Watton-based Cranswick Country Foods has signalled its return to the pig-rearing industry after snapping-up East Anglian Pigs (EAP).
The EDP Top 100 firm, which employs more than 1,000 people in Norfolk, has bought the Little Melton business for an undisclosed fee in a move that will tighten its grip on the supply chain and increase its commitment to providing locally produced pork.
The deal comes at a tough time for many pig farmers. Yesterday's EDP Agricultural Review revealed that the industry was currently losing about £1m a week amid warnings that supplies of pork and bacon are set to become even tighter in the coming months.
But Adam Couch, group chief executive, said its customer's taste for locally sourced meat helped inspire the acquisition – despite divesting its pig-rearing business in North Yorkshire eight years ago.
And he said EAP, which had gross assets of about £11.8m in March 2012 and employs 100 people, could benefit from investment from Cranswick, but would continue to operate as a separate business.
Last year, EAP hit the headlines when it became embroiled in a pig cruelty scandal, which led to the suspension of five staff.
But Mr Couch said there was now a robust system in place for maintaining animal welfare standards.
It comes as Cranswick announced a trading update at the beginning of last month that said underlying sales were up 5pc in the year up to March 31 – rising to 9pc when including the contribution of Kingston Foods, which the firm acquired last June.
It also said that sales in the first three months of this year were up 15pc. Last year, the firm posted sales of £821m and a pre-tax profit of £48.4m and it will post its full year results later this month.
Mr Couch said its Watton factory had benefited from significant investment in recent years and that was likely to continue.
He said: 'In recent years EAP has come very much under our radar and we felt we needed to get back into pig production – not just for the supply side of the business, but also because of our customers who want to know where our products come from.
'We were involved in the pig production side seven or eight years ago when we had a site based in North Yorkshire, but we divested that side of the business. However, EAP fits the mould of what we are looking for.
'The business itself will be run autonomously and we want to improve what is already a successful business.
'We take on good quality businesses with excellent management and look to add resource into that, which helps show our supply chain that we are in for the long term. We can fund expansion and invest in the product that is produced from EAP and encourage the staff and management to invest further into the facility.
'We have invested significantly into our facility in Watton and the investment there continues. It is a strategic acquisition that tightens the supply chain side of the business.'
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