Rock-bottom potato prices took a major chunk out of producer Albert Bartlett’s profits last year, its latest accounts have revealed.
In the year to 31 May 2015 turnover fell from £146m to £117m, with operating profit down from £10.1m to £8m.
This, combined with a whopping £5m investment write-off related to the closure of Jersey-based subsidiary Amalgrow Produce, resulted in profits falling from over £7m last year to just £37,588.
Albert Bartlett blamed falling profits and turnover on “challenging market conditions” caused by the bumper crop of UK potatoes in 2014/15, which led to huge oversupply and put significant pressure on prices. “The potato harvest was very big, so we had significant deflation in all areas of the marketplace,” said sales and marketing director John Heginbottom.
According to AHDB estimates, the potato supply situation has eased this season, with production for 2015/16 set to fall 5.5% to 5.43Mt as a result of an 8% drop in the planted area.
Heginbottom said there had been “some improvement” on prices.
He admitted diversification was necessary to achieve stability, and said this process had already begun with the acquisition of a Norfolk frozen potato processing plant in May 2015, which enabled the business to launch three lines of frozen chips and roast potatoes. “We have listings of frozen products in a number of different retailers and we are delighted with how that business is developing,” he said.
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