Norweigian meat group Nortura has announced it is cutting the number of poultry manufacturers it works with due to an oversupply of chicken.
The firm said it had not yet put any figures on how many manufacturers it would stop working with but it could be “75 or it could be 150”.
Go deeper with GlobalData
Nortura revealed it had surplus capacity in excess of 30% and insisted it had “no choice” but to make changes in order to achieve growth in the market in future.
In October, the company recorded a fall in profits for the four months to the end of August citing “challenges” in the market.
“The chicken market is beginning to stabilise and pick up again after the fall we saw last year,” said chairman Sveinung Svebestad. “The only responsible to do now is to ensure balance between production capacity and demand.”
Svebestad said Nortura had also taken “several steps to ensure competitiveness in the rest of the organisation”. When asked by just-food to elaborate further on what this could mean for other areas of the business, a spokesperson declined to comment.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
