Closure of major Quebec pork plant is a blow for P.E.I. hog producers

Apr 18, 2023

The Olymel plant in Vallée-Jonction will gradually shut down over the next few months, the company announced today. (Sébastien Vachon/Radio-Canada)
Source: CBC

Most Island hogs are shipped to plants in Quebec, including the one slated for closure
Several pigs gather in a pen.

With no federally regulated processing plants in Atlantic Canada, P.E.I. pork producers send nearly all their animals to plants in Quebec. (CBC)
The group that represents pork producers on Prince Edward Island says the closure of a large slaughterhouse and packing plant in Quebec will hurt the industry on the Island.

On Friday, Olymel announced plans to downsize before fully closing its plant in Vallée-Jonction, near Quebec City, by the end of this year.

“This is a very difficult day for the pork sector in Atlantic Canada,” said Denise Cassidy, executive director of the P.E.I. Hog Commodity Marketing Board.

“This will cause an oversupply situation for all the producers in Atlantic Canada.”

With no federally regulated hog processor in the Atlantic region, P.E.I.’s 12 licensed hog producers ship nearly all their animals to several plants in Quebec.

Yanik Gervais, Olymel’s CEO and president, said the decision to close one of the company’s four Quebec plants was “inevitable” given current market conditions.

“The pandemic, the labour shortage, the rise of costs related to inflation, not to mention the closure of the Chinese market, have really affected the fresh pork industry,’ said Gervais.

Despite the challenges in the industry, Cassidy said she remains “hopeful” Island producers will find new buyers.

“We’ll reach out to all partners in our industry, and work with the government to see if we can find alternative buyers for our hogs, and for the affected producers of the day,” said Cassidy.

“This does highlight the need for processing capacity in the region for sure.”

The Olymel plant slated for closure currently employees nearly 1,000 workers. The CEO said they’ll be laid off in phases over the next eight months.

The plant will completely shut down in December.

Source : Swine Web

Video: Season 7, Episode 1: Managing Risk and Seeing Opportunities in U.S. Pork Production

Today’s episode features three guests discussing the similarities and differences between pork production in the United States and Brazil, along with strategies for managing risk in today’s industry while recognizing and acting on opportunities. First, Dr. Anne Caroline de Lara, executive manager of live pig production at Seara Alimentos, a JBS company in Brazil, is joined by Dr. Matthew Turner, head of operations for JBS Live Pork. Together, they discuss how labor, climate and ventilation challenges vary between Brazil and the United States, while underscoring their shared commitment to raising healthy pigs. They also point to lessons producers in both countries can take from one another’s systems and on-farm experiences. Then, Brady Reicks, risk manager at Reicks View Farms, shares his perspective on risk management, drawing from his background in markets and his transition into farming. He discusses how protecting margins varies by operation and offers practical approaches producers can use to make marketing and business decisions with greater confidence rather than hesitation.

Both conversations were recorded at recent industry events focused on swine livability, including the International Conference on Pig Livability and Iowa Swine Day.