A top pig-breeding firm in Ryedale which has called in the receivers is being put up for sale.

And the receivers are hopeful they can find a buyer for the business, Newsham Hybrid Pigs Ltd, which is based at Amotherby, near Malton.

Newsham decided to call in the receivers earlier this week after it was discovered that the firm, which has an annual turnover of approximately £5 million, was suffering a cashflow crisis.

Keith Hinds, from Leeds-based RSM Robson Rhodes, the firm overseeing the receivership, said his firm was called in on Monday.

He said: "Newsham Hybrid has recently suffered from a disputed customer debt which, on top of the recent pig recession, and a stop on exports caused by the recent swine fever scare, has led to a cashflow crisis.

"The company enjoys a quality reputation and we are hopeful of finding a buyer for the business," he added.

"It specialises in the production of high-quality breeding pigs for the industry from sites in Scotland and North Yorkshire and had a recent turnover of approximately £5 million a year."

The news was branded a "disaster" by Ryedale MP John Greenway, who said the firm, which employs over 40 people, was vital to the pig industry.

Managing director Ian Brisby and sales director Ian Mould were unavailable to comment on the implications for jobs. But no buyer has been found yet.

The Evening Press reported yesterday that news of the firm's problems had come only weeks after claims by Newsham that the firm was enjoying one of its best years overseas because of bumper exports.

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

Mr Greenway said: "We are talking about one of the country's leading pig-breeding operations.

"This is a disaster for an already hard-pressed pig industry. The Government has not grasped the enormity of what is happening to this industry."