Poultry farmers have been challenged to come up with a solution that delivers competitively priced chicken to Scotland’s main processor and which also keeps them in business.
The gauntlet was thrown down at a meeting in Perth on Wednesday between the newly-created Scottish Chicken Growers Association and managing directors of 2 Sisters and 2 Agriculture, Steve Ellis and Rob Rafferty.
The 2 Sisters Food Group three weeks ago announced a restructuring at its Coupar Angus site, where it plans to cut weekly throughput and 200 jobs as part of a rescue plan for the loss-making facility.
That also threatens its own poultry farming operations as well as those run by independent growers.
NFU Scotland president Nigel Miller said growers would meet with the firm again next week and deliver a strategy which it could use as an alternative option.
That will be a significant challenge, but Mr Miller said collaboration by growers could achieve results, despite higher feed prices and transport costs in Scotland.
He said a clearer picture of the poultry production base would emerge after those discussions.
Mr Miller said 2 Sisters had accepted there was the potential for it to do more in Scotland, but it lacked adequate portioning and cutting facilities to meet retailers’ needs.
It is looking at developing a wider fresh Scottish brand that could be sold to a series of retailers and would simplify a complex product range.
However, that would not happen until after the current moves to simplify its structure and rein in costs.
Mr Miller said the firm had said Coupar Angus could do more and if it increased demand by 400,000 birds weekly, the site would be viable.
Work to secure retailer contracts continues, he added, with other markets also being investigates.
But he conceded a lower production profile looks likely in the short term.
In terms of the 2 Sisters site at Letham, Mr Miller said the ownership had transferred to a consortium which, through its shareholders, has links to the firm.
“There is great potential to source more chicken from Scotland, and to allow this to happen we will be working with the Scottish Government to get the poultry strategy outlined before Christmas,” said Mr Miller.
He said representatives from NFUS and the Scottish Government will be in attendance at the next producer group meeting with 2 Agriculture and2 Sisters early next week.
He added that the union will help where it can to move discussions forward and to keep pressure on the process, to ensure the poultry industry has a future in Scotland.
“Scottish independent growers are an elite group that have invested heavily in high quality welfare systems,” said Mr Miller.
“That production base, linked to the real expertise within the Scottish Chicken Growers Association, must mean adopting a collaborative approach that can safeguard production and will deliver for the processor and customers all over Scotland.”
Following the meeting in Perth, a spokesman for 2 Sisters and 2 Agriculture said: “We welcomed the opportunity to be at this meeting, which we believe all parties found extremely productive.”
Describing the gathering as an “open and frank discussion” about the impact of the group’s restructuring proposals, the spokesman said it was excellent to hear all views around the table.
“We are hopeful we can help build a really strong, flourishing future for the Scottish poultry industry,” said the spokesman.
“The plans we discussed were around ways we can reduce cost from the supply chain, the opportunity for investment of a cutting facility, and a new brand for Scottish chicken.” He said they were “extremely exciting”.
Rural Affairs Secretary Richard Lochhead also met 2 Sisters’ owner Ranjit Singh on Wednesday, but he offered no comment on the meeting.