Kettle Produce is one of the largest suppliers of prepared vegetables to UK retailers, but changing trends in the market place together with increased costs have forced the company to announce a series of proposed changes to working practices.

The company, which employs 950 staff at two sites near Cupar, is consulting with representatives from trade union USDAW over the restructuring and aims to re-deploy the majority of the affected employees to other posts within the company.

Susie McIntyre, managing director of Kettle Produce Ltd, said:

"We simply have to respond to the present economic situation. Already the financial results for this year show that, after 6 months, the company is trading significantly behind previous years and is now forecasting a loss for 2008/9.

"We have experienced a difficult trading period over the last six months in what is a fiercely competitive market and we have no option but to take these steps to safeguard the wider interests of the business.

"We will be working closely with representatives from USDAW to ensure that members of staff have the opportunity to take advantage of the alternative roles which will be made available."

In response to the announcement, North East Fife MP Sir Menzies Campbell said: "I met with the directors of Kettle Produce recently to discuss with them the pressure on the company as a result of the current economic circumstances.

"It is highly regrettable that a company which has enjoyed such success in the past should find itself affected in this way.

"I very much hope that compulsory redundancies can be avoided by redeployment within the company's operations.

"Kettle Produce, a family owned and run business, has been a major contributor to the local economy and to agriculture in particular."

North East Fife MSP, Iain Smith, said: "The loss of 100 jobs at another of North East Fife's major employers is another major blow to the area, following the closure of Curtis Fine Papers earlier this year.

"Clearly it is important that Kettle Produce takes appropriate action to secure its long term future in what is a very difficult economic climate.

"I am happy to meet with the management, trade unions or individual workers at any time and to help in anyway I can during this difficult period."

In 2005, Kettle Produce announced a restructuring exercise which affected 226 roles within the organisation. That resulted in a total of 39 employees being made redundant.

Kettle Produce currently grows over 6000 hectares of crops across the UK and Continental Europe and last year produced 50000 tonnes of fresh produce including root vegetables, salads and green vegetables.

Full reaction in this week's Fife Herald