Over 90 staff at the Grampian Country Food Group plant in Coupar Angus in Perthshire have been told their jobs are safe after new business was gained.
The staff had earlier been told they faced redundancy following the loss of a Tesco contract.
But now following a decision by poultry supplier Joseph Mitchell to stop supplying the independent sector in Scotland many independent butchers, caterers, hotels and restaurants have switched their chicken orders to Grampian.
Site managing director Philip Hopley said: “I would like to thank our workforce and customer base for their support during this uncertainty.”
Grampian employs more than 600 staff at the Coupar Angus plant.