Grant us our chips

Two years of planning and hard work came to fruition this autumn with the completion of a new state of the art potato store at Corfton Farm, home of Stephen and Karen Povall.

As a member of Western Growers Ltd, Stephen Povall is contracted to supply potatoes to McCain. Stephen explains: “We were supplying 1000 tons off the field and storing 4000 tons for delivery through the winter. Although this helped with cash flow it caused us all sorts of problems at lifting time, mainly through delays waiting for lorries. When McCain approached us to move to a smaller off field contract together with an increased tonnage contract to store 6000 tons it was a very attractive proposition,” he recalls.

However there is always a snag in these opportunities and Stephen’s was lack of storage space: Enter his Balfours’ Farm Business Adviser, Trevor Sheard who alerted him to the Strategic Investment Grants available through the now defunct Advantage West Midlands.

“Together with Trevor we sat down and worked through the ‘what ifs’ which resulted in a requirement for a 3,000 ton store with a significant price tag. Trevor investigated the grant possibilities and thought that, as we were adding value to our produce - by storing it. Were a member of the group supplying a national processor and we’re introducing new technologies, we had a good chance of being accepted.”

A meeting was arranged with the officers from AWM who agreed that the project was sound and they invited us to file an expression of interest. This was accepted and the possibility of a 40% contribution became a distinct possibility. This was the difference in making the project feasible.

Then the duo, Stephen and Trevor, began the application process. Business Plans, budgets, cash flows, a risk analysis, three quotes for everything, planning applications, were all part of the process. Says Stephen: “Trevor and I worked on the project together, with me sniffing out the information and Trevor collating into an application that met all the criteria for the AWM. One hundred hours later it was complete. Off it went and we sat and waited for three months. The wait was worth it as in July 2010 we were awarded a 40% capital grant".

Construction began in early 2011, just in time for the new Government to announce the abolition of the Regional Agencies including AWM, which caused some concern. However they were assured that the grant was secure but were encouraged to bring spending forward – just in case. They re-jigged their plans and bought equipment which would not be installed until the end stages of the project.

Stephen adds: “It put a strain on cash flow but the spike in cereal prices and healthy cattle prices came to our rescue. The advantages of being a diverse business really showed through".

“We used local firms to carry out the ground works , construction of the building and fitting out. Work was still being carried out as potato harvest began. The exceptional weather gave us a straight run through and we were ready to start filling the new store as the electricians rounded the corner to the home straight with two days to go! One week later we closed the door on the new store which was filled to capacity".

Stephen has no doubt that the funding achieved through Trevor’s efforts was the key to the whole project taking off. But the grant application was only the start, claiming the actual grant as they went along also required completing a fairly complex set of forms.

Trevor explains: “Once familiar with the forms the job became a little easier. The amazing thing was that by working closely with DEFRA staff and we were sure the forms were filled in correctly; the grants were being paid within two to three weeks of them being submitted. This was a great boost to cash flow with the grant from one phase helping to fund the next phase. The whole project ran like a well oiled machine and Stephen and I pay tribute to the staff for their help in making it so.”

“We now have a state of the art potato store which gives us the opportunity to store potatoes long term and certainly speeds up harvest as we are no longer dependant on lorries turning up to keep the harvesters going. In addition we have strengthened the relationship between Western Growers Ltd and McCain and demonstrated our commitment to McCain and their customers. It is a win, win all round,”  Stephen adds.

"This potato feast has only served to stimulate the appetite as he adds: “we have another project brewing; there will be plenty of time to lie down when I’m dead.”