Glenrath Farms, one of the UK’s biggest egg producers, has reported annual pre-tax profits of £3.6m in the year to 31 May 2020, a figure 20% less compared to the previous year. Sales declined 0.2% to £53m during the same period, which the directors attributed to an oversupply of eggs in the market.
Chairman Sir John Campbell, who founded the company in 1959 in the Scottish Borders, wrote in the firm’s annual report the company was adapting as quickly as possible to the changing demands of the consumer, and following major investment in new barn egg systems, less than 20% of the company’s sales were now from colony cage systems.
The pace of change was rapid, and Sir John forecast supermarkets would cease selling all colony egg before the self-imposed deadline of 2025.
With this in mind, Glenrath has accelerated its programme of converting its colony units to barn systems, “even though some supermarkets have discontinued selling barn eggs,” the report states. “We are of the view that our principle 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 manage this delicate and challenging situation.”
In addition, the company is expanding its free range production in response to growing demand. Sir John said he was optimistic for the future of the business, and said four members of the third generation of the Campbell family were in management roles in the company, including his granddaughter Amy Campbell, who is running the egg processing facility. He noted the business was considering expanding its egg processing operations.