The news that Canadian beef producers hoped for has been made official.
JBS USA has announced it will take over the troubled XL Foods beef processing plant in Brooks, Alta., Jan. 14 and get a foothold in Canada’s beef packing industry with its new Canadian subsidiary, JBS Food Canada, Inc.
“Today, JBS officially enters the Canadian beef market through acquisition of the XL Lakeside beef packing plant,” JBS USA Beef president Bill Rupp said in a news release.
“After several months of careful consideration of the option and nearly three months of successfully managing the Lakeside facility, we have determined that the Canadian operations will serve as an important asset to our strategic global beef production model,” he said.
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“We look forward to partnering with Canadian producers to deliver quality Canadian beef to customers around the world.”
JBS took over managing the XL plant after the Canadian Food Inspection Agency suspended XL’s operating license in September following the country’s largest beef recall. At least 18 people were sickened after eating beef tainted with E. coli 0157:H7 from the plant.
Alberta agriculture minister Verlyn Olson said he is “pleased” with JBS’s decision to buy the plant.
“This is very good news for Alberta and Canadian beef producers, the employees of the plant, the community of Brooks and the owners and operators of XL Foods Inc. This purchase is the next and very important step in what has been a very long process,” said Olson.
“We all continue to focus on ensuring safe food products remain available to all markets.”
The provincial government waived the foreign ownership of land rules in December to allow JBS to buy the feedlot and about 7,500 acres of land near Brooks. A mothballed packing plant in Calgary is also part of the deal.
JBS is still waiting regulatory review from U.S. authorities before buying XL’s U.S operations.
JBS does not assume any of XL Foods’ debt or liabilities.
The plant’s current owner, Nilsson Bros., was contacted for comment on this story, but spokesman Patrick Bieleny said in an email they would be unable to accommodate our request due to the demands of the completion of the upcoming transaction.
