SUN Valley Foods is selling its turkey business to a Derby company and is to concentrate on expanding its chicken and food manufacturing business.

The Hereford-based manufacturer announced this week that it had reached an agreement in principle to sell its turkey business at Abergavenny as an on-going concern to Brandons Poultry Limited, a long-established privately-owned UK turkey producer.

Some 600 Sun Valley employees currently working in the turkey operation will transfer to Brandons with their pay and service protected.

Independent farmers in Herefordshire, Worcestershire, Shropshire and the Welsh borders, who have been growing turkeys for Sun Valley, will continue to supply the new owners when the purchase has been finalised. The sale is expected to be completed by the end of June.

Sun Valley managing director, Hugh Guill, said Sun Valley's decision to divest its turkey business was reached for a number of reasons.

"Firstly, it allows Sun Valley to focus on other areas of business that are central to its strategy. Sun Valley will concentrate on driving forward its chicken and food manufacturing businesses both in the UK and Europe. "Secondly, it permits Sun Valley to accelerate growth, by organic and acquisitive means, in areas that are central to its strategy."

Mr Guill said that the turkey operation would be a good fit with Brandons business.

He said Brandons and Sun Valley were working closely together to ensure stability to the customers and to the employees.