WA pig company takoeover

29 Oct, 2008 08:35 AM
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STATE pork industry rationalisation is continuing with the announcement this week that the Craig Mostyn Group (CMG) has bought the fresh pork business George Weston Foods.

CMG chief executive David Lock said the acquisition would further strengthen the company’s commitment to its brands.

“We can now get economies of scale on production as the more pigs we put through the plant the lower the unit cost,” he said.

“This move means we should be able to deliver a high quality product at the right price.”

Mr Lock said CMG now had certainty of supply.

“The Wandalup Farms piggery, which was part of the deal, carries 4000 sows and will deliver close to 2000 pigs per week,” he said.

“We are already seeing a downsizing in supply of pigs in WA as a couple of farms reduce their numbers or exit the industry.

“This purchase is not only us investing in the industry and growing but providing certainty to farmers to invest in their assets.”

But Australian Pig Breeders Association WA branch representative Chris Dodoff is concerned about the purchase.

It encouraged a monopoly, he said.

“One report that I heard is that CMG now have 90pc of WA’s pork market,” he said.

“They will determine the price and who their customers will be,” he said.

Mr Dodoff said there were less and less pork producers in the industry.

“With the closing down of Midland’s pig selling facility, WA producers have limited selling options,” he said.

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READER COMMENTS

blonde
30/10/2008 7:36:01 AM

There will always be a fresh pork market in WA and it won't come from imported pork which is great for WA. The small producer will still be able to sell his pigs to the big major abattoir and I don't see their being a problem. I do see that the small producers could get a little larger and I think that would be a bonus in their pockets and it would help the markets in this state enormously. With grain prices coming down and the dollar coming down I think this is a great opportunity for all of us producers out there in this big state of ours. Local production is important.
realist 1
31/10/2008 6:39:24 PM

Dear Blonde, i think you should re-read the article. Obviously you have no idea of what you speak. The WA supermarkets are choc-full of Canadian pork and have been for at least 20 years. Particularly the two major supermarket chains.

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