UK: Warning over farm-gate potato prices
In its latest accounts, Produce Investments — the parent company of potato giant Greenvale — has warned of “price deflation in the sector and margin pressure”.
The firm, which has a pack house in Duns and a seed office in Burrelton, said that the changing retail environment would result in an even more competitive marketplace this season.
The accounts filed with Companies House reveal that the firm posted a 12.6% increase in pre-tax profits to £8.585 million in the year ended June 28, 2014. This was against a 7% reduction in turnover to £191.832m, from £205.995m the year before.
Sales in the UK and Europe fell. Sales to the rest of the world increased by 26.5% to £3.276m.
In his report, chief executive Angus Armstrong said the company had incurred lower procurement costs in the year due to a drop in free-buy tattie prices along with a lower imported tonnage.
“In addition, the well- publicised decline in fresh produce volumes through the major retailers has impacted overall volumes and hence turnover,” said Mr Armstrong.
On the year ahead, group chairman Barrie Clapham said: “We would expect the retail environment to remain fiercely competitive as the market continues to evolve through increased competition from the discounters, changing consumer shopping habits and more focus on reducing home waste, all of which impact market volume.”
During the year the company closed its pack-house at Tern Hill in Shropshire, and also bought the Jersey Royal Company Ltd for £14.9m.
The accounts also reveal that the highest-paid director’s pay packet increased by 67% to £385,000, from £230,000 previously.
Source: thecourier.co.uk
