Supermarket price pressure and dwindling potato consumption have hit fresh produce supplier QV Foods, which has reported a 15.9% drop in its most recent accounts.
Turnover fell from £164m in 2014 to £139m in 2015, with pre-tax profits down from £6m to £5.2m, according to the company’s accounts for the year to 31 May 2015.
QV director Duncan Worth said abundant veg supplies in 2014 had depressed prices. “This inevitably resulted in retailer pressure on supply prices, sharpened by intense retail competition and the decline in consumption of fresh potatoes,” he added.
The company was also hit by the decision by IPL to take its fresh potato packing in house, and is in the process of restructuring its core potato business. However, it wasn’t all bad news for QV, which saw growth in its fresh prepared and packed vegetable operations and invested further in its growing and packing operations.
Worth admitted deflation and retail competition would pose further challenges in the year ahead, but remained buoyant about the company’s prospects going forward.
“We are confident that our increased growing operations, provenance and focus on service will sustain growth in our non-potato business streams and a proactive approach to the restructuring of our core potato business will enable us to deliver a strong performance,” he said.
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