GLENRATH FARMS has recorded a 20% dip in pre-tax profits in its latest financial results, covering the year to 31 May 2020.
Sales were unchanged at £53m with chairman Sir John Campbell saying: “My long-predicted turndown for the industry is firmly with us, given the challenges we are facing with the external factors such as Brexit and uncertainties caused by worldwide trade disputes.”
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He adds that the UK egg industry is facing its own challenges, and that Glenrath is “adapting as quickly as possible”, and that it had “remained profitable throughout”.
Despite this, Sir John says that all supermarkets were committed to purchasing UK-produced eggs wherever possible and that “the advent of Brexit will strengthen this demand”.
“The UK egg industry must rise to the European challenge to ensure we are able to support our customers with UK produce, not just now but in the foreseeable future.”
Conversion
Glenrath is also accelerating its conversion of colony egg systems to barn, despite some supermarkets delisting the category.
“We are of the view that our principal customers will continue to operate within this sector of the market, and whilst the conversion costs are considerable, we believe our sound judgement will help us to manage this delicate and challenging situation,” he says.
Colony egg now accounts for less than 20% of the firm’s supermarket sales and continues to decline.
But free-range production would continue to expand, added Sir John.
And the company’s egg processing facility is now fully operational and running under the direction of family member Amy Campbell.
