Organic vegetable processor shipped swedes to Sweden
Moray company hopes export deal will be repeated
Published:
ONE of the country’s biggest organic vegetable processors is confident of winning new business.
Forres-based Tio is in the middle of negotiating a deal that could secure it a new market outwith retail.
Managing director William Rose said the firm is also looking at developing its product range to stimulate demand in what he admitted was one of the toughest economic periods the business had encountered.
The credit crunch has dramatically hit the organic market nationally, with sales down for many products.
Mr Rose said Tio faced the problem of sales having hit a plateau rather than declining. Retailers were also imposing “enormous” pressure for better deals and for prices to go down instead of up.
He was commenting as the firm’s accounts for the year to May 31, 2008, were published by Companies House.
They showed a £88,285 decline to £144,118 in pre-tax profits at the firm, which employs a core staff of 50, but which increases to 150 at the height of the processing season.
Mr Rose said the financial year just completed had been equally tough as Tio had been hit by higher energy, fuel and distribution costs.
He predicted an equally challenging year ahead, but one in which profits were likely to be higher as the business had and continued to invest in new facilities to handle more produce and secure greater operating efficiencies.
Mr Rose added: “We’re also working hard ourselves to find other profitable opportunities.”
Tio used sterling’s collapse against the euro in recent months to open up new export markets that has seen several thousands tonnes of Scottish carrots shipped to Germany and Spain as well as swedes to Sweden.
Mr Rose said the Swedish deal had raised a chuckle, but there were hopes it would be repeated again next season. More carrot exports are also likely.
He added: “The effects of the recession on consumer buying habits have been marked.
“We will see the market rise again and expand, but it is difficult to know when.
“Our own new product development portfolio runs to a fair number of additional products.
“We’re working hard to find profitable opportunities. We’re also negotiating a bunch of new business that will hopefully come on line soon. Part of this is not in retail but we are in a sensitive stage of negotiations and I don’t want to say more.”
Tio buys its vegetables from growers across the north and north-east. Mr Rose is among the biggest suppliers.
