Community takeover of produce store to better support farmers

For more than four decades, an iconic fruit and veggie store in the heart of Moruya has been supplying local produce to its people and surrounding communities.

Southlands Fruit and Vegetables is up for sale, with the community coming together to create a co-operative (co-op) business model for the future of the shop, to keep the vision of supporting local farmers and growers alive.

The shop opened its doors in 1983 with current owners, Steven and Katie Hamer, running it for the past 11 years with the importance of local food security at the fore.

When the couple recently decided to shift from the heavy commitments of business ownership to be able to spend more time with their young family, a group of enthusiasts floated the idea of keeping the business in local hands by forming a cooperative and making a bid for the purchase of the business.

"It's not us driving it, it's coming from the community," Mr Hamer said. "It's something that people feel passionately about."

Ms Hamer said the co-op model was a response to the current environmental and financial climate climate.

"It's a new way of looking at business," she said.

The couple are in complete support of the co-op.

Ms Hamer says what appeals to them most about the model is it continues their hard work of promoting local food, increasing knowledge on the struggles farmers face and the importance of supporting them.

"In times of need, they are the ones who support the community," she said.

During the 2019 bushfires when supplies were cut off to the area, Mr and Ms Hamer say their shop was "basically the only one open."

"We were able to feed people because we had local produce," Ms Hamer said.

"We had farmers farming and picking in the smoke and bringing food in when we had no power and no services or anything, just so we could get food out to people."

Southlands not only specialises in local produce, it is known for actively supporting the farmers behind the scenes by providing up-front funding.

"Farmers find it very hard to gather money to buy equipment...so we've been providing funding upfront for farmers so they can buy things like...fencing and seedlings," Ms Hamer said.

The Hamers also supply a block of land rent-free to farmers to help with the struggle of affording land to produce food.

"Basically they pay us back with vegetables when they can," Ms Hamer said.

A co-op is business or organisation owned and democratically controlled by its members, who determine both how the co-op is operated and what is done with its profits.

Groundwork to explore this concept for Southlands Fruit and Vegetables is already underway and owners say, so far, it is looking feasible.

130 community members turned up for an information session earlier this month (September).

One generous local has offered a significant sum as a low interest loan to secure a deposit for the business, and the Hamers have offered vendor finance for the balance.

They are also prepared to stay on as managers for a significant transition period, if desired by the co-op.

Membership will be accessible for everyone, and all profit will go toward community-based projects. However, the new model will not solely rely on memberships as it is already a profitable business.

"The co-op will already be purchasing a profitable business that is self-sustaining due to its longevity," Mr Hamer said.

The store has a wholesale arm supplying hospitality venues from Durras down to Bermagui/Cobargo and regular customers are known to travel over an hour from Ulladulla.

"We see people stop into the store from up and down the coast," Mr Hamer said. "People will drive 70-kilometres sometimes because there's nothing else like it."

The current owners are confident the shop will remain a viable business with the new model.

"Staff are paid, there's a manager that sits under a board of directors and the profits at the end of the year goes to projects that help mitigate risks for farmers and produce more local food," he said.

Mr and Ms Hamer say once the co-op has covered the cost of purchasing the business, funds will be available in the form of grants to support local growers on a much-larger scale.

A working group is already being formed with experienced, passionate people including the voices of young farmers and Indigenous community members.

The group is working toward registering as a Not For Profit with plans for a Formation Meeting in the new year.

"It's a pretty unreal place to live when you've got people who can get behind something like this," Mr Hamer said.

Join the Southland mailing list to keep up to date - email sfvcoop.project@gmail.com