Scotland’s main vegetable and salad crop processor has blamed falling prices and a drop in consumption as the reasons for ending its latest year in the red.
Kettle Produce, which is based near Cupar in Fife, posted pre-tax losses of £1.196million for the year ended May 31, 2014. This was down 230% on the year before, when the firm posted pre-tax profits of £914,446.
Accounts filed with Companies House also reveal that turnover in the year was down 5% to £96.212million, from £101.437million before.
In her report, company secretary Elizabeth Waugh said: “The key feature of the year was a 5% reduction in turnover year on year. This was driven by two key factors – reduced sales volumes and sales price deflation.
“In relation to the former, consumers are becoming more waste conscious and are buying smaller quantities more frequently rather than buying fewer larger volumes. In addition, the average selling price per kilo has reduced year on year.”
A double whammy of high yields and a downturn in the market resulted in a surplus of produce needing to be sold, added Mrs Waugh.
“But our sales and procurement teams worked hard to ensure we sold all excess products to various markets,” she said.
The accounts reveal that sales to the rest of Europe in the year were worth £404,203.
Mrs Waugh added: “In light of the pressures on turnover, the board has introduced process reviews across the business to ensure we operate at optimum cost effectiveness. In addition, we have curtailed investment in all non-essential areas.”
Kettle processes 100,000 tonnes of carrots, swedes, parsnips, leeks, broccoli, cauliflower, brussels sprouts, green, white, red, savoy and sweetheart cabbages and spring greens, iceberg, romaine, cos and little gems lettuce from its bases at Freuchie and at Balmalcolm, near Cupar.
The company sources produce from around 50 growers in Aberdeenshire, Angus, Fife, the Lothians, Perthshire and south-west Scotland.