High feed costs to blame, says Saskatchewan producer
HUMBOLDT, SASK. – Canada’s second largest hog producer, Big Sky Farms, has entered into receivership. The Humboldt, Sask.-based producer says the drought in the U.S., and resulting higher feed costs, have taken their toll on the operation.
The company is the largest pork producer in the province, with 40 per cent of the total market. Big Sky supplies to companies such as Maple Leaf and Olymel.
According to a CBC report, Big Sky president Casey Smit says the company is losing $40 to $50 per hog. The report also quotes Kevin Brennan, a senior vice-president at Ernst and Young, as saying that the receiver plans to sell the operation as a unit.
With operations in Saskatchewan and Manitoba, Big Sky produces more than one million hogs annually.