Maple Leaf - Saskatchewan Pork Producers to Explore Pork Processing Options
Published:November 27, 2006
Source :Maple Leaf Foods
Saskatchewan's Pork Industry is exploring its options after Maple Leaf Foods announced it is not prepared to reverse the decision to close its aging Mitchell's Gourmet Foods hog slaughtering plant in Saskatoon or to sell the facility as an ongoing operation.
In October Maple Leaf announced it will close the Saskatoon hog slaughtering plant as it focuses on double shifting its slaughter plant in Brandon. Last week (November 15), as part of Saskatchewan Pork Industry Symposium 2006, the province's pork producers had the opportunity to question Maple Leaf Foods President Michael McCain directly in a public forum.
Maple Leaf Unwilling to Allow Mitchell's Kill Plant to Remain Open
McCain blames Maple Leaf's “life threatening” losses over the past two years on the rising value of the dollar coupled with the fact that Canadian plant utilization is running at 64 percent compared to the mid 80 percent range for plants in the US. He insists for Canada's processing sector to restore its economic viability, it must better balance primary processing capacity to available hog supply and available markets for meat.
“If we concentrate on making sure that the two plants, or possibly three, that are that are announced today are functioning well, those two plants in Brandon and Red Deer, the industry can succeed,” he says.
McCain says Maple Leaf is open to assisting Saskatchewan pork producers in making the transition to delivering to a double shifted Brandon plant but it is highly unlikely the Mitchell's plant will continue to operate. He says he is not prepared to be part of a scenario which not only protects low plant utilization of slaughter capacity but further reduces it.