Pig farms ‘need help with ban on unfair imports’

Ian Mosey made his comments as his feed manufacturing company posted a rise in full year profits and turnover despite the harsh economic climate.

Mr Mosey said he hoped to create jobs on the back of growth in the company’s pig rearing operation.

According to Mr Mosey, the growing demand for pork and bacon is partly being driven by the rising cost of beef and lamb.

In the year ended August 31 2011, turnover at Ian Mosey, which is based in Gilling East, North Yorkshire, was £42.72m, up from £34.35m last year.

The pre-tax profit was £2.33m, compared with £2m the year before.

In a report to accompany the accounts, Mr Mosey said that the company faced significant risks linked to changes in the price of pig meat and the raw material costs for feed.

The company is easing its exposure to these risks through agreements with its customers and forward purchasing of raw materials.

Mr Mosey said: “The Government could help all pig farmers by banning imports of cheap pig meat that does not meet the British welfare standards and creates unfair competition.”

Yorkshire farmers have raised concerns about the damaging impact of cheap pig imports for years.

In response to public concern, the British Retail Consortium announced in 2010 that it was drawing up a set of guidelines in partnership with food manufacturers, caterers and the hospitality trade to ensure there was more consistent information about the origin of food, so consumers could make an informed choice.

The rules apply to meat, processed meat products such as sausages, bacon, ham and milk as well as fresh cream, cheese and butter.

Ian Mosey has also built a grain store and drier which will be fully operational for the 2012 harvest, Mr Mosey said.

He added: “Since the year-end the company continues to expand and increase turnover and hopes to increase profitability this year.

“It is currently producing 5,500 bacon pigs per week and is in the process of increasing to 6,500 by August 2012. As such, the business is continually looking for new rearing contract farms around the north of England.”

The company buys weaners to grow for bacon on about 130 rearing contract farms in the north of England.

The main customer for the bacon pigs is Malton Bacon Factory, which is owned by Vion. The Dutch-based company is one of Europe’s largest food manufacturers. Other customers include Hull-based pork supplier Cranswick and Bradford-based supermarket chain Morrisons.

The company also manufactures, supplies and distributes pig, broiler, cattle, sheep and game compound feed across the north of England to external customers and its pig rearing contract farms.

Mr Mosey added: “Currently there are 50 members of staff, but as the company expands this number will increase.”

According to accounts filed at Companies’ House, the company’s full year operating profit was £2.47m, up from £2.15m the year before.

Profit for the year after tax was £1.69m, which was also an increase on the £1.41m recorded the year before.

The directors have not recommended a dividend.

The directors’ report states: “The group mainly trades with long-standing customers, the nature of these relationships assist management in controlling its credit risk in addition to the normal credit management processes.”

Ian Mosey, which was founded in 1977, has adapted its business model to cope with price pressures.

Apart from manufacturing animal feed, the company has an arable division and also farms sheep and cattle.

In the late 1990s, poor prices, rising cost and economic uncertainty meant that many people left the farming industry.

For those who survived, the main objective was to keep a tight rein on production costs.

Ian Mosey responded to these challenges by building an animal feed mill in 1999 to feed its own livestock, which is still growing today.

The company’s diets are formulated by a team of independent “species specific” nutritionists, The team of nutritionists monitors global research and development to help them produce new products.

Shoppers switching to ‘white’ meat

Pork is selling at less than half the price of beef and lamb, which means more shoppers are switching to “the alternative white meat”.

This trend is helping to increase turnover at Ian Mosey, which is stepping up its pig-rearing activity in response to demand. The company has its roots in North Yorkshire’s farming community.

Hull-based pork supplier Cranswick has also benefited from the decision by many families to supplement expensive poultry joints such as turkey and chicken with hams and other pork products such as bacon and sausages, a trend identified recently by Bradford-based Morrisons’ chief executive Dalton Philips.

Earlier this month, Cranswick, which supplies the Jamie Oliver brand as well as Sainsbury’s and Tesco, said meat-eaters are turning to pork because it represents good value and is healthier compared with other types of proteins.