Canadian hog producer Big Sky Farms has entered receivership due to high animal feed prices caused by the ongoing U.S. drought, according to reports. An outside party will control the company until it can restructure its debt or be sold; Big Sky Farms has said it has no plans to lay off staff or liquidate its pig inventory.
The company has been losing C$40 (US$41.01) to C$50 (US$51.27) on every hog it sends to market, said Chief Executive Casey Smit, leaving the company with few options. Big Sky Farms filed for bankruptcy protection in 2009 when feed costs increased to similar levels and restructured its business.
