Avara Foods is proposing to close its poultry plant in Newent, England, suggesting that the last day of operations be in the spring of 2024.
About 320 people are employed at the Newent plant, which is a primary processing, cut and pack operation which primarily serves foodservice customers.
“Like all U.K. food businesses, Avara has faced significant inflationary pressure in fuel, commodities and labor over the past two years,” the company said in a statement. “While some price increases have been achieved, they have not been sufficient to mitigate the full impact of rising costs on our margins. In today’s trading environment, sustainable businesses must provide a competitive offer to consumers and sufficient margin to allow reinvestment in the food supply chain. These can only be achieved if inflation can be sufficiently offset, and that, in turn, demands excellent productivity and efficiency.”
Avara Foods estimates it produces about one fifth of the chicken in the U.K. every week, and in order to continue to do so, it says it must process chicken more efficiently and with lower capital investment. The company believes it can do so by focusing on fewer facilities that are more efficient.
No final decisions have been made about the plans to close the plant, but in the coming days, Avara will begin a collective consultation process with those affected by the proposal to cease operations.
If the closure plans become a reality, it would be the second facility recently targeted for closure by the U.K.-based company. Earlier this year, Avara Foods closed its turkey plant in Abergavenny, Wales.
Avara Foods formed in late 2017 through a joint venture between Cargill and Faccenda Foods. It quickly emerged as the third-largest poultry company in the U.K., trailing only 2 Sisters Food Group and Moy Park.
According to information from the WATTPoultry.com Top Poultry Companies Database, Avara Foods slaughtered 234 million chickens during the past year. In addition to producing broilers and turkeys, Avara Foods is also involved in duck production.
