Pig farmers throughout Ireland are being offered the opportunity to take control of their own destinies, Farming Life has learned.
They are being given the opportuning to support a share offer in a new business, 'The North South Pig Company', which has the core objective of establishing a significant producer foothold within the island's processing sector.
This development has been facilitated by converting the former co-op of the same name into a new commercial entity which supporting producers will have the opportunity of owning on an exclusive basis.
"We are issuing a maximum of 180,000 shares," North South commercial director, Paul Gilmore, told Farming Life.
"This is equivalent to one share per sow currently resident on the island. We are asking producers to commit the equivalent of EUR10 per share by way of a deposit and have set a deadline of March 31 in the Irish Republic and April 30 in Northern Ireland as a deadline for all relevant parties to register their interest. The good news is that we have already hit the 60,000 sow/share mark and are fast moving towards the all-important 100,000 threshold."
He added: "By the autumn of this year, we will be unveiling our business plan which will look at three distinct options in terms of giving our producers a real say in the Irish pigmeat processing sector. These are: some form of joint venture; a strategic partnership or outright ownership of our own factory."
Once the formal business plan has been produced those farmers who are not happy with its content can withdraw, receiving 80 per cent of their initial investment back. However, for those who remain committed it will be a case of assessing the total share capital that will be required to convert the proposed way forward into a reality.
"Key to making this unique project work will be the potentially significant levels of national, cross-border and EU support funding that will be made available," stressed Paul Gilmore. "As a result, it is envisaged that the final share cost will work out at no more than EUR100 per sow equivalent.
Crucially, both the Irish Farmers' Association and Ulster Farmers' Union are backing the proposed venture. It is hoped that a minimum of 100,000 shares will be purchased in the new business, as this would guarantee a processing throughput of around 45,000 pigs per week. "Shareholders will be contractually committed to supply all their bacon pigs to the new company," confirmed Paul Gilmore.
"Irish pig returns have traditionally languished at the bottom of the EU price league. The presence of the new company will give producers a unique opportunity to gauge the margins generated at all the stages along the pig production, processing and retail chain. And that has got to be good news for every pig farmer in Ireland."
