Lack of anticipated increasein beef demand led to losses

A Londonderry meat processor was offered £50,000 from Invest NI to create a second boning hall last year but was forced to close the extra capacity due to lack of demand from major UK retailers.

None of the money had been paid to the firm by the time the decision to close had taken place.

According to an Invest NI briefing document obtained by the Sentinel, the Foyle food Group was “offered £50,000 Jobs Fund support to create 34 new jobs at its Campsie site in Londonderry” in October 2013.

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Consequently, the company created a second boning hall at its Campsie premises.

This, the document states, was to “accommodate anticipated increased demand from major retail multiples for UK sourced beef.”

But this increased demand never materialised.

The document states: “On March 26, 2014, Foyle Food Group notified Invest NI that it was in discussions with its Union with a view to closing its second boning hall. “The reason cited for this decision was lack of increased business from retail multiples and it is likely to result in a maximum of 35 redundancies.”

The document continues: “To date, no payment has been made against the Jobs Fund offer, therefore claw-back is not an issue.”

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Despite the blow the document nonetheless states: “Invest NI continues to work with the Company in support of its growth projects.”

It adds: “E.g. In October Invest NI offered support of £307,000 against a £1m training programme, which will enhance the skills and employability of individuals in the North West allowing the Company to deliver increased efficiencies within the business.”