Trade Resources Industry Views Paragon Quality Foods Reported a 20% Increase in Turnover for Year Ended February 28 2013

Paragon Quality Foods Reported a 20% Increase in Turnover for Year Ended February 28 2013

Paragon Quality Foods – the food manufacturer formerly at the centre of a row about pork in halal lamb burgers – has reported a 20% increase in turnover for the year ended February 28 2013.

Paragon Quality Foods Weathers Horsemeat Storm

Paragon Quality Foods posted a 20% increase in turnover for the year ended February 28 2013

The Doncaster-based business said turnover had reached £30.3M up from £24.8M in the previous year. But pre-tax profit fell to £98,603 from £111,784.

Last month the business was accused by Leicester City Council of supplying halal lamb burgers that contained up to 50% pork. But independent DNA analysis subsequently confirmed its burgers were pork free, claimed the company.

Paragon Quality Foods md Metin Pekin said today (June 17) in a statement: “Negative stories have not really had any effect on our sales. This is probably due to the fact that we deal with businesses, which see beyond the headlines, rather than the public.”

But Pekin conceded it had proved a challenging year for the meat industry. “Nevertheless, we have managed to grow our sales as well as our margin,” said Pekin. “I am pleased to say that our sales are stronger than before.”

Slaughering and cutting plants

Pekin went on to say it had become evident where responsibility for the horsemeat crisis lay. “It is clear that the horsemeat issue was not with manufacturers like us, it was further down the supply chain, in slaughtering and cutting plants.

“We have obviously proved our system by DNA testing the meat coming to us. We are optimistic for the future because we are now seeing normal [stabilised] margin returning to the industry.”

Previously margins had been eroded by the rising price of raw material meat. “The previous year’s margins were even worse, due to the inflationary pressure and the delay of passing those on to customers,” said Pekin.

He added that competitors did not want to be the first to put prices up and Paragon Quality Foods usually lead the way in lifting them.

While extra product testing costs had been incurred during the horsemeat crisis, these had now been passed on to its customers, according to the business.

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Considering legal action

Last month, a spokesman for Paragon Quality Foods told FoodManufacture.co.uk it was considering legal action after independent tests confirmed the authenticity of its products.

Speaking in May Pekin said: “We have since obtained the DNA data upon which this report was based and sent it to an independent specialist. Based on the conclusion of this specialist, Paragon is satisfied and pleased to announce that the DNA data in actual fact shows that the burger should have been declared as pork free.”

A spokesman for Leicester City Council said it had had commissioned its own tests on different batches of the burgers removed from its schools.

Leicester Council removed lamb burgers from the menus of 24 schools after DNA tests conducted by Eastern Shires Purchasing Organisation revealed the presence of pork in a sample burger. The council said the sample burger was one of a batch of frozen burgers manufactured by Paragon Quality Foods in January this year.

Commenting when the contamination was discovered at the beginning of May, councillor Vi Dempster, assistant city mayor, apologised to students and parents.

“I am appalled by this situation. It is disgraceful that none of us can have confidence in the food we eat,” said Dempster. “We regret any distress this will cause families and staff, and would like to reassure them that robust action is being taken to address this serious matter.”

Listen to Food Manufacture’s free one hour webinar on the lessons to be learned from the horsemeat crisis here .

Source: http://www.foodmanufacture.co.uk/Business-News/Paragon-Quality-Foods-weathers-horsemeat-storm
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Paragon Quality Foods Weathers Horsemeat Storm