Pinguin Lutosa has to continue with saving on its costs

In the year 2009 Pinguin Lutosa, a company known for its frozen vegetables, has well fought against the crisis. Unfortunately the year 2010 didn’t start as well as 2009. The reason is a general price-cut. The company wants to compensate this by spending less money on the purchases of vegetables.

Consequently cost savings will be accentuated again in 2010. The price-cut which is already transited, will also partially relate on contract farmers. Most of the contracts for the harvest of 2010 for potatoes, peas and for other vegetables have already been compromised. The farmers realized that the price-cut was inevitable. I’m wondering which product will be the next victim of all these price-cuts. In the past pigs, the milk and potatoes have already been faced with enormously price-cuts. Farmers are always the biggest victims of all this.

Pinguin Lutosa is successful in potatoes and in frozen vegetables. Especially the division of potatoes, good for 48 percent of the sales, is running at full capacity since the spring of 2009. The company is expecting a bigger increase of the demands. Last year this company produced 700 000 ton potatoes. This is at least 70 kilos potatoes per Belgian.

The frozen vegetables, especially the peas, are good for 52 percent of the sales. The sold volumes have increased but lower prices and the weaker British Pound above all, have caused a sales decline of 3.1 percent. The company wants to realize more harmonizing between the stock and the production. In that way the work capital can be kept down.

I think Pinguin Lutosa has not to react by panicking on this. Because this company is certainly not the only one who has to cut its prices. All the companies active in this sector will be confronted with those price-cuts. So Pinguin Lutosa has not to be afraid of its competitive position. Besides this company can compensate this price-cut with the price of onions, which is increasing at a rapid rate.

I regret the enormously weak position of the British Pound. Without taking the currency effect in account, the company would realize a growth of at least 4.9 percent instead of a descent of 1.85 percent, which is now realized. I hope a rising of the British Pound as soon as possible will make an end to this regrettable situation.

‘PinguinLutosa snoeit verder’ (de tijd)
‘Zwakke pond speelt PinguinLutosa parten’ (de tijd)