Vion reviews its organic chicken business

The UK’s second largest poultry supplier is conducting a review of its organic chicken business which could result in it exiting the sector.

A spokesman for Vion told FoodManufacture.co.uk that the project is part of the company’s continual review all aspects of the business. He said that pulling out of the organic market is only one of several possible options. A final decision had yet to be made.

Profits

But the organic market had not grown as previously forecast and continues to be more difficult to generate profits, he added.

Vion will announce the results of the review before Christmas, he said.

Changes to EU regulations coming into effect in January 2012, mean that feed for organic poultry will no longer be able to contain any non-organic raw material. Currently, it can contain up to 5% non-organic feedstock.

In May, Vion announced plans to transfer poultry processing from its factory at Thorne, South Yorkshire to its sites at Sandycroft in North Wales, and Coupar Angus in Perthshire.