The Crown Investments Corporation (CIC) is investing up to $15 million in Big Sky Farms Inc. to help the hog producer build new facilities in the Rama and Ogema areas of Saskatchewan.

The expansion will double Big Sky's annual production of top quality hogs, making the company one of the largest producers in Western Canada. Total cost of the expansion is estimated at $60 million.

"This expansion will increase Saskatchewan's hog production, provide more home-grown hogs for local processors like Mitchell's Gourmet Foods of Saskatoon and encourage growth of the pork processing and packing sector in our province," Crown Investments Corporation Minister John Nilson said. "The expansion will also benefit rural Saskatchewan through the creation of 90 jobs and increased economic activity for suppliers, feed growers and other businesses."

Each of Big Sky's two new farrow to finish barn complexes will be capable of housing 5,000 sows at a time and producing 116,000 market hogs a year. When combined with Big Sky's existing barn complexes in Saskatchewan, the company will be capable of producing more than 400,000 hogs annually.

"We are very excited about this expansion and what it will mean to our ability to compete with other large producers in Western Canada," Big Sky Farms Inc. President and CEO Florian Possberg said. "We are pleased to have CIC as a major partner as we move into this new phase in the development of our company."

"CIC is pleased to invest in this successful, growing company," Nilson said. "Big Sky is a leader in hog production, both in terms of financial management and in the quality of the hogs it produces.

"The company satisfies all of the environmental requirements needed to obtain permits for the new barns, including completion of geo-technical studies of soil conditions. Saskatchewan has very well-designed safeguards to protect ground water supplies and surface water supplies from manure contamination and all conditions have been met for these new barns."

Big Sky was established in 1995, with head office in Humboldt. It has since built three farrow to finish hog production facilities in the Humboldt, Kelvington and Preeceville areas. Florian Possberg, who was one of the company's founders, amalgamated his two hog production facilities in the Humboldt area with Big Sky in 1998. The company currently employs 135 people and produces 200,000 hogs a year.

Construction of the barn complexes in the Ogema area, 70 kilometres west of Weyburn, will begin immediately, with full commercial production expected by late spring, 2001. Construction of the barn complexes in the Rama area, 100 kilometres north-west of Yorkton, will begin later this month, with full commercial production expected by late fall, 2001.

Karen Schmidt
Acting Executive Director, Communications
Crown Investments Corporation
Regina
Phone: (306) 787-5889

Florian Possberg
President & CEO
Big Sky Farms Inc.
Humboldt
Phone: (306) 682-5041