Meat&Poultry - June 2012 - 42
Staying competitive
BY LEO QUIGLEY
meatpoultry@sosland.com
M
aple Leaf Foods, as with many other food companies north of
cilities; the construction of a high-efficiency, prepared meats plant in Hamilton, Ontario, and expanded plants in Saskatoon, Saskatchewan; Winnipeg, Manitoba and Brampton, Ontario. The company also said it would be investing in preparation, cooking and packaging efficiencies that would “reach world-class levels.” And, these new technologies would “enhance product quality and food safety.” (In 2008, products from a Maple Leaf plant in Toronto was linked as the source of a Listeriosis outbreak that killed 22 people and infected 57 others). In addition to consolidating its processing network and building new facilities, the company also has plans to change its distribution network by consolidating several distribution centers into two large facilities, expanding the existing facility in Western Canada and building a new distribution center in Eastern Canada These changes, scheduled to be in place by the end of 2014, are expected to deliver the following savings: ● Enhanced throughput and productivity. ● Improved product yield; reduced waste. ● Lower aggregate plant overhead. ● Longer runs and fewer changeovers. ● Less packaging and raw material cost. ● Increased distribution and storage efficiency.
● Reduced selling, general and administrative expenses. To assist Canada’s meat industry in becoming more competitive, the federal government, as part of its Economic Action Plan, designated C$60 million over a three-year period to the meat-processing industry. The program “provides repayable contributions available to support investments made by the private sector and other levels of government in sound business plans aimed at reducing costs, increasing revenues and improving meat packing and processing operations nationwide.” Of this, C$4.5 million in repayable funds were contributed to upgrade Maple Leaf Foods’ ham and bacon plant in Winnipeg and its hog processing plant in Brandon, Manitoba. “Upgrades to its Manitoba facilities will help Maple Leaf boost productivity and production capacity to fi ll new market opportunities, which in turn will increase the demand for producers’ high-quality swine,” federal Public Safety Minister Vic Toews said in making the announcement. The funds, provided to cover up to 50 percent of eligible costs, were earmarked to help Maple Leaf buy and install new line processing heat recovery and packaging equipment and install new value-added production lines. However, while the federal government seemed eager to assist Maple Leaf in making its network across Canada more competitive, the government of Manitoba – with the most to gain –
the border, faces increased competition from US food processors, primarily due to the drop in the US dollar compared to the Canadian dollar. In a recent move to make the company more competitive in the North American marketplace, Maple Leaf Foods has adopted a nationwide plan involving plant consolidations, new builds, closures of outdated facilities and upgrades to remaining facilities. Late last year, Maple Leaf executives outlined elements of the plan’s fi nal phase to investors, calling the long-term strategy a “response to a structural shift in currency” designed to transform the firm’s prepared meats network, establish efficient centers of
Canadian plants must operate at least two shifts in order to stay competitive compared to plants in the US and around the world.
excellence equipped with state-of-theart technologies and create a “sustainable competitive cost base.” As part of the final stage, the company said it would be rationalizing the existing system into Centers of Excellence, including the closure of six plants, plus two already completed, with volume consolidated into four fa-
42
• Meat&Poultry • June 2012 • www.MeatPoultry.com
http://www.MeatPoultry.com
Meat&Poultry - June 2012
Table of Contents for the Digital Edition of Meat&Poultry - June 2012
Meat&Poultry - June 2012
Table of Contents
Commentary - Right on pace
Business Notes - Bob Evans to close plants, streamline transportation
Business Notes - Michigan JBS workers approve union contract
Business Notes - Pilgrim’s Pride announces layoffs
Business Notes - Lee to CEO of Tyson Foods China
Business Notes - BPI announces corporate layoffs
Business Notes - Jennie-O lifts Hormel earnings
Business Notes - OIE labs confirm atypical BSE in dairy cow
Washington - State vs. federal rights
Cover Story - Hormel milestones
Corporate Profiles - Snapshots of success
Corporate Profiles - Tyson
Corporate Profiles - JBS
Corporate Profiles - Hormel Foods
Corporate Profiles - Maple Leaf Foods
Corporate Profiles - Sanderson Farms
Corporate Profiles - Smithfield Foods Inc.
Corporate Profiles - Sara Lee
Burger Processing - Making its mark
Ingredient Solutions - Flavor adventures
Food Safety - Sample-ready, or not?
Meat Processing Operations & Engineering - Talking turkey and more
Meat Processing Operations & Engineering - Relying on expertise
Meat Processing Operations & Engineering - Managing sanitation
Sanitation Tips
From the Corral - Stop surprising consumers
Names in the News
New Product Showcase
Classified Advertising
Advertisers
The Insider
Meat&Poultry - June 2012 - Meat&Poultry - June 2012
Meat&Poultry - June 2012 - 2
Meat&Poultry - June 2012 - 3
Meat&Poultry - June 2012 - Table of Contents
Meat&Poultry - June 2012 - 5
Meat&Poultry - June 2012 - 6
Meat&Poultry - June 2012 - 7
Meat&Poultry - June 2012 - Commentary - Right on pace
Meat&Poultry - June 2012 - 9
Meat&Poultry - June 2012 - Business Notes - Bob Evans to close plants, streamline transportation
Meat&Poultry - June 2012 - 11
Meat&Poultry - June 2012 - Business Notes - Pilgrim’s Pride announces layoffs
Meat&Poultry - June 2012 - 13
Meat&Poultry - June 2012 - Business Notes - BPI announces corporate layoffs
Meat&Poultry - June 2012 - 15
Meat&Poultry - June 2012 - 16
Meat&Poultry - June 2012 - Business Notes - OIE labs confirm atypical BSE in dairy cow
Meat&Poultry - June 2012 - Washington - State vs. federal rights
Meat&Poultry - June 2012 - 19
Meat&Poultry - June 2012 - Cover Story - Hormel milestones
Meat&Poultry - June 2012 - 21
Meat&Poultry - June 2012 - 22
Meat&Poultry - June 2012 - 23
Meat&Poultry - June 2012 - 24
Meat&Poultry - June 2012 - 25
Meat&Poultry - June 2012 - 26
Meat&Poultry - June 2012 - 27
Meat&Poultry - June 2012 - 28
Meat&Poultry - June 2012 - 29
Meat&Poultry - June 2012 - Corporate Profiles - Snapshots of success
Meat&Poultry - June 2012 - 31
Meat&Poultry - June 2012 - Corporate Profiles - Tyson
Meat&Poultry - June 2012 - 33
Meat&Poultry - June 2012 - 34
Meat&Poultry - June 2012 - 35
Meat&Poultry - June 2012 - Corporate Profiles - JBS
Meat&Poultry - June 2012 - 37
Meat&Poultry - June 2012 - 38
Meat&Poultry - June 2012 - 39
Meat&Poultry - June 2012 - Corporate Profiles - Hormel Foods
Meat&Poultry - June 2012 - 41
Meat&Poultry - June 2012 - Corporate Profiles - Maple Leaf Foods
Meat&Poultry - June 2012 - 43
Meat&Poultry - June 2012 - 44
Meat&Poultry - June 2012 - Corporate Profiles - Sanderson Farms
Meat&Poultry - June 2012 - 46
Meat&Poultry - June 2012 - 47
Meat&Poultry - June 2012 - Corporate Profiles - Smithfield Foods Inc.
Meat&Poultry - June 2012 - 49
Meat&Poultry - June 2012 - 50
Meat&Poultry - June 2012 - 51
Meat&Poultry - June 2012 - Burger Processing - Making its mark
Meat&Poultry - June 2012 - 53
Meat&Poultry - June 2012 - 54
Meat&Poultry - June 2012 - 55
Meat&Poultry - June 2012 - 56
Meat&Poultry - June 2012 - 57
Meat&Poultry - June 2012 - Ingredient Solutions - Flavor adventures
Meat&Poultry - June 2012 - 59
Meat&Poultry - June 2012 - 60
Meat&Poultry - June 2012 - 61
Meat&Poultry - June 2012 - 62
Meat&Poultry - June 2012 - 63
Meat&Poultry - June 2012 - Food Safety - Sample-ready, or not?
Meat&Poultry - June 2012 - 65
Meat&Poultry - June 2012 - 66
Meat&Poultry - June 2012 - 67
Meat&Poultry - June 2012 - 68
Meat&Poultry - June 2012 - 69
Meat&Poultry - June 2012 - 70
Meat&Poultry - June 2012 - Meat Processing Operations & Engineering - Talking turkey and more
Meat&Poultry - June 2012 - 72
Meat&Poultry - June 2012 - 73
Meat&Poultry - June 2012 - 74
Meat&Poultry - June 2012 - 75
Meat&Poultry - June 2012 - 76
Meat&Poultry - June 2012 - 77
Meat&Poultry - June 2012 - 78
Meat&Poultry - June 2012 - 79
Meat&Poultry - June 2012 - Meat Processing Operations & Engineering - Relying on expertise
Meat&Poultry - June 2012 - 81
Meat&Poultry - June 2012 - 82
Meat&Poultry - June 2012 - 83
Meat&Poultry - June 2012 - 84
Meat&Poultry - June 2012 - 85
Meat&Poultry - June 2012 - Meat Processing Operations & Engineering - Managing sanitation
Meat&Poultry - June 2012 - 87
Meat&Poultry - June 2012 - Sanitation Tips
Meat&Poultry - June 2012 - 89
Meat&Poultry - June 2012 - 90
Meat&Poultry - June 2012 - 91
Meat&Poultry - June 2012 - From the Corral - Stop surprising consumers
Meat&Poultry - June 2012 - 93
Meat&Poultry - June 2012 - Names in the News
Meat&Poultry - June 2012 - 95
Meat&Poultry - June 2012 - New Product Showcase
Meat&Poultry - June 2012 - 97
Meat&Poultry - June 2012 - 98
Meat&Poultry - June 2012 - 99
Meat&Poultry - June 2012 - Classified Advertising
Meat&Poultry - June 2012 - 101
Meat&Poultry - June 2012 - 102
Meat&Poultry - June 2012 - 103
Meat&Poultry - June 2012 - 104
Meat&Poultry - June 2012 - Advertisers
Meat&Poultry - June 2012 - The Insider
Meat&Poultry - June 2012 - 107
Meat&Poultry - June 2012 - 108
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