Two senior Farmers First directors step down

Two long-serving board members of farmer-owned sheep processor Farmers First have announced their departure at the company’s annual general meeting, amid growing shareholder scrutiny over its future direction.

Chairman Terry Bayliss, 84, announced his retirement from the role, while procurement director Terry Simpson also resigned during the AGM last week, Farmers Weekly can confirm.

The meeting, which held at the company’s abattoir in Kenilworth, Warwickshire, on Wednesday 17 June attracted an unusually high turnout of shareholders.

See also: Farmers First leases out Wrexham abattoir amid restructure

A source close to the company said about 30 shareholders attended, roughly three times the number typically present at recent AGMs.

Shareholders raised questions about the company’s performance and future strategy following a decline in annual profits.

Farmers Fresh reported a group pre-tax profit of £80,800 in 2024-25, down from £631,822 the previous year, with the group making a post-tax loss of £105,555, compared with a profit of £520,513 a year earlier, according to its latest financial results on Companies House.

This comes after the group reported profits in excess of £3.6m in 2023.

Questions remain

The source said directors were unable to provide detailed answers to several questions raised during the meeting.

The board has since committed to write to shareholders who attended within three weeks to outline its plans for the future, the source added.

The looming departures of the two directors come months after Farmers First announced plans to restructure its operations.

Last month, the company confirmed it would cease operations at its Wrexham abattoir with the loss of 54 jobs.

Questions were raised at the AGM about the company’s strategy following the closure of the Wrexham operation, according to the source.

Mr Bayliss told Farmers Weekly he had decided to retire as chairman to give someone else an opportunity.

“I’m passionate that Farmers First continues to be a force within the sheep industry. Farmers need more people processing and marketing our sheep, not less.”

Mr Bayliss noted that lamb prices had increased significantly in recent months, adding that a decent price is essential for farmers and processors alike to ensure they make a profit.

2,750 shareholders

Farmers First is one of the UK’s largest farmer-owned lamb processors, backed by about 2,750 farmer shareholders. The co-operative aggregates, processes and markets premium lamb to customers across the UK and overseas.

Industry sources estimate the business handles about 10% of Britain’s lamb production, making its future a matter of considerable importance to the wider sheep sector.

Farmers First has been approached for comment.