Unions quiz meat company
BOTH WELSH farming unions are attempting to ascertain whether farmers will get the money they are owed by a meat company that has applied to go into administration.
Within the next few days accountants KPMG expect to be officially confirmed as administrators of Cwmni Cig Arfon, which is based at Caernarfon in Gwynedd, and have confirmed that they are already in talks with several potential buyers.
But, although they advised the company to cease trading following an audit of its books, they have refused to tell unions how much farmer creditors are owed, or are likely to get.
“We understand up to 90 farmers from all parts of Wales, the bulk of them from within Caernarfonshire, are owed sums ranging from £200 to over £12,000,” said Gwynedd Watkin, Farmers Union of Wales executive officer for Caernarfonshire.
“But KPMG were unable to give us the reason for the company failing, nor any details of its assets and debts.”
He claimed that when he and Richard Parry, his county chairman, met CCA directors Melfyn Ellis and Iolo Povey this week they were told that the advice to apply for administration had come “out of the blue”.
“They said it was conveyed to them late on Friday evening August 6, explaining why they did not cancel livestock orders prior to them receiving this advice,” said Mr Watkin.
“We are glad to hear that there are a number of enquiries, and we sincerely hope that a deal can be struck within the very near future.
“Obviously, the more interested parties that are bidding for the business the greater the likelihood is of farmers receiving some of their money back.”
NFU Cymru, which like the FUW has many members among the 260 farming families that invested at least £500 each in the processing company, is offering farmer creditors legal and technical advice through its Call First helpline.
“I have been approached by many worried farmers – the worst case I have heard so far is of one farmer who is waiting for a £30,000 cheque from the company,” claimed Peredur Hughes, NFU Cymru president.
“Many CCA clients have serious concerns about outstanding payments and need professional help. Which we are able to provide for members via Call First.”