Future now uncertain for 250 workers

Produce World Group revealed on Monday it intends to form a joint venture with LFP (Lincolnshire Field Products), based at Wykeham, near Spalding, over the growing, harvesting, packing and marketing of brassicas.

It would see the closure of its site in Butterwick, where 250 people are employed in the brassica trade.

A spokesman for the firm said all jobs were ‘at risk’, but 60 new positions would be created at Wykeham under the plans.

Produce World Group also announced proposals to close its factory at Swinderby, where about 90 people are employed, with operations transferring to its site at Isleham, where, again, new jobs would be created.

About £10m would be invested across the Wykeham and Isleham sites, while the joint venture would mean that the overall Produce World Group would have a turnover of about £250m and be the UK’s biggest grower and supplier of fresh vegetables.

Produce World Group executive chairman Neil Fraser said: “At Produce World we are growing our business and developing a structure which will enable us to meet the current and future challenges in the industry. We are operating in a low-margin business and more consolidation across the industry is inevitable. At the same time our customers are experiencing a period of unprecedented competition and changing consumer shopping habits.

“We have acted to ensure we can meet these challenges and make the Produce World Group sustainable for the future. We are committed to the long-term for the business and for fresh vegetable growing in Lincolnshire and across East Anglia.

“The firm has entered into consultation with colleagues and their representatives.”

Mr Fraser added: “We are very much aware of the impact that the proposed closures will have on our colleagues at Butterwick and Swinderby, and we have considered and will consider every possible option before implementing these proposals. Both sites will remain open for a number of months and we will do everything we can to help colleagues to find alternative employment including jobs within the Produce World Group.”

Martin Tate, commercial director of LFP, said: “We believe that this joint venture plays to the strengths of both organisations, combining the growing expertise and experience in brassicas of LFP with the commercial skills of Produce World. The combination of the two businesses will ensure that we can compete in the market place and have a sustainable future.”