The supermarket chain has cut the number of its suppliers of poultry meat to two in a review of its supply chain.

Vion said in a statement: "During the course of 2011, Sainsbury’s instigated an End-to-End review of its poultry supply chain.

"As a result of this review, Sainsbury’s has taken the decision to consolidate its supply base for all its chicken products into two suppliers. Unfortunately, whilst a strong business case was presented, VION was not successful in this process.

"Whilst this news is disappointing, we will continue working with Sainsbury’s until February 2013 as the business is transferred to their new supply base. Sainsbury’s will continue to be a major client for the wider VION UK business.

"VION remains fully committed to maintaining a leading position in the UK poultry category."