TAFCO Rural Supplies Background

The Tobacco & Associated Farmers Co-operative Limited (TAFCO) is a farmers co-operative which was formed in 1987 by tobacco growers to operate as an agricultural merchandising co-operative to service tobacco growers and other primary producers. Being a co-operative profits are retained in local communities and equitably distributed amongst members. Adjustment pressures from deregulation of the tobacco industry have seen new horticultural enterprises developing in the traditional tobacco growing areas.

Today TAFCO has a broad horticultural base with a total membership in excess of 350 farmers (126 tobacco farmers) and many operate multi commodity farming enterprises. In excess of $400,000 $1.00 shares are held by the members of our co-operative. The continued investment into the co-operative by new and existing members has played a role in the opening of our new store at 215 Myrtle Street Myrtleford in 1998.

Turnover:

To meet the main objective TAFCO entered into a Franchise Agreement with (then) Dalgety Farmers and began trading as Dalgety Farmers Myrtleford. The annual turnover at this time was approximately $600,000.

On July 1st 1995 TAFCO became independent from Dalgety Farmers and commenced operating as TAFCO Rural Supplies. Our current turnover is in excess of $3,000,000.

Background

• (i) Restructuring and deregulation has reduced the number of tobacco producers in NE river valleys from 194 to 126.
• (ii) This has freed significant areas of prime horticultural land with water right for alternative cropping and has created a demand for high value annual crops.
• (iii) The reduction in tobacco production has lowered returns to the area by approximately $12 million annually and reduced job opportunities. Adjustment pressures of the tobacco industry deregulation have now seen new horticultural enterprises developing in traditional tobacco growing areas.

Service to members

As a co-operative, TAFCO is conscious of the need to service members - Commodity groups serviced by TAFCO include tobacco, winegrape, vegetable, hops, mint, rubus, nut producers and pastoralists.

TAFCO provides a delivery service throughout the region, saving farmers time and money by having a broad range of agricultural goods delivered to their farm .

In response to changing agricultural needs of the region TAFCO has demonstrated commitment to developing new horticultural enterprises in the region. In addition to supporting the tobacco growing industryTAFCO has been pro-active in assisting the development of new horticultural industries:-

• (a) Provision of administrative support to the McColl Report - Agribusiness Strategic Plan for the Ovens & King areas
• (b) The formation of Alpine Produce - a vegetable grower commodity group under the TAFCO umbrella.
• (c) The provision of guest speakers at winegrape & other growers meetings.
• (d) TAFCO has representation on the Victorian Horticultural Growers Council.
• (e) Key lobbying group for the provision of infrastructure (coolstorage) to encourage vegetable production in the region. TAFCO was succesful in attaining $100,000 for this project.

Future

The role of TAFCO has developed into much more than an outlet for agricultural merchandise for farmers. The employment of a part time technical assistant (Cyril Ciavarella) to service winegrape growers was one of our initiatives over the past few years.

Regular liaison with Ovens Research Station (NRE) and representation on various consultative committees is built into our unwritten business plan.

Currently either staff or Directors of TAFCO are represented on:

• VFF - General Council & Horticultural Group Executive
• GM Water - Ovens Water Service Committee
• Alpine Valleys Winegrape Growers Association
• Myrtleford Chamber of Commerce and Industry

The pro active approach by Directors of TAFCO has seen our business develop over the past 13 years and will see our business expand into the future at an optimum level. One recent example of the Directors pro active approach, is the introduction of observers to participate in Directors Meetings. Currently 2 young farmers attend Directors Meetings and particpate in discussion regarding the business. Although observers have no voting rights, Directors beleive that this is 'training' and preparing young people in agribusiness to take on roles in the future whether it be TAFCO or other organisations.