Nearly one in five mid-sized businesses in Yorkshire plan to expand or boost exports in the next year, according to new research from BDO. The report reveals a clear international focus, even amid uncertain trading conditions and operational challenges.

The survey of 500 mid-sized UK firms found that 18% of Yorkshire businesses are prioritising international growth. Target markets include South America, Australia, and the EU, each cited by 44% of those eyeing exports. Africa also attracted attention from 35% of respondents.

However, growth ambitions are running up against several barriers. Around 24% of firms in the region report shortages in export and supply chain skills, while 12% are seeing weaker demand, likely linked to inflationary pressures and squeezed budgets among both business clients and consumers.

Despite these issues, sentiment remains broadly positive. The vast majority (94%) of Yorkshire mid-sized businesses believe the UK Government’s upcoming Small Business Strategy will help them. A quarter are calling for specific reforms to simplify customs processes and expand support through channels such as UK Export Finance.

The findings reflect a continued appetite among regional firms to scale up internationally, with many looking to government policy and local authority partnerships to help navigate a complex global trade environment.

Associated British Foods (ABF) is warning that its Vivergo bioethanol plant in East Yorkshire may be mothballed or closed, putting around 150 jobs at risk. The move follows sustained losses and production cuts caused by falling bioethanol prices.

The Vivergo facility, located in Saltend near Hull, converts UK-grown wheat into bioethanol fuel and animal feed. It was launched in 2007 but now faces operational uncertainty amid concerns over how UK biofuel regulations are being applied.

ABF is currently in discussions with the UK Government, seeking regulatory support to maintain commercial viability at the site. However, the company has indicated there is no guarantee of a resolution and may proceed with closure if market conditions fail to improve.

The situation coincides with a broader earnings decline at ABF. Pre-tax profits fell by 21% to £692 million in the 24 weeks to March 1, with revenues down 2% to £9.5 billion. Its sugar division was notably weak during the period.

Lidl will invest £500 million this financial year to open 40 new stores across the UK, as part of a broader strategy to expand its presence in high streets, retail parks, and mixed-use town centres. The discounter has also identified hundreds of additional potential sites for future development.

This expansion will push Lidl beyond 1,000 stores in Britain, reflecting its rapid growth trajectory. It currently operates more than 980 outlets and 14 distribution centres, employing 35,000 people nationwide.

The company’s announcement follows government planning reforms aimed at reducing barriers to new developments, which Lidl credits for enabling its accelerated rollout. The retailer opened 23 new stores in the previous financial year, making this year’s target a significant step up.

Lidl’s expansion is set against a backdrop of strong sales growth. Recent data from Kantar shows a 9.1% increase in Lidl’s UK sales over the 12 weeks to 24 March, raising its grocery market share to 7.8%, and bringing it closer to overtaking Morrisons for fifth place.

The investment is expected to create new jobs and further opportunities for suppliers, underlining Lidl’s growing influence in the UK retail and logistics sectors.

Warehouse equipment supplier Palletower has acquired Leeds-based Alternative Storage Systems, continuing a rapid expansion strategy that has seen five acquisitions in the racking and shelving sector over the past eight months.

The move follows its recent purchase of Kingstonian Storage and Equipment and strengthens Palletower’s presence across the North and East of England. Alternative Storage Systems designs, installs, and maintains storage solutions for warehouses and commercial units, with a strong foothold in the warehousing and food production sectors.

Palletower, based in Sale, supplies more than 100 lines of logistics and storage equipment and exports to over 35 countries. The company’s recent acquisition drive is pushing annual turnover from more than £40m towards £50m, with staffing levels now exceeding 70.

The firm’s strategy focuses on broadening its industrial racking, shelving, and warehouse fit-out services across the UK, adding to a customer base that includes major players such as Waitrose, Walmart, and DHL.