In a recent announcement, Avara Foods, a major poultry firm, has put forward a proposal to close its Newent factory, placing more than 300 jobs in jeopardy. The decision, attributed to significant inflationary pressures over the past two years, aims to streamline operations for increased efficiency and better investments.
Despite the tough call, company executives emphasize that the closure does not reflect on the dedication of the hard-working employees at the Newent facility. The planned shutdown is scheduled for Spring 2024.
Avara Foods, a key player in the UK’s food industry, supplies chicken and turkey to various supermarkets and restaurant chains nationwide. The proposal, disclosed on October 17, is expected to impact all 320 staff members currently employed at the site.
Rising costs, including increased expenses in fuel, commodities, and labor, have led to this strategic decision. The company acknowledges that while some price adjustments have been implemented, they have not been sufficient to fully counteract the escalating costs.
In a statement, company leaders explained, “These [adjustments] can only be achieved if inflation can be sufficiently offset, and that, in turn, demands excellent productivity and efficiency.” Avara has already taken steps in this direction, including the recent closure of its Abergavenny facility. However, further actions are deemed necessary to sustain the delivery of a significant portion of the UK’s chicken production on a weekly basis, ensuring the most efficient operational footprint.
The company will initiate a collective consultation process in the coming days to engage with individuals affected by the impending closure, aiming to navigate the challenging situation collaboratively.
