Up to 300 people could lose their jobs after a major Lincolnshire duck farm raised concerns over 'increasingly challenging' market conditions.
Jobs are being threatened at the duck division of Avara Foods' Caistor plant, which processes ducks for retailers and supermarkets.
Avara Foods said feed costs, feather pricing and European competition have put the business 'under immense pressure'.
The situation is also being exacerbated by Brexit and the coronavirus making the plant 'no longer sustainable, with no clear route to recovery.'
The duck processor will now enter a consultation period to determine the next steps for the business.
“Despite investment in the business and the best efforts of all involved, the market has reached the point where the business is no longer sustainable, with no clear route to recovery,” Avara said in a statement.
The food firm said the Covid-19 crisis had led to a significant drop in sales volumes as a result of the foodservice sector closure.
While these issues could be temporary, Avara added that the underlying market conditions could seriously undermine its own viability.
Andy Dawkins, chief executive at Avara Foods, said: “This has been an incredibly difficult decision and one that reflects a market that has gradually deteriorated over several years.
"Despite investment in the business and the best efforts of all involved, the market has reached the point where the business is no longer sustainable, with no clear route to recovery.
“We are now committed to a meaningful consultation process and, if our proposal goes ahead, providing the necessary support to everyone affected and a smooth transition with all our trading partners.”
