"There are but two classes of individuals in the colony, those who have been transported and those who ought to have been."
Lachlan Macquarie.
This comment by one of our earliest governors gives an indication of the development of our early society of which the markets were a key part.
The markets started at Circular Quay in Sydney and were held twice weekly until 1810 when Macquarie moved them west to the site which is now the Queen Victoria Building. This market was to be an integral part of the city centre along with the town hall and a cathedral. Access for boat produce was via a new wharf built at Darling Harbour. The markets remained under government control until 1836 and establishment of the Corporation of Sydney. In 1869 we moved south to what became known as the Belmore markets and were to endure in this location until 1909 when they were relocated to the Haymarket. Here they would service the city until the 1970's and no longer be under council control but revert back to the state through a statutory governing body.
Today the central markets at Flemington occupy over 40 hectares and are the largest market in the country, handling over 73 million packages at a conservative value of 1.25 billion dollars annually.
Although we have always had a central market it will not continue to exist unless it can ultimately be cost competitive in the provision of services for the sale and disposal of product. There is no point in promoting a central market as an outlet for farm produce if the expectations of suppliers can not be met. Central markets must be able to provide the infrastructure needed to meet the accelerating technology changes being implemented throughout the industry, they must have enough real estate to ensure the major players can center their warehousing and distribution operations within the umbrella of a single site.
Within the central market there is need for clearer definition of the role of participants and an acknowledgment that it is product which is important and not people. Players in the central market can no longer be just salesmen, they, along with producers must become marketeers. This, along with a transparency in the role that they play, will require a large change in the ethic under which many operate. During the 1980's we saw a strong shift to the de-regulation of marketing (even before the Hilmer report). A part of this was the introduction of nett price marketing, the downside of this was the loss of accountability to the principal. As producers we are aware of all input costs relating to a crop yet we are still unsure of marketing costs. I believe that producers should be made aware at regular intervals of what they paying for marketing services.
With the de-regulation of Farm Produce acts nationwide, there will not be the statutory protection that has previously existed, instead we will see the development of self-regulatory industry accreditation. This will also require many producers to ensure that they are selling through accredited sellers to ensure their viability. We may even see producers taking out their own insurance on such transactions. The development of tender specifications for the sale of produce is an obvious extension of this de-regulation.
The development of Quality Assurance systems and possible adoption of ISO 9000 series accreditations will assist in maintaining central markets as a centre which can properly handle product and be respected for this by industry.
The increasing reluctance of people to spend time in the kitchen is the greatest challenge that this industry faces. To be able to meet this challenge we are not only going to have to prepare and present food in a customer friendly form but also to promote fresh food as a worthy competitor to snack and "fast" food. Currently the Sydney Market Authority spends over $750,000 annually on promotion with budgeted real increases over the next few years. This can be further enhanced by participation from all sections of industry so that we can increase per capita consumption of fresh food. I believe that we are starting to see this from the farming sector as there is an increasing emphasis on research for market development and enhancement rather than development of production related technologies.
As the ethnic mix of our society changes we are seeing a much greater interaction of dietary styles which is something that we have seized upon and must continue to cultivate to give options particularly in relation to value adding of product.
The other challenge that must be addressed is that which relates to the application of computer technology to the sale of product. When we have a language which is owned and accepted by all sections of industry then we may see central market business conducted on the first floor of any office complex. The other requirement will of course be a language which accommodates the rate of senescence of product.
The chain stores will continue their concerted efforts to gain a larger share of the fresh produce industry. There will always be pressure placed on industry by such large buying groups. In negotiations with such buyers producers have been loathe to seek a premium for their efforts in supplying to customer specification, rather accepting the terms offered by such buyers and then often complaining afterwards as they would about the central market.
In recent years many independent retailers have left the industry. It is in fact the shortsightedness of the small to medium retailers which is accelerating their loss from the industry. Too many of the smaller outlets seem to be concerned with the threat of the chains without looking to develop a more specialised business which can still provide them with a good living. The successful independent retailers have shown that they can compete with the chains when both are located in the same shopping centre. Our retail industry is generally poorly trained and is not providing the in-store marketing which is now required of so much of the product.
It will be interesting to see whether the industry in this country follows the swing back to the smaller type retailers as is happening in some parts of the USA. Along with this change central markets are once again becoming important transaction centres for produce.
Central markets have historically been important as a price barometer whether produce has been sold through the central market or not. They have also been crucial to producers in providing an outlet for the variations in grade that will eventuate from any one crop. Comparison of product is also important, especially for producers to determine whether they are meeting buyer's expectations.
A viable central market gives producers the option of another marketing strategy and as such can provide a benefit to producers, but as we progress through the decade it is up to producers as well as the other sections of industry to develop protocols which will meet their current and future needs. There is no point complaining if you don't seek what you want. A central market relies on customers for its income but it relies on suppliers (i.e. producers) for its livelihood.