Cappoquin Chickens to discuss rescue bid

An English poultry company is to meet with representatives of Cappoquin Chickens to discuss a possible rescue bid, it was revealed today.

Derby Poultry Products Ltd, who considered buying a share in the debt-ridden firm two months ago, is now understood to be interested in a takeover.

Representatives of the company will meet with the liquidator and former management of Cappoquin tomorrow.

The company, which is one of Ireland's oldest poultry processors, went into liquidation last week after it revealed massive losses of up to €7m.

Meanwhile, the European Commission is expected to make a decision potentially tightening proposed food labelling legislation later this month.

Officials in Brussels are examining whether to close a controversial loophole which allows changes to country of origin.

The Irish Farmers Association (IFA) claimed cheap poultry imports passed off as Irish due to lax labelling laws have hit producers such as Cappoquin Chickens hard.

"There is no doubt in my mind that the loophole which allows produce to be brought in from anywhere, minimally processed and passed off as Irish is having a detrimental effect on our poultry industry," said IFA poultry committee chairman Ned Morrissey.

A 'substantial transformation' loophole allows produce which has had minimal processing in Ireland, like the addition of breadcrumbs, to be passed off as Irish.

Agriculture minister Brendan Smith said the Commission had examined draft regulations aimed at clearly stating the country of origin on all poultry products.

"I am particularly anxious that labelling be introduced to ensure that consumers were not misled as to the origin of the product and to address shortcomings in existing legislation to prevent misleading origin indications," he said.

"The annual farmgate value of the Irish poultry industry is approximately 150 million euro and the predominant outlet for Irish chicken is the Irish retail market.

Earlier this week, the High Court gave the liquidator appointed to Cappoquin permission to continue trading for another six weeks.

Liquidator Aidan O'Connell of Deloitte Touche said he hopes the company would process and sell its stock of 1.3 million chickens, which would earn more than €500,000.

Fine Gael agriculture spokesman Sean Sherlock called on the government to introduce labelling laws as a matter of urgency.

"While we are, to a considerable extent, subject to EU directives in this regard, we should be looking to enact laws here in Ireland that would afford greater protection to Irish producers and growers."