St Helen’s Farm dumped after Surge campaign results in £500k loss
Norwegian food group Kavli has washed its hands of St Helen’s Farm dairy and its stake in Yorkshire Dairy Goats, the supplier at the centre of an animal welfare scandal uncovered by Surge in 2020, selling it all back to its original owners.
According to documents obtained by Surge, St Helen’s Farm suffered costs of nearly half a million pounds as a direct result of the goat abuse scandal uncovered as part of our Dismantle Dairy investigation, which saw St Helen’s goat milk products removed from nearly all UK supermarket shelves.
The footage revealed by Surge in July 2020 showed scenes of horrific abuse inflicted on goats at Far Marsh Farm, a supplier to St Helen’s Farm owned by Yorkshire Dairy Goats, itself part-owned at the time by Kavli. Welfare label Red Tractor revoked its certification, forcing Kavli and St Helen’s to launch a full investigation and audit all other suppliers.
St Helen’s products returned to supermarkets following an extensive investigation plus audits of all milk suppliers by Red Tractor. However, the unsaleable stock, customer claims and other costs totalled £492,680, significantly contributing to St Helen’s loss of profitability in that year. Said St Helen’s in an accounts statement:
During July 2020, animal welfare allegations were made against a supplier of St Helen’s Farm Limited by an animal rights organisation. Consequently, St Helen’s Farm Limited initiation a full investigation into the allegations and ceased the supply of milk from the supplier. Whilst red Tractor initially suspended the right for St Helen’s Farm Limited to use their logo on the company’s products, resulting in St Helen’s Farm Limited sales being suspended from most of its customers, following audits of all of the remaining St Helen’s Farm Limited supplying farms, Red Tractor is satisfied that animal welfare standards are being met and as such reinstated the licence within four days. This allowed sales to recommence and importantly means animal welfare standards are being upheld. Costs totalling £492,680 have been incurred to 31 December 2020 in resolving this issue, this includes unsaleable stock, customer claims and other costs incurred in relation to this issue.
Whether the scandal and Kavli’s exit were directly related is unknown, with Kavli CEO Kenneth Hamnes telling Norwegian financial news outlet Finansavisen - which broke the news of the Kavli sale earlier this month - that the decision was based on a “comprehensive strategic assessment.” However, according to Finansavisen, St Helen’s Farm’s profitability has been declining since 2018, a fact that would not have been helped by the half-a-million pound loss.
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The Dismantle Dairy Phase 2: St Helen’s Farm Goats campaign drew widespread national and international press attention, firstly in the Independent newspaper and spreading as far as Norway, the home of parent company Kavli. A petition garnered around 80,000 signatures, and support from high-profile animal justice campaigners and celebrities including Moby, Rooney Mara and Joaquin Phoenix exerted considerable public pressure on not only St Helen’s Farm, but all supermarkets stocking their products.
Morrison’s was the only supermarket not to listen to overwhelming customer indignation expressed by phone calls and emails to directors. St Helen’s Farm products have since returned to the shelves of Tesco, Sainsbury’s, Waitrose, Ocado, Coop and M&S following re-certification by Red Tractor. Only Booths committed to never again selling St Helen’s Farm products.
In August 2013, Kavli paid £26 million for the St Helen’s Farm dairy operation plus a 24 per cent stake in Yorkshire Dairy Goats, operator of Far Marsh Farm. But eight years and one major animal abuse scandal later, Kavli sold St Helen’s and Yorkshire Dairy Goats back to the Wielkopolskas, who founded St Helen’s Farm in 1986. The sale was completed on December 1 for an undisclosed amount, with Hamnes and Kavli choosing to remain tight-lipped on whether its foray into the UK market was ultimately profitable or not.
Local grassroots activists launched protests outside Far Marsh Farm to demand the release of goats to the care of animal sanctuaries, but their calls were roundly ignored St Helen’s Farm, Yorkshire Dairy Goats and the Wielkopolskas. However, the news that their efforts resulted in a substantial financial loss for St Helen’s Farm and Kavli’s so-called strategic exit is a strong indication that St Helen’s is struggling and no longer an attractive investment.
Andrew Gough is Media and Investigations Manager for Surge.
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