LARRY Goodman's Irish Food Processors has won the only part of Sainsbury's packaged beef contract it didn't previously have.
This new contract, equivalent to 30pc of Sainsbury's total packaged beef, excluding counters, is worth ?100m per year, and follows a review by Sainsbury's of the way it sources its beef in the UK.
From January 2005 Irish Food Processors' British subsidiary Anglo Beef Processors (ABP) will supply the entire Sainsbury packaged beef requirements to all its UK stores, worth an estimated ?330m per year in turnover.
Sainsbury's said ABP will supply fresh beef from its seven UK regional livestock processing plants, including three in England, two in Northern Ireland and two in Scotland. A spokesman for Irish Food Processors was not available for comment.
Up to now, 70pc of Sainsbury's packaged beef requirements were supplied by ABP based in Birmingham. The remaining 30pc was supplied by Dungannon Meats based in Co Tyrone. The loss of this part of the Sainsbury contract to ABP prompted Dungannon Meats to let go 30 staff in recent days. There are currently 8,000 UK beef suppliers in the Sainsbury's and ABP partnership group. The partnership has been credited with introducing some of the major innovations in the beef industry over the last 20 years, including farm assurance, hip suspension (which increased quality) and rapid payment on the day of weighing.
ABP has invested over stg£80m in recent years in new plant and acquisitions in the UK, making it the biggest operator in the sector in the UK. It has 15 individual plants - four in Scotland, three in Northern Ireland, seven in England and one in Jersey.
The company is responsible for processing up to 15pc of all fresh beef in the UK and it supplies several major retail multiples and food service companies. Turnover is over stg£400m.