STRUGGLING Australian fruit processor SPC Ardmona has urgently appealed to the Coalition government to give it $25 million promised by Kevin Rudd
four weeks ago or risk watching the company go broke. SPCA chief executive Peter Kelly said that it was already "five minutes to midnight" and that the Shepparton-based business, despite being owned by giant Coca-Cola Amatil, could not keep going much longer.He said SPC, as one of the largest food processing businesses in Australia, had a much brighter future than the moribund Australian car industry and needed much less government assistance. But Mr Kelly bluntly warned yesterday that time was running out."The pain is wearing thin; if this business wasn't owned by CCA we would be shut already," a defiant Mr Kelly said."Without ($25m from government) we are in trouble; and that's not just a problem for SPC but for our people, the town, the region and the nation."
SPC will lose $25m this year, compared with the $70m annual profit it made eight years ago.In what Mr Kelly called "the most amazing waste of good food you have ever seen, SPC last year threw out $100m of fruit it bought under contract from growers -- much of it fed to pigs -- because it could not sell the resulting fruit cans due to plummeting export and domestic orders.
Worse losses are expected next year without government support, despite improved local sales by Coles, Aldi and Woolworths supermarkets which have switched to SPC Australian-grown home brands in place of cheap imports.
Mr Kelly, a former Coca-Cola Asian executive who was dropped into SPC in April in an attempt to turn it around, also slammed the failure of state and federal governments to back Australian grown food.
He queried why cheap fruit tins from China can be readily imported when they are produced under environmental and food processing standards banned in Australia. "I'm a big supporter of the government making us the food bowl of Asia, but something is clearly not right when we can't survive because we are operating at a trade disadvantage to imports," Mr Kelly said.
"It's not just economics but about food quality; I think the time is coming when people are interested in where their food comes from because if the Chinese are prepared to put melamine in baby formula, what will they risk doing in other food categories?"Mr Kelly will meet federal Industry Minister Ian Macfarlane on Tuesday to plead SPC's case.
The government has not yet promised to honour the $25m pledge made to SPC four days before the federal poll by the former prime minister
for assistance to help the company switch to different food production systems. http://www.theaustralian.com.au/news/nation/without-a-25m-pledge-spc-risks-going...