INDEPTH: MAD COW
Canada's major meat packers
CBC News Online | May 7, 2004
Who's who
In the wake of Canada's "mad cow" crisis, Canadian beef producers received $1.6 billion in compensation from the federal government. The money was supposed to offset huge losses suffered by the people who raise cattle and the companies that process it.
Despite the closure of international markets to Canadian beef and the collapse of prices paid to farmers for their cattle, prices in Canadian grocery stores changed little. That led to charges from consumer groups and some politicians that the meat packing industry was not passing on its savings.
An investigation by the Alberta government concluded in March 2004 that the meat packing industry was not taking advantage of circumstances to pad its profits. The packing plants said their costs went up because they now have to pay to get rid of animal parts, such as spinal cords, which are considered to pose a higher risk of passing on bovine spongiform encephalopathy (BSE), also known as mad cow disease. The plants did not open their books to the Alberta government during its investigation.
Alberta's report found that the price of lower-end cuts of beef came down slightly, while prices for higher quality cuts remained steady. The report said about 25 per cent of the useable portion of cattle goes to ground beef, while about 18 per cent goes to the higher-end cuts.
Most of Canada's beef cattle are raised and processed in Alberta, with three companies holding three-quarters of the market. Two other Ontario companies control much of the rest of the market.
Cargill Foods
Cargill's High River slaughter facilities handle approximately 4,200 head of cattle per day. The plant provides work for 2,000 people.
The company was established in 1865 in Minnesota. It opened its first Canadian operation in Baie Comeau, Que., in 1928.
Cargill Limited is one of Canada's largest agricultural merchandisers and processors with interests in meat, egg, malt and oilseed processing, livestock feed, salt and fertilizer manufacturing, as well as crop input products, grain handling and merchandizing. The company employs approximately 5,500 across Canada with sales of $3.5 billion and $1.2 billion in assets.
Lakeside Packers
Owned by American food giant Tyson foods. The company's slaughterhouse five kilometres west of Brooks, Alta., processes more than one million cattle per year - or about 35 per cent of all cattle processed in Canada.
The company reports sales of more than $1 billion per year, with 45 per cent coming from exports to the U.S., Asia, Europe and Latin America. The Brooks plant is Canada's largest meat packing plant. It employs 2,400 people.
XL Foods
This Canadian-owned company operates a slaughterhouse near Calgary. The plant processes about 450,000 head of cattle per year.
The company was established more than 100 years ago. It's operated by the Nilsson family of Edmonton.
Levinoff Meat Products Limited
Another Canadian owned and operated establishment. It opened for business in 1957 in Kitchener, Ont., about an hour west of Toronto.
Levinoff slaughters upwards of 700 head of cattle per day.
Better Beef
Established in 1972, Better Beef Limited is in the heart of Ontario farm country in Guelph. It's also Canadian-owned and operated.
The company's slaughterhouse handles approximately 1,800 head of cattle per day.
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