April 3, 2006

Work stoppage at plant threatens entire Scottish pig industry

Halls of Broxburn's announcement to lay off 150 workers at its plant in West Lothian last week could signal the end of pig production in Scotland.

David Cameron, managing director at Broxburn, warned that the plant might have to close permanently, with the loss of 1000 jobs in total. Taking into account the difficult conditions for the company in recent years, this move may turn out to be a fatal blow for the industry, he said.

Halls is putting a halt to pig processing pending the outcome of a pension dispute with the Meat Hygiene Service. The plant processes up to 48,000 pigs a month.

Two of the biggest brands in Scottish sausages have already exited the industry.

The Grampian Country Food Group, of which Halls is a subsidiary, closed the only other large pig processing plant in Scotland a year ago. If Halls closes as well, Scottish producers would have to find outlets in England.

The Scottish pig herd, which is among the most efficient in the European Union, has been in sharp decline in recent years. The number of breeding pigs have fallen from 58,100 in 1995 to 48,100 currently, a drop of over 20 percent over the last decade and a 11 percent drop last year alone. The number of professional pig farmers in Scotland has also been halved in the last ten years, from 300 in 1995 to 150 last year.

Stricter regulations have required producers either to invest heavily in new equipment and facilities or to leave the industry. Many have chosen the latter.