The predicament facing the broiler chicken industry in Scotland took a new and unexpected turn with the 2 Sisters Food Group stating that if its rescue plan is successful, poultry production and processing could increase by 40% creating “hundreds of jobs.
At first glance this seems to contradict the company’s recent announcement that it was to cut back production at its Coupar Angus factory by almost half, serve notice on most of its contract growers and lay off around 200 processing workers.
Its Letham plant has been sold to undisclosed buyers and is to continue in operation.
The two positions can be reconciled, however, once timing is taken into account.
There has been no backing off from the original position of cut-backs and lay-offs, but 2 Sisters obviously sees a brighter future if its restructuring goes to plan.
There is, however, no timescale to let producers and factory workers know when the turnaround might happen.
Wednesday’s statement from 2 Sisters Food Group said: “We are continuing to work hard with the Scottish Government to bring about a sustainable future for the poultry industry in Scotland, and have held several meeting with ministers in the past week.
“The good news we can report today 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.
“However, 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. Our consultations with colleagues at Letham and Coupar Angus continue, and we will have held discussions with all our growers by early next week both partner companies and contract growers.
“There will inevitably be an initial reduction in the number of farmers we require, but this 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.
“Our rescue plan simplifies what has been a historically complex and inefficient operation, supports future Scottish sales growth and lays a strong foundation for potential future investment.
“We again issue a call to all interested groups to work with us in the coming weeks to provide a brighter future for our industry in Scotland.”
NFUS president Nigel Miller, who has taken a lead in arranging talks, said: “It would be of value to meet up as soon as possible with 2 Sisters Food Group, as incomplete information still casts a shadow over the sector in Scotland.
“The termination process has clearly changed relationships in Scotland and, unless managed, will compromise future plans.
“A Scotland-wide producer group is now in place with the support of the Scottish Government through SAOS and of the union.
“It would be of value if both 2 Sisters and 2 Agriculture recognised the new association, met and worked with them. I am happy to support that process.”