The Kepak processing plant in Watergrasshill, Co. Cork is set to see a significant number of job losses as it winds down its supply of slow cooked product to the UK.
Kepak said that it took the decision earlier this year to discontinue its supply of slow cooked product into the UK “on a phased basis”.
The decision was made following a “comprehensive strategic review”, the processor said.
Kepak has informed its customers in the UK of this development.
“We have been engaging constructively with potentially affected colleagues at Kepak Cork as part of a consultation in relation to the development,” a company statement said.
However, Kepak confirmed that the phase out of this division of its operations will lead to job losses at the Watergrasshill plant, although the processor did not specify the number of people affected.
Some affected staff will be redeployed elsewhere in the business.
“While we have sought to minimise the impact this will have on our colleagues, with some employees affected being redeployed into alternative roles, the development has unfortunately led to job losses.
“We are continuing to openly communicate with those affected and provide them them with the support they need,” the Kepak statement said.
Kepak-Tirlán beef club
In other Kepak news, the business has announced plans to increase the rate of payment to farmers supplying cattle through its Twenty20 Beef Club, which is run in conjunction with dairy processor Tirlán.
Some of the key changes announced on Wednesday (April 26) include an increase in the bonus rate paid on cows, a new bonus for continental-bred cattle and young bulls, an increase in the Hereford breed bonus and overall Twenty20 bonus, as well as a wider scope for carcass weights.
The upgraded pricing structures for new and existing members will come into effect immediately.
In addition to the enhanced payments, the weight bands for eligible cattle have been widened.
The changes aim to offer more farmers the opportunity to take part in the sustainability programme which offers club members access to “valuable market outlets for their beef”, according to Kepak.