Channel Islands salad supplier Jersey Produce Marketing Organisation went out of business this week, blaming worsening economic conditions.

The company was forced to close as it was unable to compete on price against produce that could be produced more cheaply elsewhere, according to JPMO director William Church. "Our geographical position stacks things against us," he said.

Earlier this year Church had called for price rises of 25% to make the sector profitable for Jersey salad growers. With that having not materialised and market conditions expected to worsen next year along with increased costs, it made sense to cease trading now, Church said.

JPMO, which had an annual turnover of approximately £5m, previously supplied tomatoes directly into Sainsbury's, and via third-party operators into Tesco and M&S. Up to 10 jobs are expected to be lost.