SPC chairman and part-owner Hussein Rifai.
Photo by
Rodney Braithwaite
The Nature One Dairy office in Carrum Downs.
“Synergy” is the oft repeated phrase for corporate mergers, but in SPC’s case, the three new partners may be able to enjoy the real meaning of the word.
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SPC has ample space in its warehouses, the Original Juice Co has to rent space in Melbourne.
SPC has a network of fruit growers; dairy division, Nature One Dairy has access to an international network.
SPC is located in a major fruit growing area; OJC has a history of using Australian product, and Nature One Dairy will now have a presence in a major dairying area.
Citrus production for the OJC division, comes into maturity over winter; for SPC’s product, it’s summer.
SPC chairman Hussein Rifai said the incorporation of two other businesses would help address SPC’s inherent challenges of a seasonal business.
“Having a base of non seasonal food product helps us significantly in managing our cash flow,” he said.
“Coming out of the season we are cash poor and have a lot of boxes in the warehouse.
“Now, while we are doing this, the other businesses are generating income.”
Mr Rifai said OJC has a base in Carrum Downs, but it has minimal warehousing facilities and has to secure outside facilities.
Now, an hour and half away, it has the SPC warehouse facilities.
Mr Rifai said a more efficient company would benefit Goulburn Valley fruit growers.
“Growers,” he said, “had no reason to be nervous about the merger.
“We are inter-dependant on each other, us and the growers. So when we become more efficient, we are going to be needing more supply from them.”
“Anybody who feels nervous, has not been keeping up with our story over the last five years.
“My message to the community is this: we are part of you, you are part of us. You have no reason to be nervous. We are making the global food production company together.”
The Original Juice Co factory in Mill Park.
“I believe it is a fantastic opportunity to start creating a large, substantial Australian food company which can be a global player.
“At a corporate level it makes a lot of sense to bring in expertise and access to markets, utilising supply that is available at Shepparton in terms of putting together a bigger entity and ‘sweating’ our assets to bring more for less and reduce the cost of production,” Mr Rifai said.
As well as being chair of SPC, Mr Rifai is chair of Nature One Dairy.
He also serves as chair of Perpetuity Capital, an Australian financial services and investment company, and is on the international board of Fair Trade.
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