XL Foods to cease production at several plants
April 11, 2011
by Meat&Poultry Staff
CALGARY – XL Foods, one of Canada's largest beef processing companies, is temporarily ceasing production at facilities in Calgary and the United States due to a significant decrease in western Canadian cow herds that have impacted mature cattle supply and a tough competitive marketplace, said Patrick Bieleny, chief financial officer. It was unclear how many employees will be affected by these closures. The temporary closures will affect XL Meats and XL Beef.
Operations, however, are expected to resume as early as this fall, when mature cattle numbers are expected to be more abundant. The local shutdowns were announced several hours after XL Foods announced it was also closing XL Four Star Beef in Nampa, Idaho within 60 days, which will affect more than 500 workers.
This marks the second time in two years cattle supplies have forced XL Foods to lay off its workers, the Toronto Sun relayed.
"We regret 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," said Brian Nilsson, co-CEO, in a statement.