The Canadian Pork Council applauds the prospect of having two hog industry giants in Manitoba.
J.M. Schneider Inc. revealed this month it wants to spend $125 million to expand its hog processing plant in Winnipeg. Maple Leaf Pork this summer started processing hogs at its new $120 million Brandon plant. Each plant wants to process 90,000 hogs a week in Manitoba.
“It’s a good thing for the industry,” said Bradley Bos of the Canadian Pork Council, an industry watchdog that represents 21,000 producers.
“We’re hoping it will increase the amount of money going into producers’ pockets.”
Read Also
Canola oil transloading facility opens
DP World just opened its new canola oil transload facility at the Port of Vancouver. It can ship one million tonnes of the commodity per year.
Doug Dodds, Schneider’s chief executive officer for Canada, said Dec. 6 he’s confident about the region’s ability to produce more hogs as the company expands its Winnipeg plant. The expansion would take place gradually, he said, eventually creating 1,000 new jobs.
“I’m very buoyant on the western economy and its ability to grow hogs in both Manitoba and Saskatchewan. I see this project as an engine for the western economy and a real confidence builder to grow hogs.”
Marcel Hacault, Manitoba Pork Council chair, viewed the Schneider proposal as encouraging news for the province’s hog industry.
“For me, it just kind of says there are other people who think Manitoba can grow hogs in a sustainable fashion. These packers are now seeing the same potential.”
However, the Schneider’s proposal is not a done deal. The company wants to know what concessions the province and City of Winnipeg might offer.
Two main issues, said Dodds, are taxes and sewer and water costs. Those costs would affect whether the expanded plant could compete with other major processors in Western Canada.
Dodds planned to meet this week with Manitoba premier Gary Doer and with Winnipeg city officials.
He did not say what assurances he would seek from the province and city, but he noted the outcome would affect Schneider’s decision to expand in Winnipeg.
“Until we’re confident that we can compete on a level playing field, we won’t move forward.”
Concessions granted
Maple Leaf received several concessions for locating its processing plant at Brandon.
The company built its new plant on a half section of land bought from the City of Brandon for $1.
The province and city paid for the new $12 million wastewater treatment plant needed to handle effluent from the Maple Leaf facility.
And the province, while under the leadership of former Tory premier Gary Filmon, announced $3 million to help train workers for the plant.
