Avara Foods has announcing its intention to close its Newent factory in spring 2024 with the loss of all 320 jobs at the site.
The business, which recently closed another processing plant at Abergavenny, said like all UK food businesses, it had faced significant inflationary pressure in fuel, commodities, and labour over the past two years.
“While some price increases have been achieved, they have not been sufficient to mitigate the full impact of rising costs on our margins,” said the company in a statement.
“Regretfully, this process has identified that its existing chicken volumes and full product range could be processed more efficiently, and with lower capital investment, by focusing on fewer, better invested facilities. Critically, this will enable Avara to continue providing all its customers with the high levels of service, investment and innovation for which it is known.”
Avara will now begin a consultation process with the staff affected.