Job fears after major meat contract lost

Fears were growing today for hundreds of jobs at a Northern Ireland meat processing company as management began consulting its staff about their future today.

Dungannon Meats, which employs 1,900 people in plants on both sides of the border and in Britain, began the consultation with staff following the loss of a lucrative beef contract with Sainsbury’s last October.

Dungannon Meats had supplied 40% of the supermarket chain’s fresh beef products.

Last October, the supermarket chain opted instead to source its beef from a single supplier, Anglo Beef Processors.

Speculation was mounting today that as many as 200 jobs could be lost.

A spokesman for the group would not anticipate the outcome of the review.

He said: “In October 2004, we announced a review of operations in the light of reduced throughput and we are now preparing to consult with our workforce as part of that review. It would be premature to comment further in advance of the consultation process.

“However, while the short term will be challenging, Dungannon Meats remains viable and profitable.

“We continue to supply leading supermarkets and retailers throughout the UK, Ireland and Europe and are currently in negotiations in respect of a number of substantial new contracts. We remain confident that we will replace the Sainsbury business over time.”

Dungannon Meats is a family-owned business, which was founded by brothers Jim and Jack Dobson in 1983.

The Dobsons had previously operated a small butcher’s shop since 1979.

The company has grown, with 850 direct employees in Northern Ireland and a further 125 contract operatives in Dungannon and Ballymena.

Last year, the group processed 26,000 tonnes of beef and purchased 55,000 cattle from more than 2,500 Northern Ireland farmers.

In 1998 Dungannon Meats acquired Rose County Foods in Clitheroe, Lancashire, and three years later took over lamb production facility and retail packing plant Oriel Jones and Son in Wales.

The group also owns three operations in the Republic – Exel, Newgrange Meats and a former Galtee Meats plant.

In October the company closed Elmgrove Foods meat packing plant in east Belfast, with the loss of 39 jobs.

Dungannon Meats continues to be the major supplier of lamb and lamb products to Sainsbury’s.