A Lethbridge, Alta. hog marketer is hoping to turn bad news for some pig farmers into good news for both the company and its clients.
The new broker, Paragon Livestock, sprung up following the collapse of Landmark Pork Ltd. last month. Landmark owner Jerry Beusekom initially confirmed his company’s collapse could cost producer clients up to $700,000.
But Paragon president Peter Van Hierden said that number is closer to $1 million.
The new company, owned by Meadowlark Feeds Group, is using those losses to lure clients.
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The company says it will turn 40 percent of its profits over to farmers who weren’t paid for their hogs when Landmark went belly up.
“Instead of spending a lot of money on promotion, we’re saying we’re in this together,” Van Hierden said.
Paragon will target niche and specialty markets rather than compete with larger pork processors.
That’s where Landmark went wrong, Van Hierden said.
“They couldn’t compete with the bigger companies and lost their shirt in the hog war.”
Landmark paid some producers far above the premium, he said, up to 86 percent live weight compared to the 80 percent other companies were offering.
“If you figure out how much over the premium some were paid, some are still ahead (despite the bankruptcy)” he said.
About 50 producers lost out when Landmark collapsed, he said. Half of those were Hutterite colonies and the rest independent producers.
A Picture Butte farmer who is out approximately $50,000 is calling the disaster a writeoff.
The producer, who declined to give his name, is talking to a lawyer about taking the matter to court.
He sold all of his pigs through Landmark, and said he’ll need to see something on paper before he accepts Paragon’s promise to help recoup his losses.
“Once burnt, twice shy,” he said. “I trusted before and I never got my money.”
Van Hierden said there is no connection between Landmark and Paragon or its parent company Meadowlark Feeds.
Paragon hired Beusekom, former Landmark manager, to work with the new company.
Paragon is marketing hogs for about 25 percent of farmers who were selling through Landmark.
