Inflation within food sector is 'well above' published levels

Image: Mash Direct
Image: Mash Direct

The management team at Mash Direct has indicated that the real value of inflation within the food sector is well above that reflected in current government figures.

Jack Hamilton, the CEO of the Co. Down-based vegetable processing business, confirmed that rising energy costs is a particular challenge for the company at the present time.

“And we are not alone in this regard,” he explained. “Government must act to support the agri-food sector.

Despite this, Hamilton believes that potato producers can look forward to a very sustainable future.

“This is because of the significant food miles associated with the likes of pasta and rice,” he commented.

“Potatoes are locally grown. They can also be produced at prices that can be accurately factored into peoples’ budgets in a very consistent manner. As a consequence, they are pretty much inflation-proof.”

Mash Direct has 53 farmer-suppliers. According to group chairman Martin Hamilton, the operation’s business model ensures very low levels of waste are created within the system.

“We will accept the cast bulk of the potatoes and other vegetables produced by our suppliers. Prior to the establishment of Mash Direct, we produced potatoes for the retail packing trade," he outlined.

But one challenge that does continually confront the business is that of labour availability.

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“This is why we have sought to increase the degree of automation within the business on a continuing basis," he explained.

“However, we have always resisted these suggestions. And, thankfully, it’s a decision that has always worked for the benefit of the business.”

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