NFU Sugar announces meeting to help growers affected by M&J Haulage Ltd administration

Chris Pole and Mark Orton from KPMG have been appointed joint administrators to M&J Haulage Limited, sugar beet handling company based in Snelland, Lincolnshire.

The company, which employs 24 people and a number of subcontractors, operated as an agricultural contracting business, specialising in the cultivation of sugar beet and other arable crops.

Crops

The company grew its own crops whilst also providing contract farming and haulage services to other customers in the East Midlands.

The administrators said it had been impacted by reduced contract volumes leading to a material downturn in profitability and subsequent cash flow issues and ,with growing creditor pressure, the inability to obtain further funding and in the absence of any committed increase in long-term orders, it was deemed that a viable business no longer existed.

Operations on site have been suspended and all employees have been sent home while the joint administrators assess the options available.

Chris Pole, partner at KPMG and joint administrator, said: “The company had recently seen a decline in its order book, which led to significant pressure on its cashflow.

“Over the coming days, we will be assessing options for the business, including the possibility of resuming operations, while we explore a sale of the business and its assets.”

Interested parties are advised to contact the joint administrators as soon as possible via Gareth Shaw on 0121 232 3288.

NFU sugar has confirmed a ‘significant contractor’ has gone into technical administration, which could impact growers and the current sugar beet campaign.

In a statement given at NFU council this week, sugar board chairman Michael Sly said the contractor, was ‘a pioneer’ in the industry harvesting and haulage scheme.

The union did not confirm the contractor’s name but said the contractor’s customers would be informed immediately.

Mr Sly said: “The business is highly regarded by growers for its professionalism and the service it has offered and it is therefore unfortunate that a commercial solution has not been found to date.

"There is a possibility that this may impact on the current campaign."

He advised any grower who believed they may have been affected and were worried to contact the NFU Sugar helpline on 03700 661 974.