Bord na Móna annual report 09/10
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Managing Director’s Review

Business Review – Horticulture

Business Review – Horticulture - product innovation a cut above the rest

Consumer interest in growing fruit and vegetables has been matched with innovative products by Horticulture, which continues to thrive in a competitive market.

 

Horticulture supplies peat and non-peat based products to the retail and professional markets in Ireland, the UK and Europe. The range includes growing media and decorative products for gardening enthusiasts supplied under the Shamrock and Growise brands in Ireland, and a private label in the UK. Milled peat, graded peat, and ready mixed growing media are supplied to the professional industry in all markets.


Results
It was a highly competitive year for the Horticulture business due to poor weather throughout the 2009 season and continued pressure on professional growers in Europe. Despite the challenges the business experienced a significant turnaround in operating profit before reorganisation and redundancy costs of €3.4 million as a result of the major restructuring in 2008/2009. A reduced unit cost base has kept the business competitive during the period. Retail performance was strong in the UK and Irish markets as consumers respond to the economic downturn by increasing their domestic leisure interests such as gardening.

 

Competitiveness
The UK growing media market has a high private label share and is being constantly fuelled by range extension and price promotion. Bord na Móna has an exclusive supply arrangement with the largest retailer in the category, B&Q. The range is a combination of peat and non-peat based composts and decorative products such as bark. There is a continuous programme of product, packaging and supply chain improvements to ensure continued growth in the category.

 

Sustainability
Whilst peat is an excellent growing medium, recognised for its qualities and reliability, it will increasingly be replaced by more sustainable products as the performance of alternatives improves to match peat. Bord na Móna is leading the development of alternatives based on green compost produced at its EPA-licensed facility at Kilberry, Co. Kildare for the retail market. Currently over 50% of everything the business produces for retail is non-peat and it is working toward a target of 0% peat in its retail composts by 2020. This target is consistent with Department for Environment, Food and Rural Affairs (DEFRA) directives in the UK.


Consistent with this approach, the recycling of vegetable waste from the retail trade commenced during the year. Horticulture also agreed an investment programme through Resource Recovery which will be a further source of recycled materials suitable for use in growing media.

 

Innovation
During the past year, Horticulture launched the Growise brand in the Irish market. Growise is a complete range of growing media and decorative products. The brand has generated distribution consistent with a national brand and communication to consumers included a major sponsorship of ‘Super Garden’ on RTÉ television and ‘Bloom’, Ireland’s largest family gardening and food event, in June 2010.

 

Capitalising on the renewed consumer interest in growing fruit and vegetables, Horticulture also developed new products for its retail partners, including specialist planters and a range of organic fertilisers, recommended by ‘Which?’ magazine as a ‘best buy’ for multipurpose compost following extensive trials of competitive products.