Scrapping pork plant could cost producers millions

16-10-2006 | |

The abandoning of building a new pork plant in the Canadian province of Saskatchewan could hit pig producers due to a huge increase in transportation costs.

This prediction can be read in a report in the Regina, Saskatchewan Leader-Post. SPI Marketing Group, selling pigs to Maple Leaf and other processors, says that shipping pigs to Maple Leaf’s facility in Brandon, Manitoba will cost about US $2.50 to $3.50 extra.

Producers might even have to be forced to ship pigs to the US – despite the fact that selling profitably in the US will be difficult due to a strong Canadian dollar.
Maple Leaf Foods, decided last week to cancel the planned US $97 million pork processing plant in Saskatoon, Saskatchewan. The announced closing of its existing plant in the city on the other hand will be going on.
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