2007 Bernard Matthews H5N1 Outbreak - Consequences

Consequences

By 8 February there was a lengthening list of countries that had banned the importation of poultry products from Britain including South Africa, Russia, Japan, and many others but a spokesman for the European Commission condemned the bans as "totally disproportionate" and the British Poultry Council pointed out that exports were less than 9% of the level of domestic sales. Supermarket sales of Bernard Matthews branded turkeys halved after the onset of the outbreak as shoppers sought out alternatives. One of the biggest ongoing surveys of consumer confidence revealed that, by 13 February 2007, Bernard Matthews was the least respected and trusted brand in Britain.

Following the outbreak the company confirmed, on 19 February 2007, that 130 workers would be laid off for a period of twenty days due to a drop in product sales. The Transport and General Workers' Union then called for the government to provide compensation to the workers affected. The Transport and General Workers' Union paid out hardship monies from union funds to union members, on top of any state benefits to which the laid-off workers were entitled and a one-off £100 payment from Bernard Matthews.

A row broke out on 1 March 2007 when it emerged that the Government were paying compensation to the company for the 159,000 culled turkeys while laid-off workers were receiving nothing. At £3.75 each for hens and £3.53 for toms, the payout was then estimated at between £537,000 and £570,000. In the event, though, the actual compensation bill came out at £589,356.89. The crisis cost Bernard Matthews at least £20 m in lost sales and costs.