Never Miss an Update!
Receive personalised weekly email newsletters with industry news curated just for you.
ABP Food Group has agreed to acquire the lamb processing operations of Pilgrim's Europe, including its dedicated primary processing facility in Llanidloes, Powys.
The transaction transfers the Welsh abattoir and processing plant to ABP, alongside its workforce of approximately 140 staff who will transfer under Transfer of Undertakings (Protection of Employment) (TUPE) regulations upon completion. The site is situated within one of the United Kingdom's primary sheep farming regions and specialises in the production of Welsh lamb for domestic and international retail markets.
However, the agreement excludes Pilgrim's Europe's separate retail packing operation in Andover, Hampshire. ABP confirmed the exclusion reflects its existing lamb deboning and retail packing capacity across its current British site footprint.
Separately, Pilgrim's Europe has initiated a formal consultation process regarding the proposed closure of the Andover packing facility toward the end of January 2027, with management seeking to redeploy affected employees across its wider UK processing network.
"Following a strategic review of our lamb operations, we believe ABP is the right long-term owner for the Llanidloes business," said Ivan Siqueira, President of Pilgrim's Europe.
Siqueira added that the transaction enables Pilgrim's Europe to concentrate capital expenditure and resources behind its core poultry, pork, and prepared foods divisions, while "providing opportunities for future growth at Llanidloes within a specialist lamb processor."
Agricultural Sourcing and Network
The addition of the Llanidloes facility strengthens ABP's procurement scale and geographic distribution across the UK sheep farming sector:
🏴 Welsh Lamb Sourcing: Secures a strategic processing asset within Mid Wales, strengthening access to regionally certified PGI Welsh Lamb supplies.
🐑 Farm Network Scale: The Llanidloes operation joins ABP's established agricultural procurement infrastructure, which collaborates with a network of more than 3,500 sheep producers across the UK.
🥩 Processing Integration: Carcasses processed at Llanidloes will integrate directly into ABP's downstream UK deboning and central retail packing network, optimising throughput across its existing packing lines.
"Llanidloes is an excellent fit for our lamb business," said Kevin Cahill, Chief Executive Officer of ABP. "We look forward to welcoming the Llanidloes team and working closely with the producers who supply the site, providing them with the benefits and support available through our network of more than 3,500 sheep farmers across the UK. Welsh lamb is recognised globally for its quality, and Llanidloes provides a strong platform to serve growing demand across both domestic and international markets."
European Meat Processing
The transaction highlights ongoing operational rationalisation across the British and European livestock processing sectors.
For Pilgrim's Europe, a major private-label meat supplier operating 40 sites across the UK, Ireland, France, and the Netherlands with brands including Richmond, Fridge Raiders, and Denny, divesting primary lamb processing allows the group to streamline its operational focus onto higher-volume pork, poultry, and value-added consumer goods.
For ABP, which operates beef and lamb processing infrastructure across the UK, Ireland, and continental Europe (with affiliate sites in Belgium, Germany, the Netherlands, and Poland), integrating the Welsh primary abattoir consolidates livestock slaughter capacity while expanding export volumes to European retail and foodservice clients.
Pilgrim's Europe confirmed that its immediate operational focus will centre on staff consultations at the Andover packing site and maintaining supply chain continuity for retail customers and livestock producers throughout the transitional handoff.
