Authorities raided the operation in the southern tablelands last night, after secret footage of filthy conditions and horrendous killing practices taken over several months was supplied to authorities.
The RSPCA has confirmed that it received a link to the footage yesterday, which allegedly included pigs and piglets being cruelly slaughtered.
The RSPCA and government authorities would only say cruelty and husbandry issues were being investigated.
New South Wales chief veterinary officer Ian Roth says the pictures led to swift action.
"There were certainly [illegal] animal husbandry practices, there was some indication that there was some slaughter practices going on there as well," he said.
Mr Roth says RSPCA and Primary Industries and Food Agency officers took part in the raid yesterday afternoon.
Animal Liberation director Mark Pearson said the footage was evidence of serious animal mistreatment.
"The evidence that was gathered certainly showed abuse of animals, brutal treatment of animals," he said.
"Not treating wounds and injuries and disease and then slaughter of animals with the use of a sledge hammer, and no electrical device was used to stun the animals."
The manager of the piggery told the ABC he has given the names of the workers shown kicking the animals to the authorities.
But he says he never saw them doing the wrong thing in front of him.
Mr Roth said allegations of illegal trade in pigs are also being investigated.
If convicted, those involved face potential fines of up to $100,000, and two years imprisonment for extreme cruelty.