Cranswick is continuing its relentless drive for growth, with the acquisition of one of the biggest names in the UK pig sector – JSR Genetics.
In its third quarter trading statement, the Hull-based pig and poultry producer announced it had acquired the entire issued share capital of JSR Genetics from JSR Farms, including the pig genetics and pig farming operations.
JSR Genetics is one of the UK’s leading pig genetics companies and is the exclusive distributor for Netherlands-based Topigs Norsvin’s genetics in the UK, with 8,000 high health nucleus and multiplication sows. In addition, JSR Farms has more than 3,000 commercial sows, producing more than 2,000 pigs per week for slaughter.
It is an existing, long-standing supplier to Cranswick, which stressed that there is no plan to change to the operation of the JSR business under the new ownership.
Cranswick chief executive Adam Couch said he was ‘delighted’ to announce the acquisition. “This acquisition increases the scale of our indoor pig production, further securing supply for our customers’ pork requirements. The addition of an integrated pig genetics supply chain will allow us to drive ongoing improvements in production efficiency, meat quality, animal health and robustness, for the long-term benefit of our customers and the UK consumer,” he said.
He said it would be ‘business as usual’ for JSR’s existing customers, but highlighted Cranswick’s desire to invest in and grow the genetics business.
Cranswick said JSR Genetics is renowned for its ‘innovative genetic solutions for cost effective pig production’, with . genetic improvement centred around sustainability and efficiency.
Based in Driffield, it currently employs around 75 staff, who will move over. The acquisition will include eight freehold sites, various rented sites on long-term farm business tenancies and a number of third-party operators, who will also transfer.
The company has 300 boars at stud across three sites and produces the well-known TN70 gilt for indoor and outdoor production, which Mr Couch said he believed was ‘the number one breeding female, possibly globally, in terms of its production traits’.
The other side of the JSR business, JSR Farms, an integrated arable business with over 3,000 hectares in East Yorkshire, will remain with the Rymer family, which founded the pig business alongside it more than 40 years ago.
Perfect fit
Cranswick has been steadily building its pig herd in recent years, with acquisitions last year taking its sow herd to close to 70,000 head. It now produces around 34,000 pigs a week and is more than 50% self-sufficient in terms of processing its own pigs. It is also currently investing heavily in its pork processing facilities with a view to improving efficiency and upping capacity.
But this is its first move into pig genetics and Mr Couch told Pig World that JSR was a ‘perfect fit’. “We have been close to JSR for a number of years. Geographically, they are very close and the Rymer family are well known to us over many years, so it fits very nicely with us,” he said.
“The focus for us is very much on the genetics side. It is something that we have not had in our armoury before. This helps us to secure that genetic capability and also influence eating traits, which is something we are very excited about.
JSR Genetics will remain as a separate entity, rather than being integrated into other parts of the Cranswick business. Mr Couch said Cranswick would continue dealing with other pig breeding and genetics companies, while JSR will continue supplying other customers, including processors.
“The intent is not to change anything, but to add to it and put some more capital investment in and grow it as a genetics business, in its own right,” he said.
“So, for any third party producers, it is business as usual. We’re looking to invest in JSR and expand it further, very much like we have done with all our other acquisitions over the years.”
Eating quality
JSR has done a lot of work on improving pork eating quality, working closely with Dingley Dell Farm, in Suffolk, to produce extra intramuscular fat to create marbling in pork, working with Cranswick on some supermarket lines.
Mr Couch said this was one of the big attractions of the JSR pig business. “We are looking forward to really focusing on this for some of our end customers,” he said.
He said the acquisition reiterated Cranswick’s commitment to growing British pig production and providing high quality pork for the British consumer. “The UK pig sector has been declining in numbers, and I think this will hopefully help provide a step change, so we can start improving the availability of British pork and make the UK less reliant on imported product,” he said.
JSR Genetics
JSR Genetics was founded in East Yorkshire by John Rymer in 1982, under the name JSR Healthbred. He had previously founded JSR Farms in 1958.
After years of successful trading and several acquisitions, in 2015 JSR Genetics partnered with Topigs Norsvin, the world’s second largest pig genetics company.
JSR says its genetic improvement is based on sustainability and efficiency, with a focus on balanced breeding and total feed efficiency, with a reputation for easy care animals.
The arable and pig businesses had run side by side since the pig business was formed. JSR Farms will continue to operate, with Tim Rymer, John’s son, remaining as a director.
Cranswick trading update
In its third quarter trading statement, Cranswick reported strong revenue growth, underpinned by ‘excellent volume growth’ across its core UK food business, as customers and the UK consumer ‘continue to appreciate the affordability, value for money and versatility of our core pork and poultry categories’.
The Group’s expanded pig farming and milling operations continue to contribute positively. It also announced that a ‘full range’of pork products is already being shipped to China, after the revcent news that the China export licence at ts Norfolk primary processing facility had been reinstated after a four-year hiatus.
The outlook for the current financial year remains in line with expectations.