The facility could not compete with discounted meat available from major retailers due to the economic downturn, said the owner, Daydrove Holdings.
The abattoir, which can process up to 300 livestock units per week, was to provide local businesses with an alternative source of beef, lamb and pork. However, the firm could not continue to operate a viable business at a time of “record stock prices”, a spokesman said.
“The business model has proven to be unsustainable in the current climate,” the spokesman said. “We are disappointed for the shareholders, stock suppliers, customers and local people who valued our product and services.”
The facility and a local butcher shop owned by the firm will be sold as part of a voluntary liquidation after the abattoir ceased trading earlier this month.
An unnamed farmer commented on a local forum: “It’s such a shame as we take our few pigs and lambs there and, especially their butchery, has been great.”
The company’s business strategy was to concentrate on local provenance and high animal welfare. It intended to source livestock from farms within a day’s drove of the facility – the traditional movement of livestock to market by foot.
The firm was awarded accreditation for the slaughter and processing of Welsh Beef and Welsh Lamb – meats protected by a Protected Geographical Indication (PGI) status. The European Commission awards PGI status as a measure of protection for producers of local specialities.
Daysdrove abattoir was given accreditation for the processing of Welsh Beef and Welsh Lamb by scheme administrators Hybu Cig Cymru (Meat Promotion Wales) in 2010. Its proximity to the Welsh border meant that many of the farms it sourced from produced PGI Welsh Beef and Welsh Lamb.
At its peak, Daysdrove provided over 20 jobs in the local community through the abattoir and butcher shop, the firm said. It is hoped the sale of the facilities will generate enough cash to pay off the firm’s creditors, it added.
The facility was purchased in 2009 after the closure of previous owner, Bishops Castle Meat two years previously. At the time, 60 private individuals and local businesses invested in the project and became shareholders in the limited company.