ABP set to acquire Pilgrim’s Europe Welsh lamb processing plant

Meat processor ABP Food Group is set to acquire Pilgrim’s Europe’s lamb processing plant in Llanidloes, Powys, following a strategic review of the business.

The proposed sale would see the Welsh facility transfer to ABP, one of the UK’s largest beef and lamb processors, in a move that could have implications for sheep farmers supplying the site.

See also: Farmers First leases out Wrexham abattoir amid restructure

In a letter to customers dated 3 November, Pilgrim’s Europe confirmed it had reached an agreement with ABP for the proposed sale, subject to consultation, with completion expected in December.

The company said the decision followed a strategic review of its lamb operations and would allow it to concentrate investment on its core poultry, pork and value-added businesses.

The Llanidloes facility, situated in one of Wales’s principal sheep-producing regions, has an established reputation for lamb processing.

Pilgrim’s Europe said all employees at the site would transfer to ABP under Transfer of Undertakings (Protection of Employment) regulations (TUPE), subject to completion of the deal.

ABP’s UK meat division also operates lamb abattoirs at Yetminster and Kingswinford in England, Lurgan and Dungannon in Northern Ireland, and at Bridge of Allan in Scotland.

Industry reaction

NFU Cymru deputy president Paul Williams said Pilgrims and the abattoir in Llanidloes had served the local community well as a major employer and “played an integral role in procuring and promoting high quality, globally recognised Welsh lamb”.

“We welcome the commitment of investment and experience from ABP, and look forward to meeting with them to discuss their role in securing a strong future for Welsh red meat and meeting all the opportunities at home and abroad,” he said.

The Association of Independent Meat Suppliers (Aims) also welcomed the proposed sale, stressing the importance of retaining slaughtering capacity in Wales.

Aims head of communications Tony Goodger said: “We believe that it is essential that abattoir facilities remain operational within Wales and that the Welsh Lamb brand continues to thrive.”

However, questions remain over what the change in ownership could mean for livestock procurement, existing producer relationships and future processing capacity in mid-Wales.

ABP already operates an extensive beef and lamb processing network, including lamb deboning and retail packing facilities.

Andover closure proposed

Separately, Pilgrim’s Europe has launched a consultation on plans to close its lamb facility in Andover, Hampshire, following the conclusion of key retail lamb contracts in January.

The company confirmed that Andover was not included in the proposed sale to ABP.

It said employees would be offered discussions about alternative vacancies across its operations if the closure proceeds.

Mr Goodger also encouraged affected workers to explore opportunities elsewhere in the meat industry.

He said: “We wish to reach out to the staff at Andover who may be in need of jobs within the meat industry to contact us, as Aims members are always keen to employ staff with skills in butchery.”

In the customer letter, Richard Custard, Pilgrim’s Europe’s division lead for lamb, said the company was focused on supporting employees and maintaining continuity of supply and service throughout the transition.