A chicken processing factory in Gloucestershire is set to close next year, meaning the loss of hundreds of jobs.
Avara Foods says it plans to close its Newent factory in spring 2024, making all 320 workers at the site redundant.
In a statement, the firm said it has faced "inflationary pressure" in fuel, commodities and labour in the past two years.
"While some price increases have been achieved, they have not been sufficient to mitigate the full impact of rising costs on our margins," a spokesperson said.
The firm has recently closed a factory in Abergavenny and says it will now focus on its other factories where chickens can be processed more efficiently with less investment.
"This will enable Avara to continue providing all its customers with the high levels of service, investment and innovation for which it is known," they added.
The firm said the decision to close the Newent factory has "not been taken quickly" and is not a reflection on the hard-working staff at the site.
The statement adds: "In the coming days, Avara will begin a collective consultation process with the individuals that are affected by this proposal.
"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."
Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know…