May 13, 2005

Tyson Foods and others expanding cattle plants in Canada

Tyson Foods Inc. will start slaughtering more Canadian cattle at a plant in Brooks, Alberta, in mid-June after spending US$13.6 million on an expansion that will enable slaughter of 4,700 head a day, up from about 3,800.

Chief Executive John Tyson said the investment will help address the backlog of cattle caused by the continued closure of the US border.

Canadian farmers have struggled to manage the swelling herd of cattle since the country discovered its first case of mad cow disease two years ago and trade bans worldwide have kept the cattle at home.

Cargill Inc. is also expanding its Alberta plant to handle more than 5,000 head a day, up from 4,000. In addition, the company recently bought a plant in Guelph, Ontario, that would increase processing levels from 1,700 to 1,900 head a day.

Privately owned XL Foods upped its western Canadian capacity to 3,000 from 2,000 head a day, and a Montreal plant boosted its production to 1,000 head from 800.