A change in the way Canada Safeway Ltd. distributes fresh chickens in Saskatchewan is a sign of things to come, says a provincial poultry processor.
Beginning next month, Safeway stores in Saskatchewan will get their fresh chicken from the grocery chain’s warehouse facilities in Calgary rather than from the Sunnyland Poultry Products Ltd. plant in Wynyard, Sask.
It’s part of a shift toward fewer suppliers and a more centralized distribution system by the big grocery companies, said Lanny Wheeler, general manager of Sunnyland.
“They want to do their own deliveries rather than having us run by the door every day,” he said. “That’s the way it is in the (United) States and if it’s in the States, it’s coming to Canada, you can be sure.”
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The chicken will come from the Maple Leaf Foods plant in Edmonton. If Sunnyland wanted to continue to supply fresh chicken to Safeway, it would have to ship its product to Calgary and then have it shipped back to Saskatchewan.
“We don’t think it makes any sense, but to them it does,” he said. “If you happen to be close to their warehouse I guess it’s better for you. If you’re farther away, I guess it’s not.”
Sunnyland, the only poultry processor in Saskatchewan, has been the sole supplier of fresh and frozen chicken to Safeway stores in the province for years.
The processor will continue to sell frozen chicken to Safeway, but the loss of the fresh business is a blow. An official from the union representing employees fears as many as 150 jobs could be lost if new customers aren’t found.
Wheeler said he shared those concerns, but expressed confidence the company will be able to find new markets.
Officials with Safeway could not be reached for comment.
