XL Foods in Calgary is closing next month.
The beef kill plant and fabrication facility, which is owned by Nilsson Bros. of Edmonton, will operate for another four weeks.
The company is also closing XL Four Star Beef Inc. at Omaha, Nebraska, in June. About 1,000 people will lose their jobs.
“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,” Brian Nilsson, co-chief executive officer of XL, said in an April 9 news release.
Nilsson Bros. also owns Lakeside Packers at Brooks, Alta.
A shrinking cattle herd has cut back the number of available slaughter animals in North America. Near record live prices and added production costs have put pressure on packing plants, said Alberta Beef Producers chair Chuck McLean.
“These plants are all having a hard time procuring enough cattle to keep their chains running at a legitimate speed,” he said.
Many were running at less than 70 percent capacity but need to run at least at 80 percent to make a profit.
The Calgary plant handled mostly cows and has been in existence under various owners for about 100 years.
