on the current and projected interest in Australian bush foods and the Outback Spirit brand specifically across the European market, and issues of interest to these consumers. Draft text was provided to Kikapu for verification the day following the meeting. The final version was confirmed on 17 November. The interview questions for this discussion are provided at Appendix 6. Step 13 – Amending and submitting the final report Comments from reviewers were taken into account and the draft Final Report was amended and submitted to RIRDC on 22 November 2004 as final.

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3. Robins Foods Pty Ltd 3.1 Getting started Robins Foods are early pioneers of the bush food industry. In the late 1980s Juleigh and Ian Robins operated a specialty food store in Toorak, Melbourne, making and selling gourmet products, including their hand made jams and sauces. They decided to produce something authentically Australian on the realisation that the ingredients they cooked with were all of international origin. As food professionals, they were disconcerted at their inability to readily identify Australian native foods and so started to undertake their own research. They contacted Dr Beth Gott, a bioethnologist from Monash University, who introduced them to their first taste of Australian bush food. They found the flavours exciting and unique, and were surprised that a bush foods industry was not well established in Australia. Developing the bush foods industry has been a gradual process. The barriers have been significant, with new and uncommericalised plants, unestablished markets and a limited body of experience from which to draw on. The Robins’ approached the development of their business from the perspective of chefs, with an enthusiasm for the potential of the unique and adaptable flavours of native foods, but with little knowledge of some of the issues they would confront, such as environmental management, Indigenous equity and supply chain issues. It is only in the last six years that they have made significant gains in developing the business. 3.2 A business overview Robins Foods is a small business operation based in Melbourne. It specialises in bush foods and has some minor and decreasing lines in non-native products. The foods encompass the broad categories of (1) chutneys, relishes and salsa, (2) dressings, (3) savoury sauces, (4) dessert sauces (5) jams and conserves, (6) fruits and (7) dried bush foods/herbs. Its current turnover is in excess of $1m per annum and good growth is expected. The business produces product for the retail and food services markets, both domestically and internationally. Robins Foods currently has five full-time and three part-time employees, with about six casual staff regularly employed on an ‘as required’ basis. Juleigh Robins manages the business, marketing and supply chain aspects of the company, while Ian Robins manages product development and production. Chris Wheelhouse is engaged to coordinate national sales in the food services sector and gift markets. The remaining two full-time employees are engaged in the kitchen on product development. The duties of part-time employees comprise office administration (3 days/week), book-keeping and accounting (2 days/week) and despatch/delivery and miscellaneous activities (2 days/week). Casual employees may work in despatch, kitchen duties or wherever the labour requirement demands. In the last 18 months, Robins Foods has outsourced the manufacturing of its retail products to Jensen’s Choice Foods, a larger specialist company also based in Melbourne. National distribution for Robins Foods is managed by Menora Foods, with at least one distributor in each State. Product is imported into the United Kingdom and Europe by Kikapu Ltd based in London (discussed in Chapter 8).

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Figure 2 The Robins Foods logo 3.3 Product lines and quality assurance Robins Foods has four brands in the retail product line – Outback Spirit (shown in Table 1), Robins Bush Foods, Hot Oz, Robins Dessert Sauces – together with the food services line. The company’s strategy is to move products from the Robins Bush Foods and Hot Oz brands into the lead Outback Spirit brand. Food service products are now all branded under the Outback Spirit label in line with the company’s strategy to make this brand the prime focus for growth. Outback Spirit food service products are drawn from all retail brands but sold in bulk quantities (2.5 litres or 2.5 kilograms or, in the case of herbs, 1 kilogram) to the hospitality, restaurant and hotel industries. The retail line is packaged in smaller quantities (eg 250 ml or 285 gm) for supermarkets, gifts and the like. Very few of these products are non-native foods, such as the Robins Dessert Sauces line. All Robins Foods products are sold in both domestic and international markets. The ratio of domestic to international sales is currently around 80:20, of which 60 percent of the total is the Outback Spirit brand. Table 1 Product lines produced by Outback Spirit Chutneys Bush Tomato Chutney Dressings Lemon Myrtle Dressing Davidson’s Plum Chutney Wild Lime Dressing Wild Rosella Chutney Bush Tomato and Balsamic

Dressing Lemon Aspen and Raspberry Relish Dried Products Mountain Pepper Wild Lime Pickle Mountain Pepper Berries Mango and Native Mint Salsa Mountain Pepper Herb Blend Wild Rosella Chilli Salsa Native Mint Tomato Relish Wild Herb Salt Savoury Sauces

Wild Lime Chilli and Ginger Sauce Outback Rub

Smokey BBQ Sauce Lemon Myrtle Three C’s Sauces Outback Herb Blend Lemon Myrtle Chilli Sauce Rainforest Herb Blend Green Devil Wasabi sauce (with

mountain pepper) Bush Dukkah

Bush Tomato Ketchup Wattleseed Kakadu Plum and Chilli Sauce Native Aniseed Jams Wild Rosella Jam Fruits Davidson’s Plum Kakadu Plum Jelly Lemon Aspen Berries Quandong Jam Wild Limes Blackberry Jam Bush Tomatoes Raspberry Jam Wild Rosella Flowers Kakadu Plums

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Robins Foods sources 100% of its native food product through Indigenous Australian Foods Ltd (IAF) (discussed in Chapter 5). The non-native food component of the products produced by Robins Foods (eg. sugar, vinegar, oil, tomatoes, onions, apples, plums, garlic, spices, salt) is supplied from other sources. Only natural ingredients are used in all products and Robins Foods requires a signed statement from all businesses that no genetically modified foods are supplied. Organic accreditation for some product supplied through IAF is being considered; however, the inclusion of certified organic foods is difficult as the ‘price points’ that must be satisfied for successful marketing through Coles and other supermarkets mean that operating margins are prohibitively small. Robins Foods operates under the Hazard Analysis Critical Control Point (HACCP) production system. HACCP is an internationally-accepted food safety system with independent auditing, which is recognised by Coles Supermarkets, airlines and others. The system ensures that the product is food safe. Robins Foods has developed an associated quality policy to ensure that the food is not only food safe but also meets quality standards. Texture and appearance are examples of quality parameters. Ian Robins works with Jensen’s Foods, their retail manufacturer, to assure the maintenance of the quality of Robins Foods products. A strong relationship has been developed with this company and a price has been established on the basis of an understanding of an ongoing and growing business. Robins Foods indicated that, to date, there have been no significant problems relating to the quality of supply for the Outback Spirit brand.

Figure 3 Robins Food product development kitchen in Braeside, Victoria

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3.4 The consumer The main clientele of Robins Foods products in the food services range are 3-5 star hotels and functions centres. In retail, Robins Foods fall under the mainstream category, competing against brands like Heinz Tomato Sauce. This is confirmed by feedback from Coles-Myer, which characterises the consumer as ‘mainstream shoppers’. Higher sales are recorded in Coles Supermarkets located in inner cities and more affluent suburbs (such as Newfarm in Brisbane). Robins Foods research indicates that the consumer is looking for something different and something natural, with the ‘green’ aspects of the product offering some appeal. The Aboriginality of the product does not yet rank highly overall, but is a factor in the purchasing decision. The company hopes to attract increased retail uptake with further awareness by the consumer of the ethical nature of the supply chain underpinning the brand, through its ongoing promotional activities. Each State exhibits particular purchasing characteristics, with greater interest in the Northern Territory and Queensland from eco-tourism-focused enterprises. Some other States are more conservative markets, with Tomato Ketchup Sauce the strongest seller in Victoria where the focus is more on mediterranean cuisine. Feedback from customers is received through attending face-to-face promotional activities, especially public food shows. Menora Foods also contribute to promotional activities. Phone calls and emails are also regularly received from consumers. 3.5 Summary and future directions Outback Spirit is the flagship brand of Robins Foods, and they have a strategy of actively building it as a mainstream brand. The business has a vision of making Outback Spirit the pre-eminent brand for Australian native food products, recognised here and abroad. Robins Foods recognises that a critical mass of Outback Spirit product needs to be established in the marketplace to assure business success for the supply chain as a whole and that, as a small business, it is a limiting factor in achieving this. The strategy approach is therefore to encourage other businesses to work under the same brand through a licensing agreement, where IAF owns the endorsement rights (discussed in Chapter 5) and Robins Foods owns the trademark itself. The business strategy of Robins Foods is to gradually phase out its other product lines and bring the bulk of its business under the umbrella ‘Outback Spirit’ label. Currently, Outback Spirit products comprise about 50-60% of the business, including food services, and is increasing. A process of progressively re-branding products as ‘Outback Spirit’ is underway. Some brands may be retained for the gift market, which requires different products than can be obtained from supermarkets. It is estimated that this may comprise ten percent of the business. There is also a conscious strategy of maintaining diversity and not vesting all business interests in supermarket lines. The aim is to keep a balance between the export, food service, retail and gift hamper (as a sub-market to retail) components of the business. The strength of Robins Foods is in the product development, marketing the brand and developing the supply chain. Much of the manufacturing is now outsourced, in recognition that this is a secondary issue and not the strength of a business the size of Robins Foods. Robins Foods has great optimism for the future of their business, which is now more strongly linked to the success of the Outback Spirit brand, IAF and its domestic and international partners in the supply chain.

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Figure 4 Robins Foods aims to bring 90% of its business under the Outback Spirit label

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4. Coles-Myer Ltd 4.1 Getting started An inquiry on food pricing in the Northern Territory in 1999 was the impetus for Coles-Myer’s interest in bush foods and Indigenous community development, leading to its involvement in Outback Spirit. While Coles-Myer was exonerated from allegations of unfair pricing, the inquiry highlighted food pricing issues for remote Indigenous communities and their business development needs. The Managing Director of Coles, Alan Williams, decided to investigate opportunities for supporting Indigenous community development. Two proposals were put forward, both of which were supported. The first was to train retail staff in remote community stores with the Arnhem Land Progress Association (ALPA), which operates 13 such stores in the top end. ALPA has trained over 60 staff in courses designed by the Coles-Myer Institute, with six managers completing a Diploma in retail. The second idea was to develop a market for bush food products. Chris Mara (Coles Government Affairs Advisor) brokered a partnership with three Coles suppliers to establish the Coles Indigenous Food Fund (CIFF). Initial contact was made with Juleigh Robins (Robins Foods), whom he had heard speak some years earlier about the bush foods industry, and recalled had connections to Indigenous communities growing and harvesting bush foods. ‘Putting bush foods on the supermarket shelves’ was considered a good way of providing broad distribution of these foods and promoting part of Australia’s cultural heritage. Coles established the CIFF by contributing part of the proceeds (25 cents per product) to the development of an Indigenous supply chain and the promotion of bush foods. It took about 6 months from the idea’s conception to the product arriving on the shelf. Coles-Myer launched the ‘Taste of Australia’ campaign in April 2001 in Melbourne with Mandawuy Yunupingu, followed by the launch of the ‘Outback Spirit’ brand in Alice Springs in November 2002. The events received considerable media coverage, and marked the beginnings of making bush foods a mainstream product in Australia. 4.2 The Coles Indigenous Food Fund The Coles Indigenous Food Fund (CIFF) is a vehicle for funding specific projects that assist the supply of bush foods by Indigenous communities (or Indigenous-owned entities) and is designed to give Indigenous people a market and a stake in the industry. The Fund’s priority is to help resource Indigenous suppliers (including the Indigenous Australian Foods supply chain) and to increase the demand for bush foods. Businesses should ideally already be suppliers to Coles’ suppliers, or will become part of the supply chain. As the demand for bush foods grows, the creation of further micro-businesses for Aboriginal people is anticipated. Coles had a genuine philanthropic interest in establishing the Fund and continuing to support Aboriginal equity in the native food industry through the CIFF. An initial contribution of $20,000 was made by Coles to kick-start the Fund. The Fund initially included three bush food suppliers sold through Coles Supermarkets - Robins Foods, Red Ochre and Taylors (in the last year, Taylors no longer sells a bush foods line). Coles contributes 25 cents from the sale of each product and the manufacturers contribute an additional 5 cents. Coles administers the CIFF account, the contribution to which is determined from scanned sales data. Robins Foods and Red Ochre are paid for their sales minus commissions and CIFF contributions. An advisory committee comprising Coles-Myer, Robins Foods, Red Ochre, CSIRO and the Central Land Council discuss and consider substantive requests and allocations of more than $5,000.

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If there is a community request that fits in with the objective of the Fund then the application is considered by this committee. The Fund has accrued about $220,000 over its life (representing the sale of around 730,000 items), and about $130,000 of this has been allocated to such projects as: • Supporting community propagation trials with eight communities in South Australia, the Northern

Territory, New South Wales and Victoria in partnership with CSIRO ($15,000).

• Purchasing refrigerated storage, bins, milling and grinding equipment, ovens and other fundamental equipment needs for the Ngaanyatjarra-Pitjantjatara-Yankunytjatjara Women’s Council, representing about 24 communities in Central Australia. The Fund has allowed the group to value-add (eg grind, mill and roast Wattleseeds and Bush Tomatoes), which was previously undertaken in Adelaide. For example, Bush Tomatoes are now packaged in various grades from fine flour and powder to coarser semi-processed products ($25,000)*.

• Providing funds to communities in the South Australia, the Northern Territory and Queensland to support the establishment and operation of bush food gardens.

The CIFF has allocated $20,000 to promotional activities over the next six months, with the majority of remaining funds to resource two proposed projects. An agreement has been reached on the first project, for the Bawinanga Aboriginal Corporation in West Arnhem to propagate and plant Kakadu Plum. The second project proposes to resource the IAF supply chain manager to develop a functional and reliable supply chain, accounting for cultural issues, droughts, seasonal demands and the like. This project builds on earlier investments in the supply chain by the Food and Fibre Chain Program (part of the Prime Minister's ‘Supermarket to Asia’ initiative) and the Victorian Department of Industry, Innovation and Regional Development (through its supply chain program). Chain management and development has also been supported by Street Ryan & Associates, Worn Gundidj and Robins Foods, but voluntary resourcing has been inadequate to progress IAF from ‘aspiration’ to ‘reality’. 4.3 Demonstrating commercial viability

‘Supermarket shelves are like real estate, the space gets allocated to the most commercially successful products. Outback Spirit has passed this market test.’ Chris Mara, Coles Government Affairs Advisor

The sale of bush foods through Coles stores started with 3 brands (Robins Foods, Red Ochre and Taylors) and 40 products. A dedicated specialty food module was initially allocated to bush food lines sold by some 130 Coles stores. A review of this specialty food approach was initiated after 18 months. The review was in response to Red Ochre preferring to integrate their products on the shelves as mainstream rather than as specialty products, together with the development and presentation of the Outback Spirit brand by Robins Foods. The review process saw the range of products reduced from 40 to 16, but with an expansion from 130 stores to all 580 supermarkets across the country in November 2002. Outback Spirit was launched at this time. The philosophy of Coles toward bush foods and to the Outback Spirit brand is that any given product must demonstrate its commercial viability. The buyers within Coles-Myer (located in Melbourne) are charged with purchasing for different categories of products (sauces and condiments currently in the case of Outback Spirit). Buyers are limited by the available space, so allocating space to one product means removing or reducing the space of another. It is necessary for a product to achieve ‘hurdle rate’ benchmarks (eg three products per store per week) to secure ongoing supermarket shelf exposure. Failure to meet a hurdle rate benchmark means that the product will be withdrawn and a new one put in its place.

* This equipment was purchased, donated and transported, so the total benefit was much greater than $25,000.

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The only Outback Spirit product that has failed to meet its hurdle rate requirement to-date is the Smokey BBQ Sauce, and will be replaced with a product in the dressing line. Ultimately, the consumer decides and determines a product’s success. Five additional Outback Spirit products, including innovative dry marinades, have recently been added to the Coles bush foods range. Robins Foods have also developed dry herb products, but the prospects for commercially viable sales through supermarkets are difficult due to low sales volume in this category. The fresh herb market, which has a higher turn-over and higher returns, may provide better prospects, but Coles trials in South Australia and Alice Springs had poor results. It just may be too early for Australian consumers to adopt these herbs in a fresh format. Sales in bush foods through Coles Supermarkets have increased from an average of approximately $10,000/week at the commencement of the initiative to about $15,000-17,000/week currently. The summer period produces $25,000/week in sales, with little promotion. Bush foods is therefore a $750,000/year retail business for Coles, of which two-thirds is the Outback Spirit label. Coles 3-year commitment to bush foods has helped established a small range of commercially successful products in the Australian market. 4.4 Supply quality and reliability Suppliers of products for sale through Coles are required to meet the high standards set by Australia’s food regulators. Coles is more than satisfied with the quality of Outback Spirit and Red Ochre products, and has not experienced any product quality issues. A shortage of Outback Spirit products was briefly experience in 2003 due to a delay in the supply of imported bottles. Otherwise, the capacity to supply ingredients and maintain an adequate stockpile of bush foods to service supply needs has been well demonstrated. The introduction into Woolworth’s of several Outback Spirit dressings nationally through its 650 supermarkets is not anticipated to result in any supply issues. Robins Foods has indicated that the supply of Wild Lime and Lemon Myrtle does not present any concerns; however, the consistent supply of Bush Tomato may require some forward planning and management. Any acceleration in the sale of Kakadu Plums would require longer-term preparations, as the lengthy period from planting to fruit production is not amendable to short-term planning and action. However, wild harvest supply from a number of top end communities should allow this product to grow in the short-term. The development of the IAF chain was in part a response by Robins Foods to anticipated shortages of commercially important native foods and ongoing efforts within the chain are to ease any supply ‘bumps’. 4.5 The consumer Coles characterises the key consumers of bush foods as ‘bridge walkers’. This market is considered to be a significant one, of which the surface has only been scratched. The consumer is seen as more urban than rural. As women are known to do most of the shopping, the key consumer is described as probably urban women under 45 years of age. The ‘Australianness’ of the product is seen as another key factor, and when this market is successfully tapped then the products will be truly ‘mainstream’. A new product is often considered mainstream when it appears in a multitude of things, such as sun-dried tomatoes used in dips, breads, cheeses and the like. The decision-making process of customers purchasing something new is thought to be quite complicated. Only 5-10% of consumers have been shown to regularly try something new, and older customers tend to purchase the same products and need a significant reason or incentive to change. In purchasing bush foods and the Outback Spirit brand, Coles considers that there are probably several factors that are taken into account – what it says about you (as a consumer), its ‘Australianness’, its organic nature, its connection to Indigenous people and the fact that Coles Indigenous Food Fund proceeds help Indigenous communities.

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Coles’ experience indicates that consumers are generally conservative in their purchasing behaviour. It took 10-15 years for Asian cooking to become established in Australia (eg the current ready availability of fresh bok choy), and likewise with Italian cooking in the 1980s (eg the availability and variety of olive oils). It will take time to establish bush foods as an everyday purchase because people’s tastes change slowly. A couple of these bush food products will eventually become synonymous with Australian food. The Bush Tomato and the Wild Lime will probably be amongst these. Other bush foods like Kakadu Plum and Lemon Aspen will take more time to establish a consumer following. 4.6 Branding and labelling It took some three years to develop the Outback Spirit brand, and it is still evolving. The Outback Spirit brand has been developed as an ‘umbrella’ brand and it is hoped that a number of suppliers in different categories will begin to produce Outback Spirit products for supermarket sale. Robins Foods are currently developing products in co-operation with biscuit manufacturers, macadamia nut producers and fruit juice manufacturers. A key factor in the branding, therefore, is that it has to be transportable – to other suppliers and products operating under to Outback Spirit umbrella. The brand has to reflect in a simple and accessible way what the product is about, which can be complex in the case of the key messages associated with Outback Spirit. The Outback Spirit brand was developed by Robins Foods in close consultation with Menora (Robins Foods national distributor) and Coles, both of which have extensive expertise in brand development. Potential brand names were canvassed with merchandisers of Menora and some staff at Coles, and Outback Spirit was overwhelmingly selected as the brand of choice. Interestingly, Outback Spirit wasn’t the first choice of Robins Foods, and the process demonstrated that the product provider is not always in the best position to make some of the business decisions. The process of brand definition needs to be collaborative and can be used to build commitment for and a sense of ownership in the product with partners through their involvement in the process. A designer was engaged to develop the Outback Spirit ‘look’. The brand was initially to have a stronger Aboriginal impression; however, it was decided that the physical representation of the food needed to dominate to demystify the product and provide a sense of comfort for the consumer. Some artistic licence was taken in the case of the Bush Tomato, which is represented as more red-coloured than in actuality to more closely mirror the traditional tomato. Bush Tomato products by both Red Ochre and Outback Spirit are the number one sellers in Coles Supermarkets. Bush Tomato Chutney is Outback Spirit’s best selling line (also Coles’ best selling bush food product), followed by the Wild Lime Chilli Ginger Sauce. The popularity of these products is thought to reflect the need by people to be able to connect with what they are going to do with it – a simple message is considered the best. Kakadu Plum is expected to sell well eventually because it satisfies this principle – both ‘Kakadu’ and ‘Plum’ are meaningful to the Australian consumer. One of the key problems confronting the sale of bush foods is the familiarity of consumers with the products – knowing what it is and how to use it. A significant education campaign is considered necessary to overcome this.

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Figure 5 Outback Spirit sauces, dressings and chutney 4.7 Marketing strategies Few small businesses get the opportunity to distribute nationally and become a mainstream product. Coles Supermarkets have enabled wide exposure, volume and distribution of what would otherwise be a boutique product. Their support for native foods and the Indigenous supply chain underpinning them has been a critical factor in the development and success of IAF and its flagship brand ‘Outback Spirit’. Coles uses scan sales data to inform its suppliers about progress, as well as to guide promotional activities. This information is supplemented with feedback received from consumers by email, letters and telephone calls, generally in response to seeing the product in the stores. The placement of products in supermarkets is determined by Coles buyers. The placement of products in each store is reviewed half yearly and is based on scanned sales data and performance in the category. For example, a product selling five items per week may be allocated only two facings. Similarly, its placement higher or lower on the shelf is driven by consumer preference and convenience. There are numerous marketing tools used by Coles to promote products – examples include Coles Meal Idea, Dollar Dazzlers, ‘Shelf Talkers’ or “Wobblers”, Fly Buys, in-store tasting and, occasionally, catalogue advertising. Coles ‘Meal Ideas’ (recipe cards) have been produced on two occasions for Outback Spirit products in 2004, and a further two are booked for 2005, including Australia Day. The Australia Day week in 2004 trebled the sales of Outback Spirit Bush Tomato Chutney.

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Figure 6 Coles ‘Meal Ideas’ promoting Outback Spirit Bush Tomato Chutney

‘Dollar Dazzlers’ is a discount price point promotion, requiring rounding of the price down to the nearest 50 cents or dollar or offering two items for the price of one. This sort of promotion is also known as a ‘deep discount’. This approach helps sales but is expensive for small companies, so the CIFF has been used to drive sales and improve demand and consumer awareness of bush foods through this mechanism. ‘Wobblers’ or ‘Shelf Talkers’ are advertising labels suspended beneath the product. This point-of-sale promotional tool has been shown to significantly lift sales. It has been used to promote Outback Spirit in the past, featuring the hand logo and indicating that part of the proceeds go to Indigenous communities. This marketing strategy will be adopted again and the cost will be subsidised by the CIFF. ‘Fly Buys’ are another marketing tool and are being trialled to attract different customers to Outback Spirit in the coming summer, as participants in the ‘Fly Buys’ program represent a particular market segment. In-store taste-testing is very expensive for a small company, and has been used only to a limited extent by Robins Foods and Red Ochre in the past. With a lot of promotion over the next 6 months, sales are expected to increase a further 20% by the end of the summer 2005 making bush foods in supermarkets a $1 million/year industry. 4.8 Summary and future directions Bush food sales through Coles Supermarkets have confirmed the approach of marketing products as mainstream rather than as specialty products, so this strategy will continue to be pursued in the coming years. Coles is aiming for broad consumer acceptance, which is expected to take 10 years or more. Bush food sales through Coles Supermarkets have increased by 20% in the last year compared to an overall increase of 50% since the ‘Taste of Australia’ launch three years ago. Sales have therefore increased from $10,000/week to $20,000/week over a three-year period. Predicting sales over the next five years is difficult, but Coles believes that there is a momentum building up.

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Coles is considering a further three-year commitment to bush foods and its Indigenous Food Fund. Coles buyers view Outback Spirit as a successful product line, with an established track record. A focus on authenticity and developing an affinity with Indigenous people and with Australia will be maintained to capture consumer interest and to secure the products’ mainstream place. Outback Spirit is seen as the key authentic bush food brand because it closely aligns with the philanthropic purpose that Coles set out with. Outback Spirit products are currently priced at the high end of their category and Coles buyers’ think the price needs to come down if they are to lift sales rates and compete more effectively with other products in this category. Lower price points tend to have a higher turnover of product (eg Heinz Tomato Sauce) and will therefore create a larger market for bush food ingredients if achieved. Ultimately the consumer will decide what they are prepared to buy at each price point. Coles Supermarkets will probably consider new bush food products from companies based on the commercial merits of each individual product. It is expected that over the next three years lines such as cheeses, biscuits, ice cream and yoghurt may include bush food components. Giving consideration to the regularity of consumption is seen as a key driver in making bush foods mainstream. For example, chutney is purchased much less regularly than dairy foods or breads, which are often daily purchases. Wattleseed therefore presents a good prospect, and the inclusion of a bread manufacturer in the Outback Spirit product line is a strategic priority. Even a small quantity of Wattleseed in bread would significantly lift demand and help underpin a mainstream bush food industry. The future could also see an expansion of the CIFF to include contributions from other retailers. Coles would welcome discussions with other supermarket operators to establish an industry-wide Fund with similar objectives.

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5. Indigenous Australian Foods Ltd 5.1 Getting started Indigenous Australian Foods Ltd (IAF) is a not-for-profit procurement company established to manage the supply of native foods from regional producers and suppliers and, through its exclusive relationship with Robins Foods, market these native foods to businesses in retail, food service and industrial food manufacturing sectors in both domestic and international markets. It was formally established with the launch of the Outback Spirit brand in Alice Springs in November 2002, with Robins Foods and Coles-Myer, followed by Melbourne on 20 January 2003 and Sydney on 10 March 2003. Financial support from the Food and Fibre Chain Program (part of the ‘Supermarket to Asia’ initiative) was pivotal in providing the resources for the formation and establishment of IAF as a procurement company in the chain. The current membership of IAF comprises: • Robins Foods Pty Ltd (as the only constituted non-indigenous member) • Australian Aboriginal Food Company, Napperby Station, Tanami Desert, Central Australia • Bawinanga Aboriginal Corporation, West Arnhem, NT • Djabugai Tribal Aboriginal Corporation, Cairns, Qld • Mamu Aboriginal Corporation, Innisfail, Qld • Ngaanyatjarra-Pitjantjatjara-Yankunytiatjara Women’s Council, Central Australia • Mildura Aboriginal Cooperative, Vic, in association with Murdi Paaki Regional Housing

Corporation Ltd, NSW • Worn Gundidj Aboriginal Co-operative, Warrnambool, Vic The inaugural meeting of IAF members in Alice Springs prior to the Outback Spirit launch agreed on the constitution, company structure, election of the chairman, administration, endorsement fees and short- and long-term strategic directions. John Collyer (manager of Worn Gundidj Aboriginal Co-operative in Warrnambool) was elected as IAF chairman. He was nominated to this position as he had the enthusiasm, (Indigenous) authority and the resources to drive the development of a vision for the supply chain. Since its inception, the chair has visited each of the member organisations.

Figure 7 John Collyer, IAF chair and manager of Worn Gundidj Aboriginal Co-operative Ltd in Warrnambool, Victoria

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5.2 A business overview IAF was established to formalise Indigenous participation and equity in a significant supply chain within the emerging native foods industry. The prime objectives for the development of IAF are: • to recognise the contribution of Aboriginal people as traditional consumers and managers of wild

harvested native food • to ensure there is genuine ownership by some Aboriginal organisations in a commercial supply

chain while the industry remains in its infancy and before ‘mainstream’ investors enter the industry to any major extent.

The members operate a diversity of businesses, of which bush foods may only be a minor or emerging component. It is envisaged that the bush foods stream of the members’ business interests will develop and grow over time. The aim is for these member organisations to collect, grow and/or procure produce from their region, channelling product through IAF to prospective purchasers and concurrently developing their own local and regional markets with restaurants, the gift market and others. A profile of each of the Indigenous IAF members is provided in section 5.3.4. The constitution of the IAF allows a ceiling of 20 members, of which eight are taken up. All members, with the constituted exception of Robins Foods, are majority Aboriginal owned. While the constitution does not define any specific criteria associated with the Aboriginality of the member businesses, the intent and understanding is that not only are the member businesses majority Indigenous owned, but that the control and power of the member businesses and IAF are vested in Indigenous hands. The Board is designed to operate on the basis of consensus, with equal voting status for each member. The seven Indigenous IAF member organisations embrace a wide range of Aboriginal communities, clan groups, and homelands. Each member generally represents a different geographical and climatic region, with access to land and skills. Members enter IAF at different levels of capacity and intent, with no requirement to be able to supply immediately. Four of the current members have supplied bush foods to the chain - with Bush Tomatoes and Wattlessed supplied by the Australian Aboriginal Food Company (described as a case study in section 6.1) and the Ngaanyatjarra-Pitjantjatara-Yankunytjatjara Women’s Council sourced from the same general geographic region in Central Australia, and small quantities from the Bawinanga Aboriginal Corporation in West Arnhem (Kakadu Plum) and Mamu Aboriginal Corporation in Far North Queensland. Bawinanga Aboriginal Corporation is developing bush food plantations, with support through the Coles Indigenous Food Fund, to supply Kakadu Plum through cultivation rather than solely through wild harvest. Mildura Aboriginal Corporation is in the process of establishing a trial Bush Tomato plot. It is envisaged that some members may actively participate in the chain by performing other (non-growing/non-wild harvest) roles, such as nursery production and propagation, post-harvest value adding, and packing and warehousing. At present, IAF as a procurement business is more conceptual than real. No product purchase or supply at present is managed by IAF as an institution. All product purchase is undertaken directly by Robins Foods, either with IAF member organisation or, more commonly, with non-member Indigenous and non-indigenous grower or collector businesses directly. In doing so, an endorsement fee is always allocated to IAF, thereby building the capacity of this organisation to undertake this responsibility in the future. IAF is also exploring philanthropic fund raising opportunities that may contribute to this capacity building.

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Map 1 Map showing the locations of IAF Indigenous membership 5.3 IAF endorsement IAF offers an ‘endorsement’ for businesses. To gain endorsement, the business has to agree to an exclusive relationship with IAF; that is, they are obliged to purchase all their native food requirements through IAF. This exclusive relationship also applies to Robins Foods. Two exceptions for endorsement have been made in the case of Coles Supermarkets (as a retailer of multiple bush food brands, eg Red Ochre) and Outback Bushfoods (as a non-IAF supplier to the chain, and former IAF member through association with the NPY Women’s Council). While endorsed businesses are required to purchase all native food requirements through IAF, there is no obligation to purchase any specific product at any particular time or for any quantity of produce. An ‘endorsement fee’ of 10 per cent is paid to IAF on top of the total purchase price paid by the business to the grower or collector. In general, businesses with IAF endorsement manufacture, distribute and/or sell products under the Outback Spirit label.

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While IAF’s commercial relationship with Robins Foods is exclusive, the supply chain companies recognise the importance of native foods to the diet and health of some of the individual member communities. Therefore the chain does not insist that all product is sold to Robins Foods and the downstream chain. A balance is sought in supplying food for each community’s use and for the commercial chain. Robins Foods has first option in the purchase of any product from a member through IAF in the case of a supply shortage. While other endorsed purchasers have second priority, Robins Foods role as the marketer of the endorsement and the linkage of endorsed purchasers to the Outback Spirit brand makes supply reliability to these customers a significant issue to Robins Foods and IAF.

Figure 8 The Indigenous Australian Foods endorsement logo The following businesses are currently endorsed by IAF: • Robins Foods • Coles Supermarkets • Hela Schwarz Australia • Hela International (Germany) • Voyages Hotels • Great Southern Rail • Kez’s Kitchen • Kooka’s Country Cookies • Outback Bushfoods • All About Bread • Walkabout Inns (United Kingdom) Product development and design for Outback Spirit lines is undertaken by Robins Foods, as well as marketing the brand (as the marketing arm of IAF). The business sells its product(s) and owns its specific brand under the Outback Spirit umbrella label for the life of the agreement (for example, see Chapter 7 on the Hela Outback Spirit line). Negotiations are being progressed with companies to develop new products. In developing products for the market, Robins Foods creates flavours from native foods that cannot be replicated by competing interests. This approach means that the emphasis of marketing needs to be on the whole supply chain of Outback Spirit, not just on Robins Foods. Businesses operating under the Outback Spirit umbrella pay a percentage fee to Robins Foods from the sale of products to the distributor.

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Menora Foods in the national distributor for Robins Foods and, to the extent possible, the aim is to distribute all Outback Spirit products through this channel. Menora Foods has distribution (including on-road sales representatives and merchandisers) in each State.

Figure 9 Outback Spirit products under development 5.4 An overview of the Indigenous IAF members The seven Indigenous members of IAF generally span different geographical and climatic environments, and their associated bush foods, throughout Australia. The following sections provide an outline of these organisations (in alphabetical order), including their core business activities and capacity to participate in the bush food industry as envisaged and embodied in the IAF structure and its constitution. Three members (Australian Aboriginal Food Company, Mamu Aboriginal Corporation and Worn Gundidj Aboriginal Co-operative) are described more fully as individual case studies in Chapter 6. The profiles provided here are the outcome of a strategic planning session with a sub-set of IAF – John Collyer (IAF chair), Juleigh Robins (Robins Foods) and Wayne Street (IAF supply chain manager) – at Gisborne, Victoria, on 30 August 2004 (see Step 5 in the Project Method). The profiles may therefore differ in part from the case studies outlined in Chapter 6 of the Australian Aboriginal Food Company and the Mamu Aboriginal Corporation, where the perspectives are that of the particular IAF member representative(s). These differing perspectives have been documented (rather than reconciled) as they demonstrate some of the disconnects at play in the supply chain. 5.4.1 Australian Aboriginal Food Company The Australian Aboriginal Food Company is located in the Tanami Desert of Northern Territory. The key bush foods collected are Bush Tomatoes and, to a lesser extent, Wattleseed. It has been supplying Bush Tomatoes to Robins Foods since 1993, and is currently one of two of Robins Foods’ major Bush Tomato suppliers. Bush foods are collected on a single pastoral lease, and the pastoral lessees actively organise the wild harvest. Some 30 local Indigenous women participate in the collection. The pastoral owners act on behalf of the Indigenous women, and direct access to the women coupled with language barriers are constraints to developing the supply chain.

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Supply is dependent on the ongoing interest, cooperation and good will of the lessees as well as the Indigenous collectors. The Indigenous women have no control over the land from which they harvest the bush foods. Their main motivation for participating in the harvest is in the immediate financial return. The capacity of the women has been built to a limited extent; they have not yet demonstrated any drive to develop the wild harvest as an ongoing business proposition, or indicated a desire to value-add or enter other business areas. The company has not developed a business plan. The quality and consistency of the harvest has presented problems from time to time, but this is driven in large part by climate and is therefore difficult to manage. Further development of the business’ capacity to satisfy quality standards and food safety requirements is needed through access to training and technical support. There is an immediate short-term need to build the Company’s dedication to the chain. This could be achieved through greater and more regular communication, both face-to-face and through other media. In the longer term, wild harvest through this part of the chain could be channeled through the NPY Women’s Council, where the Indigenous members have greater control and a greater stake in the business, in line with the vision for the Outback Spirit supply chain. 5.4.2 Bawinanga Aboriginal Corporation The Bawinanga Aboriginal Corporation spans a large area of West Arnhem in the Northern Territory governed by three Indigenous groups, with its headquarters based in Darwin. The Corporation’s core business is building sustainable communities, including housing support and maintenance, education, welfare, and arts and crafts enterprises. It has several business plans for aspects of its operations, but not specifically for the bush foods component; however, its infrastructure is sound, and skills base strong from a production perspective. The principal bush food ingredient of interest to the Outback Spirit supply chain is Kakadu Plum. Small-scale wild harvesting by women takes place in the homelands, but infrastructure is needed for a commercial-scale operation, including basic facilities like refrigeration. The impacts of exclusive wild harvest of Kakadu Plum in the homelands has been investigated by the Corporation, and found to be ecologically and economically unsustainable. In response, the Corporation intends to develop the capacity of its existing nursery to propagate Kakadu Plum for planting around settlements and in plantations, building on its existing resources of a large-scale nursery and full-time nursery manager. The Coles Indigenous Food Fund has just approved support for the establishment of mixed plantations of Kakadu Plum at various scales and plantings around interested outstation communities. Samples of other plants and fruits that local Aboriginal people consume with the potential for commercialisation will also be collected (eg Syzgium spp, Grewia spp, yams and Vitex spp). Plantings will span a variety of sites to maximise the production period and the employment opportunities for Indigenous people. A total of 500 managed trees in mixed plantations are anticipated, together with information on processing, handling, hygiene, packaging, transport and possibilities for value adding that can be undertaken in the community. Communication with women harvesters in the homelands is primarily through the five (Indigenous and non-indigenous) rangers employed by the Corporation. The development of the bush foods component of the Corporation’s overall business is determined to a large extent by the interest and commitment of these rangers, and their working relationships. Enterprise development is constrained by both the distance of these rangers from the settlements together with staff turn-over. Rangers tend to change jobs after a few years, breaking the links and continuity with the settlement communities.

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The Outback Spirit supply chain needs to work closely with the rangers to provide the practical guidance needed to the traditional owners, while ensuring that any position changes do not affect business priorities and access to traditional owners. In the longer-term, a more direct relationship with the traditional owners is necessary, which will require substantially more face-to-face interaction than has been possible to-date. While the Corporation may have the capacity to develop the skills and resources needed to deliver product to the Outback Spirit supply chain, it does not have a formal agreement to supply a given quantity of product. All suppliers in the chain look for this certainty to underpin their investment, while the purchasers in the chain have to balance this against the risks that market sales will match the quantity of supply. Further liaison with Indigenous members of the Corporation’s Board of Management in needed to develop shared strategic directions. Agreements need to be made that guarantee the minimum supply of Kakadu Plum to the Outback Spirit chain in the short-term from wild harvesting operations, and longer-term goals for propagation and value-adding enterprises, within an agreed timetable of delivery. 5.4.3 Mildura Aboriginal Corporation Ltd (in association with Murdi Paaki Regional Housing Corporation Ltd) The Mildura Aboriginal Corporation has established Black Magic Investments Pty Ltd as an investment company for pursuing the development of a bush foods enterprise, operating in both Victoria and New South Wales. Mildura Aboriginal Corporation is one of the most successful Indigenous corporations operating in Victoria, and has been running business enterprises over a period of 20 years. The Corporation develops separate businesses to protect the assets of the business. These separate entities cover employment, training, health, housing and other business developments. The Corporation is working in partnership with the NSW-based Murdi Paaki Regional Housing Corporation. The Murdi Paaki region is an arid environment covering about one third of the area of New South Wales, from the Queensland border along the South Australian border and to the Victorian border (to Euston). In 2001, the region’s total population was estimated at 54,260, of which 8,935 were Aboriginal people (representing 15-16% of the total population). Murdi Paaki Regional Housing Corporation is the newest extension of the Outback Spirit chain, and holds benevolent organisational status. It manages about 700 properties, and is moving beyond property management to a healthy housing program. The specific objectives of its business plan are ‘to provide housing management for 30% of Aboriginal families in the Murdi Paaki region’, and ‘to assist in supporting these families in leading a healthy lifestyle and in being responsible tenants’. While the business plan does not explicitly address bush foods, developing a bush foods enterprise is seen to align with these objectives through contributing to healthy living. Together, these businesses are oriented towards plant propagation and cultivation, including in discreet communities, and are committed to the supply chain. They have the business management experience, resources and the capability to commence planting, but need the certainty of a purchaser to proceed. Several hundred acres at Mildura are available for immediate planting to Bush Tomatoes, and an agreement has been reached for CIFF resources to support the establishment of a trial of 10,000 Bush Tomato plants this year, with a further 60,000 proposed for next season. Native citrus presents good future prospects, but a significant number of plants are already in the ground. 5.4.4 Djabugai Tribal Aboriginal Corporation The Djabugai Tribal Aboriginal Corporation is a large organisation located in Far North Queensland. The Corporation has been involved in the Outback Spirit supply chain for some 3 years.

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Their interest is in cultivating bush foods, but they have unresolved land claims and therefore no direct access to land. Land availability has been countered to some degree by the offer of a local Indigenous artist to plant on her property near Cairns. The Coles Indigenous Food Fund is considering an application for irrigation assistance to establish bush food cultivation on the property. In-keeping with the community approach of the Outback Spirit constitution, the two are in agreement about working together under the auspices of the Corporation, but this needs to be formalised under a memorandum of understanding. The Djabugai group fall within a similar geographical region as the Mamu Aboriginal Corporation. Like the Mamu people, the group has a working relationship with the James Cook University. In the future, it is envisaged that these groups may form a cooperative venture, drawing on the skills and commitment of the Mamu Aboriginal Corporation, and the more sophisticated community structure of the Djabugai tribal group. 5.4.5 Mamu Aboriginal Corporation The Mamu Aboriginal Corporation is located in Innisfail, Far North Queensland. It is a dispersed community that has come together through a land claim. There is no history of Community Development Employment Projects, which has been a catalyst for creating cohesive Indigenous groups in the past. While the community structure of the group is weak, it has significant influence in the region and there is a wealth of bureaucracies with an interest in engaging with the group across a range of agendas. James Cook University (JCU) and TAFE have worked with the Corporation to develop a business plan for their bush foods enterprise. The business plan outlines strategic directions, which include both the development of capabilities in nursery propagation as well as wild harvest (eg Lemon Aspen from rainforest). The relationship with JCU focuses on propagation for both Indigenous and non-indigenous players in the region. The strategy directions for the group see Robins Foods acting as its procurement administrator in the first year, with the Mamu taking an active role in the second year. Value-adding and developing regional markets is anticipated in the third year of activities. The commercial kitchen facilities available at TAFE underpin some of these value-adding opportunities. The relationship developed between the Mamu people, JCU, TAFE and Robins Foods provides significant opportunities for developing the Outback Spirit supply chain in this region; however, these links are not formalised beyond the group’s membership of IAF. The Mamu group has limited human resources within the Indigenous community and need strong leadership and guidance. While technical and product development support in the region is strong, these same structures do not necessarily support the supply chain. The number of organisations and competing agendas make focusing on and securing the supply chain difficult. 5.4.6 Ngaanyatjarra-Pitjantjatara-Yankunytjatjara Women’s Council Members of the Ngaanyatjarra-Pitjantjatara-Yankunytjatjara Women’s Council are from the Northern Territory, South Australia and Western Australia. The Council has a long history of wild harvest collections, which is underpinned by a solid organisational structure. The group has an interest in extending its business to include procurement from other harvesters, warehousing and value-adding. The Council is an important member of IAF as it extends the supply chain to all mainland states, enabling one region to supply when another region is unable.

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The Council is a major supplier of Bush Tomatoes and Wattleseed to the Outback Spirit supply chain. At present, collections are largely sourced from the Northern Territory, with some supply from South Australia. The collection area in the Northern Territory is similar country to that of the Australian Aboriginal Food Company operating near Alice Springs. Collection of Bush Tomatoes and Wattleseed around Alice Springs is temporarily constrained by the absence of a coordinator, so supply is reliant upon a non-Indigenous owned, IAF-endorsed business called Outback Bushfoods (formerly associated with the NPY Women’s Council). The Council needs further technical support and basic equipment. A technical field officer could be accommodated to support their activities and the development of the business, but adequate financial resources are not available. Equipment supplied earlier under the Coles Indigenous Food Fund is being utilised by Outback Bushfoods, in collaboration with these Indigenous groups. While this temporarily supplies the Outback Spirit chain, the equipment should eventually remain with an IAF member organisation. 5.4.7 Worn Gundidj Aboriginal Co-operative Ltd The Worn Gundidj Aboriginal Co-operative is located at Tower Hill, near Warrnambool in south-western Victoria. The business of the Co-operative spans employment, eco-tourism, horticulture, and arts and crafts. It employs 72 people, and manages the payroll for outsourced Indigenous apprentices. It has an overarching goal of working for ‘natural reconciliation’, achieved through developing practical working relationships between Indigenous groups and the wider community to gain mutual respect and benefit. Horticulture has been a primary area of business for Worn Gundidj since its establishment 12 years ago, including native and exotic plants, revegetation and land restoration services. The Co-operative employs its own horticulturalists and manages a commercial nursery. Priorities are focused on developing nature-based tourism at the Tower Hill Game Reserve as a new business, and professionalising its existing Indigenous arts and crafts business stream, which together offer significant income, employment and profile opportunities for the Co-operative. Worn Gundidj has the human and financial resources to develop a regional bush foods industry, but this is not currently a high priority. Bush foods are an important but relatively minor component of its overall business development strategy. The Co-operative needs further direction on what species are required and in what quantities, together with a guarantee to purchase the produce. 5.5 Summary and future directions It is envisaged that eventually all native foods will be procured directly by IAF as it develops as a business, and that all product will be sourced through the member organisations and other agreed suppliers. However, the capacity and resources of IAF and its members need significant development for the structure to operate in the manner envisaged and achieve these longer term outcomes sought. The commitment to the current membership of seven Indigenous enterprises is significant, so while there are other businesses interested in membership, IAF does not have the capacity to expand its existing membership. The addition of further members would be considered on the basis of constituting an unrepresented geographical and climatic region or another compelling reason, such as introducing a new product or networking and financing opportunities. It is envisaged that any other suppliers within the zones represented by existing members would supply product through that member rather than hold IAF membership in their own right. In this way, each member has the scope to develop its own supply chain, and thereby act as the conduit for product from a multitude of enterprises (Indigenous and non-indigenous) from within its own boundaries.

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The supply of sufficient quantities of bush foods to service the growing demand is a looming issue, and is a significant part of what the supply chain development efforts are all about. Robins Foods on behalf of IAF has had to source the bulk of ingredients through non-member organisations to-date. The capacity of IAF members to supply product is extremely variable, and an intensive effort is required to build the capacity of these organisation to supply the product needed. Funding is being sought to support the involvement of Wayne Street (as IAF supply chain manager) and to support regular meeting of the Board of Management. The Board was formed at the launch of Outback Spirit in November 2002, and has only had the one inaugural meeting with all members present. The cost of $20,000 prohibits convening meetings on a regular basis. Other face-to-face meetings have taken place on a regional basis. Regional support is also required for strategic planning and capacity building activities. The CIFF may contribute $50,000 to the estimated $350,000 needed for these purposes, and the Cooperative Research Centre (CRC) for Desert Knowledge has expressed its support.

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6. Case studies of three IAF members The three case studies outlined in this chapter are based on direct discussions with one or more representatives of the organisations themselves, rather than the brief profiles from the strategic planning session presented in Chapter 5. 6.1 Australian Aboriginal Food Company (in partnership with Wirmbrandt Pty Ltd) 6.1.1 A business overview The Australian Aboriginal Food Company (AAFC) operates under an agreement developed for the purposes of meeting the requirements for IAF membership under the constitution. The agreement is signed by five local Indigenous women on behalf of their community. It nominates Janet Chisholm, Director of Wirmbrandt Pty Ltd, to act as their agent. Janet is the lessee (in perpetuity) of the 2,200 square miles of Napperby Station on which about 30 local women harvest bush foods. Some freehold land has been excised from the lease about 2 kilometres from the homestead on which the 300 member traditional Laramba community reside. Women from the Laramba community harvest Bush Tomatoes and Wattleseed from the wild on Napperby Station, and have been supplying Robins Foods since 1993. Janet is responsible for organising the harvesting operations, as well as the processing, storage, sale and transportation of product. There are numerous other bush foods that could be collected in the region, but not in the same quantity as Bush Tomatoes and Wattleseed, and without the market prospects. 6.1.2 Joining IAF AAFC (in partnership with Wirmbrandt Pty Ltd) joined IAF 2 years ago when it was established. For the Indigenous women that comprise the AAFC, the impetus was for the financial return from wild harvesting operations. For Wirmbrandt Pty Ltd, it was seen as important to be part of the original membership of a supply chain that had the potential to generate significant demand for bush foods. It was considered that critical mass and collective action was needed to develop the bush foods industry, which had experienced oversupply throughout the past 10 years. The nature of bush food products as spices or condiments is thought to hamper the development of the industry. While chefs have contributed enormously to developing unique flavours, knowledge of how to use these condiments in cooking is still limited. IAF members have met once in Alice Springs in November 2002; however, there have been no formal communications, including meeting minutes, and there is a sense that nothing has happened since that time. The Outback Spirit supply chain concept is thought to be sensible in its drive to differentiate the product by using Aboriginal endorsement. However, beyond the collection of business endorsement fees and the Coles Indigenous Food Fund, it has not yet realised any significant monetary return for its members in the 2 years since its inception. It is a concept that is thought to certainly work for the manufacturers but not necessarily for the members. In the case of the Laramba women, as traditional Aboriginal women living on the land, the concept and broader structure and operations of the Outback Spirit supply chain are considered meaningless and irrelevant. Wirmbrandt Pty Ltd is familiar with the Coles Indigenous Food Fund (CIFF), but has not applied for any support through this facility.

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An opportunity exists to provide some equipment that could be located centrally in Alice Springs to benefit others, such as for sifting, grinding, fumigating, packaging and storage. Access to the equipment purchased through the CIFF for the NPY Women’s Council could also be made available to the AAFC. 6.1.3 Meeting market demand Bush food collection is a sideline of Napperby Station’s operations. There have been no collections this year and the last supply of Bush Tomatoes to Robins Foods was two years ago. The supply at that time was substantial at around 2 tonnes, while other sales to Arnhem Bushtucker, Australian Native Produce Industry, chefs in Western Australia and other businesses have been in small quantities of several kilograms. Wirmbrandt Pty Ltd currently stores 1 tonne of Bush Tomatoes and several hundred kilograms of Wattleseed, and has not been able to sell this product. The resources tied up in storing this volume of produce for 2 years presents a dilemma. While the product can be stored indefinitely through chilling or freezing, the cost of doing so is significant. Wirmbrandt expressed the opinion that it was ‘effectively acting as an unpaid banker, with little benefit to the supplier’. 6.1.4 Meeting quality requirements The quality of bush foods is not thought to present any significant issues to meeting supply requirements. Wirmbrandt Pty Ltd oversees the product purchased and does not accept product that is dirty, exhibits insect damage or is inadequately dried. Some quality variation exists as a consequence of seasonal conditions, which is not something that can be controlled. No specific requirements of AAFC with respect to quality have been discussed with IAF or Robins Foods. 6.1.5 Summary and future directions The strengths of the Outback Spirit food chain articulated by Wirmbrandt Pty Ltd are that the model ‘makes a lot of sense’ and that it can achieve the market pull and the product mass that cannot be achieved by players acting individually. It is currently constrained by finances, limited consumer demand and poor communication with members. The demand end needs to be built by involving more manufacturers. IAF members in general need to see something working and some return for their partnership. Knowing that the concept is working and what others are doing, and creating a shared sense of purpose is important, and must be backed by formal structures like Board meetings and minutes. The traditional people are seen as the strength of AAFC, in partnership with Wirmbrandt Pty Ltd, which provides culturally-based employment for Indigenous women and underpins and authenticates IAF endorsement. The partnership has demonstrated their capacity to supply since 1993 in the quantities required, and the business is financially resourced by Wirmbrandt Pty Ltd. The large stockpile of product is a constraint and the inconsistent demand means that the business has been dormant for some time. There is an interest in doing more, but not the preparedness to invest any further without some returns. Due to the nature of the traditional community involved, the business is wholly reliant on the leadership of Janet Chisholm, as a non-member of the AAFC and IAF. While it seems that the traditional women of the Laramba community need little more than work opportunities and remuneration, Wirmbrandt Pty Ltd requires better communication and advice to be in a position to direct the business. Wirmbrandt Pty Ltd could envisage procuring bush foods on behalf of AAFC and IAF if a much higher level of demand was developed in the future. It is considered feasible to annually harvest 2-4 tonnes of Bush Tomatoes (depending on the seasonal conditions).

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Drawing on women from the broader community of 3,000 Indigenous people living in the surrounding region, up to 20 tonnes/year could be harvested. The wild harvest of Bush Tomatoes is considered sustainable due to the combination of very high reproductive rates and collection by hand. This is considered to offer real employment opportunities for these women. The 10-year view of Wirmbrandt Pty Ltd for the bush foods industry and the Outback Spirit supply chain is that the business will continue to grow, but perhaps not as substantively as people hope. The supply chain is thought to require significantly more capital and stronger consumer demand for the products. It is perceived that neither Coles Supermarkets nor Robins Foods can achieve the volume demand needed to support the supply end. Where remote Aboriginal communities are concerned, the generation of a strong demand is seen as the critical element needed. Further, marketing of the Australian bush foods industry is thought to be constrained by the absence of a dedicated Board, like the Australian Wheat Board, to promote bush food products. 6.2 Mamu Aboriginal Corporation Ltd 6.2.1 A business overview Mamu Aboriginal Corporation was recently founded in 2001 primarily for the purposes of making a land claim for Mamu country under the Native Title Act. The Corporation represents five family (language) groups, currently representing some 300 members but with others to be identified. The country of the Mamu people is broadly the area of the Johnstone Shire, extending to the Misty Mountain range in the west and north to Mt Bartle Frere. The Corporation has no employees, office or formal meeting place. A monthly meeting of the Executive is convened, as well as an Annual General Meeting for all members. The Corporation holds annual elections, nominating one member from each clan to the Executive. In the absence of a candidate from a particular clan, decisions by the Corporation are always made in consultation with that tribe. The Corporation operates on the premise that no-one speaks for another’s country. While discussion will take place, the respective tribe makes the final decision. The main agenda for the Corporation is resolving the native title claim, which is expected to conclude late next year. The absence of paid staff and the demands of making a native title claim place limits on the Corporation in pursuing a broader agenda. The Corporation has developed local partnerships with Memoranda of Understanding (MoU) prepared or signed with a number of organisations, such as with local government, on developing further business opportunities. While the Corporation has no business plan, one of its chief objectives is to generate employment for its people. There are two substantial project opportunities currently available to the Mamu people and linked to eco-tourism, local employment and the bush foods industry. The State Government has agreed to construct a $4 million ‘Canopy Walk’ in close proximity to Innisfail, and the Johnstone Shire Council has purchased 40 acres of neighbouring cleared land in trust for the Mamu people to establish an interpretative centre and cultivate bush foods. Prospective employees will be trained through the Innisfail Campus of Tropical North Qld TAFE. The second related project is the development of a commercial-scale bush foods nursery, located at the TAFE initially and eventually transferred to the 40 acre block beside the Canopy Walk. A business plan has been developed and demonstrates that this activity is commercial in its own right and offers 6-8 permanent full-time jobs for local people. It builds on a current project in partnership with James Cook University and the Rainforest CRC to identify superior species for domestication.

‘We’ve got a supermarket out there that doesn’t close’ Victor Maund, Deputy Chair, Mamu Aboriginal Corporation

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Figure 10 Mamu Aboriginal Corporation representatives at the Innisfail meeting

6.2.2 Joining IAF The Mamu Aboriginal Corporation has been a member of IAF from its inauguration. The impetus for joining IAF was the prospect of projects that may employ Mamu people, and to have culturally appropriate work for local people and prospects for youths beyond working on banana plantations. The Corporation expressed a desire at the time to ‘be up with the mob in Warrnambool’ (Worn Gundidj Aboriginal Co-operative). The Mamu has experienced some changes in its leadership over its period of operation, and has lost some of the history of its involvement with the Outback Spirit supply chain. Consultants developing the nursery business plan stated that numerous attempts were made to determine the requirements and responsibilities of the Corporation to the Outback Spirit supply chain but no response was received. While some members of the Mamu people participating in the meeting (shown in Figure 10) could picture an Outback Spirit product, they concurred with the statement ‘we don’t really understand what it is or what it’s all about’. Similarly, only Rob Tranent, from the TAFE, acknowledged an awareness of the Coles Indigenous Food Fund, but did not know the size of the Fund or how to access funds. The consultants on supply chain management added that ‘Coles claims to provide the range but I can’t find it in the supermarket when I go looking for it’. It was broadly agreed that ‘it’s a good idea in concept, but it’s a theoretical model and doesn’t exist now – it’s a work in progress ‘. The Mamu people and its partners concurred that there is an expectation that producers will be the first to take the risks (when their margins are the smallest), when what is needed is for everyone to move forward and invest together. The Mamu people or their partners have no knowledge of having supplied bush food to the Outback Spirit supply chain to-date. It was agreed that it is possible that a small sample of Lemon Aspen had been provided in the past. They expressed a desire to start small and local and to scale up, with the potential to eventually act as a regional procurer and to develop a capacity to value-add, such as peeling, freezing and drying. The commercial kitchen facilities at the TAFE present future opportunities for product development (see Figure 11). Supplying Outback Spirit was seen as having a limited requirement for product, and representing just one of many partnership opportunities.

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Figure 11 The TAFE commercial kitchen 6.2.3 Canopy walk The Canopy Walk project proposes the construction of an 800 ft suspension off the edge of a cliff through the canopy of untouched rainforest. The State Government is contributing $4 million to build the world class tourist facility, expected to draw 300,000-400,000 tourists each year. The facility will be operated by Qld Parks & Wildlife Service in association with the Corporation and is expected to be constructed before the next State election (around 2 years). The facility is designed to offer the combination of rainforest, natural heritage and authentic local Aboriginal experiences. It is envisaged that tourists will be guided by a local Indigenous representative, who can provide a cultural dimension through the telling of spiritual and cultural stories.

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Figure 12 The site for the construction of the Canopy Walk

A car-park and interpretation centre will be constructed on a neighbouring 40 acre block of former banana plantation. This land has been purchased by the Johnstone Shire in trust for the Mamu Aboriginal Corporation, with the intention of a 30 year lease and the prospect of purchasing outright. This land may also be used to cultivate bush food crops, as part of the interpretation experience and for harvesting, processing and, eventual, sale through the gift shop – so that visitors can ‘look at it, taste it, buy it and take it away’. The nursery located at the TAFE is expected to be re-located here at some point in the future (refer to section 6.2.4).

Figure 13 The 40 acre block for development beside the proposed Canopy Walk

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The Canopy Walk and associated interpretation centre are expected to provide employment for 80 people, in areas as diverse as tourism operation, horticulture, management, computer operation, cleaning, guides, food handling and cooking. Innisfail TAFE will deliver the training requirements needed. Local Indigenous people are the target for these positions, but they could also be filled by local non-indigenous people in the event that there are insufficient people wishing to take the jobs. Training staff and filling the anticipated job quotas presents some difficulties for the Mamu and TAFE. The TAFE has operated Community Development Employment Projects (CDEP) in the past, but these positions are only 2 days per week. For the Canopy Walk to success as a world class tourist facility, it will be necessary to achieve professional standards of service in all areas, and three shifts of staff will be needed each day to cover night shifts in a facility that is expected to operate 7 days a week. The Community Jobs Plan (CJP) program looks to offer the greatest potential at this stage, providing a top up for CDEP participants to a full week’s work over 6-12 months, with eligibility requiring that all participants are fully employed at the end of the program. This can be guaranteed for the 6-8 horticultural trainees for the nursery and, on formal approval of funding for the Canopy Walk, a further 80 positions. 6.2.4 Commercial nursery A business plan to establish a commercial bush foods-based nursery has been prepared as the centre-piece for the broader development of a bush foods industry. The nursery will be located at the Innisfail TAFE Campus initially (up to 12 acres and as a shared facility) and moved off-site once fully developed. The business plan has been developed over a period of three years, and is supported by the TAFE (with 3 full-time horticultural staff and a further 4 staff member at the Cairns Campus) and James Cook University (JCU).

Figure 14 Victor Maund and Rob Tranent at the TAFE nursery in Innisfail The business plan focuses on the domestication of wild species. Wild harvest is not considered a commercially viable option due to the intractable nature of the rainforest environment.

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Plants will be sold commercially, particularly for planting as orchards, shelterbelts and riparian revegetation. Local cane and banana growers are viewed as a key local market for native plant stock for land rehabilitation and business diversification, as well as the increasing number of hobby farmers (although these may not have an interest in eventual harvesting). Some farmers are already growing bush foods in the district.

Figure 15 Propagation of bush food plants at the TAFE nursery

The nursery business plan has an emphasis on the creation of employment opportunities for local Indigenous people, 6-8 of which are guaranteed by the nursery as a stand alone business, independent of the Canopy Walk project. The nursery would also train other Indigenous people, particularly from communities on the Cape, to become the leaders in the development of a bush foods industry in their own communities. There is also a strong research element to the plan. For example, ‘no-tech’ poly-propagators built out of scrap materials (shown in Figure 16) are being trialled to minimise management input and potential losses in the event of a break in maintenance during Indigenous mourning periods. Similarly, plant domestication and cultivar development could more than half the fruiting time of some bush foods, having significant implications for the commercial viability of some species (Leakey et al 2003). The benefits of such research would flow well beyond the Mamu community.

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Figure 16 No-tech poly-propagator

Progress has been made on the identification of plants and the selection of superior species for domestication, led by Professor Roger Leakey from JCU, a world-renowned specialist in plant domestication, in partnership with the Rainforest CRC. About 160 plants have been collected so far (not all of which are foods), and a priority list of 20 species has been established (of which only two – Lemon Aspen and Davidson’s Plum – are currently in the Outback Spirit range). There may be prospects for plants like the Native Tamarinds and Native Figs, as they grow fairly quickly and look like mainstream food. The approach to plant domestication is to find ways that communities can develop their own plant breeders’ rights and retain their intellectual property (IP) in the native plants. Registration of rights is the only legal mechanism for recognising this IP in Australia. Developing the capacity of the Mamu community as producers of planting material is designed to ensure that benefits flow back to their community. Further investigations are planned to consider the constraints to commercialisation and how to improve the flow of intellectual property rights to traditional owners. 6.2.5 Summary and future directions The future for the Mamu Aboriginal Corporation emphasises ‘getting back to tradition’ and to their origins as hunters and gathers. This involves passing on cultural and spiritual knowledge to the next generation. One of the key strengths of the Mamu people is that ‘the majority of us have always known bush foods’, so there are people living in the community that can teach the young people and hand back the knowledge of the ancestors.

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The projects currently proposed support the broad philosophical directions articulated by the Corporation. While the current Mamu community is relatively small and resources are not yet secured, the Mamu people believe they have all the support they need locally to achieve these objectives and are prepared to share information and advice with other Indigenous communities with an interest in taking care of the rainforest. While there is no particular certainty that the bush foods industry in Queensland or Australia will ever flourish, the proposed nursery business is considered commercial in its own right. It is intended to incrementally move towards a more finished product, as the production of raw materials is expensive. Value-adding provides the most favourable revenue stream. The business plan and associated Memorandum of Understanding require ratification by the Mamu Aboriginal Corporation to formalise the nursery project before further progress can be made. Developing the nursery capacity and undertaking the associated training is urgently needed to support the Canopy Walk, expected to be completed in about 2 years time. The Mamu Aboriginal Corporation has expressed a strong desire to capture many of the 80 positions projected for the Canopy Walk, as well as to develop other local business opportunities. Capturing some of the 2 million annual visitors to the Cairns area presents some significant opportunities, although high-level marketing will be needed to achieve this. the Red Ochre business provides an example of what can be achieved. The project partners have advised that the Mamu representatives need to develop a picture of how the Canopy Walk and the nursery link with their broader strategic directions and other MoUs and project opportunities. Importantly, the suite of projects and activities need to channel visitors from the Canopy Walk into Innisfail, some distance away rather than returning directly to Cairns, to achieve the full employment and cultural benefits that the project presents. Approval for the Canopy Walk is predicated on the Mamu community approaching the funding bodies and confirming their commitment. The bush foods industry in Queensland is being progressed through the staging of an Indigenous Food Summit in November 2004 to develop policy, a deliberate strategy for the expansion of the industry and to move towards a complete structural package. The Mamu project is seen as a sub-set of the development of the whole industry, as a demonstrable example of how to take the industry forward in a practical sense. The Outback Spirit supply chain is seem as a much smaller component still, as one market opportunity of many. The connection of the Mamu community and it partners has weakened in the absence of regular communication with the Outback Spirit supply chain. Explanation of the opportunities and responsibilities of their association with the supply chain is needed in response to the view that ‘it’s difficult to commit to a theory’. The group could not make comment on the strengths and weaknesses of the Outback supply chain ‘because we don’t really have anything to go on’. 6.3 Worn Gundidj Aboriginal Co-operative Ltd 6.3.1 A business overview Worn Gundidj Aboriginal Co-operative was founded in 1992, as a not-for-profit organisation to facilitate employment and business opportunities for Indigenous people and their families. It now employs 72 people. Worn Gundidj is in the land of the Gunditjmara Nation, in south-west Victoria. The Co-operative is inclusive of all family groups (rather than tribal groups) in the region and is an apolitical organisation. It has an overarching goal of working for ‘natural reconciliation’, achieved through developing practical working relationships between Indigenous groups and the wider community to gain mutual respect and benefit. The Manager of Corporate Relations and Marketing, and Centenary Medalist, John Collyer, has been chair of the Indigenous Australian Foods Ltd since its launch in Alice Springs in November 2002.

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Figure 17 The Worn Gundidj Aboriginal Co-operative office in Warrnambool, Victoria The corporate structure of Worn Gundidj is shown in Figure 18. It has a Board of Directors, which meets every 8 weeks and comprises the active membership working for the Co-operative, including non-Indigenous managers and members. There are five main areas of operation – Nature Based Tourism, Job Matching, Product Creations, Tower Hill Services, and Environmental Services (see Table 2 for a brief description). Horticulture has been a primary area of business for Worn Gundidj since its establishment 12 years ago, including native and exotic plants, revegetation and land restoration services. The development of a bush foods enterprise fits within all five business sectors, but primarily within Environmental Services under the umbrella of the nursery. While the Co-operative is enthusiastic to develop a bush foods enterprise, it is currently viewed as a ‘hobby’ relative to other aspects of the business, with the capacity to be commercial in scale but unlikely to outgrow the current horticultural business. Priorities are focused on developing the Tower Hill Game Reserve as a new business and professionalising the existing Product Creations stream, which together offer significant income, employment and profile opportunities for the Co-operative. Bush foods are an important but relatively minor component of both development strategies.

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Nature Based Tourism Tourism Controller Cultural Interpretation Product Development Natural History Research

Job Matching Corporate Managers Job Readiness Apprenticeships Jobnetwork Liaison

Product Creations Coordinator Product ID Merchandising Design & Creation

Tower Hill Services Manager Sales Purchasing Visitor Information

Environmental Services Manager Wholesale Nursery Land Rehabilitation Bush Food Supply Chain

CDEP Administration

Ballarat CDEP Ballarat

Budja Budja

Halls Gap

Framlingham

Aboriginal Trust

Winda Mara

Heywood

Figure 18 Corporate structure of Worn Gundidj Aboriginal Co-operative

Community-Workforce

Executive Committee

Board of Directors

Human Resources Cultural Content Employee Welfare Staff Development

Work for the Dole

Indigenous Aust Foods

Manager Corporate Relations Marketing

Manager Corporate Finance

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Table 2 A description of the core business areas of Worn Gundidj Aboriginal Co-operative Business sectors Description

Nature Based Tourism

This is a new business area, and incorporates many elements of the other sectors, especially Tower Hill Services as a tourist destination. Stategic alliances have been formed with the City of Warrnambool, Shire of Moyne, Koroit Traders Association, Shipwreck Coast Tourism and others to develop visitation packages associated with the broader Great Ocean Road promotional activities.

Job Matching This business area provides an Indigenous job readiness and matching service where Aboriginal apprentices and trainees are placed into the private sector across some seven trades, including Melbourne-based AFL clubs.

Product Creations This business area produces hand made contemporary Aboriginal items, including screen prints, textile goods and other merchandise. The products are high quality and unique to Worn Gundidj’s country. The Bush-Flare range carries a certificate of authenticity. Product Creations wholesales to Tower Hill, so the products must be able to withstand a 100% margin.

Tower Hill Services This business area involves the management of the Natural History Centre (and gift shop) at the Tower Hill Game Reserve west of Warrnambool under an agreement with Parks Victoria. The Reserve receives about 160,000 visitors a year, of which approximately 70% are international tourists.

Environmental Services

This business area includes the Worn Gundidj nursery and related off-site land rehabilitation activities. The primary focus of the nursery is to provide job apprenticeships and training for the Indigenous unemployed.

6.3.2 Joining IAF Developing a bush food enterprise is viewed as complementary to all business streams of the Co-operative to a greater or lesser extent. While it is not anticipated to create many new jobs in the medium-term, significant benefit is expected from the development of new skills and research investigations, and most particularly in the cultural knowledge developed through bush food interpretation. The native foods that could be grown in the region by Worn Gundidj are currently sourced for the Outback Spirirt line from Gippsland and Tasmania. Worn Gundidj is a strong advocate of the business model and hopes to add Indigenous integrity to the Outback Spirit brand and the bush food industry more generally through its active participation and advocacy. The relationship building that comes from IAF membership (and chairmanship) and the opportunities that may flow from partnerships is considered a prime reason for participation rather than the value of any potential return from bush food crops. The flexibility in the model to allow for partners of varying capacity and give them the opportunity to evolve and develop is seen as unique and important from an Indigenous business development perspective. Significant resources from the Co-operative have been contributed to-date to support IAF, particularly in the role of John Collyer as chair. 6.3.3 Environmental Services Nursery The Worn Gundidj nursery started in 1995-1996. Its primary focus is to provide job training for the Indigenous unemployed. Participants in the Community Development Employment Projects (CDEP) made available through the Aboriginal and Torres Strait Islander Commission (ATSIC) and Work for the Dole (re-badged ‘Work for Worn Gundidj’) undertake 4-year horticultural apprenticeships (nationally accredited through TAFE) and 1-year traineeships. About six apprentices have graduated, and many more from the shorter and more popular traineeship. The nursery employs a total staff of 22 people, with a full-time Environmental Services Manager supported by 3 supervisors (at 24-32 hrs/week) and 18 CDEP participants.

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There is no business plan specifically for the nursery component of the Co-operative. The nursery has grown significantly since its establishment to become the ‘bread and butter’ of the Co-operative and is almost self-financing, with only 3-4 staff members requiring some top-up funding. Given the training obligations and social and cultural responsibilities of the enterprise, it is not realistically expected to be fully commercial. The nursery has won some mainstream awards for its work, such as the Hugh McKay Science Award and a special commendation in 2001 for the Prime Minister’s ‘Work for the Dole’ Achievement Awards. The nursery is well equipped with an industrial size steel-framed shed and brick office (45x35m), 6 poly-hoop greenhouses (30x6m), 3 shade houses (30x6m) and 5 hardstand areas, together with irrigation infrastructure, tractors, utes and tools. It has the capacity to produce 500,000 units each year. Initially it focused on the propagation of exotic species, but has since shifted to 80% natives, partly driven by drought conditions. The shift from exotics to natives has also seen a significant reduction in the use of chemicals. While only 10% of plants are pre-ordered, the full stock of the nursery is generally sold, while any residual stock (generally exotics) is donated. Exotics will continue to be an important part of the nurseries business, as they provide an alternative option to natives in the market.

Figure 19 Worn Gundidj industrial shed and nursery equipment

The nursery has an extensive client base with State government agencies, local government, the private sector and the farming community. Active involvement in the landcare movement in revegetation and salinity control projects has provided ecological as well as employment and training benefits. The nursery is a preferred provider to several major stores throughout Victoria, including Bunnings and K-Mart, guaranteeing positions for apprenticeships. Quality and consistency are paramount in supplying these stores, and orders must be satisfied to ensure ongoing contracts.

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Figure 20 The nursery greenhouses on-site at Worn Gundidj offices in Warrnambool

Bush food is viewed as a ‘hobby’ at present and a small part of the overall business, but could be a more significant component of the business in the longer-term. The interest in Outback Spirit is in propagation and potentially in regional procurement in the longer-term. The potential exists for sales, planting and maintenance contracts with local government, other nurseries, farmers and landcare groups. The nursery has already undertaken some trials, with Native Mint, Muntries, Yams, Mountain Pepper, Chocolate Lily and Bulbine Lily. Landfill rehabilitation site The City of Warrnambool has leased a former landfill site to Worn Gundidj for rehabilitation at a rate of $1.00/year as the ‘Gateway Environment & Wetland Park’ project. The site is opposite the Worn Gundidj office and nursery, and upstream from Kelly Swamp, an important wetland area. The objective of the project is to showcase a practical example of degraded land restoration for enhancing ecological awareness and providing on-site work experience for Worn Gundidj employees. The landfill site is eight hectares in size, and has been capped with 300mm of clay and a layer of soil and compost. The nursery has installed greenhouses and irrigation on part of the site. CDEP and ‘Work for Worn Gundidj’ participants work on the site, as well as in the main nursery complex opposite. Some two hundred students from six schools have participated in revegetation activities on-site. An Indigenous sculptor has also contributed to the site’s development through the installation of cultural totems. An initial trial of bush food plantings on-site was unsuccessful, with an 80% loss rate. This was thought to result from a thin composting layer and inadequate soil for the plants to take root and gain moisture. Competition by weeds was also fierce and a more aggressive program of weed control was taken with follow up plantings. Shelterbelts have been established on-site, including Banksia spp, Melaleuca spp, Kunzea spp, Eucalyptus spp and Leptospermum spp. It is intended to grow bush foods between the rows of trees. In

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trialling the growth of bush foods on site, it is expected that much will be learnt about which plants grow well and which are easiest to grow and maintain. However, there is uncertainty about whether any plants grown on the landfill rehabilitation site will ever be fit for sale and consumption.

Figure 21 Rehabilitation of the landfill site opposite the Worn Gundidj office

Merri River site The City of Warrrnambool has leased a second site to the Worn Gundidj Aboriginal Co-operative by the Merri River to the north-west of the City for $100/year. Renamed as ‘Tarhook Reserve’, it is a 5 hectare site on flood prone farming land, currently grazed by horses. The Co-operative has recently undertaken a riparian revegetation project between the block and the river. The City of Warrnambool has agreed to meet the costs of fencing the block for development by Worn Gundidj.

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Figure 22 Flood prone land leased to Worn Gundidj for bush food cropping beside the Merri River This site is viewed as having potential for the establishment of bush food crops or a single crop of bush food tolerant of wet conditions, and to develop a best-practice model for other groups to grow bush foods. Further, it is hoped that development of the site will provide employment opportunities, foster skills development, and a focus for community and school projects.

Figure 23 Earlier riparian rehabilitation work by Worn Gundidj along the banks of the Merri River 6.3.4 Tower Hill Services Tower Hill Game Reserve is a volcanic crater formation with wetland environments located just west of Warrnambool. Land restoration activities commenced in the 1950s, with some 300,000 trees now planted. It has become a popular nature-based tourist destination for its natural beauty and wildlife viewing, including kangaroos, emus and introduced koalas. The Koroitgundidj people sourced food from the area, and their descendants have special links with the country.

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Worn Gundidj signed a general services agreement with Parks Victoria in December 2002 to manage the Natural History Centre (and gift shop) located within the Reserve. An estimated 160,000 visitations occur each year, of which approximately 70% are international tourists.

Figure 24 The Natural History Centre at Tower Hill Game Reserve, near Warrnambool, Victoria

The Natural History Centre provides an outlet for the sale of products created at the Worn Gundidj Aboriginal Co-operative workshop in Warrnambool. The Co-operative has invested in the Centre and undertaken an extensive refurbishment. Sales have increased by 150% since the transfer of responsibility for the Centre to Worn Gundidj. Most items for sale are local handicrafts, and have a Worn Gundidj authenticity certificate. While the visitation rate to the Reserve is high, spending patterns are very low. Several factors are thought to contribute to this fact, particularly the historic poor condition of the Centre (and therefore no expectation of spending) and the limited stopover period by coaches. Developing relationships with tourist and coach companies is a high priority for developing this aspect of the Co-operative’s business. Robins Foods and Outback Spirit brand products are sold through the Centre, purchased at wholesale prices from Robins Foods. Bush food is very popular with visitors and sales are generally high. The potential exists to retail any locally grown and harvested bush foods through this mechanism, together with the handicrafts.

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Figure 25 The refurbished Centre and gift shop at Tower Hill operated by Worn Gundidj

The Tower Hill Future Directions Strategy 2002 recommends a ‘Bush Food Trail/s, where the Aboriginal community would revegetate agreed areas at Tower Hill with indigenous flora and harvest bush foods from these areas for subsequent sale at Tower Hill. On-site interpretation would also be included, as would increased involvement in reserve management. Parks Victoria would need to allow access to limited areas of land and provide a base for retail operations.’ The strategy was exposed to seven months community consultation, and four major projects have been selected to proceed, with an advisory group to oversee strategy implementation. It is estimated that $20-50,000 is needed for infrastructure for the bush foods component of the strategy. Funding is being sought to develop the bush foods interpretive trail in the immediate surrounds of the Natural History Centre. The proposal is currently in the design phase, but will proceed irrespective of funding support. Under the plan, the Co-operative would provide the labour to plant, maintain, harvest, process and package the bush food, as well as the expertise, raw materials and infrastructure to revegetate the Reserve with indigenous flora (See Table 3). Bush food demonstrations and interpretation would take place on-site by a Worn Gundidj representative. The interpretive trail will form one part of a broader marketing plan to develop experiences for tourists at the Reserve. Dancing and smoking ceremonies are other examples of activities that will be used to encourage more and longer visitations to the Reserve.

Table 3 The planting list proposed for the Tower Hill Game Reserve bush foods interpretative trail Common Name Quantity Common Name Quantity

Blackwood 500 Bulbine lily 2000 Spreading flax lily 2000 Small-leaf celamtis 2000 Muntries 1000 Coastal beard-heath 250 Round-leaf mint bush 2000 Boobialla 250 White elderberries 300 Kangaroo apple 500 Lilly-pilly 300 Native violet 2000 Warrigal greens 2000 Manna gum 2000 Chocolate lily 2000 Drooping she-oak 1000 Silver banksia 500

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6.3.6 Summary and future directions Ongoing involvement of Worn Gundidj in the development of the Outback Spirit brand and the bush food industry more generally is viewed as politically good for the Co-operative. The business model of the supply chain is considered unorthodox, and suited to working with Indigenous groups at different levels of capacity and with differing agendas. It is also considered unique in that the increasing demand for bush food generated by the Outback Spirit brand presents real opportunities and benefits for potential suppliers in the chain. It is recognised that the pace of progress will be driven to some extent by Robins Foods and IAF, but also by the extent to which the Co-operative prioritises bush foods within its overall business. At present, the development of a bush food enterprise is a ‘hobby’ and a sub-set of broader goals to develop the Nature Based Tourism, Tower Hill Services, Environmental Services and, to a more minor extent, the Product Creations streams of the business. In the immediate term, Worn Gundidj has the resources and skills to get some plants in the ground and make a modest start in developing the bush food component of their business, but need direction on what plants to grow and the assurance of a market for the end product. The interest of the Co-operative is in propagation and some local retailing (especially through Tower Hill), but with the scope to be a regional procurer and to undertake some value-adding activities. Value-adding could include activities like drying and packaging, but also linked with the Product Creations business sector, such as weaving baskets for packaging bush food for local retailing. It is expected to take 2-3 years to identify the best and easiest plants to propagate and grow. For Worn Gundidj, this is thought to be realistically limited to a few native mints and some peppers. Within five years, the Co-operative will have undertaken the research to know what grows well and how long it takes to get a benefit. In the longer-term, it is considered possible that the bush food component of the business could develop into a more substantive enterprise. While Worn Gundidj does not own its own land, partnerships with farmers and others in the agricultural sector could present opportunities to grow bush food crops, with the Co-operative acting as a regional procurer. The strength that Worn Gundidj brings to the Outback Spirit partnership is its ability and commitment to providing cultural integrity and authority to the brand and bush food industry development. While there is an expectation that IAF members will act as suppliers and procurers, Worn Gundidj believes that, in addition, members will also always need to participate in the marketing process to demonstrate the brand’s cultural integrity. The major weaknesses of the business model from the perspective of Worn Gundidj is the ‘tyranny of distance’, and the hurdles that presents for regular communication and developing a shared vision for the supply chain. There is a general optimism that such hurdles can be overcome with resourcing for improved communication activities. While it is believed that some members will depart and others will come on board (due to choice rather than lack of support), this is an acceptable and welcome outcome in operating within the philosophy of the business model.

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Figure 26 Product Creations – making authentic Indigenous products in the Warrnambool workshop

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7. Hela Schwarz Australia Pty Ltd 7.1 Getting started Hela Schwarz Australia manufactures the Hela Outback Spirit brand in Australia for export through its joint venture partnership with Hermann Laue Spice Company (Hela International) of Germany. Both Hela Schwarz Australia and Hela International are endorsed by Indigenous Australian Foods. Geoff Gordon (Hela Schwarz Australia) was introduced to Juleigh Robins (Robins Foods) through Chris Mara (Coles-Myer) to provide technical assistance in the development of bush food products during the period that the Outback Spirit brand was under development. Opportunities to develop export markets emerged from these discussions and the concept of a product line called ‘Hela Aussie Classics’ arose, and was eventually replaced by ‘Hela Outback Spirit’. At the same time, the Outback Spirit business model evolved to embrace manufacturing businesses beyond Robins Foods. The advent of Hela Outback Spirit brand represented a major step in the international extension of the Outback Spirit brand. 7.2 A business overview Hela Schwarz Australia is a joint venture between H & R Schwarz and the Hermann Laue Spice Company (Hela International) of Germany. The joint venture was established about 4 years ago after meeting at a trade show in Singapore. It brings together almost a century of experience in servicing food processors in the case of Hela and 60 years of experience in the Australian food industry through H & R Schwarz. H & R Schwarz is a supplier to the food industry of ingredients, equipment, cutlery and consultancy services based in Melbourne, Victoria. It originally manufactured butchers' uniforms, developing over 66 years to become a general supplier to butchers and smallgoods manufacturers, expanding its range to include spices, seasonings, curing agents, sausage premixes, battermixes, marinades, as well as packaging and food processing. More recently, the business has extended to the poultry and seafood industries, together with general food producers and catering companies, and offers consultancy services and contract blending facilities. Hela International is a multi-national company specialising in food ingredients, with partners in 29 countries worldwide and employing hundreds of staff. It produces and distributes ketchup and spicy sauces, spice mixtures and raw spices, special products for meat-processing and convenience products. The company is most prominent in Europe, with expanding markets throughout Asia, Canada and the USA. Hela Schwarz Australia is a 50:50 joint venture with Australian and German capital. The business occupies the same premises as H & R Schwarz in Melbourne, and pays a management fee to that company. Bush foods represent 5% of the overall business. Hela Schwarz Australia has a licence with Robins Foods to produce the Hela Outback Spirit brand for export, Outback Spirit brand for the Australian retail market and for the industrial food manufacturing market. The licence agreement is for a period of five years, with automatic renewal. Non-renewal is only on the basis of either party doing wrong by the other.

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7.3 Hela Outback Spirit brand Hela Schwarz Australia is committed to the Outback Spirit business model. It was involved in the early discussion about the development of the supply chain, and has met some of the IAF members. The business contributed to gaining the commitment of IAF Indigenous partners through the prospects that it presented for access to international markets. It has an ethical interest in the model itself, and its international developers and marketers are prepared to invest in supporting these arrangements. Through the division of labour, liaison with IAF members is the role of Robins Foods, while Hela Schwarz Australia focuses on sales. Hela Schwarz Australia has a business plan for the bush foods component of its enterprise. While there was no clear vision of what this would look like some four years ago during early discussions with Robins Foods, strategic priorities are now in place. The focus of Hela Schwarz Australia is on making affordable products for large processors. The (generic) Outback Spirit products are suitable for niche retail lines, but are too expensive for processors. Robins Foods together with Hela Schwarz Australia jointly develop the Hela Outback Spirit products and cooperatively market in Australia (see Table 4). Hela Schwarz Australia undertakes the manufacturing. Under the agreement, Hela Outback Spirit products must be manufactured in Australia and exported as a finished, value-added product. Product export is through Hela Schwarz and Hela International, while distribution of product within Australia to the retail or industrial sector under (the generic) Outback Spirit label is through Menora Foods. Product sales of Hela Outback Spirit brand in the last year through Hela Schwarz Australia amounted to 50 tonnes to Europe and 5 tonnes to Asia, as glazes and seasonings. Of this quantity, between 2% and 5% of the glazes comprise bush food, and less than 10% in the case of the seasonings. Over a one year period, this accounts for approximately 2.5 tonnes of bush food product exported to Europe and Asia. Hela Schwarz Australia purchased around 2.5 tonnes of raw bush foods through IAF for $67,000, contributing $6,700 in endorsement fees. Table 4 Product lines produced by Hela Outback Spirit Flavours • Bush Tomato Salsa Dried Products • Mountain Pepper - glazes* • Lemon Myrtle & Chilli • Mountain Pepper Berries - seasonings • Smoky Mountain Pepper • Native Mint - coatings • Bush Tomato & Thyme • Wild Herb Salt - instant sauces# • Merlot Mountain Pepper • Outback Rub • Plum & Pepperbery • Lemon Myrtle • Native Mint & Mustard • Bush Dukkah • Native Mint & Mango • Wattleseed • Wattleseed & Garlic Fruits • Davidson’s Plum • Lemon Myrtle Laksa • Lemon Aspen Berries • Coriander & Lemon Myrtle • Wild Limes • Native Herb Salt# • Bush Tomatoes • Wild Lime, Chilli & Ginger • Wild Rosella Flowers • Wasabi & Mountain Pepper • Kakadu Plums • Bush Tomato & Parmesan • Wattleseed & Butterscotch* • Lemon Myrtle & Honey* • Chocolate & Native Mint* • Lemon Myrtle Sour Cream &

Chives*

* with the exception of those products marked # with the exception of Native Herb Salt

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7.4 Supply quality and reliability The quality of bush food supplies has generally not presented any problems to Hela Schwarz Australia. There have been some issues with the colour and aroma of bush foods and it is the brief of Robins Foods to standardise these factors. There are also some regulatory issues that have arisen that could present hurdles to accessing overseas markets. The gazetting of bush foods as ‘novel foods’ has raised questions of the safety of bush foods for human consumption by the US Department of Agriculture. The reliability of supply has been a minor issue to date for Hela Schwarz Australia, but assurances are needed that future supply demands can be met. The quantity of native food in any product will always be small, as the raw product is expensive, but it is the bush food component that will give it its name and its flavour. Hela Schwarz Australia believes that they will inevitably ‘get bitten’. Opportunities will present themselves and if the chain can’t supply then there is concern that confidence could be lost in the product. The chain has to be prepared to plan ahead for the sort of demand that marketing and promotion could generate (like KFC wanting to sell a bush food seasoned meal). However, managing forward estimates is a very difficult issue. Robins Foods requests volume estimates and Hela Schwarz Australia seeks volume estimates from Hela International, but invariably no one can really predict the needs. As the value of the raw material is very expensive, there will always be a reluctance to commit to harvesting or planting on a promise. The problem of how to get around ‘chasing our own tails’ was a concern expressed by Hela Schwarz Australia. 7.5 Marketing strategies and the consumer The market for Hela Outback Spirit products in Europe, Asia and the USA are only niche in size, but each of these niche markets is the size of the entire Australian market, and therefore presents enormous prospects. Europe is currently the largest purchaser of product, and these purchases are primarily glazes for meat production. All Hela Outback Spirit lines sell about the same volume, with Lemon Myrtle, Bush Tomato then Pepperberries slightly in front. The overall plan of Hela Schwarz Australia is to promote Hela Outback Spirit products as a distinctively Australian eating experience. It builds on Australia’s ‘clean and green’ image abroad, and the products themselves can be traded on the basis of their unique story and images of Australia. Product sales are perhaps constrained by their unusual nature and the need for explanation. Getting people to try the product is considered important, so that the consumer develops some product recognition. A supermarket chain in Germany has already invested some $300,000 in biannual advertising and promotions of Australian bush foods. Hela Schwarz Australia is not in direct contact with the end consumer, so its ability to characterise the international consumers of Hela Outback Spirit is somewhat limited. The product is considered exotic and niche in nature, and the price is expected to restrict the lower end of the market. The consumer is therefore seen as the middle to upper end of the market. 7.6 Summary and future directions The strength of Outback Spirit for Hela Schwarz Australia lies in its great story, flavours and colours, so it’s not a product that it believes needs talking up in the market. It believes that ‘everything about the product is successful’ and the business has backed this sentiment through its substantial investment. Projected sales for Hela Outback Spirit finished products in the next five years are anticipated to reach $0.5-1 million to Europe and other international markets, although Hela Schwarz Australia stresses that it is inherently difficult to make such predictions.

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The retail and industrial market in Australia for Outback Spirit products is expected to grow more strongly if the patronage of a major supermarket supports the expansion of the range to include products like sausages, cheeses, snack food, soft drinks, pasta and bread. Other businesses need this confidence to make the investment in product development and manufacturing. However, Hela Schwarz Australia notes that supermarkets are ultra-conservative and target lower to middle income families and, in doing so, need to provide product as cheaply as possible, which is a constraint to the Outback Spirit range of products which are not cheap or ordinary in nature. Hela Schwarz Australia suggests that government support is needed to underwrite minimal quotas to add some certainty, reduce risk and help kick-start an industry that is ‘quintessentially Australian’. It will take many more than five years to develop the Outback Spirit brand or bush foods as a significant business according to Hela Schwarz Australia. It is envisaged as a gradual process as ‘success begets success’, but will always be a niche market. In the future, there may need to be some refining in the marketing of Outback Spirit to the variety of consumers. Feedback from the UK has indicated that the Aboriginality of the ‘story’ should be omitted or down-played, while in Europe, the term ‘bush food’ connects more strongly to the American President ‘George Bush’ than Indigenous Australian food. Even in Australia, the impact of the ‘Aboriginality’ of the story on people’s purchasing decisions needs further research.

‘All businesses go through the stages of awareness and consolidation. Outback Spirit is in the awareness period and it’s still a long way from prominence in the marketplace.’ Geoff Gordon, Hela Schwarz Australia

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8. Kikapu Ltd (United Kingdom) 8.1 Getting started Kikapu Ltd is an agent and distributor of a variety of food products and is based in the United Kingdom (UK). It acts as an agent for Robins Foods, identifying markets in Europe, particularly in the UK. Since the business was established two years ago, Kikapu have represented all Robins Foods lines, including Outback Spirit. By holding product in the UK, it is possible to supply small amounts of product to prospective customers for trial, and gradually build a broader client base. Undertaking such an operation directly from Australia is logistically difficult and prohibitively costly.

Figure 27 Kikapu’s warehouse in London, UK

8.2 A business overview The business of Kikapu Ltd comprises a variety of food products, and the marketing and distribution of these products to three major market sectors – multiples (supermarkets), independents (‘corner stores’) and food services (restaurants, hotels, etc). Multiples represent approximately 90% of the business. The food range currently comprises eight brands and about 200 items. Major brands include Outback Spirit, African Farm and Taste of Thailand.

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The Outback Spirit and African Farm brands are common in that they both represent ethical supply chains, with linkages to Indigenous peoples. Kikapu Ltd is part of a diverse group of companies with interests in manufacturing, retail and distribution. Kikapu itself employs ten staff. Its business is currently confined to the UK, but markets are being developed elsewhere in Europe and the USA. Kikapu Ltd is part of a large family business, which has been operating for more than 70 years and involves three generations of the Shah family. The Shah family was offered the opportunity to purchase Kikapu from its former owners, who were close business and family associates. The Shah family have a philosophy about using their business interests to help others and return something to the country of origin. Financial issues were not the essence of the decision to purchase Kikapu, rather it was aspects of the business portfolio, particularly the Outback Spirit and African Farm brands, which co-incidentally aligned with the family’s philosophy. The family believe that people inadvertently but invariably make mistakes and cause upsets in operating businesses and should compensate for this by paying back to society through employment creation, education, health and religion.

Figure 28 Examples of African Farm brand products

Kikapu and its group of companies have articulated a commitment to the Outback Spirit brand as the ‘backbone’ of the company, together with the African Farm brand, and wish to develop markets in the knowledge that benefits will accrue to Indigenous peoples and support them in making a descent living. While the business does not have detailed knowledge of the Outback Spirit supply chain itself, it is encouraged by the knowledge that Robins Foods and Coles Supermarkets are contributing a portion of proceeds to the further development of Indigenous enterprises.

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It has demonstrated over a long period of time that enshrining this philosophy of respect for society and allocating a proportion of its profits to the underprivileged through its operations is a successful business formula.

‘The AFRICAN FARM initiative is committed to the preservation of traditional African farming methods and the sustainability and upliftment of rural African farmers. Your purchase of this product strengthens Africa’s ability to resist the introduction of genetically modified crops.’ The vision of the African Farm brand

8.3 The Outback Spirit brand In the past six months, Kikapu has purchased the equivalent of A$180,000 worth of product through Robins Foods, which represents estimated annual retail sales of A$540,000 – although this includes other Robins Foods lines. There is no business plan in place for Kikapu at the present time, as an understanding of the business operations are being developed by its new owners. All three market sectors – multiples, independents and food services – present development opportunities for extending the brand, although multiples and food services stand out as the most promising. Food service in the UK represents a £5-6 billion per year business. Food services tend to be more concerned about tastes and don’t necessarily need an established brand or have an interest in the origin of the products. Walkabout Inns, a chain of 65 pubs in the UK, has recently signed the IAF endorsement and will incorporate Outback Spirit products in its menus. Approximately 50% of the A$180,000 worth of product purchased by Kikapu over the past six months supplied Walkabout Inns. The Outback Spirit brand and logo features prominently in its Winter 2004 menu design (see Figure 29), and demand is expected to increase as a consequence. Robins Foods (Hot Oz) and Outback Spirit (Kakadu Plum Sauce) are currently sold in Sainsbury’s Supermarkets. Proposals have been put before other Supermarkets in the UK and in France. Extension of the Outback Spirit brand to The Netherlands has been recently progressed through a boutique chain of stores called ‘Oil & Vinegar’, with around 100 stores including throughout Scandinavia, the UK and USA. Outback Spirit products will be developed especially for this business, ready for sale throughout The Netherlands in January. This product will be supplied through Hela International, as the preferred supplier, via Kikapu from Robins Foods. Hela International has a reputation for prestigious packaging and marketing, in line with the boutique nature of the Oil & Vinegar line.

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Figure 29 The UK’s Walkabout Inns Winter Menu featuring the IAF logo

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8.4 Supply quality and reliability The main food quality standard required by international regulatory authorities is Hazard Analysis Critical Control Point (HACCP) certification, which Robins Foods satisfies. The only supply quality limitation raised by Kikapu related to the use-by date on products. Kikapu prefers a minimum shelf life of two years, while some products supplied to-date have only had a shelf life of 12 months. Transportation by ship from Australia to London requires 6-8 weeks, and product may subsequently be stored and transported elsewhere. No issues of supply reliability were raised, although some product has been air freighted rather than shipped to the UK in the past to meet demand requirements. Kikapu provides Robins Foods with monthly orders, including forward projections for the following month. Monthly targets are not currently set for sales, but will be put in place in the coming months once the new business owners have developed a better understanding of aspects of the operations.

Figure 30 Unpacking Outback Spirit products at the Kikapu warehouse in London

8.5 Marketing strategies and the consumer Outback Spirit is currently classified as ‘fine specialty food’ or ‘premium product’. Kikapu has a goal of establishing the products as mainstream items. In Sainsbury’s Supermarkets, Robins Foods and Outback Spirit items currently feature in specialist sections. Sales of Outback Spirit are growing slowly in the UK, and significantly more marketing support and exposure for the product is needed. The main approach to marketing adopted by Kikapu is through exhibiting at public shows and at trade shows and exhibitions. It will invest over £20,000 each year for this purpose. While in-house demonstrations and advertising through newspapers and magazines is possible, these are not favoured and are expensive.

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A recent exhibition of African Farm brand products at the Ideal Home Exhibition in October 2004 sold over 4,500 items over a six-day period, and generated 20-30 emails requesting product. The same approach will be taken with Outback Spirit at an exhibition in March 2005. The business participates in major international food trade shows, notably the ‘Sial’ held in Paris every two years. The consumer of Outback Spirit in Europe is described by Kikapu as being adventurous, with an interest in Australia, and perhaps having holidayed there at some time, as well as having an interesting in cooking. The income level of the consumer is considered medium to high, as the price of the product is relatively high. Some consumers may make their purchasing choice with consideration to ethical issues and the nature of the supply chain, but this cohort is thought to be very small. Kikapu has received email correspondence from consumers querying why the products are not available more broadly. The taste and appearance of the Outback Spirit line are considered to be unique, supported by strong branding. It is considered that marketing and branding will need to give further thought to different sectors over time. While the UK has a shared history and cultural connections to Australia, as well as regular media exposure, the same cannot be said for other parts of Europe. It was noted that Germans are more patriotic, but also environmentally conscious, and have a preference for labeling only in the German language. The UK has a track record of sales into The Netherlands, Belgium and Luxembourg, which are viewed as trading-based countries and more receptive to international influences. The Scandinavian markets are seen as providing good opportunities, while France and Germany are considered more difficult markets to access. While IAF endorsement was considered an important feature of the branding, there was some confusion about what the endorsement actually represents beyond a commitment to help and support the under-privileged. 8.6 Summary and future directions

‘Outback Spirit is here to stay’ Binay Shah

The relationship between Robins Foods, as the marketing arm of IAF, and Kikapu Ltd represents a very important element in the future prospects for the Outback Spirit brand in the international domain. The approach of Kikapu, under the tutelage of its parent company, will provide an operating environment in which the Outback Spirit brand has the opportunity to flourish. Kikapu has strongly articulated its respect for the vision of the Outback Spirit chain, which aligns closely with its broader business philosophy. The trust developed to-date between the partner organisations will manifest itself in the mutual flexibility afforded in the day-to-day operations of business. This commitment is further demonstrated in the expressed intentions of the new management to visit Australia and meet members of the Outback Spirit supply chain. Kikapu expressed great optimism for the future prospects of the Outback Spirit brand, but emphasised the need for marketing support. The brand is expected to attract of strong consumer following, particularly those with an interest in Australia. The UK is expected to be the hub of consumer interest because of its close cultural connections, while the scope for and scale of market penetration elsewhere in Europe is more uncertain and needs further consideration of approaches to marketing and branding. Further clarification about the nature of IAF endorsement is also needed. Price was identified as the greatest weakness of the brand. The business would like to see the brand reach ‘borderline’ pricing, where it becomes affordable to the average shopper, while maintaining product quality. It was suggested that the price could be reduced if the duty of almost 10% paid by Kikapu on Outback Spirit products imported to the UK could be reduced through IAF achieving charitable status.

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9. Analysis and Conclusions This chapter provides an analysis of the profiles presented in Chapters 3-8 of the individual partners in the Outback Spirit supply chain and the conclusions drawn from this. The analysis focuses on the following significant and inter-related themes highlighted in the partner consultation process – the supply chain model, business diversification and leveraging resources, balancing supply and demand, Aboriginal authenticity, strategic planning and capacity building, quality assurance and supply reliability, marketing strategies and branding, and ecological sustainability. 9.1 The supply chain model The Outback Spirit business model is unique, and it is one that is well suited to an emerging industry and developing collaborative partnerships between Indigenous and non-indigenous people. The systems diagram shown in Figure 31 depicts the key elements of the supply chain and the connections between them. The model accounts for the intellectual stake that Indigenous people have in the native foods industry in Australia by its mechanisms for capturing market returns at a number of levels – through direct supply of bush foods from IAF members (by wild harvest or cultivation), through regional procurement activities of IAF members (from Indigenous or non-indigenous suppliers), through the 10% IAF endorsement fee on sales to manufacturers and through the Coles Indigenous Food Fund facility. It connects Indigenous communities to business partners that share a similar philosophy and to both domestic and international markets, and with each other through the development of culturally significant enterprises. The business model is part reality and part aspiration at present, but with the scope to become fully operational over time. A flexible approach allows partners to participate at a level that matches their capacity and enables active involvement to evolve through experiential learning and through changing circumstances. Some of the current membership in the supply chain may depart (or relinquish their membership to channel their product through another member operating in the same region) and others may join through a process of adaptation and evolution that will bring the reality step-by-step closer to the conceptual model. 9.2 Business diversification and leveraging resources Robins Foods as the primary partner has a conscious strategy of maintaining business diversity. Its aim is to keep a balance between the export, food service, retail and gift hamper (as a sub-market to retail) components of the business, and not invest too heavily in supermarket lines. For Hela Schwarz Australia, bush foods comprise around 5% of its business, which limits its exposure to the risks and uncertainty associated with the bush foods industry and the supply chain specifically. Kikapu sources other product lines, and is underpinned by its large parent company. The Indigenous IAF members are able to off-set their exposure to the inherent risks and uncertainty associated with an emerging industry through leveraging resources from their other business interests. At present, bush foods comprise only a small percentage (or none) of the business of most parties to the supply chain. While this presents its own difficulties, the foray of each organisation into bush foods as a new business development is supported by the (real and potential) successes of their other business streams.

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Figure 31 A conceptual representation of the Outback Spirit supply chain

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The Mamu and Worn Gundidj case studies demonstrate the potential for the Indigenous IAF members to leverage substantial resources from their other business streams in developing bush food enterprises and undertaking research, especially through employment programs. All members have formal and informal partnerships with a broad range of organisations across the scope of their business interests – tertiary institutions, local governments, state agencies, community groups, businesses and others. Many of these interests are directly or indirectly related to supporting the development of their bush foods enterprise. This cross-subsidisation enables greater scope and risk-taking in developing the new business, without which participation in the bush foods industry may not be feasible 9.3 Balancing supply and demand The supply chain is well placed to benefit from the unique position of supplying to a market where demand for product is steadily growing. Emerging industries, like agroforestry, are often characterised by speculative planting where markets are currently absent and far from guaranteed at the time of planting. While demand for bush foods is increasing and represents business of around $1 million/year respectively for Robins Foods and Coles-Myer, the overall volume of bush food ingredients is still very small and translates to minimal and irregular returns across the seven potential IAF member businesses. The business strategy of embracing new companies both domestically and internationally under the Outback Spirit umbrella label provides the scope to generate sufficient demand to support the bush food enterprises of the individual Indigenous IAF members. Coles supports this strategy in its preparedness to consider new bush food products from companies based on their commercial merits. The current low level of demand for bush foods and the uncertainty about future demand has presented IAF members with a supply conundrum. IAF members want some guidance on what to harvest and/or propagate and plant backed by a purchasing guarantee, while the manufacturers are prepared to purchase through IAF but not give any particular guarantee in writing. This dilemma was demonstrated in several case studies. Worn Gundidj has an existing nursery, labour and access to land, but wants some guarantee before investing further, while the last sale of Bush Tomatoes from the Australian Aboriginal Food Company to the supply chain was two years ago. Some progress in this area is being made with an agreement reached with the Mildura Aboriginal Corporation to establish a trial of 10,000 Bush Tomato plants this year and a further 60,000 proposed for next season, with support form the CIFF. Similarly, CIFF resources are being used to establish Kakadu Plum plantations with the Bawinanga Aboriginal Corporation. However, a tension exists more broadly between the desire for more certainty by suppliers and the need for manufacturers and distributors to balance purchases against product demand. While balancing demand and supply is a universal issue faced by all businesses, it is more problematic for fledgling industries carving out a place in the market. Mainstream agricultural industries, such as beef, wool and grains, have long histories of public investment in infrastructure and research, not just in Australia but globally. Robins Foods highlighted the hurdles of pioneering an industry with new and uncommericalised plants, unestablished markets and limited scientific or consumer knowledge. Public investment is warranted in supporting the development of the supply chain, and could break the demand-supply impasse by underwriting a minimum level of product supplied by the Indigenous IAF members, giving the members the confidence to proceed with developing their bush food enterprises. The public benefit in such an approach extends beyond development of an Australian bush foods industry, to employment opportunities, eco-tourism, research, and building cultural knowledge and connections.

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9.4 Aboriginal authenticity The ‘cultural authenticity’ of the Outback Spirit supply chain must be matched by appropriate structures and approaches to governance of IAF itself and within each of its member organisations. This is important for maintaining the dedication and commitment of the supply chain members and for accountability to consumers and other interests. The intent and understanding of the IAF constitution has been described as ‘not only are the member businesses majority Indigenous owned, but that the control and power of the member businesses and IAF are vested in Indigenous hands’. This is embodied in the objectives for the development of IAF: • to recognise the contribution of Aboriginal people as traditional consumers and managers of wild

harvested native food • to ensure there is genuine ownership by some Aboriginal organisations in a commercial supply

chain while the industry remains in its infancy and before ‘mainstream’ investors enter the industry to any major extent.

The approach denotes Aboriginal ownership and control as criteria or surrogates for defining the Aboriginal authenticity of the supply chain. When considering IAF as a body and the three case studies of IAF members, these criteria are satisfied to varying degrees – with IAF primarily driven by Robins Foods (as the only constituted non-indigenous member) and all three IAF members supported by non-indigenous partners (eg Wirmbrandt Pty Ltd in the case of Australian Aboriginal Food Company; TAFE, James Cook University, local government and consultants in the case of the Mamu Aboriginal Corporation; and non-indigenous staff members in the case of Worn Gundidj Aboriginal Co-operative). It is suggested that both criteria are important and appropriate; although, the term ‘majority’ needs further interpretation in this context. Ownership and power should be guided by the higher order philosophy expressed by the Mamu people of ‘no-one speaking for another’s country’ (and in-keeping with ‘self-determination’), and may not reconcile readily with applying a traditional measure of ‘majority’. The application of these criteria should be flexible and account for specific circumstances, and should be evaluated and adapted as the supply chain develops. There are also some compelling reasons why the same criteria or ‘rules’ should not necessarily be applied universally across the chain. The most striking example is in the case of the remote Laramba community that comprise the Australian Aboriginal Foods Company, where traditional lifestyles may be compromised or threatened by striving to empower them to take the lead role in harvesting, storing, selling and transporting bush foods to the Outback Spirit chain, developing regional markets and value-adding. Operating under the philosophy of ‘no-one speaking for another’s country’ or ‘self-determination’, the current arrangement of having a non-indigenous agent, access to traditional work and the choice of whether to participate in any particular harvest may be the most culturally appropriate (and therefore culturally authentic) approach. That said, where the geographical area of IAF members overlap (as in the case of the Australian Aboriginal Food Company and the NPY Women’s Council), product could be channelled into the Outback Spirit chain via the business with the greatest Aboriginal ownership and power. While a traditional model, using (potentially measurable) uniform criteria for ownership and power, is easier to construct (and promote), it is unlikely to always genuinely define Aboriginal authenticity in a country where Aboriginality has many manifestations. The Outback Spirit supply chain is based on a more flexible, inclusive approach that captures the diversity of circumstances of its member organisations; however, it needs to develop a better capacity to demonstrate this authenticity in the marketplace. It is important that marketing approaches accurately portray this ‘Aboriginal authenticity’, safeguarding the integrity of the brand. This is especially critical as marketing and promotion increasingly emphasises the authentic and ethical nature of the brand in domestic and international markets. Further development of the brand’s authenticity is needed, including the role and terms of IAF endorsement.

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9.5 Strategic planning and capacity building For the supply chain to succeed in the long-term there are some substantive strategic planning and capacity building issues for IAF member organisations that need urgent attention, and which accommodate the multiple objectives of the partners for participation in the supply chain. While a willingness to participate and a broad conceptual framework for the supply chain is in place, there are some fundamental actions necessary to keep the concept alive, functioning and evolving. The remoteness and diversity of and access to the member groups, together with their array of business endeavours, present hurdles for the chain that require structured strategic planning and regular communication and networking to overcome. This is compounded by limited access to resources and the large number of supply chain members and the multitude of communities they represent. Immediate investment in strategic planning and communication mechanisms is needed, and IAF members have also expressed a desire to ‘see something working’. Resourcing representatives of IAF members to conduct meetings on a regular basis and provide formal correspondence is an important first step, as further development of a shared vision for the supply chain is necessary. The Mamu and Australian Aboriginal Food Company case studies highlight the importance of communication in maintaining commitment to the chain – notably, the significant disjuncture between the strategic directions of the Mamu people (and their partners) outlined in section 6.2 compared with those from IAF strategic planning meeting described in section 5.4.5. This commitment then needs to be built upon through skills development and training in the many aspects of business operations and management. Organisations like Worn Gundidj and Mamu are well placed to progress this level of capacity building with their respective regional partners, while others are likely to need more direct support through the supply chain. The capacity of some of the member organisations is also limited by access to basic equipment, such as refrigeration, harvesting tools and grinders (notably, Australian Aboriginal Food Company, Bawinanga Aboriginal Corporation, NPY Women’s Council). Many of these needs could be met through the submission of funding applications to a range of institutions; however, the supply chain lacks the human resources to lead the process and undertake the associated networking and advocacy needed. The Coles Indigenous Food Fund (CIFF) has provided some support in developing the capacity of the supply chain through the projects described in Chapter 4 (with the $220,000 accrued to-date, with scope to establish an industry-wide Fund including contributions from other retailers). However, the Indigenous IAF members require clearer guidelines on the scope and terms of the Fund, including the process of application and assessment. Some funds will be used to resource the position of a supply chain manager, whom should contribute significantly to some of the existing strategic planning and communication inadequacies, as well as provide some capacity to seek further funding support. It will be important for IAF to progressively fulfil its role as the central procurer of bush foods and for Robins Foods to step back from this role – in line with the conceptual model for the supply chain. While Robins Foods retains its role as the marketing arm of IAF, the purchasing and transfer of product should be managed by IAF as an organisation. At the same time, the Indigenous IAF members need to evolve as genuine regional suppliers. The rate of progress in this transition is seriously hampered by available resources to achieve IAF-directed management of the supply chain – highlighted by the financial statistics provided by Hela Schwarz Australia indicating total endorsement contributions to IAF of $6,700 in the last year; a portion of which is allocated to Robins Foods for product development and marketing. While the criteria defined by IAF of accepting new members on the basis of unrepresented geographical regions or other compelling reasons seems reasonable, expanding IAF membership any further at this stage in the development of the supply chain is likely to present more risks than benefits, when the strategic planning and communication demands are already so great.

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9.6 Quality assurance and supply reliability The chain confronts some important supply issues in the coming years, as the demand for bush foods through marketing and promotions steadily grows. The Bush Tomato is considered the most immediate and critical bush food that could face a supply issue, as it is the bush food most likely to attain ‘icon’ status and is the largest and fastest growing seller. Incongruities arose in the views expressed by supply chain partners with respect to the supply of Bush Tomatoes. Some Indigenous IAF members are considering cultivating Bush Tomatoes (with CIFF resources allocated to the Mildura Aboriginal Corporation to commence plantation establishment), while the Australian Aboriginal Food Company reports the potential to annually harvest 2-4 tonnes (depending on the seasonal conditions), with the capacity to increase this to as much as 20 tonnes/year by drawing on women from the broader community of 3,000 Indigenous people living in the surrounding region. Wiormbrandt Pty Ltd considered the wild harvest sustainable due to the combination of very high reproductive rates and collection by hand, as well as providing the benefit of culturally appropriate employment for local women. However, the extreme variability in seasonal conditions means that the short-term risks to the manufacturers are seen as too great, when Bush Tomato is the leading seller. There are quality and food safety issues that the supply chain needs to address to maintain commercial viability, as well as some regulatory issues associated with fitness for human consumption raised as threatening access to overseas markets. In Australia, some research on food safety and quality is being conducted that will contribute to existing understanding and knowledge. The development of domesticated ‘bush tucker’ cultivars is one approach to improving the quality and supply of product to markets, and represents an area needing considerable research investment. It also requires that the Australian Government clarify the means by which traditional knowledge can be protected from commercial bio-piracy. Stockpiling some bush food product is likely to be an important feature of meeting future demand, as the supply of some bush foods, particularly those from wild harvest, are difficult to control, especially where climatic factors play a leading hand. Protocols need to be developed and supplied to the Indigenous IAF members to direct their business activities. The Australian Aboriginal Food Company reported that no specific requirements with respect to quality have been discussed in the past. Appropriate training will be necessary to understand and meet the set standards. The development of business plans, both for the Outback Spirit supply chain as a whole and for each of its individual elements, is critical in addressing some of quality assurance and supply reliability issues that confront the supply chain, which may threaten its ability to meet growing demands as well as misdirect limited resources and forego some potential opportunities. 9.7 Marketing strategies and branding Few small businesses get the opportunity to distribute nationally and become a mainstream product. The patronage of Coles Supermarkets has enabled wide exposure, volume and distribution of what would otherwise be a boutique product, establishing a small range of commercially successful products in the Australian market. The marketing approaches tested by Coles Supermarkets confirm that bush foods can be commercially successful as mainstream rather than as specialty products in Australia, although this may not be the case in different retail situations. International markets present good prospects for further expansion, with Kikapu Ltd aiming for mainstream consumer acceptance and Hela Schwarz Australia noting that niche markets in Europe, Asia and the USA are each the size of the entire Australian market.

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Coles buyers, Hela Schwarz Australia and Kikapu have all indicated the need to reduce the price of Outback Spirit products, which are priced at the high end of their category, while maintaining product quality. While this will lift sales rates and enable the brand to compete more effectively with other products in the same category, a price reduction has implications for the already small margins of suppliers. Hela Schwarz Australia noted that supermarkets are ‘ultra-conservative’ and target the lower to middle income range, which is a constraint to the Outback Spirit range. The inclusion of further manufacturers, with consideration of the regularity of consumption as a key driver in making bush foods mainstream, is an important factor in creating the critical mass needed to make price reductions feasible. The partner consultations indicated that mainstream consumer acceptance of bush foods is anticipated to take a period of ten years or more. The Bush Tomato and the Wild Lime are expected to be particularly successful, eventually becoming synonymous with Australian food, with others to take longer to establish a consumer following. Whereas Hela Schwarz Australia reported that all its Outback Spirit products sell in about the same volumes. The absence of consumer familiarity with the product is seen as a key barrier to success, which will require a significant marketing and education campaign to overcome. The Australian Aboriginal Food Company case study further suggested the need for Australia to establish a dedicated Board, akin to the Australian Wheat Board, to promote the Australian bush foods industry. The development of the Outback Spirit brand took a period of three years, with input from a number of parties in the supply chain. The process of brand development is an evolving one and needs to be regularly revisited. Feedback from Hela Schwarz Australia and Kikapu indicated that the branding (and associated marketing) approach needs more evaluation in the international context, where aspects of the branding like its Aboriginality and the notion of ‘bush’ foods may need some reinterpretation to improve sales prospects. Marketing of the Outback Spirit brand is partly reliant on its Aboriginal authenticity (as discussed in section 9.4), provided by the Indigenous members of the supply chain. Some of these members have played a role in promotional activities to-date, such as at trade shows, in-store tastings and the various Outback Spirit launches. The critical role of the Indigenous IAF members in marketing the Outback Spirit brand needs dedicated and adequate resourcing in the development of longer term marketing strategies. 9.8 Ecological sustainability As the business model develops and the supply chain evolves to secure its Indigenous authenticity and credibility, attention needs to be given to issues of ecological sustainability. Consideration of sustainability is important from two key perspectives: harvesting within the sustainable yield of individual bush foods and reducing the ecological ‘footprint’ of the products (building on the ‘clean and green’ marketing approach). For example, in North Queensland, the Network for Sustainable & Diversified Agriculture (NSDA) is promoting agroforestry as a means of producing bush food sustainably, while also enhancing the sustainability of agricultural land use in the region. Sustainable yields should be addressed to a large extent in the process of business planning, but will be constrained by limited knowledge from existing research investigations. For example, the Bawinanga Aboriginal Corporation has reportedly undertaken research on the impacts of exclusive wild harvest of Kakadu Plum in the homelands, and found it to be both ecologically and economically unsustainable. The business planning process should highlight priority information and research needs and the supply chain should be active in informing research funders about these identified gaps. The ecological footprint of the Outback Spirit range encompasses the impact of the total production process, including the supply of other ingredients (sugar, oils, etc), packaging and transport.

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While the chain may not wish to satisfy organic or environmental certification and labelling requirements, opportunities to improve the ecological sustainability of the product line (eg through substitution of ingredients or suppliers) should be considered. It is likely that the target consumer for the Outback Spirit brand also has a strong interest in ecological sustainability, such that the Outback Spirit brand could be discredited if aspects of its harvesting operations or supply practices were revealed as seriously detrimental to the environment.

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10. Lessons and key messages for wildlife conservancies The following lessons and key messages have been drawn from the interview process and the analysis and conclusions shown in Chapter 9 according to the same theme headings. These lessons and key messages may inform the marketing and supply chain development of wildlife conservancies established under RIRDC’s Sustainable Wildlife Enterprises project or other interested parties more generally: 10.1 The supply chain model • Working towards an ‘ideal’ business model in a step-by-step process is appropriate for an emerging

industry and when developing Indigenous and non-indigenous relationships • Bush foods enterprise development should account for the intellectual stake that Indigenous people

have in the industry, using mechanisms to channel a share of the market returns to Indigenous communities

• A flexible business development approach has the advantage of enabling parties to participate

according to their capability and changing circumstances • Opportunities may exist now or in the future for wildlife conservancies or other regional businesses

to supply bush foods to the Outback Spirit supply chain through an IAF member 10.2 Business diversification and leveraging resources • Exposure to risks and uncertainty can be reduced by maintaining a level of diversity at all levels of

the business supply chain, to the extent possible • Partnering with organisations that have a similar business philosophy and that have access to other

resources through direct or complementary business interests (with consideration to benevolent organisation status) can off-set risks and uncertainty, with particular consideration to Indigenous employment programs

• Commercial success in other business arenas may be a prerequisite for building and financially

underpinning a new bush foods enterprise • Developing partnerships with organisations, like local government, academia, state agencies and

other businesses, will be critical in building robust regional bush foods-based businesses 10.3 Balancing supply and demand • Demand for bush foods is steadily growing; however, the overall volume requirements are still very

small and returns are irregular • Uncertainty about future demand presents risks for suppliers in the absence of guaranteed

purchasing agreements and risks for manufacturers in the absence of accurate forward sales estimates to guide purchases

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• The benefit of developing a bush foods industry extends beyond the immediate returns, to offering regional employment opportunities, conducting research, and building cultural knowledge and connections to country

• The public benefits of developing regional bush foods industries, particularly in partnership with

Indigenous communities, justifies resource support by government and philanthropic organisations, including consideration of underwriting minimum supply quotas

10.4 Aboriginal authenticity • Business structures and approaches to governance should match any claim of cultural authenticity • Business approaches based on Australian Aboriginal authenticity should give primary consideration

to establishing majority Indigenous ownership, within an overarching philosophy of ‘no-one speaking for another’s country’ (in-keeping with ‘self-determination’), with a flexible approach to interpreting and evaluating secondary (but nevertheless important) criteria like representation and power

• Emphasising cultural authenticity and ethical-based products in the market place (domestic and/or

international) needs to be backed by a clear philosophy and associated criteria, with supporting evidence of progress

10.5 Strategic planning and capacity building • Strategic plans are needed for all elements of the supply chain, with clear definition of the

relationship of the bush foods enterprise to other business interests • Communication between business partners is critical in maintaining and developing a shared vision

for the enterprise and achieving any stated goals, especially where partners are remote • Structures should be put in place to communicate not only with supply chain members, but with the

communities they purport to represent • Strategic planning and capacity building need to be matched by on-ground action and the sense by

the supply chain partners that there are some tangible achievements • Access to equipment may present hurdles to meeting supply requirements, and limit opportunities

for value-adding, and options should be investigated for addressing these • Guidelines about funding availability to supply chain partners should be established and clearly

communicated, enabling equal access to resources • Supply chain membership should be constrained to a manageable number, and expand in line with

the resources available for functional business operation, especially communications 10.6 Quality assurance and supply reliability • Business planning, with consideration to strengths, weaknesses, threats and opportunities, is central

to addressing issues of quality assurance and supply reliability • Some bush foods are more likely to obtain ‘icon’ status in the domestic market, such as the Bush

Tomato and Wild Lime, presenting both supply opportunities but also potential supply shortages

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• Differing perceptions exist about the likelihood of supply shortages of bush food types and the capacity of any given environment to supply (from the perspective of both yield and human resources)

• Some regulatory issues associated with fitness for human consumption may present hurdles to

accessing overseas markets • Some quality aspects of bush food supply are dictated by climate and are difficult to control • Stockpiling of some bush foods may be necessary to achieve reliable supply, but must be balanced

against acceptable ‘use by’ dates on products for overseas markets • Protocols on food quality and safety should be developed, communicated, used and evaluated to

guide business practices 10.7 Marketing strategies and branding • Bush foods are principally boutique products, so few small businesses will have the opportunity to

distribute nationally and internationally and become mainstream products • A small range of commercially successful products have been established in the Australian market,

but it may take more than 10 years for the bush foods industry to establish itself as mainstream • International markets for bush foods are essentially niche markets, but due to their scale represent

markets the size of the entire domestic market • Bush foods are priced at the high end of their category and need to come down to compete more

effectively in supermarkets, which primarily target low to middle income consumers • Developing products that are regularly consumed (like bread) present opportunities for creating the

critical mass needed to make price reductions feasible • While Bush Tomatoes and Wild Lime are expected to be the first to develop a consumer following

in Australia, international sales have so far been relatively uniform across food types • A significant marketing and education program is needed to develop consumer familiarity with

bush foods, and could be facilitated by government investment in the establishment of an industry dedicated Board (like the Australian Wheat Board)

• Developing a product brand is an evolving process that will involve some trial and error and may

take several years to get right, and will need revisiting over time • Considerable consultation in developing a brand is needed, recognising that the

manufacturer/supplier is not necessarily in the best position to make these business decisions in isolation

• The consumer will determine a product’s success and any given product must ultimately

demonstrate its commercial viability • Product branding should demystify the product for the consumer, who needs to be able to connect

with what they are going to do with it • Simple messages should be used in branding and marketing, even when the underlying themes may

be complex

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• Branding that works in one cultural context may need to be adapted for marketing elsewhere,

particularly in the international context • Marketing and branding strategies based on Aboriginal authenticity will need to engage Indigenous

people in marketing and promotional activities, and should provide the resources to facilitate this 10.8 Ecological sustainability • Ecological sustainability is important to consider from the perspectives of wild harvest yields as

well as the ecological footprint of the products for marketing advantage and maintaining market standing

• The target consumers of bush foods are likely to have an interest in ecological sustainability and

‘clean and green’ production, so planning processes should ensure that the business is not exposed to being discredited by unsustainable harvesting practices or supply operations

• Research gaps are likely to constrain efforts to define sustainable yields and ecological footprints,

and active feedback should be provided to research purchasers to address these • Opportunities to satisfy organic or environmental certification and labelling requirements could be

considered and progressive steps towards best practice environmental management taken

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11. References Hele A.E., 2003, Researchers’ extension program for the native foods industry. RIRDC Publication

No. 03/013, Rural Industries Research and Development Corporation, Canberra. Leakey, R.R.B., Schreckenberg, K. and Tchoundjeu, Z. 2003. The participatory domestication of West

African indigenous fruits, International Forestry Review, 5: 338-347. Robins L., 2004, Native game meats: A case study of the Canberra region retail market. RIRDC

Publication No. 04/…, Rural Industries Research and Development Corporation, Canberra.

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Appendix 1

Interview questions – Robins Foods Pty Ltd What was your rationale/impetus for producing native food products? How many people are employed by Robins Foods (part-time, full-time)? What are their roles? Does Robins Foods directly employ any Indigenous people? Does Robins Foods source all its native food products (irrespective of labelling) through IAF Ltd? Where do the non-native ingredients come from? What portion of total product purchasers (%) comes from suppliers other than IAF? What portion of outlays/costs does this represent? What are the Quality Assurance (QA) processes associated with the sourcing of this other material? (ie what do you know about the businesses, eg particularly ESD issues?) Are all products sold domestically and internationally? Is Outback Spirit the only label that’s sold internationally? If so, are there plans to launch Robins Bush Foods brand internationally? Who are your main business purchasers and consumers? What portion of sales is household vs business/restaurants? How do you get feedback from business purchasers and consumers? What do you think your business purchasers and consumers look for in the choosing to buy a particular product? (eg ESD, price, dietary benefits, fair trade, packaging) Do you think packaging and branding is important? Which product line is your overall best seller? Why? Which individual product is your best seller? Why? What measures and processes are in place to assure product quality? Have you experienced any problems with product quality? What measures and processes are in place to assure product quantity? Have you experienced any problems with product quantity? Does Robins Foods have a business plan? Does Robins Foods have a marketing strategy? What sort of marketing have you undertaken (eg advertising, product placements)? When was the strategy developed? How do you evaluate your success and identify ways to improve? What do you see as the main strengths and weaknesses of Robins Foods as a business model? Are there any other businesses that you have learnt from? Are there any exemplars that stand out? Outback Spirit Is Robins Foods the only manufacturer of Outback Spirit? (ie you can’t purchase it through IAF). Who sells the Outback Spirit brand? How many retailers/retail outlets? What is the contribution to IAF Ltd for each product sold under the Outback Spirit label ? (25 cents retailer and 10 cents Robins Foods). Is this a set amount that applies to the sale of all Outback Spirit products, regardless of the retailer?

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Who collects the sales contribution? Does it go directly to IAF or through Robins Foods? Do the retailers/retail outlets for Outback Spirit differ in any way to the retailers/retail outlets for other Robins labels? Do you think that the consumers of Outback Spirit differ in any way to the consumers of other Robins labels? What is the size of the sales contribution from Outback Spirit to-date, and what proportion of the overall income of the Robins Foods does this represent? What is the anticipated income over the next five years? There are four products under the Robins Bush Foods label that appear to be identical to the Outback Spirit label – is this correct? Do these products only differ in the labelling and the sales contribution component to IAF? Is the retail price the same? Is the distribution strategy different? Does production of the Outback Spirit product take precedence over other Robins Foods labels in the event of a supply shortage? What do you see as the main strengths and weaknesses of Outback Spirit as a business model? Are you optimistic for the future of Outback Spirit?

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Appendix 2

Interview questions – Indigenous Australian Foods Ltd Describe the history of IAF’s formation and its development? How and when did members join? What were the defining moments or stages of development? Was IAF specifically modelled on another business? How many people are employed by IAF (part-time, full-time)? What are their roles? Does IAF deal exclusively in the supply of native foods? What is the criteria for membership of IAF? Are all entities Aboriginal operated and controlled? Are all current suppliers of bush foods IAF members (or are there non-member suppliers – i.e. non-Aboriginal owned suppliers)? If so, what portion of product (%) and total income (%) comes from non-member suppliers? Is Robins Foods the only member that is not a supplier? Can you provide some background information on each of the eight founding and current members listed? Is Outback Spirit the only ‘product’ endorsed by IAF? How many businesses does IAF supply to? Does this mean they are all IAF endorsed? What does a business need to do to qualify for IAF endorsement (eg purchase a certain amount of product)? Does IAF have a business endorsement logo separate to the Outback Spirit logo? How many businesses and products use an IAF logo? How do they use the logo – for what purpose/benefit? How does IAF work as an organisation? How is it constituted? Who is on the Board of management? How are decisions made? How often does the Board meet? How does IAF raise its revenue (membership fees, product sales, endorsement fees associated with all IAF products, endorsement fees specifically associated with Outback Spirit products)? Do contributions from the sale of Outback Spirit products go directly to IAF from the retailer or through Robins Foods? Is there a specific Coles Indigenous Food Fund established within IAF for this purpose? What is the size of the sales contribution from Outback Spirit to-date, and what proportion of the overall income of IAF does this represent? What is the anticipated income over the next five years? Who decides where to invest income and, specifically, the income from contributions from the sale of Outback Spirit products? Do contributions from the sale of Outback Spirit return to the same communities that collect/ supply products (ie IAF members) and is this return evenly or proportionally distributed? What sorts of business development opportunities are funded? How are these investments evaluated and reported? Does IAF have a business plan? Does IAF have a marketing strategy?

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Appendix 3

Interview questions – Coles-Myer Ltd Background Why did you get involved in Outback Spirit – what was the impetus? Whose idea was it? When did you start and how long did it take to get up and running? Can you explain Coles’ role in Outback Spirit? How many people in Coles play a role in Outback Spirit? What are those roles? Consumers Who purchases Outback Spirit products through Coles? What other bush food labels do you carry? Do you think that the consumers of Outback Spirit differ in any way to the consumers of other bush food labels? Do you get feedback from consumers? What mechanisms? What do you think consumers are looking for in choosing to buy Outback Spirit? (eg ESD, price, dietary benefits, fair trade, packaging) The Products Which individual product is your best seller? Why? What is the size of the sales from Outback Spirit to-date? What is the anticipated income over the next five years? What measures and processes are in place to assure product quality? Have you experienced any problems with product quality? What measures and processes are in place to assure product quantity? Have you experienced any problems with product quantity? Do you think packaging and branding is important? What stands out as important about the presentation of Outback Spirit products in this regard? Will Coles take on other Outback Spirit brands from other companies?

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Marketing and Promotion Does Coles have a specific marketing strategy for Outback Spirit? What sort of marketing have you already undertaken (eg advertising, product placements)? How do you evaluate your success and identify ways to improve? Coles Indigenous Food Fund Can you explain how the CIFF works? What is its purpose and what does Coles hope to gain? Who decides where to invest CIFF funds? What is the process? What sorts of business development opportunities are funded? How are these investments evaluated and reported? Will the CIFF remain exclusive to Coles? What are your aspirations for the CIFF? What relationship does Coles have with IAF directly? Business Model What do you see as the main strengths and weaknesses of Outback Spirit as a business model? Is there any concern within Coles about IAF endorsement of other businesses and the criteria for this? Are there any lessons you’ve learnt so far in the process? Are there any other business models that you think the Outback Spirit model could learn from? Are there any exemplars that stand out? The Future Is Outback Spirit part of a larger business plan for Coles in bush foods and Indigenous products or is it a one off? How long do you think Coles will continue with Outback Spirit products and the CIFF? What factors will be important in determining this? Are you optimistic for the future of Outback Spirit products and the native food industry more generally?

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Appendix 4

Interview questions – Indigenous IAF members Give a brief description of your organisation:

– its origins – its scope and core businesses – its ownership and members (how many Indigenous communities are involved?) – its structure – its decision-making processes – its business partners

What geographical region and bush foods are represented by your organisation? When did you join IAF? What was your impetus for joining? What did you hope to gain? Do you have a strategic plan for your business and for the bush foods component specifically? What are your strategic directions and priorities? Do you see your business as harvesting, growing and/or procuring bush foods? Have you supplied bush food to the Outback Spirit supply chain to-date? If so, over what period, for what bush foods and at what volume? Do you supply to businesses other than Robins Foods? What measures and processes do you have in place to satisfy product quality standards? Have you experienced or do you foresee any problems with product quality? What measures and processes do you have in place to satisfy the potential market demand for product? Have you experienced or do you foresee any problems with product quantity? What is your perception of the longer-term goals of the Outback Spirit supply chain? Where do you fit within this? What knowledge do you have of the other IAF members? What communication have you had with them? What role does your organisation play in the decision-making of IAF? Have you received any funding support from the Coles Indigenous Food Fund? Do you understand how the Fund operates? What are the strengths and weaknesses of the Outback Spirit supply chain model? Does anything need to change? What are its priority capacity building needs? What are the strengths and weaknesses of your organisation? How to monitor and evaluate your progress and success? Does anything need to change? What are your priority capacity building needs? Where do you see bush foods in the scope of your business in 5 years time? What percentage of your business will comprise bush foods? Are you optimistic about IAF supply chain and the bush food industry more generally?

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Appendix 5

Interview questions – Hela Schwarz Australia Pty Ltd Give a brief description of your business

– when was it established – the scope of its businesses – number of employees – financial scale of the business – its office locations – its ownership and structure – its relationship to Hela International

When did you get involved with the Outback Spirit supply chain? What was the impetus? What did you hope to gain? Describe how the relationship between Robins Foods, IAF, Hela Schwarz and Hela International works. Do you have a strategic plan for the bush foods component of your business? What are your strategic directions and priorities? What Hela Outback Spirit products are you selling? What volume are you selling at present? What is the best seller? Who is the consumer of Hela Outback Spirit brand? Who is the biggest buyer? Do you have any involvement with IAF (other than through Robins Foods)? What do you know about the members of IAF and what do you understand IAF endorsement to mean? What measures and processes do you have in place to satisfy product quality standards? Have you experienced any issues with the quality of supply of bush foods? Have you experienced any issues with the reliability of supply? Do you anticipate any problems in the future as demand increases? Where is the bush food content of Hela Outback Spirit sourced from at present? What are your projected sales over the next 5 years? What are the strengths and weaknesses of the bush food industry in Australia and the Hela Outback Spirit brand? Are you optimistic for the bush foods industry and the Hela Outback Spirit brand?

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Appendix 6

Interview questions – Kikapu Ltd Give a brief description of your business

– when was it established – the scope of its businesses – number of employees – financial scale of the business – its office locations – its ownership and structure

When did you get involved with the Outback Spirit supply chain? What was the impetus? What is your vision for Outback Spirit in the UK/Europe (sales and distribution)? What Outback Spirit products are you selling? What volume are you selling at present? What is the best seller? Which stores is Outback Spirit distributed through? How do you market product to these stores? Who is the consumer of Outback Spirit brand? What are the strengths and weaknesses of the Outback Spirit brand? What product quality standards do Outback Spirit products need to satisfy for sale in UK/Europe? Have you experienced any issues with the reliability of supply? Do you anticipate any problems in the future if demand increases? What are your projected sales over the next 5 years? Do you have a formal business plan for the Australian bush foods part of your business? What are your strategic directions and priorities? Describe how the relationship between Robins Foods, IAF and Kikapu works. What do you know about IAF and what do you understand IAF endorsement to mean? Are you optimistic for the Outback Spirit brand?

Documents

Outback Spirit Bush Foods - Agrifutures Australia · Outback spirit bush foods – A learning model in marketing and supply chain management Publication No. 07/037 Project No. REC-2A