(Alliance News) - Meat producer Cranswick PLC on Thursday said UK retail demand remained strong during its third quarter, reflecting the "continued shift" towards greater in-home consumption as a result of the pandemic.
In the 13 weeks to December 25, the company's third quarter, Cranswick said its performance over the festive trading period was robust and "comfortably" ahead of the same period in 2020 despite industry-wide labour and supply chain challenges.
The Hull, England-based food company, which makes pork and chicken products, including sausages and bacon, said that Far East export sales were lower than the same quarter last year as anticipated. Cranswick said this was due to market prices falling back from the elevated levels experienced over the previous two years and the ongoing suspension of the company's Norfolk pork processing facility's China export licence.
In the UK, Cranswick said its pork business continues to face operational and commercial challenges with the supply of pigs at times exceeding demand and processing capacity.
Cranswick explained that it is working with the wider farming community to reduce the backlog of pigs on farms and, in its current financial year that ends March 27, has increased the number of pigs processed.
Expanding on the issue, Cranswick said it is continuing to lobby the UK government for sector support to help alleviate the backlog, including the reinstatement of Chinese export licences and addressing the shortage of skilled butchers.
The company said its expectations for the group's full-year performance remains unchanged.
Shares in Cranswick were up 1.2% at 3,766.00 pence on Thursday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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Cranswick (CWK)