After closing in 2010, the former XL Beef Plant could soon have a new purpose, after Donald’s Fine Foods announced plans to convert the building into a sow processing plant.
The company — which owns Thunder Creek Pork Plant — said in a news release on May 29 that it plans to undertake a feasibility study to determine the possibility of converting the former beef plant into a slaughterhouse. The study is expected to take six to eight weeks and would consider the financial aspects of the project.
It will also determine the support that producers, the public, and the government will provide to create a technologically advanced sow processing centre that serves Western Canadian hog producers.
“This is an exciting step forward … ,” Mayor Fraser Tolmie told the Express, noting with so much uncertainty in the economy, it’s good news that the possible opening of this plant could create 100 new jobs. “Today is a result of a lot of hard work and lifting on their end.”
This processing plant could solidify Moose Jaw’s position in the future as a leading hub for the hog industry in the province and Western Canada, he added. While he is excited about the next steps, he believes the next steps should be taken slowly.
The additional sow processing ability could be a significant benefit for the Western Canadian pork industry since there is not even a sizeable plant to handle culled sows in Canada, Neil Ketilson, industry relations manager, told the Express. About 80 per cent of producers export their sows — older female pigs — to the eastern United States for processing.
“There are very significant transportation costs associated with that. Sows aren’t a high-value product anyway. So when you think about that lower-valued product and transportation costs, there would be considerable savings having a Western Canadian plant,” he said.
There are roughly 200,000 culled sows in Western Canada that could be available for this plant, he added, but Donald’s Fine Foods realizes it probably wouldn’t receive them all.
The company has worked with the City of Moose Jaw to expand its operations since 2016, Ketilson said. It was within the last six to eight months that Donald’s Fine Foods bought the former beef plant.
This new plant will likely create 100 new jobs, which would be a considerable investment in the community, he continued. The company initially estimated it could cost $20 million to renovate the building. However, that was before a team of engineers went inside recently to determine whether significant repairs were needed or specific equipment had to be purchased.
While the former owners of the beef plant shut down the building with proper care, if the engineers determine the entire electrical system and wiring needs to be replaced, for example, that could increase costs, Ketilson pointed out.
This processing plant will also benefit the hog industry, he continued. Canadian producers could see some profit for their sows due to reduced transport costs, the ability to deliver direct to a plant, and the ability to alleviate risks of border closures.
“Everyone kind of wins in this thing,” Ketilson added. “… Some smaller abattoirs are doing it, but this won’t interfere with their operations.”
The announcement is the first step toward a strategic investment to meet the demand for domestic sow processing, CEO Allan Leung said in the news release. The company wants to create more opportunities for pork producers and support the forecasted need for domestic sow processing capacity.
“(The) announcement demonstrates our commitment to Moose Jaw and reinforces our confidence in Saskatchewan as a place to do business,” he added. “This investment would build a world-class facility with modern equipment and processes and develop high-quality training and job opportunities for the local workforce in a safe and inclusive environment.”
