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Axed Plant Could Have Turned Profit This Summer

by 5m Editor
7 February 2008, at 12:58pm

PRINCE EDWARD ISLAND - Investment in niche market omega-3 and organic hog products could have saved the beleaguered Charlottetown pork plant. Reports suggest that a $9 million cash-injection could have saved the business. .

A confidential report obtained by CBC News, says The Natural Organic Food Group pig processing plant could have become consistently profitable later this year - had the neccessary infusion of funds been found.

The business went into receivership last month when the provincial government called in a $1.5-million loan. However, before the province pulled the plug on the NOFG plant, it hired PricewaterhouseCoopers to analyse the company's financial position. The findings estimated the company to need at least CAN$9 million to make a go in the market. However, it could not guarantee success and cited several external factors that could jeopardize the plant's projections.

The report was presented to cabinet in December, but a few days later Premier Robert Ghiz withdrew support from the plant.

NOFG management believed with the needed support it could go from being consistently in the red to almost $4-million profits within three years.

The plant, now owned by the provincial government, is being operated by a receiver. The province has said it is not interested in running the plant in the long term and is seeking a buyer. Closing plant would affect Maritime and Quebec hog farmers as most of the regions hogs are processed at the Charlottetown plant.

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Further Reading

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5m Editor