Canadian pork producer Big Sky Farms,which ran into financial troubles due to high feed costs,has entered into receivership and may be put up for sale.
Feed costs in Canada have soared due to severe drought in the US.
The company said that feed costs have jumped from C$75($76.95)per hog to C$120($123.12),which is a record high.
In addition,producers are shipping the animals to the market early,in order to offset the higher feed costs,which has lowered the hog prices,further affecting the hog industry.
Big Sky president said Casey Smit said that due to these two factors,the company has been losing about C$40($41.04)to C$50($51.30)on every hog that is being sent to the market.
The company is currently collaborating with suppliers to ensure that feed is delivered to the animals.
According to Sask Pork,which represents the pork industry in Saskatchewan,the company would continue to function now,with no plans to liquidate its pig inventory or cut jobs and the receiver would provide financing to ensure there is enough feed for the pigs,reported Reuters.
Established in 1995,Big Sky is a leading producer and processor of pork in Canada,producing 1 million pigs per year,and the company accounts for about 40%of total hog production in Saskatchewan province.
