Turners & Growers has reported a 34 per cent fall in profit in the 12 months to December 31, saying people ate fewer fresh fruit and vegetables during the recession.
The profit of $9.5 million was down from $14.1 million last year. The board is yet to decide on a
dividend.
"Historically the fresh produce industry has been relatively immune from the effects of economic recessions, but in 2009 things have been very different," the company said.
Consumers globally have reduced their purchases of fruit and vegetables and gone down-market seeking the lowest price offerings, specials and discounts.
Demand and prices were reduced significantly especially at the premium end of the market and for organics.
The company moved to reduce overhead costs. "The board believes that the company is robust and is pleased it was able to trade profitably through the worst economic recession since the 1930s.
"Recent results have been pleasing and this gives us confidence that 2010 will be a better year."
Since late 2009 trading has picked up and group profits have shown signs of improvement.
The board has authorised extending the Kerifresh packhouse in Kerikeri. This will reduce reliance on external providers.
Turners & Growers had recently purchased a transport operation in the South Island and the intention was to provide a long-haul refrigerated service that mirrors the North Island operation.
- NZPA
