Quebec-headquartered Olymel and Big Sky Farms, Humboldt, have withdrawn from the C$200 million (US$174 million) pork processing plant.
The withdrawal of two of Canada’s largest pork processors has been largely due, according to a Canadian Press report, to Manitoba’s ban on the construction of new live pig facilities. The plant was planned to be constructed in Winnipeg, Manitoba.
Big Sky vice president corporate development, Phil Dykstra, said: “Regrettably we have lost confidence in the Manitoba government’s commitment to this project and therefore have withdrawn from further participation in this project. With the moratorium our concern is around the timing.â€
According to Olymel president, Rejean Nadeau, Olymel has decided to “devote all our energy to the restructuring currently underway in Quebec, which has been hit by a serious crisis in the hog industry,” adding that Olymel has embarked on a consolidation programme with its Quebec partners in order to find lasting solutions to the problems.
â€œIt is a decision that creates uncertainty about future hog supplies and usage levels of the future OlyWest plant,â€ he said, also saying that Manitoba’s decision to impose a moratorium on pork production is a cause for concern.