Scottish broiler growers seek compensation
NFU Scotland is seeking an Office of Fair Trading inquiry into the Scottish poultrymeat market, and wants compensation for contract growers who have been put on notice by 2 Sisters Food Group.
It is now two weeks since broiler growers were told of 2 Sisters’ plans to sell off its smaller Letham plant and downsize the Coupar Angus facility by about a third. Almost 30 producers have since been put on two crops’ notice and told to take a 2p/kg price cut.
Following an emergency meeting for 29 growers at Inverurie, NFU Scotland has announced a number of action points. They include:
- Setting up a single producer group to represent all affected growers.
- Opening further dialogue with retailers.
- Seeking legal advice and support for negotiating compensation.
- Putting together evidence to prompt an Office of Fair Trading inquiry.
“It has been agreed that a Scotland-wide producer association should be established with support from Scottish Agricultural Organisation Society,” said NFU Scotland president Nigel Millar.
“A steering group has been formed and the union will be giving that support to allow the group to establish links with retailers.
“In the medium-term, there are producer concerns that Scottish chicken production will remain vulnerable while processing is controlled by one group. Exploring the establishment of a new processing company is now on the agenda.
“As an immediate response to producer concern, the union will be putting together evidence to place with the Office of Fair Trading to prompt an inquiry into the Scottish market situation.”
With all contract suppliers now under some form of notice, there is great uncertainty and some producers appear not to have a future with the 2 Sisters Food Group, the union added.
The immediate fall out has been on the organic and free-range sectors, which will not be required in future at Letham or Coupar Angus.