The Quebec pork board and packers have reached agreement on a new pricing formula.
The old deal had packers paying less than producers’ costs. The difference was covered by the provincial government’s income stabilization program.
Olymel, which buys 80 per cent of the province’s hogs, has been losing money, recently announced closure of its large packing plant at Vallée-Jonction and called for another 20 per cent cut in hog production in June.
The deal reached among the pork board, the packers and the province includes a buy-out program. To participate, hog farmers must pledge to remain out of hog production for five years.
Ontario has been impacted by the Quebec situation, losing sales to Olymel and forcing it to find other buyers as far away as Manitoba and deeper south into the United States.
