Alberta hog producers are breathing a sigh of relief after pork processor Olymel reversed a decision to reduce the price it pays producers by $12 a hog when their contracts came up for renewal.
Instead, the Quebec company will offer pork producers three cents below the Iowa-Minnesota price, which works out to four cents less than their previous contract, not 12 cents less.
More than 300 pork producers gathered in Red Deer at the end of August to protest Olymel’s original price reduction announced July 7. Rally organizer John Middel said he thinks the rally helped pressure Olymel to reverse its decision. It also raised awareness of the economic problems facing hog producers among politicians and the public.
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The Western Hog Exchange, a voluntary hog marketing agency in Alberta, plans to hold a series of meetings with hog producers to explain the plan details. Middel said he expects most producers who are staying in the business to agree to the new contract.
“They either take three cents now or 12 cents when their contract ends and that will be significantly worse,” said Middel.
In a newsletter to producers, Western Hog Exchange chair Jim Smith said: “The new agreement will instill stability in our industry and will allow more time to continue working on a proposal for a value-added partnership between Olymel and the producers of Alberta, so we can develop a strong secure hog industry into the future.”
Earlier the Alberta government rejected a proposal by hog producers for a government loan to buy part of Olymel’s Red Deer packing plant and develop more value-added pork products.
