Maple Leaf Foods has reached an agreement to purchase four pig farms in central Saskatchewan from a group of companies known as Polar Pork.
The acquisition, according to the company will enhance Maple Leaf Foods' overall pig supply and substantially increase its pig production capacity in the province.
The purchase, which is expected to close in June 2022 subject to satisfaction of closing conditions, includes two sow barns and two nursery barns with the potential to supply approximately 140,000 pigs to Maple Leaf Foods. The security of supply that this strategic acquisition provides to Maple Leaf Foods is directly tied to its plans to continue to grow production at its flagship pork processing plant in Brandon, Manitoba, in order to increase its supply of high-quality meat to key customers in domestic and international markets.
"This purchase offers us ready access to some of the healthiest hogs in Saskatchewan that will allow us to enhance our deliveries of high-quality pork to customers in Canada and Asia," said Michael Detlefsen, president of the Maple Leaf Foods pork complex. "Bringing these barns into Maple Leaf Foods aligns with our strategy to pursue growth both domestically and abroad."
"We are very impressed with the skill the Possberg family and the team at Polar Pork have brought to the operation of these barns," Detlefsen added. "Based on this foundational work, Maple Leaf Foods is well positioned to build on its strengths and high standards to raise healthy pigs in Saskatchewan and produce high quality pork."
In total, Maple Leaf Foods expects to invest up to CA$27 million (US$21.76 million) in the barns over time, inclusive of acquisition costs and capital investments to maximize capacity and add further animal care enrichments.
Maple Leaf Foods announced its plans to acquire these pig farms less than one week after it announced it had acquired the Cericola Farms poultry plant in Schomberg, Ontario, and its associated poultry supply.