Ireland’s ABP Food Group plans to close a packing facility in Northern Ireland, citing “challenges” in the UK beef and lamb markets.
The Ardee, County Louth-headquartered business on the island of Ireland said 338 jobs would be lost at the Co. Tyrone site in Linden, located on the Granville Industrial Estate in Dungannon.
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ABP said in a statement a separate beef and lamb processing facility in Linden, also situated on the Granville Industrial Estate, is not affected by the decision to close the packing site and will continue to operate as normal. Those jobs are also protected.
Despite the market challenges, ABP added its Northern Ireland processing facilities in Lurgan, Co. Armagh, and the Newry plant sitting on the border of Co. Armagh and Co. Down, are also not impacted.
Its Kettyle Irish Foods subsidiary in Lisnaskea in Co. Fermanagh will also continue business as usual.
ABP said the decision to close the Linden packing plant is based on adapting to “trading conditions and market trends”, along with the need to consolidate.
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By GlobalDataA formal consultation process with the 338 workers has started with redeployment options at other ABP sites a consideration.
An ABP spokesperson said in the statement: “This has been a very difficult step. But we are facing a challenging and changing UK and global marketplace for beef and lamb.
“Streamlining our operations is a necessity to achieve operational efficiencies, maintain our competitiveness and strengthen our business for the long term.”
The manufacturer of the Scotch Prime and Surrey Farm beef brands, and the Dorest Crown lamb line, generates an annual turnover of around €5bn ($5.8bn). It supplies retail, foodservice and wholesale customers.
Outside of the UK, Ireland and Europe, ABP entered a new market in 2024 after securing access for its beef to South Korea. The company already ships to China.
ABP took full control of what was Linden Foods in 2021 having held a 50% stake in the business since 2017.
Ireland’s trade body Bord Bia reported earlier this month that meat and livestock exports increased by 18% to around €5bn. However, it noted “tight supplies of cattle across Ireland and key markets led to a surge in beef prices but reduced export volumes”.
Beef shipments amounted to more than €3.4bn, up 24% year-on-year, but export volumes were around 40,000 tonnes below the average of the past decade.
Lamb exports fell for a third straight year, declining 10% by value, to rest at €360m, with volumes at the lowest level since 2016. The volumes dropped 15% due to fewer sheep available for processing.
“ABP UK remains committed to Northern Ireland’s agrifood sector. We continue to focus on developing future opportunities for the sale of Northern Irish beef and lamb within the UK and further afield,” the spokesperson added.
“Our long-standing procurement partnerships with Northern Irish farmer suppliers is supported by continued investment in the future sustainability of beef and lamb production in Northern Ireland.”
