For sale - gene firm that brings in bacon

Goodman Fielder is to sell its $11 million turnover pig genetics company PIC New Zealand - despite describing it as "very profitable".

PIC sells breeding stock and boar semen and produces more than 40,000 pigs a year for processing by Goodman Fielder.

Operations manager Ross Townshend said yesterday PIC was not part of Goodman Fielder's core manufacturing and marketing business. PIC was "very profitable" but Townshend would not disclose profits or the price Goodman Fielder wanted. He said turnover was about $11 million a year.

PIC was expected to continue producing good income from the sale of genetics and meat. Townshend said there were also growth opportunities in areas like producing weaner pigs that could be fattened elsewhere, and in artificial insemination.

PIC, operating since 1987, has farms at Maramarua and Te Kohunga in the North Island, and Te Pirita and Burnham in Canterbury.

The assets and the operations of PIC are being offered for sale - any buyer would lease the land the farms are on from Rank Group Property Investments.

Goodman Fielder said it was prepared to enter into agreements with a buyer for the supply of pigs for processing.

The deadline for initial offers is early next month.