Farm businesses in danger of ‘vicious spiral’ of decline

Speaking at the Oxford Farming Conference, Booker’s chief executive, Charles Wilson told farmers the impact on their businesses from the banking crisis and recession could be severe.

He warned the current financial crisis could cause small and medium businesses to get into a ‘vicious spiral of decline’.

He said: “In the past couple of years, four waves hit large and small businesses. In July 2007 the banking crisis started. In November 2007 we saw commodity inflation.

“In May 2008 consumer spending started to contract and then in September 2008 trade credit started to tighten. These waves challenge every business – farms, producers, processors, distributors and retailers.”

The only way to react, and to survive, he said was for businesses to act quickly and to nip the problems in the bud or else farmers could struggle to keep their businesses afloat.

One growth opportunity he highlighted despite the recession was in farm shops where Booker has seen a 13 per cent growth in sales.

He said: “I am very excited about the prospects for this sector. There’s low rent, low rates and there is a real opportunity there for a well-run farm shop. I suspect in a few years some smart farmers will also get into volume grocery.”

Have your say

Please do not complete the following form field for security reasons.

Name

E-mail

Comment