Turkey Farmers of Ontario anticipate smooth transition to new ownership at processor

Tuesday, June 10, 2014

by MATT MCINTOSH

A spokesperson for the organization that represents Ontario’s turkey producers says it looks forward to a continuation of the “excellent relationship” it had with P&H Food’s Ontario turkey processing operations following last week’s announcement of their acquisition by Quebec-based Exceldor co-operative.

Ontario’s Turkey Farmers “are ready and able to supply quality Ontario turkeys to all processors in the province, in the quantity and size they require,” writes Ingrid DeVisser, chair of Turkey Farmers of Ontario in an email statement.

“We foresee no changes under the new ownership,” she says.

Other than a name change, René Proulx, the president of Exceldor, also assures it will be business as usual for Ontario turkey producers.

“There will be no changes whatsoever for farmers, and all management will also remain,” says Proulx. “We have no plans on moving or altering production.”

In a press release published on June 5, Exceldor announced it had acquired a primary turkey processing facility in Hanover, and a 50 per cent joint venture with Golden Valley Farms at a secondary turkey processing facility in Arthur, from Parrish and Heimbecker Limited, a privately-owned Canadian agribusiness firm and P&H Foods’ parent company. According to the press release, the move lets Exceldor expand its poultry-processing business into Ontario, and allows the company to integrate “Butterball” – the brand of turkey products produced by Parrish and Heimbecker – into its existing portfolio.

While the volume of product needed by the plants will remain the same, both Proulx and Paul Borg, president of P&H Foods, say there is the potential for growth in the future.

“The Hanover plant has the capacity to process more turkeys,” says Proulx, “but any expansion in production will depend on factors like supply and the market in general.”

Borg says Parrish & Heimbecker decided to look for a buyer for the Hanover plant and its share in the Arthur facility after performing a “strategic business review.” Those running the company, he says, wanted to concentrate more on grain milling and the seed business, which is another of Parrish and Heimbecker’s major areas of business.

There were, says Borg, a number of interested buyers over the last few years, but the sale with Exceldor should be finalized around July; once the proper legal proceedings have been dealt with, the company will be renamed Exceldor Foods Limited.

According to Exceldor’s press release, the Quebec cooperative already employs 1,400 people, and generates approximately $500 million in revenue. BF