Key Scottish vegetable producers sign unique merger deal
20th May 2023
Two of Scotland’s longest established fresh produce organisations, East of Scotland Growers Ltd (ESG) and R&K Drysdales Ltd (RKD), have joined forces to expand their product range and provide additional value to customers, with a combined turnover now approaching £50m.
ESG is a farmer-owned cooperative with their main offices based in Cupar, Fife. The collective of 15 growers produces vegetable crops including broccoli, cauliflower, cabbages, carrots, onions, and asparagus.
The members’ farms are based in Fife, Angus, Perthshire, Kincardinshire and the Scottish Borders, producing over 6,000 acres of Scottish brassicas on Scotland’s fertile east coast.
Meanwhile, RKD is the UK’s leading Brussels sprout grower and packer, with one of the most sophisticated and high-output grading, packing and storage facilities in Europe. In addition to Brussels sprouts, RKD also grow and pack swede and leeks at their state-of-the-art facilities in Berwickshire.
Both organisations are key UK producers for their respective cropping, and have independently grown their businesses over recent years by forming and strengthening key relationships and providing their customers with excellent service and high-quality fresh produce.
The merger, managed by Scottish law firm Thorntons, will bring growing opportunities for both businesses, as well as for farmers in Berwickshire, Scottish Borders, Lothians, Fife, Angus, Kincardineshire and Perthshire through the not-for-profit farmers’ cooperative. It also complements the winter cropping of RKD to the summer cropping portfolio of ESG, creating a sustainable, year-round producer.
Andrew Faichney, managing director of ESG, commented: “This merger is very unique within Scotland and combines two firms with a longstanding history of high-quality produce. With a collective turnover approaching £50m, this merger provides stability and security for our membership and will provide an additional range of products and value to our customer base.
“This is a very exciting development not just for the ESG and RKD stakeholders, but the entire fresh produce farming industry here in Scotland.”
In addition to the merger, the two enterprises have established Pease Bay Farms to grow brassica crops across more than 1000 acres of prime agricultural land, with the farm joining ESG as a full member of the producer organisation.
Alistair Lang, lead partner in the Ventures and Innovation Team at Thorntons, who handled the merger deal, said: “Agriculture is a vital contributing sector to the Scottish economy and effective and strategic partnerships are key component to its ongoing success.
“With both ESG and RKD achieving great things, facilitating the merger and creation of Pease Bay Farms can only be positive for the industry.”
