HUMBOLDT, SASKATCHEWAN — Olymel LP, a Canadian poultry and pork processor and distributor, announced on May 26 that it would reduce hog production in Western Canada.

The company said six sow units would close, reducing the western sow herd from 57,000 to 40,000 sows in production. The decision will also cause 80 people to be laid off.  

Olymel said that it would work closely with the affected workers on job placement to fill any vacant positions in its western hog sector or job placement outside the company.

“Over the past two years it is well documented that Olymel has experienced significant losses in the processing of fresh pork as a result of limited market access globally,” said Yanick Gervais, chief executive officer of Olymel. “Now, coupled with stubbornly high feed costs resulting in unprecedented losses in the hog sector, we have little choice but to retract and position ourselves for success in the future when conditions improve. I am confident that the changes being implemented in Olymel’s Western Canadian integrated hog sector will provide the foundation for ensuring that success.”

The company stated that the sow farm closures would result in a net reduction of approximately 200,000 market hogs annually to the Olymel Red Deer slaughter facility from company owned farms. Olymel said the impact would not be felt until 2024 at the earliest and could change the availability of the independent hog supply.

The barns that will be closed will wind down over the next several months and remain closed until market conditions improve.

During April, Olymel announced that it would close a major hog processing plant in Quebec that would lay off 994 employees. And in February, Olymel stated that it would close two other pork processing plants.