UFU warns of business closures over Moy Park move

Commenting as word of the closure of the Moy Park hatchery and processing operations sank in following Wednesday’s announcement, UFU deputy president, David Brown said the news represented yet another blow to Northern Ireland poultry producers.

“Many are already facing massive cash flow pressures within their businesses following the recent amendment to RHI tariffs and this news is likely to mean a further income hit,” he said.

“Moy Park is Northern Ireland’s largest employer and made profits of over £72 million in 2017. While they have said the decision is temporary, producers are very disappointed that the company cannot stand by them during this period of weaker demand.”

In recent years, he said retailers had been reluctant to pass on inflationary rises and the cost of the living wage to consumers.

That had been coupled with continuous pressure for the supply chain to reduce its costs.

“Yet again we have seen this squeeze come onto the primary producer and there is a very real risk that some farmers will have to close their business,” Mr Brown said.

On Wednesday, Moy Park said the decision had been driven by “challenging market conditions,” but said it intended to re-open the line in January 2020.

Adding that it would continue to cut, further process and pack at Ballymena, a spokesman said the company would be “doing our utmost to minimise the impact of this proposal on our excellent workforce, including offering temporary transfers to other shifts and roles.

That sparked anger at the union Unite which accused the business of reckless greed at a time of swelling corporate profits and has claimed there could be up to 400 redundan cies.

“Moy Park management is telling the press that this is only a temporary closure necessitated by an overhaul of the kill-line. The workforce have been left with little confidence that the promised investment will manifest or that the line will reopen as promised in January 2020. If they are genuine about these promises, Moy Park management must offer guarantees that no worker whether agency or otherwise will be made redundant,” said Unite regional officer Sean McKeever.