THURSDAY, OCTOBER 25, 2012
VOL. 90 | NO. 43 | $3.75
THREATENS CAUSE & EFFECT | FIRE WATER QUALITY P22
SERVING WESTERN CANADIAN FARM FAMILIES SINCE 1923
|
WWW.PRODUCER.COM
XL FOODS | FOOD SAFETY
FEDERAL BUDGET | CGC
Changes sought to CGC with federal budget
XL, JBS plan seen as relief A $100 million option | Producers, feeders hopeful the Brooks, Alta., plant will reopen soon
BY BARRY WILSON BY BARB GLEN LETHBRIDGE BUREAU
Many cattle producers are expressing relief at an agreement between international cattle processing giant JBS USA and the beleaguered Alberta-based XL Foods Inc. The Oct. 17 agreement saw JBS immediately take over management of the XL Foods packing plant at Brooks, Alta., which has been closed since Sept. 27 after E. coli was discovered in some of its products. It gives JBS an exclusive option to buy various XL Foods holdings for $50 million in cash and $50 million in JBS shares.
With about 20,000 cattle ready for slaughter each week, the production chain was backed up and prices dropped in all sectors of the industry. Producers and feeders are hopeful the Brooks plant, one of the largest in Canada with a kill capacity of 4,000 head per day, will reopen soon. “I think it’s very positive,” said Alberta Beef Producers chair Doug Sawyer about the deal. “From an industry standpoint we desperately need that plant running. This whole shut down couldn’t have happened at a worse time for the cow-calf and the feeder cattle industry. This is our fall run. All these cattle are coming off grass, and left us with a huge amount of uncertainty.” Canadian Cattlemen’s Associa-
OTTAWA BUREAU
From an industry standpoint we desperately need that plant running. This whole shut down couldn’t have happened at a worse time for the cow-calf and the feeder cattle industry. DOUG SAWYER ALBERTA BEEF PRODUCERS
tion president Martin Unrau also viewed the JBS entry into Canada as a positive development. “I think it’s a step forward from where we were two or three days ago, that’s for sure,” he said Oct. 19. “We see the opportunity that JBS may present and that to us is exciting, because they’re really good at what they do and these guys are
some of the lowest cost processors in the world.” Unrau said the CCA was in touch with JBS after the CFIA revoked the operating licence at the Brooks XL plant, halting operations. The CCA was seeking slaughter options to avoid a backlog of fat cattle. SEE JBS HAS $100M OPTION, PAGE 2
»
In the middle of a massive soup-tonuts budget implementation bill, the Conservative government is proposing to enact sweeping changes to the way the Canadian Grain Commission operates. It will receive little parliamentary attention because it is a small part of a 400 page budget bill that will likely be approved within months. Critics are crying foul. The proposed changes will end the need for inward inspections of grain going between elevators within the same company, change the bonding system for grain traders into an insurance system and offer farmers an option of paying for some services they now receive from the commission if they want to contract them from private sources. Regional appeals tribunals will be abolished. Later legislation is expected to enact governance changes. SEE CHANGES SOUGHT, PAGE 3
»
u|xhHEEJBy00001pzYv/:.
| FILE PHOTO
>> SEE MORE COVERAGE OF XL FOODS AND JBS ON PAGES 4-5, 96 ENTER TO WIN YOUR KEYS AT
keystothecombine.ca. The more keys you win, the greater your chances of winning the real key to a real combine.
Trademark of Dow AgroSciences LLC The Western Producer 07/12-18650-02
TM TM
The Western Producer is published in Saskatoon by Western Producer Publications, which is owned by GVIC Communications Corp. Publications Mail Agreement No. 40069240; Registration No. 10676
OCTOBER 25, 2012 Return undeliverable Canadian addresses to: Box 2500, Saskatoon, SK. S7K 2C4