Twelve weeks after it reopened, Moose Jaw Pork Packers Ltd. has closed its doors again.
The beleaguered slaughter and processing facility in Moose Jaw, Sask., suspended hog deliveries and shut down its kill floor Aug. 31 in what was described as a suspension of operations.
Company officials wouldn’t talk to reporters before the Western Producer’s press deadline on Sept. 1, but others involved in the industry said margins were too tight to keep operating.
All packers were squeezed when hog prices remained higher than expected through the summer.
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However, one source said the problems in Moose Jaw were bigger than that, including a shaky relationship between workers and outgoing chief executive officer Don Fancourt.
As well, the board of directors had resigned several days before the plant was closed.
Saskatchewan agriculture minister Mark Wartman said company officials told him they planned to manage through this tough time, but he was concerned about whether the shutdown was temporary or permanent.
“Certainly (I am) worried about whether or not we’ll make it through this difficult time,” he said. “We want to see success both for the people of the province and the people of Moose Jaw. We think that it’s very important to have processors in the province and certainly alternate markets. You don’t want to be locked into just one market so hopefully they’ll make it through this.”
The government has $2.3 million in equity in the plant. It also provided $1.5 million to help the plant reopen after more than a year of court-supervised restructuring negotiations.
The plant, then known as Worldwide Pork, closed in May 2005 when producers stopped deliveries because they weren’t being paid. In July 2005 it was granted protection under the Companies’ Creditors Arrangement Act and in January 2006 the creditors voted in favour of a new business structure that saw creditors, employees, the province and private investors take ownership.
Last week’s closure was expected to result in employee layoffs although none had occurred before the September long weekend. About 100 people were working at the plant, compared to about 270 before the first closure.
As well, the company once again owes producers money. One producer said it has promised to find the money. He suggested there are options to keep the plant operating, including reopening as a custom kill facility.
