A newly formed co-operative of Scottish farmers this week announced its purchase of the Brechin abattoir from AP Jess (Brechin).
The deal will see Scottish pigs processed at Brechin for sale to UK retail and wholesale customers as well as the growing export market.
The co-operative is to be known as QPL and the initiative will see Scottish pig producers control their own slaughter facilities for the first time.
The leading pig supply co-operatives, Scottish Pig Producers and Scotlean, are both involved in the purchase.
The price has not been disclosed but there are plans in place to double slaughter capacity to 8,000 pigs a week by the end of next summer.
Patrick Stephen, of Conglass, Inverurie, is chairman of Scottish Pig Producers and a director of QPL.
He said: “Buying the Brechin facility means we can now process Scottish pigs from Scottish farmers, right here in Scotland, which is great news for the whole of the Scottish farming industry.
“We plan to invest in upgrading the current site by adding a new slaughter line, chilling and lorry-wash facilities, which will increase the capacity of the operation and in turn allow us to meet the growing demand for quality Scottish pork here in the UK as well as the export market.
“The Scottish government has been very supportive of this initiative and I am confident that by working closely with Quality Meat Scotland, Scottish Pig Producers (SPP), Scotlean and Tulip we can help secure the future of the Scottish pig industry.”
Workers currently employed by AP Jess at the Brechin site will transfer with the sale of the facility to QPL with work to upgrade the facility starting immediately and targeted for completion during summer, 2015.
The Brechin site does not have any further processing facilities with Tulip transporting carcases to other plants for cutting.
The move should give a considerable degree of confidence to the Scottish pig industry. Since the closure of Vion’s Broxburn plant two years ago a large proportion of the weekly kill has had to head south of the border for processing.
Mr Stephen said: “This should give producers a lot of confidence to invest in their own facilities. Grain prices are low at the moment which is helping margins in the short term. All things considered Scotland is a great place to produce pigs and this move should give some long-term stability to the sector.”
Farm minister Richard Lochhead said: “I very much welcome this announcement – it is good for the future of this plant, and the whole Scottish pig industry, for our hard working farmers to have greater control of the supply chain and that they will be working collaboratively with a major supplier to the UK and international market.
“I am also very pleased that upgrading work on the plant will now get underway in earnest, supported with the £2.7million grant I announced earlier this year. This major investment in the infrastructure supporting Scotland’s pig sector will rebuild capacity in the supply chain and, in time, increase the size of the Scottish pig herd and volume of Scottish Selected Pork going into the market place.”