Calling it a bold new step, Maple Leaf Foods last week said it will bring a version of its Signature Pork program to Western Canada’s hog producers.
The program, already used in Ontario, is aimed at improving hog quality and the competitiveness of the Canadian hog industry.
The program includes contracts and bonuses, and support services dealing with feed and nutrition, genetics, marketing and risk management.
There is also a component, called Signature Medallion, that lets producers opt for a fixed price that reflects their changing costs of production as well as a fair return on their equity.
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“This is a bold new step and one I think the industry was asking for,” said Gary Stott, Maple Leaf Pork’s western procurement director.
“We pride ourselves on being leaders and we’re going to continue that role.”
The company dubbed the program a “win-win” for western pork producers and Maple Leaf.
It gives producers technical support, financial rewards for quality, and another way to manage risk, Stott said. Meanwhile, Maple Leaf expects to gain from a more stable supply of consistent, high-quality hogs for its processing plant at Brandon, Man.
“It’s going to be a two-way street,” said Stott. “There’s a lot that we can learn from the producers too.”
The launch of the Signature Pork program in Western Canada is a key first step in the company’s vertical co-ordination strategy, said Michael Detlefsen, a vice-president with Maple Leaf Foods.
That strategy, according to Detlefsen, is meant to build more value into pork while driving out unnecessary costs.
The strategy is based on building partnerships with producers, he said.
There are three levels in the Signature Pork program from which producers can choose.
Maple Leaf already has begun meeting with producers to explain what is available in each of the three levels.
“Anything that provides stability in the market I think is welcome,” said Marcel Hacault, Manitoba Pork Council chair.
Jerome Warick, general manager of Sask Pork, reserved judgment until he receives more details about the program. He said Sask Pork’s main focus now is the Canadian Quality Assurance program, which is meant to enhance the quality of Canadian pork.
