Intercontinental Packers will become a top supplier to the world’s largest pork buying country, vice-president Fred Mitchell
has announced.
The Saskatoon meat packing company sealed a deal last week with Tai Fang Foods, the Taiwanese firm that supplies Japan with most of its pork.
The 10-year exclusive supply agreement, four months in the making, takes effect immediately.
It should put to rest concerns from the critics of Saskatchewan’s plan to triple hog production in the next few years, Mitchell said.
“We’ve got just about an insatiable appetite (in Japan) and a supply agreement for the next 10 years with the largest oriental distributor of pork in the world.
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“Give us two million, give us three million and we’ll kill everything in sight because we have a market for it.”
The agreement could nearly double Intercon’s annual sales, Mitchell said, from $300 million killing 700,000 hogs a year now to $550 million potentially.
Production schedule
Actual sales will depend on how fast the province can increase its pork production, he said.
Tai Fang Foods is willing to be patient with Saskatchewan’s production in order to secure a long-term supply, Mitchell said.
An outbreak of hoof and mouth disease in Taiwan and environmental restrictions on expansion of hog operations in some European exporting countries puts Canada in an ideal position to capture growing Asian markets.
“They want to get in with us now on the bottom floor.”
Mitchell confirmed an agreement to bring partners into the family-held company is in the final stage, but would not give details.
