A leading pig-breeding firm in Ryedale has gone into liquidation.

Newsham Hybrid Pigs Ltd, based at Amotherby, near Malton, employs more than 40 people and breeds up to 40,000 sows a year.

The news was today branded a "disaster" by Ryedale MP John Greenway, who said the firm was vitally important to the pig industry and questioned whether its demise was linked to the swine fever outbreak.

Liquidators from Robson Rhodes chartered accountants were today at the firm to discuss the way forward but were unavailable for comment today on the implications for jobs. Managing director Ian Brisby and sales director Ian Mould were also unavailable for comment.

News of the liquidation comes just weeks after the Evening Press reported claims by Newsham that it was enjoying one of its best years overseas because of bumper exports.

The firm said it was producing between 30,000 and 40,000 sows and about 3,000 boars a year.

Exports were reported to be up 21 per cent for the first six months of the year, compared to three years ago.

But a spokesman said at the time: "Recent outbreaks of swine fever would inevitably have long-term effects on exports to some overseas countries," said

Newsham Hybrid Pigs Ltd, which breeds Landrace, Large White and Duroc pigs, was set up in 1976 when the whole cross-breeding system of pig farming was taking off.

A Ryedale pig farmer, who declined to be named, said: "I think it is very early days to say what is going to happen to the firm.

"The company supplies many farmers across the UK and Europe with breeding stock."

In January, it was reported that the company were concerned over the lack of state aid in order to offset offal disposal costs.

The firm's sales director, Ian Mould, outlined his concerns to Ryedale MP John Greenway, who wrote to Agriculture Minister Nick Brown.

Mr Greenway said: "It's a disaster for an already hard-pressed pig industry. How many more knocks can the pig industry be asked to take?

"This industry is surviving on a knife-edge.

"We are talking here about one of the country's leading pig-breeding operations. The Government has not grasped the full enormity of what is happening to this industry."