Community Pork Ventures Inc. says it will reveal its its long-term plans for restructuring to shareholders in November.
The company recently extended its agreement with lenders until Dec. 15, which allowed it to delay paying some shareholders and provided more time for financial reviews.
John Hicke, who became president and chief executive officer with Community Pork in June, said he hopes to create a plan that will help the company through the hog industry’s four-year cycle.
“We want to make sure the structure we develop doesn’t just get us through the current period but allows us to weather downturns in the industry generally.”
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The company is expected to review all operations and find ways to reduce costs and overhead.
“Our concept is to continue to produce at 250,000 in the least cost manner,” said Hicke, who could not rule out reducing barn or staff size.
Community Pork, which owns and operates twelve 600-sow and four 1,200-sow farrow-to finish barns in Saskatchewan and Manitoba, annually produces 250,000 pigs.
Hicke said a difficult year for hog markets last year caused financial difficulty for the company.
He also cited insufficient slaughter capacity for the number of pigs produced in Western Canada as a problem.
Community Pork supplies all of its animals to Olymel in Red Deer. Other positives for the company include the availability of lower priced feed grain and stronger prices for hogs this fall.
Community Pork is a holding company comprising 16 individual barns, that are managed by the Quadra Group.
