Cargill’s loss of Asda contract may affect 230 jobs

Cargill’s chicken processing plant in Hereford, UK, has lost a contract with Asda, putting 230 jobs at risk.

The contract saw Cargill supply the supermarket chain with breaded and battered chicken products.

Following Asda’s move to terminate the contract, Cargill will stop production of these items from 1 June. The company stated the affected employees will be shifted to other facilities.

Cargill Meats Europe managing director Mary Thompson was quoted by Hereford Times as saying: "This is not an easy announcement to make.

"Every effort will be made to minimise the impact of this on our employees. They are our first priority here.

"I’d like to personally thank every employee for all their hard work and commitment to Cargill and producing such high-quality fantastic products."

Cargill has currently entered into a consultation period with its employees and their union representatives.

No other Cargill operations will be affected by the loss of the contract with Asda.

The food company will continue operations at its UK poultry processing facilities in Newent and Wolverhampton.

Cargill had previously announced its plan to expand its European chicken business, and focus more on growing its primary fresh chicken business in line with its £35m investment in fresh chicken, reported Meatinfo.co.uk.