Fears after abattoir closure

LEADING WELSH abattoir Cwmni Cig Arfon has gone into administration owing farmers thousands of pounds.

Although the receiver is in talks with potential buyers, many producers fear they will not be paid.

Melfyn Ellis, managing director of Cwmni Cig Arfon at Caernarvon in Gwynedd, north Wales, blamed the company‘s problems on rising costs and very tight margins, especially in the beef sector.

The company, which had an annual turnover of about £15m, this week (w/e Aug 13) appointed KPMG as administrators, stopped killing and laid off half of its 68-strong workforce.

The rest were employed processing carcasses already in chillers.

Mr Ellis said there were some very promising inquiries about the business.

He would not comment on the amount of money owed to farmers, but NFU Cymru president Peredur Hughes said he had been approached by many worried farmers at Anglesey Show, one of whom was waiting for a £30,000 cheque.

“The repercussions for the livestock industry in north Wales will be horrendous, and it will undermine confidence in deadweight selling,” he said.

“The company or the administrators must tell farmers where they stand as soon as possible.

“I reject any suggestion that abattoirs are struggling to find stock, and that CAP reform will make things worse.

“If they pay prices that make production profitable they will get the throughput they need.”