Morrisons has acquired Farmcare’s Carnoustie potato packhouse in a deal that will see Farmcare supply the retailer with potatoes and other products.
The news comes as Farmcare announced last year that the Carnoustie site had entered a period of consultation with staff after a significant packing contract was not renewed.
The purchase also boosts Morrisons’ UK food manufacturing sites to 17, while Farmcare CEO Richard Quinn said it is “a strong strategic fit” with his business.
Carnoustie will be used to store, grade, pack and procure potatoes for Morrisons customers, and Farmcare will also supply the business from across its 11 sites across the country, a statement said.
Morrisons said it now intends to commence TUPE discussions with Farmcare Carnoustie staff as part of the agreement.
Managing director of Morrisons Manufacturing, Andrew Thornber, said: 'Our acquisition of the Carnoustie site, and our relationship with Farmcare, shows Morrisons commitment to working directly with growers in Scotland and offering our customers the very best quality fresh produce.'
Quinn added: ‘’The deal with Morrisons is a strong strategic fit. We look forward to an ongoing relationship, which allows Farmcare to concentrate on what we do best: growing great crops and working closely with Morrisons as a supplier of choice.”
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