Kettle Produce, the big Fife employer which supplyies vegetables and salad crops to supermarkets, slid back into the red last year.

Turnover fell by 5per cent and the previous year's £914,000 pre-tax profit reversed to a £1.2m loss in the year to 31 May 2014, according to the annual report and accounts just posted at Companies House.

Despite facing what it called "the worst growing season on record" in 2012-13, the business had seen turnover top £100m and debt reduced by £3m as it deferred investment.

In the latest financial year, debt was cut again from £2.55m to £822,000, which saw interest costs come down £284,000 to £187,000.

The recorded headcount rose from 819 to 938 and is now up by 21 per cent in two years.

The directors say the fall in turnover was driven by consumers becoming more waste conscious and buying smaller quantities more frequently, while the average selling price per kilo had reduced year on year.

Favourable weather produced high yields, but the "unfortunate timing" of the downturn in the group's traditional market resulted in crop surplus.

The company is responding to turnover pressures with process reviews across the business and a curtailing of all non-essential investment.

The same trends are continuing in the current financial year, and the board "look forward to a satisfactory remainder of the year".