HyLife processing plant at Neepawa which is helping the company survive the current downturn.

The President of HyLife of La Broquerie says the company is in a better position than most to weather the storm that's facing the hog industry these days. Don Janzen was reacting after Puratone of Niverville announced it has entered creditor protection and Big Sky Farms in Saskatchewan went into receivership.

Janzen says the main culprit behind the downturn in the industry is high feed prices. But he notes HyLife also processes pork at its plant in Neepawa and that's the difference. "HyLife is somewhat more integrated. We bought the processing plant in Neepawa several years ago and also raise our own genetics and these are some things that make our company maybe a little more sustainable during tough times like this."

He explains high feed prices affect HyLife in the same way as other producers. "The feedstuffs, they affect us like they do anyone else. But typically, when hog prices are lower, which they are right now, the plant is able to recoup some of those losses when it sells the meat."

Janzen says the high feed prices are partly due to the drought in the U.S. However he also blames the government-subsidized ethanol industry. "Part of this is also due to the ethanol policy that we have, turning a lot of feedstuffs, grains, into ethanol and that industry being subsidized."

Janzen says there is a rationalization underway throughout the hog industry which will eventually lead to fewer hogs being produced and that will result in higher consumer prices. He expects the change could start to show up in about six months.

Janzen also foresees that over time the industry will again become more stable. "I believe, over a period of time we will have more stability. It just seems like these kinds of things need to happen before we get there. It's too bad, but, that's how our industry works."

He adds HyLife is blessed with a tremendous team. Janzen says, "We've got a great bunch of people in our company, we've got a great management team, we've also become quite innovative in some of these situations and that's definitely helped us to move along."