Pork and poultry processor Olymel has tightened the links in the hog supply chain for its Alberta pork plant by buying supplier Pinnacle Farms.
Olymel, the meat packing arm of Quebec’s La Coop federee, announced Friday it has bought Standard, Alta.-based Pinnacle, including all its hog inventory, for an undisclosed sum.
The company’s 30 employees will also join Olymel, the company said. “Their experience will be invaluable to Olymel, which receives a boost to its hog production operations in Western Canada,” CEO Rejean Nadeau said in a release.
“This addition in our pork sector should support the target Olymel has set for 2020: to produce more than 1.5 million hogs annually in Western Canada in order to meet the growing demand from its customers.”
The Pinnacle assets in the deal include high-health sow barns, nursery barns and finishing barns and a quarantine barn. Olymel said it will also lease finishing farms near Medicine Hat.
“Pinnacle has been supplying finishing hogs to Olymel for more than four years, so our two companies have had time to get to know one another,” Pinnacle director Ron Arnason said.
The deal, he said, “opens the door to the company’s further development, and will enable it to serve new markets.”
According to Pinnacle’s business partner, Verus Swine Management Services of Calgary, Pinnacle’s high-health capacity includes two 3,000-head sow barns, 20,000 nursery spaces and 10,500 finishing spaces, built in 2000.
Olymel said the deal will its available sow count in Western Canada to 52,000 and will also allow it to deliver 100,000 more hogs per year to its processing plant at Red Deer.
Those pigs, Olymel said, were previously sold as isoweans and feeders to other buyers in Alberta and the U.S.
To turn the additional pigs into market hogs, Olymel will also need 30,000 contract finishing spaces through “new or existing capacity” in Alberta. — AGCanada.com Network