Business

Moy Park owners warn Brexit could 'adversely impact' business

The US owner of Moy Park has warned that Brexit could "adversely impact" the business
The US owner of Moy Park has warned that Brexit could "adversely impact" the business The US owner of Moy Park has warned that Brexit could "adversely impact" the business

THE US owners of Moy Park has warned that Brexit could "adversely impact" business if favourable trade agreements are not secured.

Poultry giant Pilgrim's Pride, which acquired the north's largest private company in September in a £1 billion deal has said that "Brexit could impair our ability to transact business in the UK and in countries in the European Union".

In the company's annual report published last week Pilgrim's Pride outlined its concerns over the operation of the business in the wake of the landmark EU referendum vote in June 2016.

"The vote by the UK electorate in favour of having the UK exit the European Union could adversely impact our business, results of operations and

financial condition," the report states.

"The long-term effects of Brexit will depend in part on any agreements the UK makes to retain access to markets in the European Union following the UK’s

withdrawal from the European Union. In addition, we expect that Brexit could lead to legal uncertainty and potentially divergent national laws and

regulations as the UK determines which European Union laws to replicate or replace. If the UK were to significantly alter its regulations affecting the food

industry, we could face significant new costs. It may also be time-consuming and expensive for us to alter our internal operations in order to comply with new

regulations."

"Additionally, Moy Park’s results of operations may be adversely affected if the UK is unable to secure replacement trade agreements and

arrangements on terms as favourable as those currently enjoyed by the UK. Any of the effects of Brexit could adversely affect our business, business

opportunities, results of operations, financial condition and cash flows," the report added.

In a strong trading year Pilgrim's Pride, which employs approximately 42,000 people and operates chicken processing plants and prepared-foods facilities in America, Puerto Rico and Mexico, reported sales of $10.77 billion (£7.69bn) and adjusted EBITDA of $1.39 bn (£0.99bn) for 2017. According to the report Moy Park,

generated approximately 18.2 per cent of the net sales in 2017 and operates "one of the most efficient business models for chicken production in the

UK and Europe", processing six million birds a week.

Founded in Moygashel in 1943, Moy Park has grown into one of Europe’s leading poultry producers. The company has production sites in Dungannon and Ballymena in addition to a processing site in Craigavon, employing more than 6,300 across the north.