Fresh produce supplier Farmcare is set to consolidate its potato packing facilities at Langley Brook in Staffordshire and Carnoustie in Angus, Scotland.
The company, which is a key supplier to the Co-operative, has begun a 90-day consultation period for staff working at both facilities and was unable to give more details about which site would remain open.
Consolidating packing facilities is necessary to help Farmcare compete in the market and increase volumes through better efficiency, the company said.
“To enable Farmcare to compete in the market, and to provide the most financially viable route to do this, we are proposing the consolidation of our potato packing facilities,” chief executive Richard Quinn told FPJ.
“We are at present consulting with our employees at Langley Brook and Carnoustie packhouses on how we might best achieve that consolidation. The details of that process are confidential while we consult with staff in both places.
“A key objective of our business is to increase our potato volumes, and we recently reviewed the potato market and how we operate within it, in order to inform how we might best achieve efficiencies and investment in our packing facilities.”
Quinn said that review identified that the retail market is “fiercely competitive” in context of falling fresh potato consumption, and said that Farmcare needs to respond to these challenges.
“I can confirm that the Co-op remains an important customer for Farmcare and there will be no impact on our contract with them as a result of any potential changes to our business,” he added.
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