Convenience and Funding Helps Veg Business Grow

03/06/2010

An East Yorkshire business is growing thanks to the fast pace of modern life which means busy people would prefer to buy prepared mixed root veg rather than prepare it themselves.

MH Poskitt, based at Kellington near Goole, has more than 50 years’ experience in growing, packing and distributing organic and conventionally grown carrots throughout the UK, but wanted to keep at the forefront of their field and was able to do so thanks to support from the Rural Development Programme for England (RDPE) delivered by Yorkshire Forward.

Guy Poskitt, Managing Director at family firm MH Poskitt, commented; “The RDPE grant has allowed the company to purchase the latest processing equipment to handle our new offering - swede. The new facility means that the business can introduce added value swede, adding it to our existing carrot output and create mixed product packs of swede and carrot. Our product is low margin, but the cost of the equipment is high, so Yorkshire Forward’s RDPE fund has enabled us to invest in the vegetable processing machinery we needed to be able to grow the company.”

As a result of the grant and the new machinery, ten full time equivalent posts have been created including line operator roles and a line supervisor, with the company’s turnover expected to increase by £1,300,000 per annum three years after the investment.

The £250,000 grant formed part of an overall investment of £844,983 in a high care vegetable processing line adjacent to existing facilities in East Yorkshire. Prior to this new purchase of processing equipment, Poskitt invested in the construction of a dedicated high care preparation and packing area in 2002, and has seen the value of offering prepared product - sliced, diced and chill-stored.

With its new product range, MH Poskitt expects to grow and also purchase vast amount of swedes from Yorkshire and Humber producers – an estimated 3,640 tonnes worth £1,512,000 per annum - by the end of year three. Therefore the benefits of the RDPE grant are not only to Poskitt, but to the wider local economy.

Asda is already a major customer of MH Poskitt and they also supply direct to major multiples, wholesalers and vegetable preparers daily from their own farming operation in East Yorkshire whilst utilising produce from other areas in the UK.

Guy Poskitt continued; “I originally thought that getting funding might be difficult and time consuming but I found the funding application process reasonably easy. Yorkshire Forward were very much on board, it helped a lot. The funding has directly benefited the business: it’s improved cash flow and allowed us to deliver value for our customers. It’s given us the confidence to invest in the future, and improved the relationship with our major customers.”

Andy Tordoff, Assistant Director of Environment (Rural Renaissance and Visitor Economy) at Yorkshire Forward commented; “Its great news that Yorkshire Forward’s helping ensure more of our region’s swede gets into British supermarkets and at the same time creating employment”

“Support from the Rural Development Programme for England can be accessed by businesses like MH Poskitt that process and add value to agricultural produce. RDPE is not as complex as people think and we are working hard with our partners to help make it as simple as possible for Yorkshire and Humber’s rural businesses to take advantage of it.”

RDPE is managed by Yorkshire Forward and is jointly funded by Defra and the European Union. For further information on the different RDPE programmes please visit; www.yorkshire-forward.com/rdpe
 

Yorkshire Forward

  • Yorkshire Forward is the Regional Development Agency behind the economic regeneration of Yorkshire and Humber. It aims to make a positive difference by investing in jobs, improving towns and cities, and in supporting businesses throughout the region.
  • Yorkshire Forward’s investment across the region is maximised by attracting European Regional Development Funding.

For further information, images or to arrange an interview, please contact Laura Scholey, Press Manager on 0113 3949540 or email laura.scholey@yorkshire-forward.com