XL Foods Inc. announced Oct. 17 that international packing giant JBS may assume management of XL’s Canadian beef plant operations in Brooks and Calgary.
The XL plant in Brooks, owned by Nilsson Brothers, has been closed since Sept. 27 after the discovering of E. coli contamination in some of its products forced Canada’s largest meat recall.
In a news release, XL Foods co-CEO Brian Nilsson called the management agreement “another positive step to relicensing the XL Lakeside beef plant in Brooks.
“We welcome the assistance of JBS and their resources,” said Nilsson.
Read Also
Canada eyes Mercosur trade pact to reduce U.S. reliance, minister says
Canada’s International Trade Minister said on Thursday that there was interest from both sides to advance trade talks with South American bloc Mercosur, as Ottawa seeks new deals in a push to diversify from the U.S.
The agreement gives JBS the option to buy XL’s plants in both Brooks and Calgary, as well as Lakeside Feedyards, a feedlot and farming operation, all near Brooks.
The deal involves the Canadian subsidiary of JBS USA. The latter is a wholly owned subsidiary of JBS S.A., based in Brazil, and is the world’s largest packer of beef, pork and lamb that markets to an estimated 60 countries.
The Canadian Cattlemen’s Association was quick to voice its support for the agreement.
“JBS has a global reputation as a leader in the beef business,” said president Martin Unrau.
“Their sophisticated knowledge of modern beef harvesting management as well as extensive world-wide beef marketing network will be a valuable asset for the entire Canadian beef sector.”
The CCA further stated that the agreement establishes “credible intentions” for resumed operations at the XL plant in Brooks once the Canadian Food Inspection Agency determines that plant operations meet food safety standards.
Initial comments from cattle producers via social media were largely positive about the news.
