2 Sisters’ poultry rescue plan may lead to ‘hundreds of jobs’
The poultry processor is working with the Scottish government, National Farmers Union Scotland (NFUS), its suppliers and others in a bid to avert 200 planned job losses at the sites, which the firm blamed on oversupply in the Scottish poultry sector.
2 Sisters said in a statement: “The good news we can report today [December 4] is that our rescue plan, if supported by all stakeholders in our supply chain, has the potential to increase Scottish poultry processing by 40% and create several hundred new jobs.”
But it warned there could be no quick fix to the problems of oversupply. “This situation cannot be brought about in the immediate term. This aspiration will not be achieved without making the necessary changes in our processing plants and our agricultural base, plus the commitment of all interested parties,” said the firm.
‘Selected farms will be chosen’
The statement acknowledged there would be an initial reduction in the number of farmers required to supply the firm but the cuts will be spread out across the growing base. “Selected farms will be chosen based on investment, quality performance and distance to markets, and we can confirm that new contracts will be offered to some contract growers in the coming weeks.”
2 Sisters claimed the rescue plan simplified what had been “a historically complex and inefficient operation”. The plan will also support sales growth in Scotland and “lay the foundation for potential future investment”.
A second media statement today (December 4) revealed that 2 Sisters’ sister firm 2 Agriculture, an integrated supplier of chickens across the UK, had been appointed as the agricultural partner for Scotland.
‘Secures more than 400 jobs’
2 Agriculture will be responsible for all contract negotiations with all suppliers and growers – both partner companies and contract growers. “This announcement also lifts uncertainty around 2 Agriculture in Scotland and secures more than 400 jobs from across the supply chain including at rearing and laying farms, hatcheries, mills and wheat growers,” it said.
Responsibility for managing the supply of birds to the Letham and Coupar Angus sites has also been given to 2 Agriculture.
Both 2 Sisters and 2 Agriculture plan further meetings with NFUS and growers next week.
Meanwhile, after a meeting with 2 Sisters on Monday, December 2, NFUS pledged to seek legal advice on the processor’s decision to cancel supply contracts.
“NFU Scotland will also seek legal advice and support for negotiating compensation for the two groups of affected producers that have been impacted by the immediate termination of their supply contracts,” said the union.
“The immediate fall out has been on the organic and free-range sector and the union will be looking at what demand there is for that sector in Scotland.”
Last month, Richard Lochhead, the Scottish government rural affairs secretary, said that 2 Sisters’ decision to axe 200 jobs at the Coupar Angus plant sent conflicting investment messages to its suppliers.
When the cuts were first announced a Unite official described the news as “absolutely devastating”.
