January 10, 2008

Two UK pig companies declare closure

Two British companies, the DRS Pigs Ltd. and MCB Sow Company Ltd., both went into the administration yesterday declaring debts of over GBP3 million (US$5.8 million).

Both companies have around 6,100 sows with 50,000 progeny, and 90 contract producers.

Contractors of the two companies seem unlikely to receive payment for the money owed to them.

The news has reportedly shocked the UK pig industry.

The closure however was not associated with current feed price hikes, but was believed to be caused by the York Foods acquisition of DRS from September 2006 to February 2007, an undertaking which proved to be unprofitable.