Producer organisation and vegetable-growing co-operative Fresh Growers Ltd (Freshgro) has reduced net debt and will be launching new products in 2011, despite a slight fall in turnover.
The 12-month period to 31 December 2009 saw a decline in turnover of three per cent to £13.9 million, accounts filed at Companies House reveal. Pre-tax profits were £34,728, down from £149,597 the previous year.
Managing director Martin Evans explained the decline in sales was largely due to the company’s trade in salad potatoes. “The general potato market adversely affected the price of salad potatoes,” he said. “Our trade on salad potatoes is on the wholesale markets and we have ceased production now. The truth is, we probably over-stayed our welcome in that market by about 12 months.”
Abandoning production of this line stands the co-op’s members in better stead and Evans admitted to being “really pleased” with the way Chantenay carrots have performed for the group during the period. “In a recession, a product like Chantenay is really going against the flow. The 12-month period of these accounts is 2009, which is when the recession was really at its peak. We are seeing price pressure, but we’ve largely maintained sales values and I am very pleased that we have maintained market share.”
Freshgro is aiming to launch a new Chantenay product line in 2011. “We have been sitting on a new snacking product. There was no point launching it in recessionary times, but we hope to get it out in the new year. It is a sliced product that we will be targeting at children and petrol stations, as an alternative to crisps.”
Freshgro is also looking to expand its facilities and has already erected the shell of a 2,400m2 facility at its existing factory.
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