Kepak job cut talks raise concerns for Welsh red meat sector

Wales’s largest meat processing plant has begun consultation over proposed job cuts, as Kepak points to declining herd numbers and changing market demand.

The company has confirmed it has launched a formal collective consultation with employees at its Merthyr Tydfil site following a review of operations.

For livestock producers, Kepak said the facility would continue sourcing and processing cattle and sheep from its established farmer supply base as normal during the consultation.

Kepak is one of the leading meat producers in Ireland and the UK, operating 15 manufacturing plants across the two countries. Its Merthyr facility is Wales’s largest meat processing plant and a major employer in the area.

Reports suggest around 85 roles could be affected, although Kepak has not confirmed a final number while consultation is ongoing. The company said the process remains at an early stage, but indicated potential job losses could amount to up to 10% of the site’s overall workforce.

In 2023, the Merthyr plant’s workforce increased by 150, taking staffing levels to around 850 employees.

Kepak said the proposal was not linked to any loss of orders.

Instead, it said the review had been carried out in response to “evolving market conditions” and declining herd numbers.

Declining livestock numbers have placed pressure on parts of the red meat supply chain, affecting expectations around throughput at processing sites. Kepak said the proposed changes were intended to ensure the site is aligned with current and future demand.

The company said the plans would also support “a more flexible and sustainable operating model”.

A Kepak spokesperson said: “Kepak can confirm that it has commenced a formal collective consultation process with employees at its Merthyr site following a review of operations in response to evolving market conditions.

“Against a backdrop of declining herd numbers, the proposal is intended to ensure the site is configured to align with current and future demand, while supporting a more flexible and sustainable operating model.

“The company is engaging constructively with employee representatives and unions throughout the consultation process; no final decisions have been made.”

The company said Merthyr would continue to play an important role in its wider business, with the plant remaining operational during the consultation.

It added that substantial capital investment had been made at the site in recent years.

Kepak said it would maintain a significant presence in Merthyr as a major local employer and community member.

A spokesperson said the facility would remain operational, “continuing to source and process cattle and sheep from its established farmer supply base as normal.”

The consultation process will determine the final number of roles affected.

Kepak said the Merthyr facility would remain operational and continue sourcing and processing cattle and sheep as normal during the consultation.