Funding cuts costs and boosts local employment

One of Queensland’s citrus producers is bridging the gap between the orchard and supermarket shelves through a project to localise production and create new jobs.  

Dermark Pty Ltd, near Gayndah, has been operating for almost 40 years and added citrus growing and packing to its portfolio some 20 years ago. The company introduced the volume fill packaging to the industry and now is proposing a new facility called FreshConnect which will produce “Grab N Go” lines. 

Dermark’s Directors Helen and Sandy McLay experience added costs on pre-packing, transport and quick chilling to get their produce to Supermarket shelves, but new technology will allow production to happen in Gayndah.  

The company is one of 15 businesses across Queensland to receive a $250,000 Rural Economic Development (RED) Grant to facilitate rural economic and job growth.  

Managing Director Sandy McLay said the funding would be put towards building FreshConnect, a prepacking facility to help local producers cut costs to pack their produce before sending it to the supermarket.  

“The Wide Bay and Burnett region does not currently have a pre-packing, automated sorting or quick chilling facility available for local growers. The only option is for us and other growers to truck our local produce to Brisbane and beyond,” Mr McLay said. 

“The new facilities will save our growers more than half a million dollars per harvest season which would otherwise be spent on a third party packing service. Most of this money will return into our local communities.”

“Instead of shipping our produce to Brisbane for prepacking and chilling by a competitor we will value add by pre-packing on farm which will reduce our costs, our carbon footprint and stimulate local businesses,” Mr McLay said.  

Pre-packing and chilling produced locally will also save producers valuable shelf life on their produce.  

“We use competitors to pre-pack our produce which means they prioritise their own fruit over ours when it comes to packing and shipping to the supermarket,” Mr McLay said.” 

“This means days could go by before our fruit even reaches the supermarket risking spoilage of the fruit.  

“Losing days of shelf life through this process can really affect our sales as customers are very conscious of packed dates. The quicker we can get our produce from the farm to the shelf the better. I’m sure city people endorse this fact.” 

During off peak season the pre-packing and quick chill facilities will also be able to support other crops grown in our area such as avocado, berry and mango.  

The project will create new employment opportunities in the local area with an increased need for fruit pickers and packing staff required to carry out the operations of the new facility.  

“The project is bringing something new to the region and it will require 10 to 12 new permanent and casual positions. We are going to need a manager, administration officer, quality assurance officer, mechanic, forklift driver, store person and additional fruit sorters and packers,” Mr McLay said.  

“Without the support of the grant from the government this is a project that would have been another 20 years away.”

QRIDA offers a range of assistance to primary producers, small business and non-profit organisations. To find out what’s available visit Programs and Services. 

The Queensland Rural and Industry Development Authority (QRIDA) administer the RED Grant scheme on behalf of the Department of Agriculture and Fisheries.