AgriPost April 26 2019

Page 1

The AgriPost

April 26, 2019

HyLife Signs Share Purchase Agreement with Thai Company

Claude Vielfaure, President of HyLife, said HyLife would continue to with the existing management, staff, and production people to have the ability and the money to make those decisions while running it by the new shareholders.

By Harry Siemens HyLife has signed a Share Purchase Agreement with Charoen Pokphand Foods Public Company Limited (CPF) of Thailand to purchase 50.1 percent of the company’s shares. ITOCHU, a Japanese partnership, will continue to own 49.9 percent, the remaining shares. According to Hylife management, CPF will propel HyLife’s growth into the fast-growing Asian and international markets while proudly showcasing Manitoba’s locally grown and produced high-quality pork. “This is a win-win for HyLife, CPF and Manitoba’s agricultural industry. Together, our globally established companies will

significantly strengthen our market position. Not only do we share similar values, but our strategies also correspond with one another,” said Grant Lazaruk, Chief Executive Officer of HyLife. “Through this agreement, we will build on the success of our growing pork business and brands to our customers globally, including our fresh, chilled pork products to Japan which we proudly grow and process right here in Manitoba.” He believes HyLife with CPF will be able to leverage their shared corporate values of environmental friendliness and social responsibility while investing in their employees, customers, and communities. Combining

forces will propel the growing demand for HyLife’s high-quality pork and enable the company to expand its current 2,500 plus employee workforce. Even though the Canadian ownership component will be gone, Claude Vielfaure, President of HyLife, said he’s confident about the direction of the company moving forward. “We have assurances by CFP that they looked at the current management of our company, our employees, our leadership, to continue to grow the company as in the past. They’re investing in what we’ve done, but also with the future in mind, and they want to grow quickly, and fast in Manitoba and

North America. And so for them, the structure of HyLife, the dayto-day operations, our culture, our philosophies will stay all the same, and essentially, all we have to do is report to our shareholders what we’re going to be doing.” Vielfaure said HyLife would continue to with the existing management, staff, and production people to have the ability and the money to make those decisions while running it by the new shareholders. “We did that before, also. We had ITOCHU as a shareholder in our company so nothing will change. Our executive senior management group in the company, and, if our shareholders approve, will continue to move forward,” said Vielfaure. The HyLife president said there Continued on Page 2...

Expanded Rebate Available to Young Farmers As part of Budget 2019, the Manitoba government is partnering with the Manitoba Agricultural Services Corporation (MASC) to increase the maximum amount eligible for the Young Farmer Rebate program to $200,000 from $150,000. “One of our government’s priorities is to increase the number of young people in the agriculture industry,” Agriculture Minister Ralph Eichler said. “Increasing the young farmer rebate supports our focus on young producers by reducing the cost of borrowing while they grow their operations.” Recent census data shows the average age of a Manitoba producer is over 53. In consultation with stakeholders, industry groups and young producers, it was noted that assistance for young farmers is necessary, given rising costs and changes in farm economics over the past decade. The program provides an annual rebate of up to two per cent on the principal of a loan from MASC for up to five years. As a result of the expansion, the lifetime maximum rebate will also increase, to $20,000 from $15,000. “Agriculture is the backbone of Manitoba’s rural economy, and young farmers are the future of the industry’s growth,” said Jared Munro, president and CEO, MASC. “This enhancement to the Young Farmer Rebate program is expected to provide an additional $500,000 in interest reductions next fiscal year.” MASC designs and administers lending and insurance programs targeted at young and beginning farmers. As farms consolidate and barriers to entry increase, MASC is enhancing its programs, with a target that 75 per cent of new loan approvals be for young farmers. The young farmer rebate program is part of MASC’s Bridging Generations Initiative, which provides producers under the age of 40 with financial incentives and customized terms and repayment options. In 2017-18, MASC issued 815 direct loans under the Young Farmer Rebate program. Other measures geared at young producers include higher percentages of available financing for large purchases and the ability to make interest-only payments for the first five years of a loan.


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AgriPost April 26 2019 by AgriPost - Issuu