BRING HOME THE BACON
Upmarket meat producer Cranswick seals deal for family pig enterprise
UPMARKET BACON and sausage producer Cranswick has bought the Buckle family’s pig farming and rearing operations, as well as the family’s 50 per cent share in the White Rose Farms pig production joint venture, which was established by Cranswick and the Buckle family in 2018.
The enlarged pig business, centred in Yorkshire, which currently processes 2,600 pigs per week, will remain under the stewardship of Rick Buckle and will specialise in the production of Red Tractor assured (indoor reared) pigs in Yorkshire under the name of White Rose Farms.
Adam Couch, chief executive officer of Hull-based Cranswick, said: “I am pleased to announce today’s transaction, which further reinforces our strategic commitment to supporting and growing the British pig farming industry.
“We have worked with the Buckle family for over 25 years and we are delighted to welcome Rick, as managing director of White Rose Farms, and the wider team to Cranswick.”
Following the acquisition of Packington Pork in December, which specialises in British free range and outdoor pigs, this latest transaction will increase Cranswick’s self-sufficiency in UK processed pigs to over 30 per cent.
Cranswick said the acquisition will reinforce its commitment to a sustainable and traceable ‘farm to fork’ operation, in line with its strategy.
Analyst Darren Shirley, at Shore Capital, said: “The transaction reflects an already well and effectively worn track by the group to build strong and sustainable alliances with complementary businesses, going on to then take fuller control whilst retaining existing management expertise.”
Mr Shirley said he expects White Rose Farms will steadily build its rearing herd over time.
“In our view, the transaction further highlights Cranswick’s commitment to a sustainable and traceable farm to fork operation, and the acquisition is fully in line with its Second Nature strategy we at Shore Capital have increasingly been highlighting in our research output as a key and growing virtue of the Cranswick
model,” he added. Analyst Charles Hall, at Peel Hunt, said: “Numbers for the businesses have not been disclosed, however White Rose does post results, which show revenue of £2.4m for the 16 months to March 2019 and an operating loss of £237,000.
“The performance will have improved in the current year given the rise in pig prices. The combined business will continue to be run by Rick Buckle and we expect Cranswick to look to expand the business.”