Despite tough trading conditions last year, soft-fruit specialist KG Fruits has reported a 14 per cent increase in turnover and a rise of nine per cent in sales.
The results were announced at the group’s agm held earlier this month. Finance director David MacGregor revealed that turnover rose to £103.8 million from £91m in 2003. Members’ sales rose to £67m and import sales were up to £29m. Grower members are therefore in line this year for a commission rebate of some £1.4m.
“There is no doubt that the size of KG now enables it to provide very cost-effective marketing for its growers and a very high standard of service both for its customers and grower members,” said md Nick Marston. “This has been another good year for KG, although a difficult year for growers. We are working hard to ensure growers remain profitable - the future is promising but growers need to be the best.”
With rising costs, the commercial environment for growers was as tough as ever in 2004. “Costs are increasing - particularly for labour - but selling prices do not go up year on year, so margins are being squeezed,” said Marston. “Last year we also had a very substantial weather-driven, everbearer peak in August so we had to discount fruit.”
Marston pointed towards a bright future for KG’s core lines of strawberries and raspberries despite prevailing tough conditions. But growers are not going to have it easy: “They need to be the best as the costs required to establish as a grower are so great that you need an industry-leading yield in order to get a return on your investment.”
