Question Period Note: CLOSURE OF SOME OLYMEL PLANTS

Q1 – What action is the Government of Canada taking regarding the end of operations at some Olymel plants in Quebec? Q2 – What programs are available to help producers? Q3 - Did the decision to close the Olymel plants come as the result of regulatory burden or requirements?

R.1 - The Canadian Food Inspection Agency will continue to provide inspection services and monitor regulated activities as the establishments wind down. The Canadian Food Inspection Agency continues to support the needs of the pork and poultry industry in the various federal establishments in Quebec and Ontario. R.2 - Under Agriculture and Agri-Food Canada’s former Canadian Agricultural Partnership, the federal government approved up to $17.6 M in funding for the pork sector through its Agri-Marketing and Agri-Assurance programs. The programs under the new Sustainable Canadian Agricultural Partnership are currently accepting applications and have approved up to $10.6M in funding for the pork sector.

Producers who may be impacted continue to have access to a suite of Business Risk Management Programs, including Agri-Invest, a producer-government savings account that can be used at any time and for any reason. Agri-Stability is available and is a whole-farm disaster program that provides protection against large declines in farming income. R.3 - No. Olymel has made a business decision to close establishments in Quebec and Ontario. It did not come as the result of regulatory burden or requirements.

The Canadian Food Inspection Agency provides oversight of the meat industry in federal slaughter and processing establishments by conducting inspections to verify industry’s capacity to meet the requirements of the Safe Food for Canadians Act and Regulations. This includes domestic and international food safety requirements and providing export certification services that support trade. The Canadian Food Inspection Agency also assesses establishment compliance with animal health, welfare and traceability requirements.
Since 2022, Olymel has made business decisions to close five processing establishments and one slaughterhouse in Quebec and one processing establishment in Ontario. These establishments were involved in meat processing for pork and some poultry.

On April 19, 2024, Olymel announced the closure of a sixth processing establishment in Quebec. The Saint-Jean-sur-Richelieu establishment will end its activities on July 19, 2024. This plant is processing poultry products. A reorganization within Olymel will make it possible to redeploy production to neighbouring facilities.

Quebec Establishment closures:
• #147C Princeville
• #199 St-Hyacinthe
• #263 Blainville
• #356A Laval
• #147 Vallée Jonction
• #S766 St-Simon
• #39A Saint-Jean-sur-Richelieu

Ontario Establishment closure:
• #632 Paris

AAFC programs:

The Agri-Marketing and Agri-Assurance programs continue to support the sector as a whole, from traceability initiatives to market access and development. Under the Sustainable Canadian Agricultural Partnership (2023-28), the programs have approved six projects for up to $15.8M. These projects aim to tackle trade challenges and market access issues for the Canadian red meat sector, including pork. Another objective is to support producers in minimizing the environmental impact of pork production, while also ensuring economic viability and maintaining public trust. This support is in addition to the up to $17.6M that was provided to the pork sector under the Canadian Agricultural Partnership (2018-23).

Details on Business Risk Management programs:
Business risk management programs are joint Federal-Provincial-Territorial programs that are in place to help producers manage risks that threaten the viability of their farms and provide protection against different types of income and production losses. Producers take responsibility for managing normal risks, while government support is in place to help manage events that exceed producers’ capacity to manage. Hog producers are eligible and encouraged to participate in business risk management programs, the most relevant of which are Agri-Invest and Agri-Stability.
The Agri-Invest program allows producers to save a portion of the proceeds from their annual net sales, with a matching government contribution up to a maximum of $10,000 annually, to help manage smaller income declines. Agri-Invest deposits are accumulated year-over-year and account balances can be used at any time to offset reductions in farm revenue.
The Agri-Stability program is a whole-farm program designed to support producers who have experienced a net income decline of more than 30% for reasons such as production loss, increased costs and market conditions. Producers need to enrol at the beginning of each year to ensure their coverage under the program is in place, with an option for late participation that can be invoked by a province as result of exceptional circumstances.

• Olymel has made a business decision to close establishments in Quebec and Ontario as part of its plans to redevelop and optimize the company’s business. The Government of Canada will continue its efforts to support Canadian pork and poultry producers.

• Agriculture and Agri-Food Canada continues to support the sector as a whole, from traceability initiatives to market access and development, through their Agri-Marketing and Agri-Assurance programs.

• The Canadian Food Inspection Agency is committed to supporting the integrity of Canada's food safety system by delivering inspection services at federally regulated processing and slaughter establishments.