Kepak Group has confirmed the start of formal consultations with staff at a plant in Wales.

The site in Merthyr processes beef and lamb and employs 850 people.

The move follows an operational review and responds to “evolving market conditions,” a Kepak spokesperson told Just Food.

“Against a backdrop of declining herd numbers, the proposal is intended to ensure the site is configured to align with current and future demand, while supporting a more flexible and sustainable operating model.”

However, no final decision has been made. Reports have suggested more than 80 staff could be affected but Kepak declined to comment.

According to the spokesperson, the meat giant will maintain a “significant” presence at the Merthyr site, with the facility continuing to play an “important” role in the business.

“Substantial capital investment has been made in the site across recent years, and the facility will remain operational, continuing to source and process cattle and sheep from its established farmer supply base as normal.”

Kepak supplies the foodservice and retail markets and manufactures meat products and convenience foods, including the microeave-snack brand Rustlers.

The company has 14 sites across the UK and Ireland.

In July last year, it snapped up meat snacks producer New World Foods Europe (NWFE) from Valeo Foods Group. The deal added “a complementary range” of goods to Kepak’s portfolio, including the brands Kings, Wild West, and Cruga.

The deal followed Kepak's 2024 acquisition of UK-based Summit Foods, a specialist in chilled and frozen convenience products.