One of the UK's largest poultry processors has announced plans to close its Monmouthshire production factory, putting 400 jobs at risk.
Avara Foods has put forward a proposal to shut its Abergavenny factory in autumn, which would impact all workers based at the turkey production site.
The food business, one of the UK's largest, said it had faced significant inflationary pressure in fuel, commodities and labour since the pandemic.
Avara said that this had driven up pricing and significantly reduced demand for UK-produced turkey in the retail market.
Responding to the announcement, the Welsh government called it a "major blow" for workers.
An Avara spokesperson said: "We have started to reengineer our turkey business to operate a more efficient operational footprint focused on fewer, better invested facilities.
"We have looked in depth at a range of options to enable our wider business to compete effectively in the market in the future. These included different potential uses for the Abergavenny site.
"Regretfully, this process identified that volumes could be processed more efficiently in our other operations and with lower capital investment.
"This has resulted in the proposal to close the Abergavenny site."
In the coming days, Avara said it would begin a "collective consultation process" with the individuals affected by the proposal.
A Welsh government spokesperson said: "We are aware of Avara's announcement, which will come as a major blow for workers and the community".
"We are in touch with the business to explore options and stand ready to support those impacted by today's news."
