Following its acquisition by VION, a number of measures have been taken to build a sustainable and profitable business at the site. This has included an increased focus on Scottish provenance with its customer base, and a multi-million pound investment including new and more efficient equipment. This, together with the commitment of the work-force, has seen employment at the plant grow from less than 600 people in August 2009 to more than 1,100 today.

However, the business operates in an increasingly competitive environment and the trading outlook for the business remains challenging. This has been further compounded by feed, fuel and energy prices rising to record levels, and despite the company's best efforts to recover these costs, it has been difficult to do so given the competition in the marketplace, says VION.

Unfortunately the site continues to operate at a loss, and the business needs to take immediate action to ensure the long-term viability of the operation. Accordingly, VION has had to review operations and ways of working to ensure that resources and demand are better aligned. As a result, the site will initiate a period of consultation with Unite trade union to discuss the proposals and to explore ways of mitigating against job losses.

Andrew Fisher, Operations Director of the Poultry BU said: "We regret the need for these proposed changes in our activities announced today, and we have informed our employees of our commitment to consult with them and their trade union. We are committed to the consultation process being as productive as possible, and we will be looking for every opportunity to minimise job losses. The business will be listening to, and investigating all alternative proposals, and will take every step to support all employees during this difficult period."