Maple Leaf sells Ontario turkey farms
The company said it had entered into “definitive agreements” to sell its six commercial turkey farms to one of its current suppliers, Ernald Enterprises, and its hatchery and six breeder farms to Cuddy Farms.
It added that under the terms of the deal, Ernald Enterprises would continue to supply of live birds from the commercial farms to Maple Leaf’s turkey processing plant in Thamesford, and that the majority of employees would remain in their roles and transfer to the new companies.
Maple Leaf president and CEO Michael McCain said the sale of its turkey farms would enable it to focus on “growth and innovation” in its added-value turkey processing business, while the deal with Ernald would ensure the “long-term supply of high-quality turkeys at competitive prices”.
“I’d like to thank our people who work in these operations for their dedication to our business. They are joining two organisations who are leaders in Canada’s turkey growing industry,” he added.
Cuddy growth
Cuddy Farms, which distributes turkey eggs and poults both nationally and internationally, said the acquisition of Maple Leaf’s breeding farms and hatchery would help it maintain its poistion as a “dominant player in the world turkey market”.
It added that the acquisition would not affect its current business or employees, and confirmed it would offer continued employment to those working at the Maple Leaf facilities.
Profit plunge
Maple Leaf reported a big drop in earnings in the first quarter of 2013, with profits plummeting 76.2% year-on-year to CAD$7.6m. The biggest losses were experienced in the meat sector, with the company blaming currency fluctuations, the US drought and higher pork and poultry prices for the poor performance.
At the time, the company said its added-value poultry channels had helped offset losses, and McCain indicated that the company would focus on “strategic initiatives” to improve results in the future.
