November 7, 2006

Canadian province looking at options for hog slaughtering facility

The Saskatchewan Pork Development Board is evaluating its options as Maple Leaf, the province's primary hog slaughtering plant announced its intention to exit the province.

In a reversal of plans, Maple Leaf Foods, a Canadian pork processor changed plans to upgrade its plant in Saskatoon and instead announced its closure. The move was part of a major restructuring plan.

Sask Pork general manager Neil Ketilson notes, in 2004 before Maple Leaf's decision intended to replace the plant, Sask Pork had conducted a study of the potential for pork processing in the province and created a business plan for producers to tie up with major companies who would market the pork. 

When Maple Leaf announced the plan in '05 to build a new plant, those plans were put on hold. However, now that the company is closing the plant down, the city would have to go back to its original plan, Ketilson said.

There are still many opportunities in the province and economic advantages not found in other parts of the world, Ketilson noted.

Ketilson said possible producer options could include buying and taking over the existing  facility, building a new facility, partnering with Maple on a new facility or attracting a new player into the province's meat processing industry.

These options would be explored within five to six months, Ketilson said.