East of Scotland Growers
Prestonhall Industrial Estate, Cupar, Fife KY15 4RD
Chairman: Robert Cowe Managing Director: Alistair Ewan
Tel: 01334 654047 Fax: 01334 656328 E-mail: esgltd@sol.co.uk
East of Scotland Growers has a long history of vegetable production. Its origins are traced back to vegetable growing in Fife, East Lothian, and the Borders with the aim of replacing sugar beet following the closure of the British Sugar Corporation factory in Cupar.
The most recent re-structuring of the company was undertaken during 1998, re-moulding the business to its present format. ESG embraced new attitudes to production and member communication which has resulted in the 45 member co-operative becoming a leading group in broccoli and cauliflower production in the UK.
ESG is now one of the largest broccoli producers in Europe, growing 95% of the UK’s requirements.
The history of ESG is a vivid example of how a farmer controlled business has been forced to adapt and innovate to survive in a sector noted for high returns, but with higher associated risks than traditional crops.
ESG was established in 1987 when Scotfresh (the vegetable freezing company formed by the merger of Elba Growers and Fifegro co-operatives) was privatised.
In the early years Scotfresh was the main outlet for ESG’s production, but in 1989 Scotfresh sold its vegetable business to Tendafrost of Spalding. ESG reduced its dependency on Tendafrost as new customers were developed which gave strength when the Spalding company went into receivership in 1993. The exposure to the loss of a major customer was minimised by the relationship with the overall market place.
With quality a key issue in the market for broccoli and cauliflower, in 1995 ESG established a central vegetable production plant in Cupar. Managing Director Alistair Ewan: “Although we achieved a very high standard and good uniformity, the industry was not willing to pay for the additional costs associated with this central facility.”
A radical strategy was required to eliminate the operational costs and overheads associated with the central site. After consultation and advice from SAOS and innovation from within the company, a plan to re-structure was presented to the members. The plan included maximising fresh sales of produce, processing, preparation in field using “in-house” developed floret rigs and funding moving from a commission to a fixed per acre charge.
There was an immediate acceptance and in 1998 ESG started the cropping year with a new outlook to business. Emphasis was placed on improved communication with the members.
Chairman Rob Cowe: “We are a Scottish based company working in the European market with Spain and Belgium our main competitors. Our members need advice and knowledge and that is the main role for the ESG team led by Alistair Ewan.”
The co-operative delivers a package of service and advice which includes the innovative development of fresh packing and floretting rigs allowing growers access to all markets using Scottish developed and manufactured state of the art equipment.
Rob Cowe: “We still have access to processing and pre-packing markets but the use of the rigs allows us to spread our market options.”
ESG’s new approach is giving its members the confidence to grow, ensuring that the East of Scotland remains as the prime producer of crops such as broccoli and cauliflower.