by EWAN LAMB
The directors of Scotland's largest egg production business are urging UK Government ministers to address the agricultural industry's growing labour supply issues caused by the adverse impact of Brexit as the company faces significant costs in sourcing staff from non-European Union countries.
But the remarkable success story of Peeblesshire-based Glenrath Farms - the firm distributes over a million eggs a day to retail outlets - continues unabated with founding chairman Sir John Campbell, who turned 90 in April, still firmly at the helm.
Glenrath's annual report reveals a final profit of £6.9 million in the year to May 2023 compared to £1.633 million the previous year.
The business prides itself on being family owned since 1959 when John Campbell and his wife Cathy (now Lady Catherine) moved into Glenrath Farm, near the village of Lamancha to raise sheep and cattle. Then, Mrs Campbell began to rear hens and delivered their eggs door-to-door to local customers.
Today the Glenrath group owns 5,000 acres of land, and employs 200 people, including three generations of the Campbell family. Sir John was knighted in 2017 for services to farming and entrepreneurship. The company's wage bill last year topped £5.6 million.
The so-called strategic report which is included with the annual accounts, has a short section outlining the impact of Brexit.
It says: "We import feed, plant and machinery regularly from Europe. Brexit has increased the risk that not enough can be purchased or that price increases will not be reflected in sales prices, thus reducing profits. Risks have been further increased with adverse currency exchange rates.
"Additionally, Brexit's adverse impact on the agricultural labour market intensifies: we are mitigating this by sourcing staff from non-EU countries but costs are significant. The UK Government must address these labour supply issues as a matter of urgency."
The Glenrath website shows the business is currently attempting to recruit new staff. The site says: "You can choose from an array of jobs that offer you an opportunity to develop your career". Jobs outlined include logistics/drivers, packing station operatives, administrators, engineers, and poultry personnel.
In his chairman's report, Sir John says the first few months of the financial year had been some of the most difficult in the history of Glenrath, with an over-supply of all egg types in the UK and Europe which kept prices historically low.
He adds: "This was compounded by increasing energy and labour costs which saw the company make record monthly losses. However, the economic fall-out created by the war in Ukraine, which led to a rapid doubling of wheat prices and consequent depopulation of poultry units that were facing vast increases in feed costs, resulted in a fall of some seven million birds in the UK hen population.
"At the same time Avian influenza was becoming ever more of a challenge with over one million hens being culled. The knock-on effect was a significantly decreased supply of eggs leading to increasing egg prices".
Sir John explains that despite the initial cost challenges and uncertain outlook early in the year, the Glenrath board took the decision to maintain production and continue investing in improved production facilities.
"Those decisions were proven correct with a return to profitability as the year progressed and I am pleased to report a final profit for the year of £6,900,951".
But he goes on to warn that Glenrath still faces many challenges going forward. The biggest of these is Avian influenza which continues to linger across the UK and Europe. with wild birds acting as a reservoir for infection which is difficult to control.
"We have significantly increased our biosecurity and associated training for our staff. We anticipate that vaccination, which has been introduced in some countries, may well be the only way of overcoming the challenge of this virulent virus".
The report says Glenrath's investment programme has two 'main imperatives'. First, to continue improving environmental performance by investing heavily in solar panels, the restoration of peat bogs, and planting trees on the group's farms.
Second, to meet customer demands Glenrath has committed to discontinuing 'colony' egg production in 2025 and is continuing a programme of converting sheds to barn production. Further investment is also planned in new free range production facilities.
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