XL Foods Shutdown Hurting Alberta Beef Producers, Says Group

Alberta beef producers worry the temporary closure of XL Foods amidst E.Coli scares could impact the market.
XL Foods Shutdown Hurting Alberta Beef Producers, Says Group
10/2/2012
Updated:
10/1/2015
<a><img class=" wp-image-1781186" src="https://www.theepochtimes.com/assets/uploads/2015/09/xl03362805.jpg" alt="XL Foods" width="616" height="332"/></a>
XL Foods

The temporary closure of a major beef processor leading to one of Canada’s largest-ever meat recalls could have a significant impact on Alberta’s beef industry if not resolved soon, says a cattle producer’s organization.

“The longer it goes the greater will be the impact,” says Rich Smith, executive director of the Calgary-based Alberta Beef Producers, which represents 28,000 producers in the province.

“If this goes longer it will be more difficult to recover from it, but there’s no specific timeframe when it would hit a breaking point.”

On Sept. 27, the Canadian Food Inspection Agency (CFIA) temporarily shut down the XL Foods Inc. meat processing plant in Brooks, Alta., after E. coli was found in products at a facility supplied by the company on Sept. 4.

So far, more than 1,500 of XL’s beef products in stores across the country have been recalled over fears of potential E. Coli contamination, and the CFIA’s alert list continues to grow.

The huge XL plant processes about one third of all Canadian beef.

Smith says the closure of the plant could affect all of the players in the Alberta beef industry, and drive down cattle prices in Canada due to reduced demand. Cattle prices in Alberta have already dropped about five cents per pound since the E. coli scare went public.

“It’s had some immediate effect on prices for cattle. It’s certainly affected people who had cattle ready to go to the [XL Foods] plant—they were not able to ship them at the time. But the impact on the industry is going to be very dependent on how long this temporary suspension lasts.”

Meanwhile, cattle producers who have been unable to sell their cattle must pay to hold them at their farms and ranches until they can find a buyer, Smith says.

“We have an obvious concern for our producers because they have to have a place to send their product,” said Alberta agriculture minister Veryln Olson at a press conference on Sept. 28.

“The priority is we need the people at XL to work with the people at the Canadian Food Inspection Agency to address any and all concerns as quickly as possible so that our producers can deliver their product there.”

Alberta Beef Safe, Says Redford

Alberta Premier Alison Redford, along with Olson, has been working to quash public fears, touting the safety and quality of Alberta beef.

“Our priority right now is to make sure people know Alberta beef is a safe product and a high-quality product, and to ensure that we get this plant open as soon as possible in compliance with CFIA regulations,” Redford said at a press conference on Sept. 30.

Olson said consumers should remember that there are other meat processing plants in Alberta that have safe products.

“We have other plants in Alberta that are still producing some of the highest quality of beef—I’m not minimizing it because this plant is a major plant—but none the less we have other plants that are still producing the great product they always have,” he said.

But not everyone is in agreement about the safety of Alberta beef. At a news conference Monday, Alberta NDP leader Brian Mason slammed Redford and Olson for making what he called “irresponsible” and “dangerous” statements amidst the massive recall.

“It seems to me that the government is putting a premium on trying to do damage control for the beef industry, and putting a minimum emphasis on ensuring that consumers are safe,” he said.

However, Smith says he feels assured by the fact that the Alberta government has been working with the CFIA and XL Foods to resolve the issue, and remains optimistic that there will be limited impact to the industry.

“We’re hopeful that we will see is that the situation gets corrected at the plant and they can resume operations, resume selling and exporting beef as they did before, with quite a good record in the past.”

Ten cases of E. Coli reported in Alberta are linked to XL foods, four of which involved beef steaks purchased at an Edmonton Costco. The remaining six are still under investigation.