Meat processor Olymel has confirmed the closure of its Vallée-Jonction pig slaughterhouse in Beauce. Nearly 1,000 workers are affected by the decision.
Olymel, which is majority owned by the Sollio cooperative, had to reduce its slaughter capacity due to unfavorable conditions in the pork market, particularly on export markets.
“Over the past 12 months, we have announced two slaughter reductions totaling 1.5 million hogs annually. The closure of one of the four slaughterhouses in Quebec was inevitable,” explained its president and CEO Yanick Gervais at a press conference held at Olymel’s head office in Saint-Hyacinthe.
“After analysis, Olymel made the difficult decision to close the Vallée-Jonction plant. I express my support for our employees, their families, our suppliers, Beauce pork producers, and the entire regional community,” insisted Mr. Gervais.
Olymel had spoken Friday morning to the regional elected officials, mayor, prefect and deputy, to offer them its collaboration in order to minimize the regional repercussions while recognizing that these will be significant.
The agri-food company justified the decision to close its Beauceron factory for two reasons. Outdated, the plant requires investments of 40 million in the very short term to be able to continue to operate profitably. In addition, its configuration complicates its modernization.
The employer also faces greater recruitment challenges in Beauce than elsewhere because of the regional economic vitality. The factory has lost nearly 230 workers over the past 16 months following voluntary departures. “It’s almost impossible to recruit locally, for lack of candidates,” Gervais replied to a question from reporters.
The slaughterhouse that will be closed had a theoretical capacity of 35,000 pigs per week, but due to vacancies, 28,000 animals are slaughtered per week.
The closure affects 994 workers, including 911 union members and 83 non-union members. A travel program to other Olymel establishments has been set up. The process will take eight months. The evening shift will cease on September 15, affecting 443 employees. The day shift is expected to continue until December 22.
The hourly wage in the cutting room is nearly $27 an hour at the top of the scale. About 60 workers were hired before 1980, including 11 before 1975.
Among the employees of Vallée-Jonction who lose their livelihood, there are approximately 125 temporary foreign workers. Discussions are underway with federal and provincial authorities to open their work permits to other Olymel establishments.
Olymel missed up to 3,000 workers in the midst of the pandemic. With the planned arrival at Olymel of a contingent of more than 1,400 temporary foreign workers, the problem has become less glaring. “In our existing establishments, there are 500 to 700 jobs that could be filled,” says Gervais.
Olymel management did not want to comment on the effects of the closure on pig farmers. An announcement on the renewal of the go-to-market plan is expected next week.
“She’s been signed since this morning and we’re going to make an announcement next week,” Pork Breeders president David Duval said in an interview with La Presse. I won’t talk about it any more, because the producers, I want to announce it to them and I don’t want them to learn about it in the newspapers like the CSN union. It’s very emotional these days. »
He said he was disappointed with Olymel’s decision. “With all the effort that producers have put in over the past few years, whether it’s in terms of well-being, water waste, greenhouse gases […] to come up with an announcement like this , it always hurts the heart because we feel that we did it all for nothing. »
The Union of Agricultural Producers (UPA), the union of which Pork Breeders is a member, reacted to the closure by asking Quebec to carry out a “neutral and independent diagnosis on the situation in the pork industry”.
“Today’s announcement stands in stark contrast to the efforts, investments and sacrifices of ranchers. They deserve better, period,” said UPA President Martin Caron.
The latter believes that it is time for the Government of Quebec and its Ministry of Agriculture, Fisheries and Food (MAPAQ) “to broaden their involvement in the file”.
“The Ministry needs to look at what the options are, and what is the game plan for pork production in Quebec. Because at some point, by dint of not getting involved, we let things go. Pork production is a flagship of Quebec,” he added.
“No effort will be spared to ensure the sustainability of the sector in the medium and long term. That’s for sure. Studies, we have done, but if we have to do others, we will do others, “replied during a telephone interview the Minister of Agriculture, Fisheries and Food. , André Lamontagne. “We’ve got a lot of smart people over the last few months who have been investing day after day after day after day to figure out what’s going on. »
The latter stressed that he was going to meet all the players in the pork industry next week to take stock of the future.
Olymel exports to 65 countries. Its main markets are Japan and Korea for value-added pieces such as tenderloin. China remains an important market for by-products such as offal. For two years, competition has been strong, particularly from emerging countries, which has had the effect of limiting price increases in pork, contrary to what we have seen for other meats, said the CEO of ‘Olymel. Costs, on the other hand, rise, compressing margins to the point that the processor was producing at a loss.