PROFITS at Ryedale's biggest employer have slumped due to the crisis in the pig meat industry.

Malton Foods, which employs 2,500 people at the Malton Bacon Factory in Norton, suffered a 43 per cent drop in profits over the last year - from £27.2 million to £15.4 million - but is determined to hold its market position.

A spokesman said: "Some people may view these results with concern.

"But we are determined to forge ahead and maintain our position as the largest pig meat producer in the UK and the fifth largest in Europe."

He said that the company was planning a £20 million extension to the Norton site.

The spokesman said the company was suffering as a result of increased pig costs due to shortages in the availability of UK pigs.

The fall in UK pig production was caused by the strength of the pound and higher welfare costs forcing pig farmers out of business.

Matthew Atkin, chairman of the British Pig Industry Support Group, was not surprised at the drop in profits.

"It is an illustration of how bad the problem is," he said.

"It is not just the pig farmers themselves who are suffering, there are serious knock-on consequences for other related industries.

"But simply by still making some profit they are doing a lot better than a lot of pig farmers."