Fears grow for factory’s future

THERE is growing pessimism about the future of a poultry processing plant in west Waterford, with no sign of a rescue deal being completed.

Negotiations between the former owners of Cappoquin Chickens and a British food company to bring the factory out of liquidation failed to reach agreement last night.

The plant employs about 250 people on a full-time and seasonal basis, as well as providing a living for dozens of chicken growers, breeders and rearers along with hauliers and suppliers in the region.

The company went into liquidation a week ago after performing poorly for some years and the liquidator is thought to have less than a week to find a buyer for the plant and its assets if the entire operation is to avoid being wound up.

It’s thought it would cost about €3 million to buy the business and continue trading as normal.

A group of 21 farmers who depend on Cappoquin Chickens for their income has been trying to secure funding to buy out the plant, but have failed to secure support from the banks.

Irish Farmers’ Association poultry boss and factory supplier Ned Morrissey said yesterday the outlook was not good.

“Despite considerable efforts by the co-op board, the necessary funds have not been forthcoming from any party that was approached,” he said.

The growers and breeders were addressed by company management on Thursday night and told that the O’Connor family — who established the business in the 1960s — are attempting to buy back into the plant with the added funds of Derby Poultry from England.

However, no rescue package has yet been agreed and, according to Mr Morrissey, the farmers are disappointed, particularly as they are already owed money from Cappoquin Chickens.

“This is a very difficult time for any producer. If the company is to continue, producers must put birds into their houses. Producers have not even seen a business plan for the company, uncertainty exists over the time scale of payment and the fear is that they may not be paid at all.”

The growers must wait for news from the liquidator on a “white knight” for the company to see if they will be growing chickens in Cappoquin into the future, he said.