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Maple Leaf Buys Schneiders Manitoba Fresh Pork Operations
Michael McCain - Maple Leaf Foods
Farm-Scape for January 16, 2001 (Episode 597) The President and CEO of Maple Leaf Foods says his company's purchase of Schneiders fresh pork operations in Manitoba will position Maple Leaf to compete within a consolidating industry throughout North America. The 44 million dollar deal will see Maple Leaf purchase an 18 thousand hog per week slaughter facility on Marion Street in Winnipeg and a new 32 thousand hog further processing plant on Warman Road. Michael McCain says the two Schneiders facilities are operating exceptionally well and Maple Leaf's Brandon plant continues to improve it's operating efficiency so, in the near term, it will be business as usual. Clip-Michael McCain-Maple Leaf Foods Ultimately, and I'm thinking now two to three years down the road, the primary processing that's currently taking place at the Marion Street facility will likely cease at that location and be transition into a second shift in Brandon. The expectation for that facility was that it would stop production regardless of Maple Leaf's plans. They were simply intending to move it into their new plant which obviously is now not going forward. The Winnipeg Warmen Road facility would become a specialized unique markets cutting facility to take advantage of emerging changes that are occurring in the industry...things like case ready meats, value added products that are rapidly growing and some of the specialized cutting requirements of the Asian market place, all of which the Brandon plant is not capable of doing. McCain says Maple leaf values it's relationship with producers and it's important to recognize the company will honor all producer contracts. He says Maple Leaf has made substantial commitments to creating a strong industry in Manitoba and has developed some attractive innovative contract agreements, including things like cost of production contracts which may interest producers in the future. For Farm-Scape...I'm Bruce Cochrane.
Keywords: market
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