Farmers have warned Scotland’s poultry industry is on the brink of collapse following a decision by the country’s sole chicken meat processor to scale back production.
The 2 Sisters Food Group on Wednesday announced plans to cut production by 30% at its Coupar Angus plant in Perth and Kinross as part of a rescue plan for its operations north of the border, which could result in the loss of more than 200 jobs.
Throughput at the plant will reduce from 750,000 birds a week on a five-day shift pattern, to 525,000 birds a week over six days.
Farmers supplying the plant were told the operation was “under review” and some have already been served notice.
The company, which is the only poultry processor in Scotland, also announced it was selling off its Letham plant in Fife.
Suppliers were served a two batch notice period and told they would be paid up to 5p a kg less for the remainder of their contracts.
2 Sisters declined to comment on the identity of the new buyer but it is believed a consortium, including an ex-Tesco director, is buying the plant with a view to converting it into a Halal slaughter facility.
Current kill at the site is 260,000 birds a week and 2 Sisters says the new buyer has indicated there is scope to increase production to 420,000 birds a week.
2 Sisters said it regretted the impact its plans would have on farmer suppliers but said tough action was needed because the current operating environment in Scotland was unsustainable.
Mintlaw farmer Gerard Western supplies the Letham plant with more than half a million birds a year.
“I think there will be a lot of devastated poultry growers out there,” he said. “My margins are going to be trimmed. We had already planned to change a tractor and put a biomass boiler in but we have had to put that on hold.”
Mr Western and other farmers supplying the plant have formed the Letham Growers Group to negotiate supply contracts with the plant’s new owners.
Nairn farmer Willie Lean is also part of the group supplying Letham with 900,000 birds a year, having invested more than £350,000 in the past 12 months on chicken shed upgrades.
He hit out at 2 Sisters for allowing farmers to invest in new buildings and infrastructure at a time when the company claimed it was in crisis.
The decision to cut production at Coupar Angus would result in less Scottish chicken on supermarket shelves and leave many producers without an outlet for their produce, he said.
“We might have to go cap in hand to England to get meat when our own producers are capable of producing it,” he said. “If our farms close, the chances of us reopening are very slim.”
He called on butchers and shops to speak to the new owners of the Letham plant and support the industry by sourcing chicken processed at the site.
Turriff farmer Bob Hay, who supplies the Coupar Angus plant with just under half a million birds a year, said 2 Sisters’ plans would leave Scotland only 50% self-sufficient in poultry meat production.
“What has happened in six months?” he said. “They were saying they needed more birds.”