The provincial government has offered a loan of one million dollars to Garden Province Meats (GPM) for the installation of new value-added equipment. The announcement was made today by Agriculture, Fisheries and Aquaculture Minister Kevin MacAdam. The new equipment will enable GPM to increase revenues through expanded markets and the development of higher value products.
“This new expansion will help support hog producers in this province through improved markets and higher prices, along with protecting the jobs of those employed at Garden Province Meats,” said Mr. MacAdam. “Garden Province Meats made a commitment to develop value-added products, and I am please that it is now prepared to proceed with this long-overdue expansion.”
Mr. MacAdam said that the terms of the loan include the submission of a business plan acceptable to the provincial government by Garden Province Meats, a financial contribution of 25 percent of the amount of the loan, and the establishment of a minimum price to producers. The Prince Edward Island Hog Commodity Marketing Board has agreed to the new pricing formula, which is based on the Chicago Mercantile Exchange price minus two cents per kilogram. The provincial government has also agreed to continue additional payments of two cents per kilogram for hogs which meet the eligibility requirements of the Swine Quality Improvement Program.
Mr. MacAdam said that the expansion of Garden Province Meats is critical to the future of the hog industry in Prince Edward Island. “Hog producers in this province need access to markets which can provide them increased stability and profits, and that requires the development of new value-added products that will result in higher returns,” he said. “I am pleased that Garden Province Meats and its parent company, Maple Leaf Foods, are fulfilling their commitment to operate the plant and to invest in the future of the hog industry in this province.”
The loan is for a term of seven years, and the company must remain in full operation during the term of the loan. The land and buildings will be pledged as security. The loan proceeds must be disbursed not later than February 1 of next year.