By Narelle Coulter
More than 60 years after the company was founded, the Cerchiaro family has taken full control of iconic Cardinia shire business Red Gem Growers and Packers.
Managing director Guido Cerchiaro and his son general manager Robert Cerchiaro achieved full ownership of the potato and onion growing business in December when they bought out their former partners.
Robert Cerchiaro said both he and Guido, who was a founding partner, were excited about the future.
“Taking our business into the new era as a father-and-son team won’t be easy, fresh produce is never easy, it isn’t simple, but it’s what we know and love,” Mr Cerchiaro said.
“We believe we have the support from our existing staff, suppliers, growers and customers to continue the success.
“We have a rich history which can now be safely continued as a result of this buyout.”
The deal was clinched with the help of NAB’s Agribusiness Division.
Bank executives, including Sydney-based General Manager of Agribusiness Khan Horne, visited Red Gem’s Nar Nar Goon headquarters on 21 February to inspect the growing and packing operation.
They met with Guido Cerchiaro who outlined growth plans for the business. Robert was in Singapore at the time negotiating new Asian markets for Red Gem’s produce.
Briefing the executives on the company’s history and plans for the future, Guido Cerchiaro joked that when Robert showed him his wish list “I got a shock”.
Projects on the list included a new cool room at Nar Nar Goon, developing another 1000 acres at its Hillston farm and purchasing a state-of-the-art X-ray machine for more precise potato grading.
Robert Cerchiaro said Red Gem, which was established in the 1950s, was now a national operation and leader in fresh potato and onion supply domestically and for export.
The company’s 48 equivalent full-time staff handle 20,000 tonnes of fresh produce annually.
“Business and fresh produce waits for no-one and it’s a race against the clock every day to get our produce from the farms to the store in the shortest and most efficient amount of time,” he said.
Red Gem supplies its renowned Sifra potato, marketed as Creme Royale, exclusively to Coles, the company’s largest customer.
The Creme Royale, along with the Mozart, are Red Gem’s biggest sellers.
“In 2017 Coles supermarkets are our largest customer but every customer large or small is crucial to the success of our business.
“We thank them all for their continued support,” Robert Cerchiaro said.
“Our potato varieties emanate from one of the world’s largest potato breeders which need to translate into commercial viability and value for the consumer and viability for our growing operations.
“Today, without any doubt, we have some of Australia’s best performing varieties being grown, sold and eaten.
“Our latest products include Red Gem sweet potatoes and washed potato pillow pre-packs and baking jacket potato trays as a meal solution for today’s contemporary consumers.”
Mr Cerchiaro said the buyout had ensured the future of the company’s workforce and its suppliers, and that he was confident that the benefits would flow on to the community.
“We now plan to reinvest heavily in our supply chain from our farms to our pack house. “We look forward to engaging the local community as we strive for future success.”
NAB regional agribusiness manager for south-east Victoria Nick Davison said the bank was pleased to help Red Gem move to the next level.
He said Red Gem’s success to date had required a capacity to adapt to changing consumer demands plus the constant variables of the season.
“Red Gem is a strong local employer who also supports local and interstate growers – there are clear aspirations to continue to develop local and export opportunities,” Mr Davison said.
“NAB is proud to have a strong working relationship with Red Gem and looks forward to working closely with Guido and Robert Cerchario as they take Red Gem into the next phase of the business.”
He said Mr Horne had visited the Gippsland area numerous times and was optimistic about the growth of agriculture in the area.
Red Gem’s financial officer Michael Ryan said the NAB team did “a tremendous job” organising a package of finance to allow the complicated buyout to proceed smoothly.
“I couldn’t give them a bigger wrap in how they assisted with this transaction,” Mr Ryan said.
“This is a significant change. Now the business has a stable platform going forward.”
As he proudly showed the NAB executives around the Nar Nar Goon operation, Guido Cerchiaro said delightedly: “We’ve done a deal. You are part of the family now”.
