November 17, 2006

Maple Leaf says plant closure would not affect operations

The President of Maple Leaf Foods has told hog producers in Saskatchewan the closure of its hog slaughtering plant in Saskatoon would not affect operations. 

Maple Leaf last month announced it would close its aging Saskatoon hog slaughtering plant as it focuses on double shifting its slaughter plant in Brandon.

Maple Leaf attributed its heavy losses over the past two years to the rising value of the dollar and under-utilization of the plant.

The company maintains its two world class plants in Brandon and Red Deer can handle 180 of the 197 thousand market hogs finished per week in western Canada, with smaller specialty plants taking the balance.

President of Maple Leaf Peter McCain insists for Canada's processing sector to restore its economic viability, it must better balance primary processing capacity to available hog supply and available markets for meat.