Pimhill sets its sights on organic growth after REG boost

One of the UK’s first organic farms is expecting a record year after investment in a new mill and packing pod gave it the platform to triple sales in 2010.

Pimhill Farm - run by Ginny Mayall and husband Ian Anderson - has used a £23,000 Rural Enterprise Grant (REG) to help bring forward recent expansion plans that has seen it replace two vertical stones from the 1950s with a new horizontal stone grinding mill.

In addition, the enterprising duo have also installed a new sieve system for producing strong white flour and constructed a HEFF approved pod that will house two packaging lines for more efficient production.

It is an ambitious growth plan that should see the business produce and sell more than 75 tonnes of its organic muesli, jumbo oats and porridge – compared to just 15 tonnes in 2009.

Ian, who was previously farm manager on a 4500 acre estate, is delighted with the support they received:

“We are essentially a mixed dairy and arable farm, but recognised that, with the challenges facing rural businesses, we needed to look at ways in which we could diversify to create additional revenue.

“Our mill was first established during the 1950s and we have continued to produce a range of products that have been sold into local farm shops and for box scheme specialists. It has always been on a small scale up until recently when we saw an opportunity to increase our volume through new investment.”

He continued: “With the excellent support of the REG grant, we channelled £60,000 into installing the horizontal mill and new packing area that not only boosted efficiency but also gave us the opportunity to triple volumes.”

Funded under the Rural Development Programme for England (RDPE) which is managed by Advantage West Midlands and administered by Herefordshire Council, Rural Enterprise Grants are available for farmers and micro businesses developing and diversifying into food and drink, environmental technologies and tourism improvements.

Funding of up to 40% (or £62,500) can be secured towards projects that range from new processing machinery and supply chain equipment to energy installations and improvements to tourism experiences.

Pimhill used the REG money to bring the planned investment forward and with production already up 90% in just three months, this is already leading to five part-time jobs and an expected turnover of £250,000 by 2012.

Ginny picked up the story: “The organic market is worth a staggering £2bn and we knew from current customer demand that we could increase the number of people buying our products.

“The change in equipment has given us the platform and now our role is to go out there and sell it. We re-launched with a stand at the Speciality Fine Food show in London that has resulted in firm interest from several new customers and three new distributors.

“This complements our existing relationships with local food stores and the main box schemes in Abel & Cole and Riverford.”

Caroline Cattle, Rural Enterprise Grants Manager, added her support:

“Farms are increasingly exploring new areas of activity in order to offset tough conditions and Pimhill is no different.

“The company had an existing operation that, whilst doing well, was not reaching its full potential and REG has given the management team the opportunity to install new machinery, overhaul production areas and embark on a new sales campaign.

“The initial results are extremely promising and this bodes well for future growth and local job creation.”

If you wish to find out more, the Rural Enterprise Grant team can be contacted on 01432 260662/383616.