MICHAEL HOEY says that while he has never been busier, the pressure on his business has never been greater.
With his brother Gabriel, Hoey owns and runs Country Crest, a fresh produce business based in Lusk, in north Dublin’s market garden belt.
The firm was established in 1994, primarily to pack potatoes for the Hoeys’ own farm and for others. Over time, the business has expanded and now supplies fresh and cooked vegetables to most major supermarkets.
Hoey says some endeavours, such as supplying pre-made vegetable dishes to catering companies, didn’t work for the company, while others, such as growing baby potatoes were a huge success.
Most growth over the past few years has come, however, from the preparation and supply of ready meal products.
Country Crest won a contract to make pies for niche Cork food company Cully Sully after the principals of the two firms met on Ernst Young’s Entrepreneur of the Year programme.
More significantly, it benefited from the departure of Swissco from the Irish market last year, taking over the firm’s contracts to make ready meals for Superquinn and Dunnes.
All of this has meant Country Crest’s staff numbers have gone against wider trends, increasing from 86 last year to 150 now. Turnover is also on the rise, with last year’s €32 million expected to increase to €42 million.
So far, so good, but Hoey says not everything is rosy.
The economic slowdown has meant supermarkets are trying to reduce prices as much as possible, thus eating into the margins a firm such as Country Crest can expect to clear. Pressure is growing, says Hoey.
“You have to work night and day. Supermarkets want to sell everything for nothing. It’s a huge concern.”
This margin erosion means that Country Crest must seek cost savings within the business.
In this vein, Hoey wants the firm to become 100 per cent self-sufficient on the energy front so it spent €1.5 million on a wind turbine earlier this year.
A biogas plant is the next step, with Hoey resisting wage cuts because he believes good staff need to be paid properly if a company is to develop.
“We have to be confident. I still see lots of other opportunities we want to explore.”
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