Farplants will cut production by 10 per cent next year in response to a downturn in demand for plants.
The seven-member co-operative wholesaler is also cutting several jobs, as is Needham Growers, which will split from West Sussex-based Farplants after this season.
Farplants sales director Nick Richards said sales are down by six per cent this year: “We have no intention of growing plants we can’t sell. Retailers are selling fewer plants and there has been a lot of dumping of stock from Holland. Over-production must be addressed so we’re cutting production to safer levels and taking a fresh look at the structure of the business.”
Farplants is still in consultation with management about “a handful — in single figures” of redundancies, which will be in areas other than sales.
Littlehampton-based Needham lost £413,000 before tax in the year to July 2004 on turnover of £3.2 million. In the previous year, it made £116,000 on turnover of £2.847 million. It will shed three jobs, said Richards.
Geoff and Maureen Needham founded Needham Growers. John Hall later bought the company. Needham is believed to be looking into going independent. No-one at Needham was answering calls last week or this week.
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