Mass job losses expected at Northern Ireland chicken firm

Bosses at top Northern Ireland chicken processor Farm Fed have launched a consultation with staff over the proposed closure of its Coleraine factory, which employs 380 people.

The Transport and General Workers’ Union (T&G) began a 90-day consultation period with Farm Fed on January 30 and workers have been given protective notice.

“We are looking at rescue packets, but it’s looking bleak,” said T&G officer Gareth Scott. “If they can’t get the money side of things sorted out then that’ll be that,” he added. “There’s a push down by retailers and operating costs are up. It’s difficult to get a contract that allows profit.”

Escalating energy costs and changes in legislation were chiefly to blame for the company’s problems, said a spokesman for Farm Fed. “Manufacturers who were previously exempt must start paying new rates as of next year and extra costs can’t be passed on,” he added.

Cheap imports have also contributed to the factory’s problems, with stiff competition from Argentina and Poland, he claimed.

The firm is working with the local politicians, he said. “A delegation from the Democratic Unionist Party headed by MP Gregory Campbell is willing to assist, but there are many more questions than suggestions at this stage,” he said. “As Coleraine’s second largest employer, the potential impact could be devastating.”

Farm Fed, which supplies Iceland and KFC, has a turnover of £20m and processes 15m chickens per year. “We take supply from 58 farmers across Northern Ireland so we are trying to avoid panic - it’s business as usual,” he said.

The company cut 41 jobs last year when Sainsbury dropped Farm Fed’s contract in Britain, which made up 20% of its turnover.