GSP has one of the largest outdoor pig herds in Australia, with 2000 sows enjoying a combination of free range and straw-based eco-shelters.

CMG and Paspaley conducted a mutual review of the operations, resulting in the sale of the livestock and feedstocks to CMG.

In a joint statement CMG chief executive, David Lock, and Paspaley Group chief operating officer, Ken Glasson, said the deal suited both company's ambitions.

"With piggeries no longer a core part of Paspaley's nation-wide long-term agribusiness plans and with GSP pigs already supplied to CMG's Linley Valley Fresh processing works at Wooroloo and CMG looking to secure supply of outdoor raised pigs, the friendly transaction is a win-win for both parties and WA's pork industry," said Mr Lock and Mr Glasson.

Mr Lock said CMG/Linley Valley Fresh had identified increasing domestic and export consumer demand for quality fresh pork produced from breeder and grower pigs raised outdoors in very welfare friendly environments.

Before the CMG purchase of the business operations of GSP's two piggeries at Albany and Narrogin, which jointly run 2000 sows, CMG's piggery operations included two breeder units and seven grow-out units, comprising 70,000 pigs on the ground at any one time.

CMG's state-of-the-art Linley Valley abattoir processes half a million pigs a year, employs 280 people, has export sales of about $50 million a year and supplies about 60 per cent of Australia's fresh pork into Singapore.

Mr Lock and Mr Glasson said the acquisition by CMG of GSP would not affect staff employed at GSP's piggeries, who have been offered employment with CMG, or relationships with farmers supplying pigs to CMG.