No takers for hog processing plant

There were no takers when a deadline for expressions of interest in the Prince Edward Island hog plant came and went Monday (Feb. 25).

While there have been a few tire kickers, Peter Wilson of the Lending Agency said the deadline expired without any solid interest.

We had nothing concrete in regards to someone wanting to buy or take over the plant operation, he said Tuesday (Feb. 26).

The next step is for the government to decide what to do and it definitely is not interested in running the plant.

The Sherwood-based processing plant is now being run by a receiver after the government pulled the plug on any more financial help to Natural Organic Food Group of Quebec and PEI Pork Plus that were operating the plant for the past year.

The facility employs about 100 people and serves about 80 hog producers Islandwide.

There is interest in the plant from the PEI Hog Board, but that group originally got out of the operation more than a year ago because of similar financial difficulties.

The lack of interest comes on the heels of a new federal government program that will provide more cash advance money for the beef and hog industries.

As well, the federal government also announced a new $50-million initiative with the Canadian Pork Council to deliver a sow cull program to restructure the industry in light of market realities.

That means a program to reduce the hog industry in Canada by more than 10 per cent with the funding aimed at helping producers exit the industry.

It certainly will help those producers who want out, said PEI Hog Board chair Anthony Nabuurs. And providing more cash advance money is helpful, but this is not a free gift to farmers. Its all repayable to the government.

Nabuurs said hes disappointed in the lack of new purchaser and said its too early to comment on whether the hog board would attempt to step into that role.

(This article was originally published in The Guardian.)