UK's Avara Foods proposes closure of facility in Newent

Inflation has put pressure on margins
calendar icon 19 October 2023
clock icon 2 minute read

The UK's Avara Foods announced earlier this week a proposal to shut its Newent factory in spring of 2024, according to a company news release.

The company said it has faced significant inflationary pressure in fuel, commodities, and labour over the past two years. While some price increases have been achieved, they have not been sufficient to mitigate the full impact of rising costs on Avara's 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," said the news release. "These can only be achieved if inflation can be sufficiently offset and that, in turn, demands excellent productivity and efficiency."

"We have taken steps already in this regard, including the recent closure of our Abergavenny facility," the release continued. "However, we have recognised the need to take further action, to continue to deliver a fifth of UK produced chicken every week, through the most efficient operational footprint."

Regretfully, this process identified that its existing chicken volumes and full product range could be processed more efficiently, and with lower capital investment, by focusing on fewer, better invested facilities. These factors have resulted in the proposal to close the Newent site.

"This decision has not been taken quickly, but through long-term business planning focused on delivering a sustainable poultry model able to supply a significant percentage of UK poultry supply now and into the future," the company said. "It is clearly no reflection on the hard-working colleagues at the Newent facility."

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