When the media talks about profitability in the cattle business most times we talk about ranchers and feedyard owners. The other part of the beef value chain that cannot be forgotten is the cattle packer. Packers have not had a real great run as of late which has meant four day kill weeks. As we have discussed in the Beef Market Update, packers don’t cut kill days because they are making too much money.
XL Foods has announced that it is closing its plant down due to low cow supply. XL Foods Co-CEO Brian Nilsson was quoted in the Calgary Herald by saying,
“We regret that we have had to take such extreme action, but the significant changes in the supply of mature cattle and the global competitive landscape have not allowed the facilities to operate at or near capacity,”
SEE THE REPORTS FROM THE CALGARY HERALD
I spoke with Kevin Grier from the George Morris Center to get his thoughts on the XL Foods Calgary plant closure. We discussed the following:
- Is he surprised by the closure?
- Should producers be concerned?
- Is there more closures and dark days to come?
- Will the plant be re-opening in the fall?
If you cannot see the below embedded video, click here