One of Wales' biggest abattoirs is to stop processing beef due to 'falling volumes, negative margins and spiralling costs of production'.
Randall Parker Foods' (RPF) abattoir in Llanidloes, Powys is one of Wales' only beef processors.
It has now made the decision to end beef processing at the plant in what has been described as a 'another blow' for the sector.
RPF said declining numbers of cows being accepted for slaughter at the plant had fallen from 400 to just 80 in recent weeks.
The Farmers’ Union of Wales (FUW) said the move is 'bad news' for Welsh beef producers.
FUW President Glyn Roberts said: “We completely understand the economic reasons for stopping the beef processing by Randall Parker Foods at the Llanidloes site. However, it is bad news for our farmers.
“We now have to travel further again and it will be more expensive for producers to take the beef to an abattoir further afield.
“In addition, the levy for the beef going across the border will remain in England, which is a double blow.
“Moving forward, we need to have a closer look at processing facilities here in Wales, to ensure that it works for environmentally conscious consumers, processors and of course producers,” he said.
The company did, however, say the cattle line could be reinstated 'should the economics of slaughtering cattle change'.
In the meantime, the plant will focus on its lamb business, RPF said.