Euro Quality Lambs still in profit despite challenges

Exporter Euro Quality Lambs made a pre-tax profit of £2.14m in the year to 30 June 2021, despite pressure from both the Covid-19 pandemic and Brexit.

Pre-tax profits for the business were down 8% (£189,000) on 2020 levels.

Turnover at £61.7m represented an increase of £249,000 on the previous year.

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The Shropshire-based business can process up to 25,000 lamb carcasses a week. These are sold in the UK and also to key export markets, including France, Germany, Belgium and Portugal.

According to the strategic report, the company expects the majority of its sales to be in mainland Europe, as there continues to be a good level of demand for quality British lamb meat.

Chief executive Mohammad Khalid, said: “The industry is expected to remain highly competitive in the future. The directors are closely monitoring the local markets and believe there may be further consolidation in the industry.

“The implementation of the new UK agricultural policy may adversely affect the availability of livestock.”

Mr Khalid said he believed the company was ideally placed, both financially and in terms of reputation, to deal with current economic challenges and it would continue to seek opportunities to increase profitable turnover.

Future development

Euro Quality Lambs is financing improvements in its current manufacturing facilities and will carry on investing in research and development.

Looking forward, the key risks to the business are outlined in the report as volatile lamb prices, high energy costs, competition from major industry players, high levels of regulation and labour availability.