Olymel, one of Canada's biggest pork processors, announced Friday that it will close a hog plant in Vallee-Jonction, Quebec, late this year, laying off 994 people.
North American pork processing plants are facing high costs from inflation and elevated grain prices, Reuters reported. Olymel said in a statement that losses in the fresh pork sector are jeopardizing the entire company's profitability. Olymel also processes poultry.
Throughout the past year, the company has announced plans to cut its slaughter capacity by 1.5 million hogs annually. Because of this, plant closure has been inevitable.
"The pandemic, labor shortages, increased costs due to inflation, not to mention closure of the Chinese market, all this has had a major impact on the fresh pork market," Gervais told Reuters.
In 2020, China ceased imports from some slaughter plants due to COVID-19 outbreaks and has not lifted those restrictions for some facilities. In addition, a labor shortage in the region and the plant's need for upgrades were also factors in closing the plant, the company said. Click here to see more...