Manitoba hog producers’ dreams of bringing a major new packer to the province died when Hytek announced it was taking over an existing plant in Neepawa, Man.
At least for the foreseeable future.
“On the one hand it was good news because it makes sure we have that second packer here that’s committed long term and is very strong,” said Manitoba Pork Council chair Karl Kynoch.
“At the same time, it’s a disappointment to us that it isn’t the increase in shackle space that we wanted.”
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Hytek, a Labroquerie, Man., hog barn company, is taking over independently owned Springhill Farms of Neepawa and will modestly increase its weekly slaughter.
But while that slight increase is good news, the takeover also signals the end of Hytek’s bid to build a major new slaughter plant in Winnipeg.
Both Olymel of Quebec and Big Sky Farms of Saskatchewan had already abandoned the joint project, but Hytek had clung to its hopes of having a slaughter plant approved for Winnipeg.
“Hytek was the driver behind that project,” said Perry Mohr, general manager of the Manitoba Pork Marketing Co-operative.
The increase in slaughter at Neepawa is small compared to what the proposed Winnipeg plant would have offered the Manitoba hog industry.
“The Olywest plant would have increased slaughter by two and a quarter million hogs a year,” said Kynoch.
With Hytek downshifting its plan, no one is expecting any new attempt to build a major packer any time soon.
Not only was Hytek’s project faced with opposition by some Winnipeggers and weak support from the provincial government, but now the prairie hog industry doesn’t seem like a good investment.
“It would take a significant change in a large number of factors to entice another packer to Manitoba,” said Mohr.
“The economics of producing pigs in Manitoba is poor, and the economics of processing pigs in Manitoba may be worse.”
While the dreams of building a new packer in Manitoba may be dead for now, Kynoch said farmers view this situation as temporary.
With millions of Manitoba weanlings and slaughter hogs being hauled to the United States every year, there’s a long-term incentive to build up slaughter and feeding capacity in Canada.
“Just because (the Hytek takeover of Springhill) has happened, doesn’t mean we’ll stop trying to attract a packer,” said Kynoch.
“We’re not going to back off or give up on that.”
