Marcel Hacault cut to the chase last week when asked whether Maple Leaf Pork will be able to get enough hogs for its new slaughter plant at Brandon, Man.
“The success of that Maple Leaf plant will depend on how competitive they are,” Hacault said. “If the dollars aren’t there, they won’t get any hogs – and they’d better get that message.”
Maple Leaf plans to start slaughtering hogs at its $120 million plant in September. Hacault, chair of the Manitoba Pork Council, said the company should not rely on the patriotism of pork producers for its hog supply.
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Maple Leaf needs to let producers know what kind of hogs they desire, said Hacault, and whether a premium will be paid for that quality.
It’s hoped the Canadian-based company will pay more than offered south of the border.
Pat Jones, Maple Leaf Pork president, said there is a gap between the price received by Manitoba pork producers and producers in the United States.
Financial incentive
Manitoba hogs shipped to the U.S. have been discounted by an amount equivalent to the freight it takes to move them south.
“Our promise to growers here was we’d eliminate most or all of that gap,” Jones said.
“They’ll have a plant in southern Manitoba that can pay the same price, and they won’t have to incur freight to get (their animals) to market.”
Maple Leaf plans to draw hogs from Manitoba, Saskatchewan and Alberta. It hopes to secure at least 85 percent of those hogs by contracting directly with producers.
The company might also buy from the U.S.
Jones said his American competitors have an unfair advantage now because they can buy Canadian hogs for slaughter in the States. But because of the threat of pseudorabies, Canadian processors cannot buy hogs from the U.S. for slaughter in Canada.
Protocols are being developed for the import of hogs from pseudorabies-free states, Jones said. He believes those protocols could be in place as early as this fall. That will allow Maple Leaf to buy American hogs for its Brandon plant when the need arises.
“Obviously, that’s not something we want to do. The only winner in that scenario is the trucker.”
There will be three major processing plants vying for hogs in Manitoba once Maple Leaf plant starts production.
Between Maple Leaf, Schneiders and Springhill Farms, demand for hogs could go as high as 4.5 million head, said Janet Honey, manager of market analysis and statistics for Manitoba Agriculture. That figure doesn’t include volume required for a second shift at Maple Leaf.
