UK: Produce Investments to take £1.5m hit on potato product contamination

Potato and daffodil supplier Produce Investments has warned a metal contamination problem could cost it up to £1.5 million and announced plans to close a packing site in Kent. The AIM-listed company, based in Duns in the Scottish Borders, had previously flagged the metal issue at its Swancote Foods subsidiary in Shropshire which resulted in the recall of potato salad and ready meal products. It said the contamination occurred due to a failure inside one of its blanching machines although it was not picked up by detection systems further down the supply chain. Produce, which supplies the likes of Tesco, Sainsbury, Asda, Waitrose and Marks & Spencer, said the potential financial impact is still being analysed but it is believed to be in the range of £300,000 to £1.5m. More