In Queensland, Australia, lettuce growers Geoffrey and Anne Story have shifted their business model away from supermarket sales, a decision made 30 years ago due to the unpredictable nature of earnings in that sector. They now operate four farms near Toowoomba, focusing on a direct-to-consumer approach that ensures a predetermined return on every lettuce plant they cultivate.
The Storys identified an emerging market in Australia for pre-prepared, fresh-cut vegetables, catering to the fast-food industry's burgeoning demand. Their operation began with modest beginnings, manually slicing lettuce, but has since expanded to employ 50 workers and utilize advanced processing equipment. Their products are now a staple in approximately 2,500 fast food outlets along the eastern seaboard of Australia, including major brands, ensuring that many fast food items in Queensland feature their lettuce.
Nathan Story, bringing his expertise as a mechatronics engineer into the family business, has played a pivotal role in modernizing their operations. The annual negotiation of supply and price contracts has facilitated stable demand and allowed for strategic planning and investment in efficiency and productivity enhancements. This approach contrasts sharply with their previous experience in the supermarket sector, where fluctuating demand and prices made financial planning challenging.
The Story family's commitment to consistent supply is exemplified by their ability to deliver fresh, ready-to-eat lettuce throughout the year, with McDonald's being a notable client for five years. Despite the challenges posed by weather events, they maintain a rigorous schedule of planting, transplanting, and harvesting to meet their commitment of producing 18 million heads of iceberg lettuce annually.
A recent expansion of their processing facility, managed by Nathan Story, has introduced sophisticated machinery that enhances quality control and increases production capacity. This upgrade is in response to the stringent safety standards of their global fast-food clientele and the growing demand for their products.
Looking ahead, the Storys have acquired a new business in Brisbane specializing in fresh-cut fruit, vegetables, salad, and meal solutions, signaling their intention to further diversify and meet the evolving needs of the food service industry. This expansion reflects the broader trend of food service businesses outsourcing food preparation, driven by staffing and space limitations.
The Story family's journey from supermarket suppliers to key players in the fast food supply chain underscores their adaptability and commitment to securing stable, profitable markets for their produce, ensuring their business's sustainability and growth.
Source: ABC News