Agriculture, Fisheries and Aquaculture Minister Jim Bagnall said today that the Prince Edward Island Hog Commodity Marketing Board is currently reviewing a proposal for the transfer of ownership of Garden Province Meats. A call for expression of interest to take over the plant resulted in the receipt of four proposals, and one is now under active consideration.
“The proposal which is being discussed is of major interest because it represents a significant departure from the current model under which the hog plant is operating,” said Mr. Bagnall. “It proposes the development of new, high value products which would help to differentiate the Prince Edward Island hog industry in the marketplace.”
Mr. Bagnall said the proposal includes the processing of organic and natural pork products as well as other value-added products which would provide higher returns and more stability to producers.
“There is a growing recognition that the hog industry needs to make major changes if it is to survive and prosper,” said the Minister. “We have been saying for some time now that the current commodity model of production and processing does not provide adequate returns to producers and does not reflect the potential for the hog industry in this province to build on its competitive advantages.”
Mr. Bagnall said there are limits to the amount of government support that can be provided to the industry, and producers are facing serious financial difficulties. “The bottom line is that the industry is not now sustainable and fundamental changes are needed if it is to continue to operate in this province,” he said. “That includes not only the way we are processing hogs, but also the way in which they are being produced and marketed.”
Mr. Bagnall said that the future operations of the hog plant are critical to the survival of the hog industry in the province. “We need an experienced owner and operator who can bring a new approach to processing and provide access to higher value markets,” he said. “This will help to lead the industry in new directions and provide exciting new opportunities for producers.”
The Minister said the success of the plant also depends on a certain volume of production, and he is encouraging all hog producers in the province to work together to ensure an adequate supply of hogs.
He said a decision on the future of the hog plant will be made in the near future, following further deliberations with the industry.