Investor could be last chance for P.E.I. hog plant

Faced with delivering on a short-term government loan, P.E.I.'s only hog processing plant is pinning its hopes on a new investor.

Earlier this week, Provincial Treasurer Wes Sheridan revealed that the government has loaned $200,000 to Natural Organic Food Group Inc., formerly known as Garden Province Meats. The plant got its new owners about a year ago. They changed its focus to organic and what it calls "natural" pork production. But the plant continues to struggle.

"It is a very, very tough time right now for the hog industry. Prices have dipped below a dollar a kilo," said Sheridan.

"We have just put out a little more money, $200,000 to the plant to try to get them over the next 30-day hump."

Sheridan said if the plant doesn't have stable financing in 30 days, the government will have a difficult decision to make.

But Natural Organic Food Group told CBC News Wednesday that it received an offer from a securities company for financing the same day the government offered its loan. However, the company was not ready to discuss details of the offer.

Some hog producers in the provinceare excited about the news.

"We certainly put a lot of faith in this group when we sold them the plant a year ago," said Anthony Nabuurs, chair of the P.E.I. Hog Marketing Board.

"We hope the process will keep moving forward. We also know it's a hard time to make something like this work. So, we're behind them and we hope for the best."

But others say it may be too late. Three quarters of P.E.I.'s hog farmers have gone out of business in the last six years, leaving fewer than 100. There are worriesthose farmers leftmay not be enough to supply a viable plant.