Maple Leaf Foods’ purchase of four Saskatchewan pig barns paves the way for new finishing capacity in the province.
Polar Pork general manager Daryl Possberg said last week’s announcement that Maple Leaf will buy two sow barns and two nursery barns operated by Polar Pork shows a commitment to strengthen the province’s industry.
Polar Pork ships 12 to 13 pound isoweans to the United States. The plan is to move these to nurseries in Saskatchewan where they will grow to between 50 and 60 lb. and then to Manitoba for finishing.
“By the time the deal is closed, all the finishing barns will be lined up to take these pigs,” Possberg said.
The next phase is to work with Hutterite colonies and other farmers to build new finishing barns to add more than 50,000 spaces.
The deal is expected to close in June 2022 and includes sow facilities in Perdue and Dinsmore, and nurseries near Dinsmore and Wakaw. They will supply about 140,000 pigs to Maple Leaf’s processing plant in Brandon.
The purchase price was not disclosed but Maple Leaf said it would invest up to $27 million “over time, inclusive of acquisition costs and capital investments to maximize capacity and add further animal care enrichments.”
Maple Leaf described the purchase as a strategic acquisition to ensure supply as it increases production at Brandon.
“This purchase offers us ready access to some of the healthiest hogs in Saskatchewan that will allow us to enhance our deliveries of high-quality pork to customers in Canada and Asia,” said Michael Detlefsen, president of Maple Leaf Foods Pork Complex.
Production excellence is important to Maple Leaf and must be maintained, said Possberg. No jobs are expected to be affected.
Polar Park will continue to operate its other facilities.
“We would have been operating at 17,500 sows and we’ll still be at 12,000,” Possberg said of how the sale affects the larger company.
Finishing more hogs in Saskatchewan offers opportunities for more value-added in the feed grain sector as well as other spin-offs.
“This is a good move” Possberg said. “This is Maple Leaf putting its stamp down and saying we want to do value-added in Saskatchewan.”
Source: www.producer.com