Russian sanctions will hit fruit and veg market
Fresh produce distributor Total Produce has warned that sanctions by Russia will impact on fruit and veg prices across Europe.
The firm reported total revenues of €1.59bn for the first six months of the year, down 1.7pc on the same time last year, while pre-tax profits were up 5.7pc to €24.2m.
Total Produce does not have any operations in Russia, with modest sales of less than 2pc of total revenue, but chairman Carl McCann said there may be an impact on prices due to excess supply in Europe.
“The group is hopeful that this can be offset to some extent by EU market intervention initiatives,” he added.
Total Produce grows, imports, packs, distributes and markets over 200 lines of fresh fruits, vegetables and flowers in 20 countries across Europe.
Mr McCann said the group recorded volume growth although average prices decreased, and expects to grow following successful acquisitions in The Netherlands and the USA.
“We are pleased to report a marginal increase in adjusted earnings to 4.86 cent per share,” he added.
Goodbody analyst Patrick Higgins said the market should react positively to the statement.
“As expected, difficult trading conditions in the Eurozone and the dilutive effect of the Capespan disposal were offset by acquisitions in the UK and a strong margin performance in Northern Europe,” he added.