UK meat processor Cranswick and local food group Duchy Originals have decided to end the licence agreement between the two companies.

Cranswick Country Foods, a division of the London-listed group, had produced sausages for Duchy Originals, the company founded by the Prince of Wales, for 12 years.

However, the relationship between the two companies will end in April after the two sides failed to reach an agreement on renewing the deal.

Duchy said local firm Dalehead Foods will take on the contract for producing organic and free-range sausages.

"Cranswick Country Foods has been an excellent partner to Duchy Originals for 12 years and therefore the decision to terminate this arrangement was a difficult one," CEO Andrew Baker said. "However, we are confident that our decision will enable us to strengthen our ability to grow in this important category."

Bernard Hoggarth, chief executive of Cranswick Food Group, insisted that the end of Duchy contract would not affect its business.

"Is it an issue to Cranswick? It most certainly isn't. It will be an opportunity for us to rejig our factories for our own benefit," Hoggarth told just-food.