One of Canada’s largest pork producers, Olymel, has announced further closure of its facilities.
In a recent news release, the company stated that continued financial losses and uncertainty in hog and pork markets have led to decreasing production in Western Canada.
Approximately 80 staff will be affected and have already been notified of their layoff. Ultimately, the decision will result in the closure of a total of five sow units in Alberta: Smoky Sow/Dev, Pinnacle 1, Pinnacle 2, Dynacrest 1, and Dynacrest 2, and one sow unit in Saskatchewan.
As a result of the closures, Olymel’s sow herd will drop from 57,000 head to 40,000 sows in production.
The closure of the sow farms will also result in a net reduction of approximately 200,000 market hogs annually to Olymel’s Red Deer slaughter plant from company-owned farms. However, the impact will not be felt until 2024 at the earliest and will be subject to independent hog supply availability.
The barns will be wound down over the next several months and remain closed until market conditions improve.
“Over the past two years, it is well documented that Olymel has experienced significant losses in the processing of fresh pork as a result of limited market access globally,” stated Yanick Gervais, CEO of Olymel. “Now coupled with stubbornly high feed costs resulting in unprecedented losses in the hog sector, we have little choice but to retract and position ourselves for success in the future when conditions improve. I am confident that the changes being implemented in Olymel’s Western Canadian integrated hog sector will provide the foundation for ensuring that success.”
According to the release, the Humboldt Olymel Human Resources team will work closely with affected staff on job placement and to fill any vacant positions within or outside the company.
“Olymel would like to thank the staff of the affected production units for their contributions and will do everything to ensure a smooth transition,” wrote the company in their release.
