1. MARKETING AND SALES IN
RISKY TIMES
©JAMES CALVERT
TAS PRIME OYSTERS P/L

2. What are some of the main
attributes our markets
expect from a farmer?
 Good communication
 Competitive price
 Fresh, quality produce
 Reliability of supply

3. What are the main factors
our markets demand?
 A food safe product
 No product recalls

4. It is our duty of care to
protect our customers
and consumers

5. • 4 years (2010 – 2014) of
unprecedented closures
• Caused market and sales
problems
• All bays/regions have been
affected, some more than
others
BIO-TOXINS, FRESH WATER RUNOFF (ANIMAL E.
COLI), SEWAGE SPILL, PRODUCT RECALLS,
REPUTATION DAMAGE?

6. How does a closure impact a
100,000 doz per annum farm?
 A few days closure … on average
manageable, slight inconvenience but no real
damage done. Sales should commence as per
normal when farms are opened.
NB: Has the potential to cause some major
damage if occurs around Christmas harvest

7. How does a closure impact a
100,000 doz per annum farm?
 A few weeks closure … starting to become more serious!
Customers begin sourcing product from other
farms/states., wanting to know when sales will re-commence
Cash flow problems not too bad, but starting to worry.
Stock management still ok but would not like to go on any
longer
Annual revenue now down by 2,000 dozen ($14K) but still
manageable.

8. How does a closure impact a
100,000 doz per annum farm?
 1 Month closure … Shit!
Customers have stopped calling, they need to source their
supply else where. How am I going to get back into the
market?
Cash flow starting to dry up, need to speak with the bank.
Stock management becoming a problem. Juvenile stock needs
grading but no free baskets on shore.
Might have to delay seed inputs due to no room and cash flow
Have now lost 4 weeks growth and sales, 8,000 dozen ($56K)

9. How does a closure impact a
100,000 doz per annum farm?
 2 Month closure … WTF!!
Start yelling at the kids and kicking the dog …
Cash flow now my major issue. Wages and OPEX don’t stop!
Seed inputs cancelled for the short term, worry about that when life
returns to normality
Stock management has become a nightmare! Need to free up some
baskets somehow? Product keeps growing.
Just deferred my seed inputs and lost 2 months growth & sales, cost
is 16,000 dozen ($112K)

10. How does a closure impact a
100,000 doz per annum farm?
 3 Month Closure … Crisis management
Cash is king, need to start changing farming techniques. Is
there opportunity to sell some on-grown? Reduce staff
numbers and OPEX? Do I start dumping stock to make
room?
I know my bank manger quite well now!
Marriage councillor is next!
Still no seed inputs, now lost 3 months of growth & sales
($168K), or 25% of income – All your annual profit is gone!!!

11. Every week a farm has no stock
inputs (seed) or defers grading to
rotate product into the next size
range, is lost income.

12. It is our duty of care to
protect our customers
and consumers

13. Closure costs (approx)
Farm Size
(production)
<1 week 2 weeks 1 month 2 months
50,000 0 $7,000 $14,000 $28,000
100,000 0 $14,000 $56,000 $112,000
200,000 0 $28,000 $112,000 $224,000

14. How do we mitigate against closure
risk and keep our sales moving?
 Spread the risk – farm in multiple growing regions
 Share the risk – form relationships with growers in
other bays who may be able to hold/buy stock (both
ways)
 Eliminate the risk – Depuration tanks? Can our
businesses survive long periods of closures. Would be a
sad day for Tasmania but common practice around the
world

15. To satisfy the market , it is critical that
we have supply continuity of quality,
food safe product.
Evidence suggests there will be a major
extended period of closure from a bio-toxin
event in the future, are we prepared for such an
event?

16. Communication is key for Exports!
Closure problems for export product escalates
stress to another level!
Asia does not have weekends and operate in
different time zones!
Export customers cannot afford to hear of a Friday
evening bad test result on Monday morning …
product is already being processed and consumed
24/7. The potential for problems is increased
dramatically

17. Communication is key for Exports!
Export recalls are difficult and cause major
damage to reputation
Customers are more fickle, harder to contact &
communicate (language) and are easily lost.
Foreign government agencies become involved
and international trade regulations and issues
are raised
We need to get better at mitigating against
closure risks

18. Thank you
Tas Prime Oysters P/L
“farm gate” price list effective 1stNovember 2014
Bistro Buffet/Plate Standard Large
Domestic 6.20 6.80 7.30 8.20
Export 6.50 7.30 7.80 9.00
Strong demand for export!!!
Please contact Tas Prime Oysters if you can help