Pig producers owed millions as processor seeks creditor protection

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To follow the flow of capital a forensic audit on the books for over more than five years is needed before any statement can be made.

Did I see a key players on the list that worked hard to reduce the power of our marketing board

Yup, you did.

they made their bed so let them lie in it. the board had better not go to bat for these producers cause they were very clear they wanted to go on their own without the board. now they need to reap the harvest of what they have sown.

As nobody knows yet and there are lots of roomers each one of us speculating on what really happened. Did quality get crushed by its suppliers????
Was it to much to be on its own without the board???? I remember producers attacking the board for not standing up for the producer. This is a two sided industry. Each link in the chain has to be lubricated and make money . It's a few years ago where I had a deep conversation with one of the processors, where he said at the end of the week one dollar a hog is a lot of money, either you make it or loose it. This may have happened to Quality Meat. If that is the situation I'm not happy. time will tell.

I find it extremely interesting how Jim Gracie asserts that Quality Meat Packers is a PRIVATE company and that effectively Quality's business dealings are not discussed with the public.

Those are very strong words for a company that is now in a very public financial crisis, and will very likely seek price concessions from producers and quite possibly a government bailout. We're not even talking about the creditors that won't see payment, or if they do only pennies on the dollar.

Producers and creditors should resist any demands for concessions. Quality should be allowed to fail, its assets sold and what every money is left distributed to creditors. The industry can adjust without Quality. Others will invest if the business fundamentals are right.

But fellow producers be warned! This can happen again, and it can happen to you and me next time. It's time to bring back the Board's powers and demand letters of credit from packers! What were we every thinking when we allowed a few to destroy the Board, for their own selfish interests!

Without more public information it's had for taxpayers who helped fund the company, to understand what to think and whether further government help is wise.

Why should any

Editor: Comment will be published if resubmitted and signed.

So I would imagine that they could not keep up with the rising cost of hydro !

This type of loss is covered by AgriStability, but given the current frothy hog prices, it's unlikely the current margin trigger would ever be met.

Stephen Thompson, Clinton ON

Well Hello Gov. . Is any body home !
It is obvious that the pork buy out program has finally came to roost . You can't expect slaughter capacity to be enough to allow profits when you pay farmers not to produce . If any dollars are giving to these two companies it should come form the personal bank accounts of the MP's and MPP's who supported the buy out program . It should not come at the expense of the tax payer .

It is unfortunate for anyone to go out of business in any fashion. The biggest issues I have is who is the financial master MIND behind this crap shoot. Really you didn't see this coming months possibly a year ago. No company gets this in debt this quick and suddenly folds after 83 years in business.
The land in Toronto was leased from the family to the company and is untouchable and worth millions so that is an easy one.

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