Syndicate rides pork demand to $2.7m piggery sale

Soaring pork prices have begun flowing through to the commercial property market, with piggeries in hot demand and a South Australian operation selling for $2.7 million.

The GROWventure piggery syndicate at Brownlow, near Eudunda, sold to an existing South Australian operator keen to capitalise on the increasing local demand for the meat.

Female baconer prices reached more than $4 per kilogram at some markets earlier this month – touted as the highest price achieved for bacon pigs in Australia’s history.

Selling agent, Colliers International’s Jesse Manuel, says piggeries are increasingly in demand as Australians move towards cheaper cuts of meat.

The chance to acquire a piggery of this size and quality is rare in South Australia

“The increase in the pork price over the past six months has resulted in surge of enquiry for piggeries, particularly farrow-to-finish assets that have long term contracts with processors,” Manuel says.

“An increase in the consumption of both pork and chicken as people move to these more affordable meats is the main reason for the price increase and this is flowing on to farm values as demand for the assets has also increased.”

The GROWventure facility, which lies about an hour north of Adelaide and has a contract to supply a major supermarket chain, is divided into two separate operations: a 31.78ha breeder complex and 196.7ha grower complex, with the four grower sheds able to house around 3600 pigs.

The GROWventure facility in South Australia has a major supermarket contract.

The breeder complex carries around 500 sows and includes a stone cottage with four bedrooms and two bathrooms, as well as a farrowing shed, weaner shed, mating shed, three dry sow sheds, grain storage and a feed mixing shed with office and staff facilities.

Manuel says the piggery’s ability to deliver immediate profit and returns made it an enticing proposition.

“The two operations are in close proximity of one another and produce high quality porker and baconer pigs under contract with one of Australia’s largest supermarket chains,” he says.

“The chance to acquire a piggery of this size and quality is rare in South Australia.”

“The farm is modern compared to many other piggeries recently offered to the market, and is very well located within close proximity to the Port Wakefield Primo abattoir.”