Following restructuring and radical reduction in operating costs, Canadian Cooperative, Olymel LB posted a profit of $101 million for Fiscal 2023 compared to a loss of $329 million in FY2022.
According to Pascal Houle, CEO of the holding company, Sollio Cooperative Group, by closing unproductive plants, reducing headcount and adjusting production to balance sales contributed to the turnaround.
Houle commented, “The pork industry is in a major crisis around the world.” He added, “We all want a strong, dynamic pork sector that is a goal of the robust recovery plan we implemented.”
The improved profitability attained by Olymel is a model for companies producing livestock that are obliged to trim expenses and unprofitable facilities in accordance with market realities. It is apparent that the major broiler integrators are evaluating efficiency and productivity as evidenced by Tyson Foods closing broiler plants in Missouri and Arkansas and a large hog plant in Iowa. Smithfield Foods has closed sow operations and plants. Companies are consolidating production to achieve cost efficiency.