December 14, 2006

Two of three investing companies pull out of Canadian pork plant

Two of Canada's largest pork processors -- Quebec-headquartered Olymel and Big Sky Farms of Humboldt, Saskatchewan - have withdrawn from a C$200-million (US$172.8 million) pork processing plant, due to the government's ban on new facilities.

The withdraw of the two firms meant Olymel and Big Sky meant Manitoba-headquartered Hytek Ltd. is now alone in its bid to build the plant. The project is opposed by 1, by city residents and environmental activists.

Hytek said it is determined to complete the Clean Environment Commission process and build the pork processing facility, Hytek vice-president Guy Beaudry said.

The change of plans was due in a large part to Manitoba's ban on the construction of new live pig facilities. The proposed plant - dubbed OlyWest - was supposed to be built in Winnipeg, Manitoba.

Big Sky vice president corporate development Phil Dykstra said the company is disappointed with the Manitoba government and have decided to re-focus its priorities in Saskatchewan.

Olymel president Rejean Nadeau said his company has now decided to devote their energy to the restructuring currently underway in Quebec, which has been hit by a serious crisis in the hog industry.

lymel has a consolidation programme with its Quebec partners and has set a goal to introduce a second shift at one of its plants.

Manitoba's moratorium is a cause for concern as it creates uncertainty about future hog supplies