A major truss tomato producer has plans for expansion and is investing millions of dollars in reducing its carbon footprint.
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Katunga Fresh, which already has 21 hectares of glasshouses, is the first Australian agricultural company to benefit from a new ‘green’ loan offered by the Commonwealth Bank.
The company will build a $10 million co-generation plant, which will capture waste energy, and install low-energy LED lights, which boost plant growth in winter.
Katunga Fresh owner Peter Van Den Goor said the new installations would build on recycle and re-use strategies they have already adopted, and intend to be carbon negative within a couple of years.
The five glasshouses on Numurkah Rd already produce about 300 tonnes of hydroponically-grown truss tomatoes in a regular summer week, for Australian supermarkets and specialty fruit and vegetable shops.
The company also has about four hectares of capsicums and four hectares of cherry tomatoes under glass.
Katunga Fresh uses natural gas to generate heat for the glasshouses and captures the carbon dioxide produced and directs it into the hothouses, where it is taken up by the plants to create photosynthesis.
With the novel Commonwealth Bank loan, the company will be installing a four-megawatt CHP (co generation) plant which will be powered by renewable gas.
The company will also use the loan money to install further high-efficiency, artificial LED lights to extend the growing time of the vines.
The lights operate in a spectrum which boosts plant growth but also create an eerie pinkish glow in the middle of the night.
Mr Van Den Goor has had plenty of questions from locals about the midnight glow, but said “it’s all been positive”.
The lights have boosted vine yield by 20 to 25 per cent.
Commonwealth Bank group executive business banking Mike Vacy Lyle said they were excited to launch a pilot that offered discounted rate funding to invest in initiatives that enhance both natural resources and climate resilience for the future.
Mr Vacy Lyle said the eligibility criteria for this agribusiness pilot covered a broad range of sustainability practices, such as projects to reduce emissions, sequester more carbon, improve soil health, promote biodiversity and vegetation cover, and protect waterways.
“Our first pilot loan is well on its way to supporting Victorian horticultural producer Katunga Fresh, who is investing in the energy efficiency of their glasshouses, which will reduce their emissions intensity.”
Katunga Fresh was established by the Van Den Goor family in 2003 after they migrated from Holland, where they were heavily involved in horticulture.
The family-owned business comprises Mr Van Den Goor and his wife, Marian; Emiel and his wife, Wen; and daughter Michelle and husband Keegan.
Mr Van Den Goor said they appreciated the bank’s support for their sustainability plans.
“The great thing about this project is that it means we are generating operating cost savings while reducing our impact on the environment. It is win-win for us.”
The company had a rough start to the year when a freak storm hit the district and damaged thousands of glass panels.
One six-hectare glasshouse needed more than 5000 glass panels replaced.
Mr Van Den Goor said getting the glasshouse up and running again was a huge task.
LABOUR SHORTAGE COULD SLOW DEVELOPMENT
There is not much that can stand in the way of expansion for the Katunga Fresh business, but one thing worries owner Peter Van Den Goor.
He can compete with other producers and he can find capital, but sometimes he can’t find suitable labour.
The shortage came to a head during the recent COVID-19 lockdowns, which cut out seasonal labour from overseas.
Mr Van Den Goor discovered some local workers, recruited under Victorian Government programs, were gaming the system — claiming relocation expenses, staying for a few weeks and then moving on to other enterprises.
He participated in the Seasonal Worker Program, which brought overseas workers through Tasmania and quarantine into Victoria, but it proved to be expensive.
Local people don’t seem interested in doing the work.
“They might stay for a week and then give up. Sometimes after just a day.”
Mr Van Den Goor said it was a shame when so many people were on benefits and did not appear to be interested in working.
“We should not have to get people from overseas.”
Asked if wage rates were too low, Mr Van Den Goor said he paid above minimum rates and employees earning bonuses could earn up to $30/hour.