A Forest of Dean chicken factory that began in 2018 has signalled its intention to close down - leaving more than 300 jobs at stake.

Avara Foods, which previously traded as Freemans, became part of a joint venture between Cargill and Faccenda in 2018. The loss of the plant, at Newent Business Park, spells an uncertain future for the workforce total of 320.

In a statement, the company, which published buoyant financials in January 2020, said: "Yesterday, we announced a proposal to shut our Newent factory in Spring 2024, which would impact on all colleagues based at the site."

Significant inflationary pressure in fuel, commodities and labour over the past two years were cited as the reason for the consolidation move.

"While some price increases have been achieved, they have not been sufficient to mitigate the full impact of rising costs on our margins. In today's trading environment, sustainable businesses must provide a competitive offer to consumers and sufficient margin to allow reinvestment in the food supply chain. These can only be achieved if inflation can be sufficiently offset and that, in turn, demands excellent productivity and efficiency."

Over the border in Monmouthshire, Avara recently closed its Abergavenny facility and says it has taken steps already to improve its business model.

"However, we have recognised the need to take further action, to continue to deliver a fifth of UK produced chicken every week, through the most efficient operational footprint.

Regretfully, this process has identified that its existing chicken volumes and full product range could be processed more efficiently, and with lower capital investment, by focusing on fewer, better invested facilities."

The employer added that the decision was "clearly no reflection on the hard-working colleagues at the Newent facility," and that it was now instigating collective consultation with those affected by this proposal.

Elsewhere within the company structure, Avara food vacancies are listed online to currently number 63.

The company added: "The nature of this consultation means that no final decisions have been made and there will be no speculation as to how the process will conclude."