I bumped into a few pork producers at an agricultural fair the other day. These were acquaintances I had long admired. However, the tone of our meeting was bitter and hostile, especially towards Olymel. Comments were unanimous and reflected a single line of thought: the company doesn’t pay enough, doesn’t slaughter enough, and is insensitive to the despair pig farmers are experiencing. How about La Coop fédérée? You own this… this thing, and you’re letting this happen!

Oh boy!

Trapped in an as yet unprecedented low, the Québec pork production industry is no longer able to come up for air. Farmers, with a few exceptions, are treading water and drawing breath from past achievements. Some can only afford to pay the interest while living the life of a pauper and extending their payments to suppliers. Others are on the verge of throwing in the towel, completely fed up. Meanwhile, dedicated to respecting its commitment and the law, La Financière agricole continues to sink significant amounts of money into the industry as it empties its coffers and turns out its pockets looking for loose change.

I understand these farmers, but I feel I should clarify a few things even if they have already rendered their verdict in the case of Olymel: Guilty!

First, in this current context, Olymel is not making any money on the backs of pig farmers. For the past five years, including this year, the pig slaughtering sector has lost $125 million. An average net loss of $6 for each and every pig slaughtered and processed. This does not build a strong business. These losses were written off in part by gains produced by other parts of the business, such as pork and poultry processing.

Second, Olymel is managed knowledgeably, in spite of appearances, in spite of all the horror stories you heard from that guy who knows a guy who knows a guy! The painful Qualiporc experience – which was supposed that much more successful – and Maple Leaf’s stated withdrawal – who was apparently doing better than us – are proof positive that turning a profit in the Canadian slaughtering industry is no easy task. By asking for major sacrifices on the part of Vallée-Jonction employees and by shutting down two plants in the Montérégie, Olymel’s message is clear: it wants to stay alive in the sector! And that’s a start.

Third, the Canadian dollar, the most guilty of all parties, the party that should be standing before the judge and sent to the gallows, is affecting pig farmers just as much as slaughterhouses, all shares being equal. For the past four years, the farm margin has been amputated by $25 per pig. All thanks to the ‘freakin’ dollar, that’s $100,000 less per year for a 4,000 pig farm. Is this also Olymel’s fault?

The super problem-solver, Mr. Guy Coulombe, will have the delicate task of assessing if the Québec industry can be modernized in an orderly fashion. It’s comforting to know that this man is very well versed in tricky issues: the City of Montréal, the Québec Provincial Police, the forest industry, and specialists (doctors). Each time, he looked for solutions, often proposed dramatic yet necessary measures, and, most of all, avoided giving into the blame game.
Starting today, we should all think about following in his footsteps….