May 10, 2006

Animal feed firm Ridley Q3 profit plunges 46 percent
 

Animal feed firm Ridley Inc posted a third-quarter profit of US$3.9 million Tuesday (May 9), down from US$5.7 million the same period last year.

The lower profit was expected due to high-energy costs, hurricanes and supply shortages, the Canadian-based company said. Despite the fall in profits, revenue increased to US$131.1 million from US$121.7 million.

Ridley manufactures and markets complete feed rations, nutritional supplements, feeding blocks and vitamin/mineral premixes directly to livestock producers and through dealer organizations from 42 production plants in Canada and the United States. Ridley Corporation Limited of Sydney, Australia, owns 70 percent of Ridley Inc.

Last year, the company, along with the government of Canada, was faced with a class action lawsuit by a group of cattle producers from four provinces who alleged that the company supplied the animal feed that led to the May 2003 case of mad cow disease which saw the US closing its borders to Canadian cattle. 

The company was released from the claims in February this year without any payment made to the plaintiffs, a press release on the company's website said.