Pie and pasty maker Peter’s Food Service is to cut production at its factory in Bedwas, south Wales following a review of the profitability of its own-label customer contracts, putting up to 90 jobs at risk.

The manufacturer said it had experienced exceptional increases in raw material prices, and had been unable to pass these on to its customers in an “extremely competitive sector”.

Following the review, the company said it had decided to terminate contracts it considered unviable for the business, resulting in a reduction in production at the Bedwas site.

Peter’s Food Service will now enter a period of consultation with staff members over potential job losses.

“As a company, we recognise our responsibilities to our staff, and will do everything possible to minimise the impact of this on them,” said a Peter’s spokesperson.

Peter’s Food Service, which has 10 distribution centres around the country, has a total workforce of 870, with 720 based at Bedwas.

The company has a turnover of £81.6m and supplies more than 900 product lines.