The Greenery has reported “pleasing results” for its 2007 financial year.
The grower-owned Dutch company, which supplies most of the UK’s major retailers through its subsidiary The Greenery UK said that despite pressure on prices from its customers, research costs for the implementation of a new ERP system, reorganisation provision and the construction of a new distribution centre, payments to its grower members rose by 4.1 per cent to €810 million while the volume of produce supplied by its growers increased by 3.8 per cent.
General manager Philip Smits said: “Taking account of developments over the past year and the decisions we took to continue strengthening the position of The Greenery, we can view this result as pleasing.”
Throughout the year The Greenery opted to keep the prices paid to its member growers as high as possible, despite pressure on its selling prices to customers.
The Greenery regards 2007 as an exceptional year. Important decisions were taken and measures were implemented to strengthen the cooperative’s position on the European market. These included new logistics arrangements, the start of a results improvement programme and the strengthening of its position as retail partner through its further rollout of category management activities. It also includes the construction of a fresh-food distribution centre from which The Greenery subsidiary Hollander is going to organise the distribution of all fresh products for a major Dutch retailer.
The cooperative has introduced a new payment system for members and international membership has been approved by the members’ council. This approval makes it possible for foreign growers to join the cooperative.
The company said in a statement: “Taken together, these decisions mean that The Greenery is now ready to turn into opportunities the challenges set for it for the future by customers, consumers and growers.”
Total turnover for 2007 remained almost static at the 2006 level of €1.9 billion and operating profit was €10.5 million.
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