Hog plant sale may slow interprovincial trade

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Published: January 25, 2001

Manitoba hog processors imported 850,000 hogs last year from producers in Saskatchewan and Alberta.

But growth in interprovincial hog trade might slow with the Jan. 15 announcement that Maple Leaf Foods will buy Winnipeg processing plants from Schneider Corp.

The move will result in lower slaughter capacity than had been anticipated, now that Schneider’s plans to expand in Winnipeg are off.

Maple Leaf intends to phase out the Winnipeg slaughter plant as it increases slaughter numbers at its Brandon plant.

This means less competition for hogs produced in eastern Saskatchewan, American economist Ron Plain said.

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Analyst Kevin Grier said the Mitchell’s Gourmet Foods plant in Saskatoon will now be the industry’s “wild card.” Schneider owns 54 percent of the plant.

Schneider chief executive officer Doug Dodds said the company has no further plans for expanding the Saskatoon plant at this time.

It will finish a $50 million expansion at the plant in the next few months.

Industry analyst Darryl Hutchings said Schneider may now try to buy Premium Brands in Red Deer, formerly known as Fletcher’s Fine Foods.

The Alberta processor has long talked about finding a buyer or joint-venture partner, he said.

Dodds declined to comment on the possibility, saying only, “we have a focus on Western Canada. We are investing in Western Canada.”

Maple Leaf would come under more scrutiny from the federal Competition Bureau if it wanted to buy Premium Brands, Hutchings said.

The bureau is also reviewing the purchase of Schneider’s Winnipeg operations.

Michael McCain, chief executive officer of Maple Leaf, deflected questions about Premium Brands.

“That’s not a subject for today,” he told reporters.

Hutchings said two smaller federally inspected plants in Manitoba will be most affected by the consolidation in that province.

Springhill Farms in Neepawa, Man., and Best Brand Meats Ltd. of Winnipeg focused on selling hog carcasses to Schneider, he said.

“They may be in big trouble. They stand every chance of going out of business.”

McCain said Maple Leaf will honor all contracts held by Schneider, including those with the smaller processors, producers and employees.

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Roberta Rampton

Western Producer

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