The permanent closure of the XL Foods beef plant in Moose Jaw, Sask., puts Manitoba and Saskatchewan producers in a less competitive position, say industry leaders.
Transport costs will affect producers who will have to continue to ship cattle to Alberta or the United States for processing at a federally inspected facility.
Jay Fox, president of the Manitoba Cattle Producers Association, said producers are somewhat used to the situation since Moose Jaw closed April 24, 2009.
“Our producers have been feeling that pinch for 18 months now,” he said.
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The initial shutdown was said to be due to a lack of cows and expected to be temporary until September 2009. Co-chief executive officer Brian Nilsson said several times the plant was part of the company’s long-term plan.
But it did not reopen as planned and XL locked out its workers, citing an unaccepted contract offer.
In a news release issued Aug. 12, 2010, Nilsson said the inability to obtain a collective agreement and market conditions were reasons to permanently close the facility.
Saskatchewan Cattlemen’s Association president Jack Hextall said he was more disappointed than surprised.
“All indications from Nilsson Brothers were that they would be reopening,” he said.
Hextall said cattle numbers in Saskatchewan have remained steady and the gap between Saskatchewan and Alberta is closing. A herd of Saskatchewan’s size needs a federal plant, he said.
Saskatchewan agriculture minister Bob Bjornerud said the province would not step in.
“I think all we can hope now is that the markets keep improving and possibly maybe somebody new will come in and say, hey, this might be a viable place to set up a plant,” he said.
The Moose Jaw plant at one time was slaughtering about 180,000 head per year and employed 265 people.
XL bought the slaughter plant and a boxed beef plant, which it closed a few months later, in 2000 from the provincial government for $1.868 million.
Meanwhile, Donald’s Fine Foods/ Britco Pork, which is now upgrading the former Moose Jaw Pork Packers plant, has said it would look at hiring workers with meat packing experience.
About 200 workers were initially laid off from the beef plant but it’s not known how many have found other work.
