AN AWARD-WINNING North Yorkshire mushroom producer and marketeer opened a new £300,000 pack house on Monday.

The major investment by Greyfriars UK helps it to diversify into new fresh produce areas involving sweetcorn, garlic and cabbage for Morrison's - and it could lead to new opportunities for local farmers to diversify into growing sweet corn for the company.

Greyfriars has commissioned trials with Askham Bryan Agricultural College at York to assess the viability of growing the crop in the region.

Both the trials and the new pack house are a direct result of Morrison's increasing demand for quality, locally-produced vegetables.

The trial crops will be harvested later this month and, if successful, the company expects to plant 2,000-4,000 acres to meet the supermarket's demand.

C John Smith, Greyfriar's managing director, says the crop is potentially very important for British farmers and for the fresh produce industry as a whole.

"Our growers really are the best in the world and it is important to open up new diversification opportunities - particularly as the Government has made it clear that agriculture and horticulture are going to have to change to survive," he said.

"The success of our satellite farming system, where we help farmers to diversify into mushroom production, shows that diversification can offer a lifeline for UK farmers, helping them to make a decent living."

Mervyn Lewis, head of rural business research unit and farm manager at Askham Bryan, said two varieties of sweet corn were under trial.

"The plots have received the same treatments as the commercial maize crops and look very well," he said. "This crop may well represent a potentially important source of diversified income for farmers in the Yorkshire region.

"Furthermore, the growing, harvesting and marketing of this crop in Yorkshire will help to further reduce the food miles associated with the food we buy at the shops."

The new 13,000sq ft pack house and 5,000sq ft cold store, which opened on Monday, feature the very latest high-tech processing and packing equipment.

The opening also follows the Wath-based company's £500,000 investment in a new grading and distribution facility in 2002.

The new equipment includes a "Peal" sweet corn stripping line which uses air knives to minimise kernel damage and improve shelf life and appearance.

Expected to process 10m cobs of corn this financial year, the sweetcorn stripping and packing line can process 6,000 an hour - a speed that optimises quality by ensuring that the sweet corn is returned to the cold store within 20 minutes.

"Our reputation for quality and service led to this diversification opportunity from our main buyer," said Mr Smith. "To meet the exacting standards of the mutliples, we have always been prepared to invest in the best facilities and equipment.

"For instance, the air stripping approach presents the latest technology and is a major advance on the Dolman roller, which causes more damage to the sweet corn.

"The maize crop, in particular, is potentially very important for UK farmers and, through our satellite farming scheme, our move into new fresh produce areas could be a lifeline for local farmers seeking new diversification opportunities."

The largely Morrison's-dedicated pack house will allow Greyfriars to increase its output of fresh produce supplied daily to the leading multiples. The investment follows a record year for Greyfriars, which saw weekly profits increase by 59pc in 2003, despite overall contraction of the UK mushroom industry.

The diversification plans are the latest moves by Greyfriars to drive the industry forward through innovation and marketing-led solutions to supermarket demands.

Since being founded in 1987, and in the face of contraction of the mushroom industry, Greyfriars has thrived to become a company with a £10m turnover.

Winner of Packer of the Year at the re:fresh 2004 industry awards, Greyfriars has built a reputation for quality and excellence and regularly tops supermarket performance charts.