March 26, 2008

High feed costs forces Maple Leaf Farms to close duck plant in US

Indiana-based duck processor Maple Leaf Farms announced on Tuesday it will permanently close its Franksville, Wisconsin, duck farm and processing facility due to rising feed ingredient and operating costs.

The closings, which will take place over the next few months, is part of a plan to consolidate and centralize its operations in the Midwest, the company said.

Co-President Scott Tucker blamed the government's "misguided" ethanol policies for the rise in feed costs which led the company to cut production.

The company's main plant in Indiana will absorb some processing capacity from the Wisconsin plant, which previously processed 5 million ducks a year.

Tucker noted that in the past year, the price of every feed ingredient used by the company has risen, with many doubling or even tripling.

Although the company did initially tried to absorb the costs, the company ultimately decided it needed to cut production and consolidate operations to offset those costs.

Maple Leaf Farms is a leading duck processor in the US.