August 23, 2007

Another Canadian beef plant shuts down

A slaughterhouse near Calgary which opened just over a year ago ceased operations last week, according to the Canadian Beef Export Federation.

Ranchers' Beef shut its doors last week, displacing 260 employees out of work at the plant, which had capacity to slaughter 800 animals a day.

The federation's president Ted Haney said the plant closure deals another blow for Canadian cattle sector and the country will again increase its dependence on the US market.

He said the closing of Ranchers' Beef is a "sign of the times in Canada," noting that a combination of increased operating costs, a tight labour market in Western Canada and restricted international access are all leaning on the Canadian beef-processing sector. He said Canadian beef processors are currently operating at about 60 percent of capacity, falling short of the 80 percent needed to remain viable in the long term.

Canada produces about 4.5 million cattle per year, processing about 3 million domestically and exporting up to 1.5 million live cattle to the United States, Haney estimated.