Pork giant, Manitoba firm join forces

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This article was published 24/07/2023 (1036 days ago), so information in it may no longer be current.

WINKLER — An international pork industry giant and a Winkler-based company are joining forces — and spending millions — to increase production in Manitoba.

On Monday, Winkler Meats and United States-based Johnsonville Group, known for its Johnsonville sausages, announced a $52.8-million expansion to Winkler Meats’ facility. They’re splitting the cost, with government support.

The expansion comes during an increasingly difficult time for international livestock trade, industry experts say.

“We’re extremely excited about (the expansion), not only to be part of it, but to bring an extremely more efficient supply chain to the industry,” said Jeff Senebald, president of Winkler Meats.

The company’s farmer sausage — and bacon, and other meat products — regularly decorate shelves in chain grocery stores such as Sobeys and Real Canadian Superstore.

Since its humble beginnings in Winkler 59 years ago, Winkler Meats has expanded across western Canada and into Ontario.

Senebald wouldn’t share the number of hogs the business handles annually, citing company privacy. However, the majority of western Canada-raised pigs travel to the United States for processing, Manitoba Agriculture Minister Derek Johnson said in a speech Monday.

Approximately 160,000 to 190,000 western Canadian sows cross into the United States through Manitoba annually, a government spokesperson wrote in an email. This includes live animals from Manitoba, Saskatchewan and Alberta.

But international trade has become “a bit more sticky” since the pandemic, said Cam Dahl, Manitoba Pork’s general manager.

“I think, coming out of COVID, we’re seeing a lot more protectionism in the world. There are just more and more issues happening at the border,” he said.

Dahl highlighted California’s Proposition 12, which took effect last year. It prohibits the purchase of pork when the product comes from breeding pigs and offspring confined during the production cycle in spaces that don’t meet Californian regulations.

International disease spread and heightened border-specific health and safety measures also amplify the importance of producing pork in Manitoba, Dahl said.

“This helps provide a little bit of insurance,” he stated.

The new expansion will more than double Winkler Meats’ 30,000 square foot space, according to Senebald. He anticipates the company’s production to increase sevenfold.

It’s undetermined whether all the meat leaving its doors will be packaged as Winkler Meats, or if some will carry the Johnsonville brand.

“I think it’s a little bit of both,” said Michael Stayer-Suprick, CEO of Johnsonville Holdings. “(We’ll) continue to go forward and understand the market and what brands fit in different places.”

Regardless, Johnsonville will take a portion of the processed pork.

It sells its products in more than 40 different countries, including Canada and the United States. It oversees about $1.6 billion in turnover and has eight manufacturing plants, according to Stayer-Suprick.

“From a partnership standpoint — raw material (on the) pork side, it’s going to be really important for us to work (with the Progressive Group, which owns Winkler Meats),” he said.

Many pigs call Manitoba home, Senebald chimed in, adding, “location-wise, what we’re doing really makes sense.”

Another selling point for Johnsonville was the local government’s willingness to collaborate, Stayer-Suprick said.

“We’ve done a lot of deals and a lot of partnerships throughout the world,” he said during a speech earlier Monday. “This is probably the easiest one we’ve ever done.”

The provincial and federal governments are collectively giving $2.38 million for new equipment. Further, the province has approved more than $7.8 million in loan financing and tax rebates.

“It’s not government’s job to create business. It’s government’s job to create the environment for businesses to be attracted here and continue to be successful,” Johnson said after a news conference.

A government news release projects the Winkler Meats expansion to quintuple the company’s gross domestic product contribution, reaching $23 million a year.

Manitoba’s hog sector contributes more than $2 billion annually to the provincial economy, according to Manitoba Pork.

Winkler Meats’ new jobs — an expected 108 when the expansion finishes — “closes the loop” of Manitoba’s provincial nominee program for immigration, Johnson said.

Winkler Meats plans to hire immigrants if it can’t get local workers. Around 20,000 full-time Manitoba jobs are tied to the hog sector; in recent years, the industry has bemoaned labour shortages.

Senebald is looking to the Philippines for staff. There’s a connection: Johnsonville has a manufacturing plant in the Asian country.

“The fact that they’re going to be able to source a lot of the employees that they need without tapping into an already very tight labour market here in southern Manitoba, that was extremely encouraging,” said Winkler Mayor Henry Siemens.

The pork plant upgrade has accelerated Winkler’s water and wastewater system expansions, Siemens said. Winkler Meats — which will use a significant portion of each system, though hard numbers weren’t available by print deadline — will help pay for system upgrades on a pro rata basis, Siemens said.

“I will argue that this will become the sausage centre of excellence for Canada,” Johnson exclaimed.

Construction on Winkler Meats’ site is slated to begin next month. Senebald anticipates construction to end in mid-2025.

He also envisions the expansion leading to Winkler Meats products in eastern Canada, the United States and, potentially, other continents.

Winkler Meats bought Pioneer Meat in 2019 and did a smaller expansion on its Winkler site — 14,000 sq. ft. — in 2021.

gabrielle.piche@winnipegfreepress.com