The JV between Produce World and Lincolnshire Field Products (LFP) - described at its inception as being a vital move for the “future of brassica growing in Lincolnshire” – is set to come to an end.
A spokesperson for Produce World Group told FPJ the JV was coming to an end at the start of 2016 as the group instead wants to focus on what it sees as its four key categories – alliums, potatoes, roots and organics.
The deal between the two FPJ Big 50 businesses, initiated towards the end of 2014, saw LFP help Produce World form one of its largest growing partners for brassicas ahead of the 2015 harvest. The Produce World spokesperson said: “Nothing will change this side of Christmas – we’re concentrating on delivering Christmas, and then making a seamless transition.”
Produce World Group closed its Butterwick site earlier this year as a result of the JV, a move that saw 30 people lose their jobs, and 120 staff members transfer to the Produce World LFP site that took on operations for the JV at Wykeham.
As for what now happens to this factory and its employees, the Produce World spokesperson said that the decision would ultimately rest with LFP, and stressed: “We have entered into discussions for LFP to acquire our shares in the joint venture.”
Where the termination of the JV leaves the relationship between the two businesses, the spokesperson added: “The intention is that we will continue to work together, and trade in the future, but not as a JV.”
Speaking at the unveiling of Produce World LFP in October 2014, Produce World procurement director Jon Campbell, said the JV was “critical” to secure a land bank for brassicas, which faced competition from other crops in terms of pressure on land and consolidation in the industry.
He also noted: “We feel this is an important move for the future of brassica growing in Lincolnshire, and will best meet the needs of our customers in the future.”
When approached by FPJ, LFP declined to comment.
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