February 23, 2021

Olymel Canada to export swine to the US after COVID-19 outbreak shuts down plant

Canada's Olymel LP said it will export swine to the United States to clear a backlog after it temporarily shut down its Red Deer, Alberta plant following a COVID-19 outbreak among workers, Reuters reported.

The plant was closed on February 17 and a force majeure (unforeseeable circumstances that prevent contract fulfilment) was declared. According to Alberta's health department, 426 COVID-19 infections have been linked to the plant, including one death.

Richard Vigneault, spokesman for Olymel, said the backlog amounts to 80,000-90,000 swine, and the company aims to clear it four to five weeks after the plant reopens, but no exact timing was given for its reopening. He said Olymel has begun exporting swine raised in its own farms to meatpackers in the US.

Darcy Fitzgerald, executive director of Alberta Pork farmer group, said costs and swine will add up if the plant shut down lasts for more than two weeks. The group has urged Ottawa to offset extra feed and transport costs.

Marie-Claude Bibeau, Canada's Agriculture Minister, said the federal government is reviewing the situation and will provide funding if required.

Vigneault said the 1,850 workers at the plant have been laid off. The plant has a 45,000 swine weekly slaughtering capacity.

Janet Riley, vice president for competitor Maple Leaf Foods, said it has boosted production at its Brandon, Manitoba plant to ease the backlog.

Canada is the third biggest pork exporter in the world.

Altin Kalo, agricultural economist for Steiner Consulting, said pork processors in the US will be able to handle the influx of Canadian swine if they are ready for slaughter over several weeks.

- Reuters