CHICKEN GROWERS supplying troubled poultry processor Cappoquin Chickens yesterday admitted the future of the plant looks bleak as talks between the liquidator and a British investor continued.
The chairman of the Irish Farmers’ Association (IFA), Cappoquin grower group Ned Morrissey, said he was pessimistic about the future of the plant after a growers’ co-op failed to raise the necessary funds to invest in the company, which has debts of €7 million.
“The growers’ co-op has been trying to raise funds to invest in the company. However, despite considerable efforts by the co-op board, the necessary funds have not been forthcoming from any party that was approached,” said Mr Morrissey.
Cappoquin Chickens was set up in the 1930s by the O’Connor family who are attempting to buy back into their own company with the added funds of British investor, Derby Poultry who are currently in negotiations with the liquidator, Aidan O’Connell of Deloitte Touche.
Negotiations between Mr O’Connell and the representatives of Derby Poultry continued yesterday, but as of last night, no rescue package had been agreed to save the plant, which employs some 150 full-time and 50 part-time staff.
According to Mr Morrissey, the growers and breeders met on Thursday night to be addressed by the management of Cappoquin Chickens, but no rescue package had been agreed at that stage that could be put to the growers’ group.
“The assembled group was very disappointed as they expected to be presented with a rescue package. This is a very difficult time for any producer. If the company is to continue, producers must put birds into their houses.
“Producers have not even seen a business plan for the company, uncertainty exists over the time scale of payment and the fear is that they may not be paid at all,” said Mr Morrissey, adding that roughly 50 growers are owed on average €30,000 to €40,000.
“West Waterford relies heavily on the chicken plant for employment and this will be a severe blow to the region. The growers must now wait for news from the liquidator on a white knight for the company to see if they will be growing chickens in Cappoquin into the future.”
The Irish Times understands that when Derby Poultry first expressed an interest in taking over or investing in Cappoquin Chickens after the firm went into examinership earlier in the summer, it indicated it would invest some €1.5 million.
It is believed Derby Poultry is now proposing to invest €800,000 in the firm which has since gone into receivership.
Industry sources estimate the company needs in the region of €2 million investment to continue operating successfully.
Why the Irish chicken industry is taking a battering: Weekend, page 2