News update:Mar 9, 2016

Avian influenza financially impacted Dutch chicken company

The recent outbreaks of avian influenza (AI) in the Netherlands severely affected Dutch chicken processor Storteboom. The outbreaks disrupted the business in a number of ways, the British parent company of Storteboom 2 Sisters Food Group says in its latest quarterly report.

The combined impact of these factors on the profit of the protein division in the three months till the end of January amounted to £6.2 million (€8.5 million).

AI outbreaks closed foreign markets

"For a limited period of time, the business suffered a shortfall in availability of chickens in the Netherlands, which impacted both sales and the operational efficiency of the business. The outbreaks also resulted in the closure of a number of overseas markets for our by-products. This impacted the returns we were able to make from these products as well as the need to write down stock values," 2SFG reports.

The company expect group profitability in the current quarter to continue to be negatively affected by the effects of AI, as international boundaries remain closed to its products.

Campylobacter figures: negative impact on chicken image

CEO Ranjit Singh of 2SFG also talks about the tough trading conditions in the UK. That is partly due to what he calls further negative sentiment from consumers around the release of the campylobacter figures for retailers by the Food Standards Agency. The figures have been widely publicised in the British media. 2SFG is taking action to deliver efficiency and output improvements across its sites.

300 jobs lost at Welsh 2SFG plant

The company recently announced the closure of a chicken slaughter and processing location at Llangefni in Wales with the loss of some 300 jobs.

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