The future of food

I have seen the future of food manufacturing in Australia, and it's not the European conglomerate selling organic food to the Asian yuppie market, as predicted by the experts.

Nor does it feature on any of the Bracks Government's high-priced ads which flood our TVs nightly.

On the contrary, it's a local, family-owned business making meat pies and other traditional pastries in Bairnsdale, selling to the local market.  It's Patties Pies.

The food manufacturing sector has long been high on potential but low on performance.

Indeed, the sector has actually been going backwards in recent years, with investment and production moving offshore in search of a better environment.  The decline has been greatest in Victoria.

There are many causes of the sector's failings;  however, the most significant is the prevailing workplace culture and the institutions that bolster it.

The problem does not lie solely, or now even primarily, with the unions.

Management in the sector has generally abrogated its responsibility to manage, and allowed an unproductive culture to rule.

Management in the sector has been plagued by the short term horizons of senior managers, a reluctance particularly of multinationals to "rock the boat" and the absence of entrepreneurs and risk-takers.

Some are different, including Richard Rijs, CEO of Patties.

Richard is in the industry for the long haul.

His father started the company.  His family owns it.  He and several of his five brothers work at the company, including some on the factory floor.

The company is located in rural Victoria.  Aside from low-cost land, a supportive community, proximity to suppliers and a team-oriented workforce, Bairnsdale is far from the workplace madness that often prevails in the city.

Patties Pies accordingly has been able to take a different path than other firms.

It operates a non-union shop, not to keep the union out per se but to stop a distant third party from undermining the team.

Patties' has long had a profit-sharing arrangement to allow workers to share in the success of the team.

Patties has also long emphasised multi-skilling and team based decision-making.

It has also taken a long term perspective on skill development and is wedded to its community.

In 2001 Patties built a new, larger factory.

While organic growth of the business was good, it needed more to keep jobs and productivity up.

In 2003 Patties bought the pie and pastry business from the US multinational Simplot.

While Simplot's brands, which included Four'n Twenty, were highly successful, the company was losing money because of the workplace culture in its large, modern Kensington factory.

Patties took over the brands and relocated some of the equipment.  The Simplot workforce was made redundant.

Pie production was moved to Bairnsdale where 85 new jobs were created.

The plant now operates 24/7.

Patties brand's are gaining market share and export markets are being explored -- particular to America.

Patties is not alone.  There are others like it and they are the future of the sector.

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