Pork processor ceases operation

Tuesday, June 3, 2014

by SUSAN MANN

Ontario Pork vice chair Oliver Haan says he remains optimistic that Great Lakes Specialty Meats of Canada Inc. is not headed for bankruptcy similar to its sister plant, Quality Meat Packers Ltd. of Toronto.

Haan made the comments in response to the decision by Great Lakes Specialty Meats in Mitchell to halt receiving and processing hogs this week. Both Great Lakes Specialty Meats and the now bankrupt Quality Meat Packers are owned by the same person, David Schwartz. But details on the Great Lakes Specialty Meats situation are sketchy, and the halt on pig processing will last longer than one week because a union representative says workers were told not to report for work for two weeks.

Haan says his understanding is Great Lakes Specialty Meats and Quality Meat Packers were run as two separate companies. “There’s a clear relationship there,” he notes, adding he doesn’t know how the business is structured.

The Great Lakes Specialty Meats plant is relatively new “and we know there’s good equipment in there and we know they were doing a bang-up job,” he says. “I wouldn’t want to paint what’s going on at Great Lakes as the same as what was going on at the (Quality Meat Packers) Toronto plant. Those are two very different facilities.”

Haan adds he’s “hopeful as a producer we can continue to process Ontario-raised pigs here in Ontario.” The pork industry accounts for one in eight jobs in Ontario and has total farm gate sales of $5.6 billion annually. “I think it’s critical that we keep this plant.”

In a prepared emailed statement, Ontario Pork consumer and marketing manager Mary Jane Quinn says they were told on Monday Great Lakes Specialty Meats was not processing hogs for the week. “We don’t know at this point what, if any, actions have been taken by Great Lakes.”

In addition, Ontario Pork doesn’t know all the details “or the impact this will have on the Ontario hog market,” she says.

But producers and Ontario Pork were paid for all hog shipments to Great Lakes Specialty Meats, she notes. During the past few weeks, Great Lakes Specialty Meats was processing about 5,000 hogs a week at its plant.

Haan says “we’re really not sure” if Great Lakes Specialty Meats will seek protection from its creditors and eventually declare bankruptcy. “There’s been no announcements and we have not been notified in any way. All we know is that no pigs have gone in there and continue not to go in there.”

Representatives with Great Lakes Specialty Meats couldn’t be reached for comment.

Officials with the union representing the workers at the plant are also looking for answers and the Ontario agriculture ministry is trying to get more information. Tim Deelstra, United Food and Commercial Workers Union representative for Local 175 and 633, says their workers were told Friday (May 30) “work was cancelled for this week and some of them have been more or less told that it’s going to be at least two weeks.” The workers, members of UFCW Local 175, aren’t being paid for the two weeks they’re off.

Deelstra says he’s not going to speculate on what’s happening with the company but they’re investigating “and we’re going to do whatever we can for our membership.” He notes that they’ve “had no communications from the management about their intentions.”

The Mitchell plant has 130 unionized workers and some employees who aren’t part of the union but Deelstra didn’t know the total number of employees. UFCW organized the plant a year and a half ago.

Deelstra says they’re not aware if the company has applied for creditor protection or has filed for bankruptcy.

Abigail Dancey, manager of issues, media and editorial services for the ministries of agriculture and rural affairs, says by email “this is a difficult time for Great Lakes Specialty Meats and its employees. The ministry is following up with the company to gather more information.”

Quinn says Ontario Pork is working to ensure the smooth flow of marketing hogs in the province. Haan says Ontario Pork’s marketing division has been finding a processing place for the pigs that were earmarked for the Great Lakes plant. “I suspect those homes would include Quebec and perhaps the United States,” he notes. “I understand that Quebec has been looking for some pigs recently and I suspect that would be the first call to keep them here in Canada. I understand there’s some interest from some parties in the United States for some of these Canadian hogs.”

Ontario Pork marketing division manager Patrick O’Neil says by email any farmer who wasn’t using their services is still welcome to contact them to examine their options for selling their hogs. “Our services are voluntary so they are welcome to opt in again.”

Arnold Drung, president of Conestoga Meat Packers Ltd., which processes hogs for its co-op members, says he’s not sure what Great Lakes Specialty Meats was doing or “what the actual status is.” But the situation with Quality Meat Packers “was a far bigger deal because Mitchell was processing” fewer pigs.

But “it does put more hogs out into the market again,” he adds, noting “the Ontario processors are now pretty much full so it means that they’ve got to find alternate markets.”

Ken McEwan, production economist and University of Guelph’s Ridgetown campus director, says the news about Great Lakes Specialty Meats halting pig processing is disappointing but “I suppose not surprising given the history of what has happened to Quality Meats.”

Quality Meat Packers and a related company, Toronto Abattoirs, ceased operations in April and were declared bankrupt in May. BF