Canada’s largest beef processor, Cargill Ltd., is buying Better Beef Ltd. of Ontario for an undisclosed amount. The proposed sale raises concerns among cattle producers because it means more consolidation among packers and possibly, fewer bidders for fat cattle.
“Being in the West I don’t expect it to impact us too much,” said Jeff Ball, president of the Alberta Cattle Feeders Association.
However, the deal brings the company’s kill capacity up to 37,000 head per week, or nearly half the weekly national kill.
“It could lead to efficiency but I’m concerned about one company holding such a large share of the market,” said Ball, who feeds cattle at Blackie, Alta.
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He does not expect major changes in the immediate future. However, he sees hard times coming to cattle feeders as the U.S. border remains closed to live cattle and the price basis widens between Canada and the United States.
The sale includes the Guelph-based slaughter facility and its supporting assets including a trucking company, said Cargill spokesperson Rob Meijer.
“It is in the agreement phase and is subject to regulatory approval.”
Meijer said Better Beef’s expansion plan for its processing line should continue. Cargill is increasing its production to 5,000 head per day at its High River, Alta., plant. Right now it is up to about 4,500 head of cattle younger than 30 months.
The privately held Better Beef Ltd. is the third largest beef processing company in Canada. It was established in 1972 by brothers John, Mike and Benny deJonge and moved to its current site in Guelph in 1975.
The acquisition involves all of Better Beef’s assets in Guelph including a 2,000 head per day beef slaughter and fabrication plant for cattle younger than 30 months, a 150,000 sq. foot plant devoted to ground beef and tray-ready products, as well as Klunski Transport, the company’s fleet of refrigerated trucks.
