The ceo of one of the UK’s largest suppliers has spoken of the “First World War” battleground that is supplying from Spain.
John Shropshire, ceo of the Shropshire Group, said competition in the Mediterranean country was “ferocious” and that “land and water are very expensive, labour is highly unionised and the draconian labour laws in Spain make change extremely costly”.
He said: “The past 25 years have been like the First World War; we have ground out our position and poured tens of millions of pounds into it.”
In an address due to be delivered to the Oxford Farming Conference as FPJ went to press, Shropshire said the business had thrived through its supermarket partnerships and winter salad supply from its production in Murcia had proved vital.
In a wide-ranging speech, Shropshire said technology had been key in developing a cold chain as well as innovation in the field while the acquisition of 20 companies in 23 years was the result of calculated risks.
“Not all have been a success but most have added market share, notably Hasse Limited, Pascual Hermanos and Bomfords. We have paid a lot of money for some businesses, but mostly specialise in buying businesses that are in trouble,” he said.
“Willingness to invest and take risk is vital and several times in our history we have bet the company on new ideas and ventures. We calculate the risk carefully.”
The group has set itself the target of hitting sales of more than £500 million in the next 15 years through increased sales and adding value to products.
