North Highland Products, the company behind premium Scottish brand Mey Selections, has announced a loss of £164,000 for 2008.

Turnover increased from £8.6m to £10.2m in 2008, but North Highland Products still made a trading loss. The company blamed its poor performance on the tough economic climate and its policy of paying farmers a premium for their products.

"The very difficult trading conditions brought about by the recession, coupled with our ongoing commitment to investing behind our brand, were the major factors in this loss," said chairman Danny Miller.

North Highland Products had already launched a number of cost-saving measures to improve its poor performance, said Miller. Its meat processing activities have been transferred to Anglo Beef Processors and significant overheads and staff savings have been made.