Media releases
Leading food exporters establish joint venture company
Two of Australia's leading fresh food producers and exporters - Perfection Fresh Australia and Sim Fresh Pty Ltd - have amalgamated their export divisions to establish joint venture company, Sim-Ex. The entity is expected to significantly increase the partners' global market reach particularly in citrus exports to new markets in the lucrative Middle East and Russian Federation regions.
Perfection Fresh chief executive officer, Michael Simonetta, said Sim-Ex consolidated the parent companies' customer and supplier network and resources, offering foodservice and retail customers a vastly expanded portfolio of produce lines and suppliers greater access to global export markets.
"Sim-Ex - a 50/50 joint venture - brings together Perfection Fresh's specific expertise in proprietary and commodity fresh produce lines with Sim Fresh's extensive experience in the citrus category. Perfection Fresh's particular strength is in marketing exclusive branded products such as table grapes, tomatoes and other proprietary lines while Sim Fresh is a leading exporter of citrus to Asia," Mr Simonetta said.
"Sim Fresh's citrus credentials combined with Perfection Fresh's acquisition (in 2009) of the exclusive rights to grow and market seedless mandarins will position Sim-Ex as a specialist citrus exporter at a time when citrus is among Australia's top five export products."
Sim-Ex exports a significant number of Perfection Fresh-grown produce lines as well as Sim Fresh's range of oranges, mandarins and other citrus varieties. It operates from Perfection Fresh's headquarters at Homebush, Sydney, New South Wales and exports directly from key growing regions via the nearest ports of Sydney, Melbourne, Brisbane and Adelaide. The joint venture partnership took effect on August 9.
"Perfection Fresh's five-year strategic plan specifically identifies the citrus category, table grapes and tomatoes as areas for growth. The Sim-Ex joint entity provides access to a new network of citrus growers which enables expansion in this area for both domestic and export purposes. Another key component of our plan is to diversify where there is an identified market gap or an opportunity to strengthen services to customers and suppliers. Sim-Ex, like all our joint ventures, is a strong business fit and an opportunity for growth," Mr Simonetta said.
Perfection Fresh has exported fresh Australian-grown produce to some of the world's most important foodservice and retail markets in Asia, Europe and the Middle East since 2000 when it began exporting mangoes to the UK. In 2007, it became one of only a handful of Australian fresh produce distributors to be granted an Australian Quarantine Inspection Service (AQIS) licence to export to New Zealand, which boasts some of the strictest biosecurity policies in the world.
Sim Fresh, a family-owned and operated company, began exporting citrus - chiefly oranges and mandarins - to the USA, Asia and the Middle East in 2004.
Sim-Ex export manager and Sim Fresh spokeswoman, Amanda Simonetta, said major challenges for all Australian exporters would continue to include currency fluctuations, trade barriers preventing access into key regions and strong competition from other major Southern Hemisphere-based exporters.
Sim-Ex is the most recent of six joint venture partnerships for Perfection Fresh. Mr Simonetta said he expected Perfection Fresh's total joint ventures to significantly grow sales this financial year and Perfection Fresh would continue to look at strategic investments to further grow its business.
