FOOD MANUFACTURING company Galmere Fresh Foods has reduced staff and introduced cost-cutting techniques to combat the recession. A key supplier of salads and soups, the company employs 49 people in Ballybrit, Co Galway, but made one staff member redundant, laid off five others and placed 10 workers on short-time working in February.

Managing director Leo Molloy says in order to fight a 15 per cent downturn in business the company’s process of distributing goods into the market was streamlined.

In addition, the price of raw material used to manufacture products from food ingredients to packaging was cut by 5 per cent.

“Most of our suppliers have been within the business for the past 10 years and they realise support by means of price reductions was a necessary response to the present climate.”

Because of these changes, Mr Molloy remains optimistic about the future. “Armed with the cost adjustments, a great deal of hard work and consistent exploring of sales opportunities we have new contracts in place and others at advanced stages . . . we feel confident we will come out of the recession on a positive note.”

The group has also benefited from a plan begun three years ago to diversify the business and double the size of the plant, a development that was completed in February. Mr Molloy says the strategy has helped cushion the blow of the downturn, and boosted sales by 25 per cent annually over the last three years.

“On current business we expect a sales drop of approximately 10 per cent but this will not be reflected in our sales figures as we have brought in new business to show an increase of approximately 15 per cent on last year.”

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