Olymel, one of Canada’s biggest pork processors, announced Friday that it will close a hog plant in Vallee-Jonction, Quebec, late this year, laying off 994 people.
North American pork processing plants are facing high costs from inflation and elevated grain prices, Reuters reported. Olymel said in a statement that losses in the fresh pork sector are jeopardizing the entire company’s profitability. Olymel also processes poultry.
Throughout the past year, the company has announced plans to cut its slaughter capacity by 1.5 million hogs annually. Because of this, plant closure has been inevitable.
“The pandemic, labor shortages, increased costs due to inflation, not to mention closure of the Chinese market, all this has had a major impact on the fresh pork market,” Gervais told Reuters.
In 2020, China ceased imports from some slaughter plants due to COVID-19 outbreaks and has not lifted those restrictions for some facilities. In addition, a labor shortage in the region and the plant’s need for upgrades were also factors in closing the plant, the company said.
Quebec is Canada’s biggest hog-producing province. The Vallee-Jonction plant is one of four owned by Olymel that slaughters, cuts and debones hogs in Quebec, Reuters reports.
Final closure is set for Dec. 22, but closure will occur in stages to allow for processing of its remaining hogs and those in the region, the company said.
Earlier this year, Olymel announced the closure of Quebec pork-processing plants in Blainville and Laval, resulting in 170 lost jobs there. Meanwhile, Olymel’s rival, Canadian packer HyLife Foods, said its poised to shut down a Minnesota hog plant if it can’t find a new owner, local media reported.
