Slump in pig prices hits PIC
THE fall in the price of pigmeat has hit profits at PIC International, the pig breeding company left after Dalgety sold its other businesses earlier this year.
PIC warned the stock market that its operating profit for the first six months would be half last years figure of £14.3 million.
The company is carrying out a rationalisation of its operations to cut costs by £0.6m this year and £1.1m next.
This will include a reduction in the number of its farms, as well as cuts in its production costs.
The group blamed increased production for a downturn in the pig cycle.
“Commercial pig producers are making significant losses and facing financial difficulties,” said a statement. “This is leading to the cancellation of orders and a sharp decline in sales volumes for PIC.”
The loss of revenue has pushed PICs European business into loss in September and October.
The company said that US operations remained robust because of a higher proportion of royalty-based indirect sales.
- The Times 06/11/98 page 32 (Tempus), page 33
- The Independent 06/11/98 page 22
- Financial Times 06/11/98 page 24
- The Daily Telegraph 06/11/98 page 35