Due to the continued financial losses and uncertainty in the hog and pork markets for the foreseeable future, Olymel will reduce its hog production in Western Canada.
A company release from the Humboldt, SK office said approximately 80 staff will receive layoff notices. This decision will result in the closure of five sow units in Alberta (Smoky Sow/Dev, Pinnacle 1, Pinnacle 2, Dynacrest 1 and Dynacrest 2) and one sow unit in Saskatchewan (Kelsey), bringing Olymel’s western sow herd from 57,000 to 40,000 sows in production.
The Humboldt Olymel Human Resources team will work closely with all the affected staff on job placement to fill any vacant positions within Olymel’s western hog sector or outside the company.
“Olymel would like to thank the staff of the affected production units for their contributions and will do everything to ensure a smooth transition,” said the company.
The sow farms’ closures reduce the number of market hogs by about 200,000 annually to Olymel’s Red Deer slaughter plant from company-owned farms.
The company release said the impact will not be felt until 2024 at the earliest and will be subject to independent hog supply availability.
Yanick Gervais, CEO of Olymel, said, “Over the past two years, records show that Olymel has experienced significant losses in fresh pork processing due to limited market access globally. 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.”
Gervais is confident that implementing the changes in Olymel’s Western Canadian integrated hog sector will provide the foundation for ensuring that success.
The company will wind down the barns over the next several months and remain closed until market conditions improve.
“Had an inkling this was coming but did not expect the volume of sows Olymel announced they are shutting down,” said Bill Alford, GM for Hams Marketing Service in Winnipeg, MB.
Olymel’s financial woes have them rationalizing all ends of their operations, drowning in debt. Very similar to Maple Leaf’s restructuring and selling off non-core assets to get their house in order.
Alford visited producers the week before the announcement through Saskatchewan and Alberta to get a feel of producers’/packers’ sentiments. Not hearing of any Saskatchewan-based barns liquidating, but there are a half dozen or so in Alberta.
“I’ve been expecting consolidation in Alberta barns for four or five years. Most of the Colony barns out west are 400 sows or less.”
He said most of these barns, now closing, had one foot out the door.
“Don’t think it necessarily needed to happen, but it’s difficult to make a go of it without significant investment and scaling up,” said Alford. “Lots of Colonies need help with labour, and many men don’t want to work in a barn. Same as the industry as a whole.”

The Hams Marketing GM offered one final comment saying it would not surprise him if a small packer shuts down that currently procures Alberta hogs.
“Britco in Langley or Maple Leaf in Lethbridge, Sunterra in Trochu is the smallest federally inspected plant. But they have more of a niche presence in the market and may be able to differentiate enough to be competitive.”
Another HB Pork WhatsApp group observation is, “This is sad news for us all in AB. These were the barns I came here from the UK to run in 2009. I hope things will turn around, and we can get them up and running again sooner rather than later. Many experienced barn staff and managers will now seek a job or maybe change careers. A bad day for the industry, but probably not the last either.”
The company’s information said Olymel is Canada’s leader in producing, processing and distributing pork and poultry meats. The company’s mission is to feed the world, which it pursues passionately with quality products. Olymel employs over 13,000 people with production and processing facilities in Quebec, Ontario, Alberta, Saskatchewan and New Brunswick, with annual sales of $4.5 billion. The company markets its products mainly under the Olymel, Lafleur, Flamingo, La Fernandière, Pinty’s, Tour Eiffel and F. Ménard brands.
Members of the HB Pork group on WhatsApp reacted with sadness and dismay over losing the production from these hog barns. •
— By Harry Siemens