Boss promises firm will work to keep Chatteris onion factory going after supermarket contract is lost

Loss of a major contract with supermarket giants Sainsbury’s has left a question mark over the future of the Produce World factory in Chatteris

Speculation about possible job losses at the company, which employs around 120 people at the Chatteris site, has been posted on local pages of Facebook.

However, William Burgess, chairman of the company, which is the largest producer of onions in the country, said directors of Produce World have recently announced to colleagues and suppliers at its Chatteris site that it has lost the contract for Sainsbury’s onion business.

He added: “This is despite the highest levels of service and quality of product. Produce World will stop supplying onions to Sainsbury’s at some point during 2018 yet to be agreed. The directors are currently exploring all options for the future of the Chatteris site.

He continued: “The people at Chatteris have done an excellent job over many years and we want to work with them to explore new opportunities for them and the site.”

Some of those possibilities could be relocating some of the work from other sites to Chatteris as well as potential from new business opportunities

Mr Burgess added: “The relationship between Sainsbury’s and Produce World remains strong, and Produce World has recently secured additional long-term roots business from the retailer. As recently reported, the company anticipates an excellent financial performance in 2017.”