May 31, 2023

Olymel to cut 80 jobs as swine production eases in western Canada

Canadian pork producer Olymel has announced plans to reduce its swine production in western Canada, resulting in the elimination of approximately 80 jobs, Just-Food reported.

The company will be closing five sow units in Alberta and one in Saskatchewan, leading to a decrease in Olymel's western sow herd from 57,000 to 40,000.

The closures will take place over the next few months and the facilities will remain shuttered until market conditions improve, according to a company statement.

The reduction in sow farms will have an impact on Olymel's Red Deer slaughter plant, reducing the annual supply of market swine by approximately 200,000 from company-owned farms. The full impact is not expected to be felt until 2024 and will depend on the availability of independent swine supply.

Yanick Gervais, CEO of Olymel, acknowledged the challenges faced by the company in recent years, including limited market access for fresh pork and high feed costs resulting in significant losses in the hog sector.

Gervais said there is a need to position the company for success in the future by implementing changes in the western Canadian integrated swine sector. He expressed confidence that these measures would lay the foundation for future success once conditions improve.

Olymel has offered alternative positions within the company or job placements to all affected staff members. This announcement follows a series of recent closures and job cuts as part of Olymel's reorganization plan.

Last month, the company closed a pork facility in Vallée-Jonction, Quebec, resulting in the loss of 994 jobs. In February, two plants in Blainville and Laval were closed, leading to the elimination of 170 positions.

-      Just-Food