The Irish Farmers' Association (IFA) held a protest rally in Co Waterford this afternoon as fears for the future of local chicken processor Cappoquin Chickens grow.
The IFA says that growers and breeders are owed more than €1 million after the firm underwent a period of examinership.
Cappoquin Chickens is one of Ireland's largest poultry producers and has more than 200 employees in Co Waterford. It was placed under the protection of the High Court in May.
Speaking at the rally, IFA president Padraig Walshe attacked supermarkets for stocking their shelves with cheap chicken imports.
“This has devalued a quality-assured product in the minds of consumers,” he told protesters. “Offers such as ‘two-for-one’ put downward pressure on producer margins at a time of rising costs. Supermarkets cannot continue to use food as a loss leader in their pursuit of market share.”
The IFA estimates that the poultry industry is worth €200m to the economy.
Ms Justice Mary Finlay Geoghegan appointed an interim examiner to Cappoquin after being told it had sustained losses over the last four years due to higher foodstuff costs, cheaper imports from South America and Asia, and the outbreak of Avian flu.
A statement of affairs of Michael D O'Connor, Sons Company Ltd, trading as Cappoquin Chickens, in May showed a deficit of €806,000 on a going concern basis and a deficit of €7 million if the company was wound up.
It is understood a liquidator has now been appointed with a view to finding a buyer for the firm.
Fine Gael agriculture spokesman Michael Creed said: “Reports of the appointment of a liquidator to Cappoquin Chickens are the culmination of fears that have been mounting for some time.
“Up to 250 people employed either full time or as seasonal workers will be devastated by the news, as will the 50 producers dependent on the company’s survival.”
Labour TD for Waterford Brian O'Shea said: "The liquidator will be endeavouring to sell the company as a going company as a going concern, and for the sake of the workers in the area, and growers in the region, the Government and its various agencies must pull out all the stops to keep the company business."
Chicken producers from around the country will join growers and workers from the Cappoquin area this afternoon for the IFA rally.
IFA poultry chairman Ned Morrissey said: “Imports of questionable traceability have been passed off as Irish produce and this has been very damaging for the industry in Ireland.
“These imports do not meet the stringent welfare and environment regulations that Irish producers adhere to. The failure to implement country-of-origin labelling has allowed increasing levels of imports to be styled as Irish, and to undermine the quality-assured chicken produced in this country.”
PA