Burger supplier hit by recession

A supplier of beef products has appealed to customers for greater understanding of the pressures on manufacturers caused by huge increases in raw material prices.

Doncaster firm Paragon Meats has said it has adopted an 'open book' policy in discussions with customers because the price of manufacturing beef has gone up by 115% since March last year.

Managing director Metin Pekin said: "We have streamlined processes, automated where possible and even reduced staffing levels so we are doing everything we can, but profit levels have been slashed. That has reduced our marketing spend and slowed down the speed at which we can bring profitable new ideas to market."

He added that from the orders Paragon received, it was clear that, despite the credit crunch, both fast food and family restaurant sectors were serving more and more customers.

"An increase in the number of customers should give them a fatter bottom line and we want them to recognise the part we have played in helping them achieve this," he said. "If customers will work in partnership with us, we can speed up our marketing machine and get potentially profitable new ideas to the market much more quickly. That will benefit them as well as us."

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