Foyle Meats decision to cease lamb processing sparks jobs fears

THE Ulster Farmers' Union says thr Foyle Meats announcement that it is to cease lamb processing at its factory in Campsie, raises fresh concerns about the wellbeing of the sheep sector in Northern Ireland.

UFU President John Thompson said: "Foyle Meats have blamed the closure of their lamb processing facilities on a drop in the number of lambs which they are able to source.

"Statistics show that the number of lambs processed in Northern Ireland in the first six months of 2010 is 27% lower than the corresponding period in 2009.

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"The number of breeding ewes in our sheep flock has fallen by half a million in the last decade.

"A once thriving sheep sector is now downsizing at an alarming rate and Foyle Meats is the latest casualty.

"A lack of profitability at farm level is seeing farmers produce much fewer lambs for processing."

John Thompson said producers and processors of local lamb are finding it almost impossible to generate profits, despite the healthy profits enjoyed by retailers.

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He said: "It is a great concern to me that a once successful sheep sector supply chain operation in the North West could not be sustained.

"The closure of this lamb processing facility will be a particular blow to sheep producers in the region who were able to market their lamb to a convenient local facility.

"Foyle Meats was one of our largest lamb processing operations, with excellent facilities and contracts to supply leading retailers.

"It should have been an ongoing success story, but instead we see falling production at farm level and job losses in food processing.

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"This once again vindicates our concern that supermarkets are enjoying the vast majority of the profits in the food chain while their local suppliers are facing enormous challenges to break-even".

John Thompson said the UFU's focus would now be on ensuring the remaining lamb processing plants in Northern Ireland are able to offer farmers a competitive route to market.

He said: "This consolidation in the processing sector may be a help to other processors and it will be important that the supply chain delivers sustainable profits for processors and producers going forward".

Meanwhile SDLP MP for Foyle Mark Durkan expressed his concern for workers with the revelation that 85 positions at the Campsie-based firm are at risk of redundancy.

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Mr Durkan said: "It is a hugely worrying time for staff when they hear of their employer contemplating job cuts.

"Everyone will appreciate the anxiety which the workers at Foyle Meats are currently going through.

"It is important that all relevant agencies become involved in order to ensure that the workers are made aware of all their rights and entitlements at what will be a time of great uncertainty."