Ontario Pork Processing Leaps Ahead

Ontario’s pork processing capacity took a huge leap forward last week when the province announced a $5.3 million investment into a state-of-the-art processing facility at Conestoga Meat Packers in Breslau, just outside Kitchener

by Owen Roberts – Farm Credit Canada (FCC)

Ontario normally processes just over 70 per cent of hog production, with the rest shipped to the United States, Quebec or other provinces.

“This will solidify the future for our Ontario farmer owners and their families”

 

Value-added capacity

But with this announcement, more value-added capacity will stay in the province. Conestoga says the expansion will help boost productivity and increase its pork processing capacity by 86 per cent. The expansion will also boost Conestoga’s product offerings and enhance export revenue. As well, it will create 170 new jobs at Conestoga’s Breslau facility.

“This expansion is welcome news for Ontario producers, who currently ship a many of their market hogs out of province,” says Eric Schwindt, chair of Ontario Pork’s board of directors. “Building increased processing capacity here at home provides a more secure market for farmers, more jobs for the Waterloo-Wellington area and a stronger economy for Ontario.”

Solid future

Conestoga is Ontario’s second largest pork processor, a wholly owned subsidiary of Progressive Pork Producers Co-operative Inc., comprising almost 160 southwestern Ontario hog producers.

“This will solidify the future for our Ontario farmer owners and their families as well as our 900 employees,” says company president Arnold Drung. “The expansion provides the opportunity for future growth both in volume processed as well as people employed.”

Ontario’s 1,300 hog producers marketed 5.4 million hogs in 2016, 4.3 per cent of the total North American hog market. The total value of sales for market hogs in 2016 was $980 million, an increase of 2.9 per cent over the previous year.

Ontario is home to Canada’s largest food processing sector, employing 94,500 people across the province.

Bottom line

Increased processing volume at Conestoga Meat Packers boosts product offerings, opens export opportunities and provides a secure market for farmers.