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Gencor Foods Closes, Bankrupt

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    Gencor Foods Closes, Bankrupt

    So much for my post in the Tim Horton's Thread

    CKNX News

    Gencor Foods Closes
    After just a few short years in business - Gencor Foods is closed and filing for bankruptcy protection.
    Gencor General Manager Brian O'Conner says Price WaterhouseCoopers has taken over the business after a perfect storm of events.

    He says the biggest challenge they faced with the federal specified risk materials regulation.
    Those added an extra $39/head cost to each cow - while American processors didn't face that same regulation.
    O'Conner says when the border opened - it meant Gencor Foods couldn't compete.

    As a result of the closure - 124 people have been laid off, and the 8-9 hundred cows being processed each week -- will now have to go elsewhere.
    Gencor Chair Brian Anderson says those extra 8-9 hundred cows (roughly 55% on plant's capacity) hitting the market each week will likely create a short term glut in the market -- which he's hoping American buyers will pick up.

    But he knows they won't pick them all up, especially the oldest ones that don't qualify to cross the border.
    Anderson says those won't likely find any other place to go.
    Anderson adds that all cows that hit the line will still be paid for - so producers are protected.

    #2
    Another BSE related bad news story.

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