Riverford Organic Vegetables is targeting “modest” growth in the coming year and has purchased a vegetable farm in France to help achieve it.
The box delivery specialist is looking to achieve four per cent growth in 2011 after recording a profit increase of £553,172, largely attributable to an “appalling” prior year.
The company saw pre-tax profits increase from £83,591 in the period from 4 May 2008 to 2 May 2009, to £636,763 in the year from 3 May 2009 to 1 May 2010, according to accounts submitted to Companies House.
Turnover at the company increased from £31.5 million in the 2008-09 period to £32.7m the following year.
Riverford recently purchased a new 100 acre farm in the Vendée, France, where it has been growing peppers, lettuce, carrots and courgettes and hopes to increase volumes this year.
Managing director Jack Slatter told freshinfo the business was on course so far in 2011, recording five per cent growth equivalent in early January, inclusive of an increase in prices.
He said: “We had an appalling year the year before as we had significant losses due to climatic conditions and exchange rates affecting imports of bananas, citrus, apples and vegetables outside of the UK season.
“We were not too adversely affected by the general 13 per cent decline in the organics market in 2008-09 and the cost comparison of our boxes has kept us competitive with the supermarkets. We tend to be 15-20 per cent cheaper than Waitrose.”
The firm saw a 12 per cent uplift in sales in the week before Christmas and managed to deliver all but 20 of its 42,000 deliveries despite snow which crippled many UK fresh produce supply chains.
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