The Scottish Government is backing the setting up of a producers’ group to help poultry farmers hit by a business restructuring at the country’s main processor which threatens 200 jobs at its base in Coupar Angus and chicken production on farms across Scotland.
Rural Affairs Secretary Richard Lochhead revealed funding for the group yesterday after he met some of the affected growers at the Finavon Hotel, near Forfar.
The 90-minute meeting was said to have been productive by the farmers, whose operations from Nairn to Castle Douglas collectively produce 10million birds a year for the 2 Sisters Food Group site at Letham, near Forfar.
That plant has been sold in the restructuring to an as yet unknown consortium but which is thought to include a former Tesco director. They will be switching to Halal slaughter and there is the potential for throughout to increase from 260,000 birds a week currently to 420,000. But the farmers fear the price they are paid for their birds will fall substantially.
Growers supplying birds to the main 2 Sisters operation at Coupar Angus face the biggest threat as throughput there is being cut from 750,000 birds a week to 525,000 and broiler production taken in-house by the firm, leaving them with a very uncertain future. They are to gather at Oldmeldrum’s Lochter Activity Centre on Monday for a meeting organised by NFU Scotland and which will be addressed by president Nigel Miller.
Mr Lochhead said the producers’ group, being assisted by the Scottish Agricultural Organisation Society, would consider the other market opportunities available to them. A separate working group involving the NFU, Scottish Government, Scottish Enterprise and representatives from the affected growers has also been set up to examine the future of Scotland’s poultry industry.
Mr Lochhead said the meeting was very helpful as it was a reminder there were more than just 200 jobs at risk at the plant. He added: “This is an issue for poultry farmers, grain farmers, hauliers and feed producers, all of whom will be affected by the loss of business.
“We have a situation of where there is more than enough demand in Scotland for chicken to keep these farmers in business.”
Mr Lochhead said the government would continue its talks with 2 Sisters as well as retailers in an attempt to encourage them to stock more fresh Scottish chicken so that the farmers involved can continue producing.
Tesco is the only one committed to a 100% fresh Scottish supply. The government is known to be questioning Morrisons, Asda and Waitrose as to why they are not following its lead.
Mr Lochhead said the poultry producers had been encouraged to invest millions of pounds to upgrade their facilities, but now faced an uncertain future as they no longer had a buyer for their birds as their contracts were about to end.
Among the affected producers at the meeting were Mark Ogg, of Arnhall, Edzell, and Gerard Western, of Toux, Mintlaw.
Mr Western said the worry was that new owners of the Letham plant would force down prices.
“This is a shake-up for our industry. We all want to come out of this stronger and more profitable, but there are going to some losses along the way sadly. There will be casualties.”
Mr Ogg said the meeting was an opportunity to put pressure on the Scottish Government to persuade 2 Sisters to retain some of its independent grower base.