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24 THE RURAL VOICE
indications that U.S. producers some
are increasing slaughter of sows and
reducing their farrowing intentions.
For PPP members, having
processing space won't be a problem
for the foreseeable future. Conestoga
is currently in the midst of an
expansion to handle 12,000 hogs per
week, which is precisely the level of
commitment received from the co-
op's members, according to PPP's
press release. The plans for the
original London location had been
scaled down last year because there
weren't enough hogs committed by
members to keep it busy. There's
also potential for further expansion of
the plant, Hunsberger said.
An added benefit of the
Conestoga purchase is that an
experienced management
team is committed to staying in place
for the next five years. Security goes
both ways and Hunsberger says one
of the reasons Conestoga partners
Scott, Dave and Jim Wells and
Dominic Cerqua were interested in
talking to PPP was because of the
guarantee of enough hogs to keep the
expanded plant running at capacity.
The changing focus from a major
kill and chill plant to a smaller, full-
service packer will see PPP move,
through Conestoga, into value-added
fresh pork. "Conestoga's successful
marketing of value-added fresh pork
was right in line with PPP's
objectives," said Sandy Lyle,
marketing committee chairman in the
co-op's press release. "Conestoga is
already doing many of the things that
we always planned to do. This deal
moves our marketing plan ahead by
three years."
With the Conestoga purchase, PPP
also buys established markets, Henry
Peters, PPP chair told members at an
April 25 meeting at which "an
overwhelming majority" of shipping
members of the co-op approved the
purchase offer. Conestoga has
developed a broad range of
customers from large supermarket
chains to further processors like
Piller's Sausages and Delicatessens
of Waterloo and Schneider's
Corporation of Kitchener.
While some members of the co-op
may want security of market access,
others want the direct feedback from
their own packing plant on how their
pigs stack up to consumer demand,
Hunsberger said.