Cranswick strengthens UK commitment with pig deal

Hull-based Cranswick said the deal will strengthen its existing farming operations and reinforces its commitment to supporting and growing the British pig farming industry.

Packington Pork is involved in pig farming and rearing operations. The business operates from a range of sites across Staffordshire, Nottinghamshire and Lincolnshire.

Cranswick said the deal will increase its self-sufficiency in UK processed pigs to over 25 per cent, securing direct control over a significant part of its supply chain for premium pigs and reinforcing its commitment to developing a sustainable and traceable “farm to fork” operation.

The transaction does not include the Packington Free Range business, which will be retained by the Mercer family as a standalone business operating under the Packington brand.

Adam Couch, CEO of Cranswick, said: “I am delighted to announce the acquisition of the premium pig farming business, Packington Pork. This acquisition aligns to our strategy of enhanced transparency and provenance of our food from farm to fork.

“We have worked closely with the business for over 14 years. We welcome the existing farm management team and look forward to investing in and developing the business over the coming years.”

Analyst Clive Black at Shore Capital said: “Cranswick states that it looks forward to investing in and developing Packington in the future.

“We expect this purchase, therefore, to rest alongside further organic and bolt-on activity in domestic pig farming, to take internally sourced participation to over 30 per cent in time.

“The prime motives for such activity, in our view, is to further underscore the integrity of Cranswick’s domestic supply chain over what could be seen in some quarters as any opportunistic move to react to the market signals of the global African Swine Fever challenge.

“Whilst so, Cranswick has delivered very strong first half export growth and further internal pig supplies should also further build its capability to advance international activity.”

Analyst Charles Hall at Peel Hunt said: “The acquisition increases Cranswick’s ownership of its supply chain, which is particularly important at the moment given the demand for pork from China.”