Packer Expansion?

[cowman]

Has Cargill announced any plans to expand? I know IBP is expanding kill by 1000 head a day.
Suppose Cargill did the same? Where are the extra 2000 head going to come from? Perhaps XL? This might be a good thing as it would force XL Calgary to shift out of the fat market and into cows?
In 1988 when Cargill moved into Alberta the Canada Packers plant in Red Deer was faced with a dilemma. Not enough steers to go around! They did consider becoming a strictly cow plant but in the end decided to mothball the whole operation rather than try to compete. The fact was they couldn't get any sweetheart deals from the Alberta government like Cargill, Lakeside, and XL were getting! I don't know why...maybe they weren't bribing the right Tories? The PCs were picking the winners and the losers and Canada Packers was chosen as a loser...even though they were a much newer and efficient plant than Lakeside and XL!
Of course in the end those two dogs, Lakeside and XL, went belly up anyway and the Alberta taxpayer got screwed!
It was pretty common knowledge that some top Tories had shares in Lakeside...I'm not sure about XL? But XL was into the Alberta government for around $40 million so I suspect someone was making some money?

[pandiana]

Cargill Expansion Underway
Cargill Foods is beginning phase two of a three-phase, $32.5 million expansion that will allow the High River plant to increase its processing capacity to 5,000 head a day. During the next 10 months, the company expects to begin the final phase of its expansion, including the introduction of a newly designed hide removal system. The project also will include significant enhancements to its offal recovery and processing operation. Phase one of the project increased the workable slaughter space of its existing facility by 30,000 square feet to a total of 450,000 square feet to help the company meet or exceed food safety requirements. The High River processing facility is currently operating six days per week, with 1,800 employees running the plant at full capacity and processing 4,100 head of cattle per day.

[farmers_son]

We need more packing capacity but we don't need it to be from these two pirates. We need competition too, not just hook space, and any expansion by Cargill and Tyson Foods doesn't help with that. Our governments and industry leaders need to focus on ensuring there is competition in the Canadian packing industry or else non of the benefits of any expansion will make to our pockets.

[CattleAnnie]

It's quite the double-edged sword, isn't it?

Take care.

[cowman]

We hear so much about why we need to expand capacity, but the fact is only the two have done anything about it? Only two plants are actually doing anything concrete?
Which plants should the Alberta government be supporting? The ones who can get it done or the dreamers?
The new gen co-op at Pincher Creek looks interesting...if it is more than another dream? $2500 gets you a 50 cow share? Sounds like a pretty decent deal to me? $50 investment per cow and they have a financing deal in place...seems more in line with what they are doing in PEI?

[ValueChainFX]

Producers have the chance to buy into these small plants we'll see if they do!