Good evening, Mr. Chair.
Good evening, ladies and gentlemen of the Standing Committee on Agriculture and Agri-Food.
First of all, on behalf of Quebec hog producers, I would like to express my gratitude for having been invited to participate in this meeting.
The announcement of the imminent closure of the Olymel processing plant in Vallée-Jonction will have an impact on many people. Our hearts go out to those who are directly and indirectly affected by this closure.
Many commentators have spoken out about the reasons for this closure, and they criticize the acquisitions and management of Olymel and the Sollio group. I am not here to do the same, but to explain the repercussions that the closure of the Vallée-Jonction plant will have on the breeders.
Before talking specifically about the closure, I would like to tell you that hog farming in Quebec represents an economic impact of $3.7 billion and 38,000 direct or indirect jobs. We represent 1,600 hog farms and 2,500 producers, 32% of whom are women and 25% of whom are under 40 years of age.
In 2016, Olymel and Sollio acquired the companies Atrahan and La Fernandière. By creating a partnership with the Robitaille Group, they acquired Aliments Lucyporc and Viandes Dunham. Aliments Triomphe and Pinty's, in Ontario, followed in 2018. Finally, in 2020, Olymel integrated F. Ménard and its market share of 15%.
On November 8, 2022, in an article in La Presse, we were reminded that these acquisitions, made between 2015 and 2021, increased Sollio's long-term debt from $220 million to $1 billion. Let's remember in passing that Sollio is also the biggest player in Quebec in terms of inputs, the grains that are used to feed hogs, and a major player in hog farming itself.
I am the president of the Éleveurs de porcs du Québec, and it is in this capacity that the Competition Bureau of Canada contacted me as part of its examination of the merger of Olymel and F. Ménard in 2019. The Competition Bureau did its review of that merger and gave its approval, as it did in 2018 with respect to Pinty's, and in 2016 with respect to Atrahan. It would have been relevant to have people from the Competition Bureau to ask them why they gave their endorsement without any restrictive measures or discussions.
I can confirm that Olymel has been in a perfect storm. Given the geopolitical situation with China, the labour issues that have not yet been resolved, the COVID‑19 pandemic, and so on, who is responsible for what is happening now? I think the responsibility is shared between the government and Olymel. In any case, the situation has certainly affected producers.
Hog farmers are concerned. In recent years, they have paid the price for this situation more often than not. There is a crying lack of liquidity in Quebec's hog businesses, and it is time for both levels of government to help us. Right now, for every hog sold in Quebec, we lose an average of $50. That's close to $225 million in costs to producers in 2022. In 2023, additional losses of $250 million to $300 million are announced. This is a real catastrophe for the liquidity of farms, and it is dangerous for the morale of our producers, who get up every morning to feed Quebec, Canada and the world.
We need workers on the farms and in the slaughterhouses. I employ the same temporary foreign workers every year, but I have to do the same paperwork every year. This is absurd. It seems to me that the Government of Canada should be able to simplify the hiring, retention, but more importantly, the re‑hiring of these foreign workers.
The federal government could help us open up new markets and find new players to invest in the industry and the slaughterhouses.
The federal government could also simplify the Canadian Food Inspection Agency's accreditation process for the creation of new slaughterhouses.
These are some of the ways in which the federal government can help us through this difficult period. In the short term, farms need an injection of cash.
I thank you for your attention, and I will answer your questions as best I can, based on my knowledge.