Major pig finisher forced into administration

DRS Pigs and MCB Sow Company, one of the largest pig breeding and finishing operations in the north of England has been forced into administration with debts of over £3m.

Accountant Grant Thornton was appointed as administrator to the firm on 8th January.

The farrow-to-finish operation comprises around 6,100 sows with over 50,000 progeny pigs kept on 90 separate contract breeder/finisher units throughout Yorkshire and surrounding counties.

Although the administrators are seeking a single buyer for the pigs themselves, failing this, the vertically integrated breeding/finishing operation will have to be broken up.

The two main creditors are HSBC bank and Associated British Nutrition, both of whom are reported to have been unable to supply further financial support in the face of low finished pig prices and high feed costs.

The collapse has sent shockwaves through the UK pig industry and further underlines the much higher costs associated with welfare-friendly production systems that are unable to compete with cheap imports.

The outlook for their 90 contracted pig breeders/finishers remains uncertain in the absence of buyers being found for the pigs.

Some are also owed significant sums for contract payments due prior to the administration.

But they will have to join the queue of other creditors with no guarantee of a dividend once the two main secured creditors have been paid.

The directors of DRS are reported to be deeply saddened that in the absence of further backing from their bankers and feed suppliers, there was option but to put the whole enterprise to administration.