Olymel shutters hog production facilities in Alberta and Saskatchewan

Olymel is reducing its hog production in Western Canada with the closure of five sow farms in Alberta and one in Saskatchewan.

The decision will result in 80 layoffs. 

The closure of the farms in Alberta (Smoky Sow/Dev, Pinnacle 1, Pinnacle 2, Dynacrest 1 and Dynacrest 2) and Saskatchewan (Kelsey) will bring Olymel's western sow herd from 57,000 to 40,000 in production. 

It will also result in a net reduction of approximately 200,000 market hogs annually to Olymel's Red Deer slaughter plant from company owned farms. 

The impact will not be felt until 2024 at the earliest and will be subject to independent hog supply availability, the company said.

"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. Now coupled with stubbornly high feed costs resulting in unprecedent 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,” CEO Yanick Gervais said in a statement. 

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