Cappoquin Chickens taken over by Derby Poultry Processors

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Cappoquin Chickens Liquidator confirms sale:

Statement: 3rd October 2008.

Following a period of negotiation the liquidator, Mr Aidan O’Connell, Deloitte, today confirmed the successful completion of the sale of Cappoquin Poultry Processing Plant. This sale will safeguard the future of the facility.

Two private investors, Perwiaz Latif and Zahid Hussain, owners of Derby Poultry in the UK have taken majority stakes in Cappoquin Poultry Limited, the company formed for the purposes of this acquisition. Paul O’Connor and Michael O’Connor Jnr, members of the original family which founded Cappoquin Chickens have also taken minority stakes along with former Financial Officer, Tom Vaughan.

Cappoquin Poultry Limited will focus on the production of Halal chicken. Both Mr Latif and Mr Hussain have considerable experience in this sector.
Currently employing over 200 staff, employees and Trade Union representatives are being informed of the sale this afternoon. The new structure will require a period of re-organisation which will result in continued employment for the majority of the existing employees .

Cappoquin Poultry Limited will now engage in a period of gradual growth to re-establish market share. As part of this process, the company intends to source a new hatchery following the sale of the Cappoquin Chickens hatchery in recent weeks.

Ends

Derby Poultry will have a 65% controlling interest in the company. Workers wages will be slashed by 17% to the level of the minimum wage. No agreement has been reached with growers yet.

Cappoquin Chickens closes

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Cappoquin Chickens Blow Shows Feed Costs and Labelling Loopholes Hurting - Creed

Following reports that Cappoquin Chicken has gone into liquidation, Fine Gael Agriculture Spokesman, Michael Creed TD, today (Monday) said spiralling costs, particularly feed costs, and inadequate food labelling laws were significant contributory factors. Deputy Creed said the poultry industry is hurting and agri-sector jobs are under threat.

"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.

"The Fianna Fáil Government has failed to heed warnings on the impact of rising feed costs on the poultry sector and it is now clear just how hard these costs are hitting agri-business. The latest Central Statistics Office figures showed feed costs up 21.1% on last year. This is an own goal from the Government whose daft policy on the importation of GM feed is estimated to be costing the industry up to €160 million a year.

"The Cappoquin Chickens blow follows the closures of Grove Turkeys and Castlemahon Chickens. It's painfully clear that the Government must act to save the industry.
"We are also seeing the impact of quality Irish product being undermined by loopholes in our labelling laws. The 'substantial transformation' loophole allows produce which has had minimal processing in Ireland, like the addition of breadcrumbs, to be passed off as Irish. Coupled with misleading labelling this means Irish produce and cheap imports are not competing on a level playing field.

"Fine Gael's campaign on labelling laws has fallen on deaf ears in Government so far but the prospective liquidation of Cappoquin Chickens has to be a wake-up call. As well as the closure of the 'substantial transformation' loophole and the tightening and strict enforcement of existing labelling laws, Fine Gael wants to see the introduction of a Green Ireland label. This single, recognisable brand would help Ireland capitalise in overseas and domestic markets on its reputation as a green, healthy, quality food producer and help secure a premium price for Irish produce and Irish farmers."

IFA demonstration at Cappoquin Chickens as one of Ireland's most modern plants goes into liquidation

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Today a large demonstration was held by Waterford IFA outside Cappoquin Chickens-in liquidation- to protest at the plight of the poultry industry. Speakers included Padraig Walshe President of the IFA, Derek Deane IFA, Michael Keane Waterford IFA and Ned Morrissey chairman of IFA poultry committee.

Present also were Senator Paudi Coffey (FG), Cllr Nora Flynn (FG), Cllr Declan Doocey (FG), Cllr Kevin Wilkinson (FF), Cllr James Tobin (FF). There was IFA support from counties such as Monaghan and Meath. There was widespread local support not alone from farmers but from local business interests and the general public also. The closure of Cappoquin Chickens would hit 40 growers and 20 rearers and breeders and result in the loss of 150 permanent jobs and 50 seasonal jobs.
This protest received widespread coverage from RTE radio and television and TV3. In addition there were representatives of the printed media present. Growers are particularly thankful to the media for highlighting the plight of the poultry industry. The Irish poultry industry is now on the verge of extinction.

There was strong criticism of supermarkets which continuously push through reductions in chicken prices whilst maintaining their own profit margins. Processors pass on these reductions to the growers who then find profit margins further squeezed. In the words of one speaker "You cannot produce two chickens for the price of one". For growers profit margins are counted in cents. There was strong criticism of the lack of traceability of much of the foreign chicken used by caterers and take aways. Government policy on relabelling of foreign chicken as Irish-if it has been through Irish processors-was roundly criticized. There was a demand for action by the Government.

The local growers produce very high quality chicken which is much superior to an imported variety which often lacks traceability. In addition there is an excellent work force and a highly modern processing plant. With proper investment this plant has a future. An added bonus is that growers,rearers and breeders are highly flexible.

If this plant closes the spectre of economic Armageddon looms for west Waterford.

200 jobs at risk at Cappoquin Chickens as feed costs and labelling loopholes hit hard - Creed

The following is the text of a statement issued by FG on the financial situation of Cappoquin Chickens. It is full of common sense and has realistic proposals to address the problems faced by Ireland's poultry industry. Is any one in Government circles listening? Will the Government stand by and allow the destruction of the poultry industry which can have a bright future if buttressed by realistic Government policies.This Government has adopted stone age Green Party policy on the importation of GM feed. It has also failed to address labelling loopholes.

FG Statement:

Fine Gael Agriculture Spokesman, Michael Creed TD, today (Thursday) raised in the Dáil the financial situation of Cappoquin Chickens which is under examinership. Deputy Creed said spiralling input costs and competition from cheap imports, which can take advantage of flawed labelling laws, were eating into farm profits and threatening agri-sector jobs.This Government has adopted idiotic Green Party policy on the importation of GM feed

"200 people are employed at Cappoquin Chickens and for them the news that an interim examiner has been appointed will be devastating. The wider implications for the agri-food industry are alarming. "The Government has failed to heed warnings on the impact of rising feed costs on the poultry sector and it is now clear just how hard these costs are hitting agri-business. CSO figures this week showed all farm inputs increasing in cost, with feed up 20%.

"The fact is daft Government policy on the importation of GM feed, introduced as a sop to the Green Party, is costing the industry up to €160 million a year. The new Agriculture Minister will be keenly aware of the closure of Grove Turkeys in Monaghan just a few months ago and, with Cappoquin now in trouble, he must undo the damage done by his Government's GM policy shift.

"We are also seeing the real impact of quality Irish product being undermined by loopholes in our labelling laws. The 'substantial transformation' loophole allows produce which has had minimal processing in Ireland, like the addition of breadcrumbs, to be passed off as Irish. Coupled with mislabelling this means Irish produce and cheap imports are not competing on a level playing field.

"Fine Gael's campaign on labelling laws has fallen on deaf ears in Government so far but the plight of Cappoquin Chickens is a grim wake-up call. As well as the closure of the 'substantial transformation' loophole and the tightening and strict enforcement of existing labelling laws, Fine Gael wants to see the introduction of a Green Ireland label. This single, recognisable brand would help Ireland capitalise in overseas and domestic markets on its reputation as a green, healthy, quality food producer and help secure a premium price for Irish produce and Irish farmers."