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Job losses at one of Wales' biggest food companies would have a "serious impact" on the local economy, says the leader of Carmarthenshire council.

Castell Howell Foods is considering job losses as the firm said weekly sales were down by 65% and it fears trade is "unlikely" to recover until 2021.

The Carmarthenshire wholesaler and processing company has entered into a period of consultation with employees, citing the drop in hospitality trade during the coronavirus crisis.

Council leader Emlyn Dole said: "It's going to be a huge blow for us, there's no doubt about that. The food, drink and visitor sector is worth about £170m to the Camarthenshire economy, so it's bound to have a serious impact.

"We've been working side by side with the company for years, and especially during the pandemic... we will continue to support the company, because it's not just the economic impact we're concerned about, but also the personal impact on many families that depend on the company for income.

"We have a responsibility to look after them."

Opposition leader Rob James said he was "saddened" to hear about possible job losses.

"Castell Howell is a significant employer in the county and is essential to our local economy. Our fear is that this announcement may be the first of many as the UK government alters their furloughing scheme and risks a large rise in unemployment.

"We need a back to work budget from the UK government to protect jobs at a crucial phase of the coronavirus recovery. In the meantime, we will be lobbying on behalf of Castell Howell and the wholesale sector for financial support to weather the storm."