Choosing to farm pigs outdoors was a deliberate decision by the Sterne family of Hawarden, North Canterbury from the outset.

Less expected was how quickly their operation has expanded to become New Zealand's largest free-farmed pig enterprise.

Despite the pig industry attracting negative media attention at times, Steve and Josie Sterne and daughter Holly were happy to open their farm to the public last Friday following their winning of Lincoln University Foundation's South Island Farmer of the Year competition. A record 400 people took up the invitation to visit, even if the biosecurity and disease risk meant none could actually set foot on the property, only view it from the window of a bus. The 400 included schoolchildren from Kaikoura, Hurunui and Rangiora district and high schools and a group of farmers from France.

Outdoor pigs reared in their forestry and paddock blocks at the Sterne family’s Patoa farm operation in Hawarden, Canterbury.

Pig farming had received its share of negative publicity so it was a privilege to win the competition, said Steve Sterne.

"The public need to know that there are good things happening in agriculture."

After an earlier career in marketing and strategic planning in the steel industry, Steve turned his attention to agriculture, deciding on pig farming as it could be grown from a small base incrementally.

Outdoor pigs reared in their forestry and paddock blocks at the Sterne family’s Patoa farm operation in Hawarden, Canterbury.

Following an extensive search, the Sternes bought Patoa Farms in 1998 in conjunction with Jens and Anne Ravn, a partnership which continued until 2013. Surrounded by stands of pine trees, Patoa Farms is on terraced land bordered by the south bank of the Hurunui River and a Ngai Tahu forestry block, meeting their extensive checklist for a property with light free draining soil, isolated from other pig farms and neighbours.

"We had 10 criteria that we wanted for land for setting up a pig farm, including soil type, and we bought the farm on the same day we first saw it.

"Even 20 years ago we could see that public sentiment was drifting towards outdoor farming of pigs. It is not the most efficient way to farm pigs and it is debatable whether there are significant animal welfare advantages from farming pigs outdoors, but the consumer sees it as important.

"Initially we thought it would be a mixed farm, with pigs, beef and crops, but we always wanted a 1000-sow operation to be competitive on the world stage. More pig meat is produced and eaten in the world than any other meat. So to be competitive you have to be good at your game.

"Whether as a business or individual it is a good idea to ask yourself: 'what is my one sustainable strategic advantage'? Not many businesses are able to develop a sustainable strategic advantage, but every successful business has one and sometimes you can carve these advantages out of very little," said Sterne.

Patoa Farms has three main customers: Progressive Enterprises (Countdown supermarkets), Kaiapoi smallgoods manufacturer Hellers and a wholesaler. "We wanted big accounts, simple accounts and volume in those relationships. We also wanted the ability to get a lot closer to the consumer."

To achieve the tight specifications required by these buyers, Patoa Farms invested in computerised weigh scales from North America.

"A scale in each of 30 finisher sheds on the farm meant $1 million of investment just to be able to pick pigs out at the right weight for the right customer. This enables us to pick out, say, 500 pigs a week within a 60kg to 75kg weight range for a buyer.

"One thing that has baffled me is that anyone else in the country could have done the same thing. Now it would be extremely difficult to replicate what we have at Patoa as the regulatory hurdles have became so much higher over the years.

"I always enjoy it when people say it can't be done. For me that means if I can find a solution, I won't have much competition," said Sterne.

Patoa Farms is believed to be the only pig farm in the world to combine computerised weigh scales with deep litter straw bedding.

"We have installed scales within the shed, whereas overseas, pigs are taken out of the shed to be weighed."

When pigs are nearing killable weights they are trained to walk over scales to access food. Once target weights are met they are automatically drafted into a separate pen.

Patoa Farms employs 43 staff and sought people who had enthusiasm and drive and would make a contribution to the business.

"Robots and machines will do a specific job, but people are the ones that come up with ideas and drive your business forward."

Setbacks included being earlier dumped by Hellers for supplying pigs that were too fat with the wrong shaped eye muscle. This meant Patoa Farms revisiting its genetic programme. The relationship has since been rekindled, with Patoa Farms sole supplier of Hellers' Kiwi bacon brand.

Hellers' chief executive John McWhirter said since it acquired the Kiwi bacon brand last year it had done considerable market research before its relaunch in December.

"Consumers want to know that the pork and bacon they are buying was raised on a farm that they could trust in terms of animal welfare and food safety. They also want an affordable price and consistent quality."

Hellers wanted to use only New Zealand-raised pigs, while Patoa wanted a stable market to sell its pigs to. Kiwi bacon is now rebranded as 100 per cent free-farmed and SPCA approved.

Holly Sterne said price was not the only thing dictating profit. "Getting pigs into the market at the right weight is also important."

Steve Sterne said Patoa's aim was to maximise throughput on farm. "We don't alter production to suit the market. My view is if we have more production on- farm than sales then I have to get busy and find markets."

About 50 per cent of pork consumed in New Zealand was imported, and local pork producers had no ability to compete on price, he said.

"That is not the fault of the farmer. Good farmers can convert feed into pork at the same price as elsewhere. The reason we are not competitive is our feed costs almost twice as much as much as our North American counterparts and feed represents 60 per cent of a pig farmers' total costs. It's not that our industry is uncompetitive, our feed is uncompetitive."