Olymel, Canada’s largest pork producer, is facing new tariff challenges from both China and the United States just as it begins to stabilize after years of financial struggles.
The company recently reported net sales of nearly $4.6 billion, marking its third-best financial performance, along with a 40% increase in net earnings. However, on March 20, China will impose a 25% tariff on Canadian pork, while the United States has also threatened tariffs on most Canadian goods, set to take effect on April 2.
China remains a key market for Olymel, particularly for byproducts such as heads, feet, and bones. Meanwhile, the U.S. has traditionally been a reliable trade partner for the company. Analysts warn that a 25% tariff from the U.S. could result in a 10% decline in hog prices, potentially impacting Canadian producers.
Despite these obstacles, Olymel has actively worked to reduce its reliance on China since the country banned Canadian pork in 2019. The company has expanded its export markets, increasing shipments to Japan and South Korea while maintaining a lower slaughter capacity to help stabilize operations.
In addition to diversifying its global market reach, Olymel is looking to boost domestic demand as a buffer against trade restrictions. The company has expanded its retail presence, emphasizing refrigerated pork products such as ham, bacon, and sausages. CEO Yanick Gervais noted that increasing pork consumption among Canadians is a long-term strategy that is beginning to show results.
As the global trade landscape shifts, Olymel’s adaptability will be crucial in navigating these evolving challenges. The industry will closely monitor how these tariffs impact Canadian pork producers and the broader North American market.
