10 The Business of Canadian Hog Farming Better Pork | October 2024 MAPLE LEAF SPLIT Maple Leaf Foods announced in July that it would spin off its pork business into a separate independent company. The as-of-yet unnamed business (referred to in the meantime simply as ‘the new Pork Company’ in Maple Leaf’s press materials) is expected to be launched properly in 2025. Dennis Organ, who had previously been president of the ‘Pork Complex’ for Maple Leaf Foods and will serve as CEO for the new enterprise, explains that the decision to split the company was intended to take advantage of their unique business model. He also states that the new Pork Company will be a world-leading organization producing sustainable meat “the right way” to unlock its own significant growth potential. “We’ve been thinking about this transaction for a while,” says Organ. “With the unprecedented challenges that have faced the pork industry, and market conditions starting to normalize, now is the time to unleash the pork business. It is about creating a win-win situation for both companies – building on the natural synergies where each can benefit from the other, while also allowing each to pursue their individual growth strategies going forward.” Industry reaction Reaction to the news from the pork sector has largely been positive, says Cam Dahl, general manager for Manitoba Pork. “There is a view that this will increase the ability of the new pork organization to really concentrate on production and efficiencies at the plant in Brandon,” says Dahl, referring to Maple Leaf Foods’ 650,000-squarefoot processing facility. “That is going to be good for producers in Manitoba, as well as the Canadian pork industry as a whole. So I would say, overall, there has been a positive response to the announcement.” In Manitoba, Maple Leaf runs both its own sites, such as the aforementioned processing facility and other farm operations and also purchases from individual pork producers in the province. Those partnerships with individual producers look as though they will continue with little disruption. “Maple Leaf has been quite communicative on this,” says Dahl, when asked whether Maple Leaf had been in touch with the producers they work with in the province. “I know they have held meetings with producers, and that’s good to hear.” “Our pork producers are important partners in our growth plans going forward and the new Pork Company will continue to maintain and build valued relationships,” added Organ. While Maple Leaf is a national (and international) brand, their operations have been limited in certain areas. JHVEPhoto - stock.adobe.com ‘WE’VE BEEN THINKING ABOUT THIS FOR A WHILE.’ MAPLE LEAF TO SEPARATE PORK BUSINESS BY MATT JONES
RkJQdWJsaXNoZXIy NTc0MDI3