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National Industry News Get industry news from other associations and governments, nationally and internationally. Transaction
Should be Completed by End of September BROOKS, Alberta, June 25, 2008 (PRIME NEWSWIRE)
-- A preliminary agreement has been reached to sell one of Canada's largest beef processing operations. Tyson Foods, Inc. (NYSE:TSN) has signed a letter
of intent to sell the packing, feedyard and fertilizer assets of Lakeside Farm Industries Ltd and its subsidiary Lakeside
Packers, to XL Foods Inc., a Canadian-owned beef processing business. The C$107 million transaction includes C$57 million,
which will be paid at closing. The remaining C$50 million, plus interest, will be paid over a five-year period following closing.
Tyson would retain the finished product inventory, accounts receivables and accounts payables of the Lakeside operations as
of the closing date. The transaction remains subject to government approvals, the receipt of commercially reasonable financing
by XL and the execution of a definitive agreement by the parties. Both companies anticipate completing the sale by the end
of September. "Lakeside
is one of the premier beef processing operations in Canada and has operated successfully for many years," said Richard
L. Bond, president and CEO of Tyson Foods. "However, Lakeside no longer fits the long-term strategy of our company,
as our current international strategy is focused primarily in Asia, Mexico and South America." Lakeside Farm Industries, based in Brooks, Alberta,
is a diversified agribusiness involved in cattle feeding, slaughtering and processing, as well as retail fertilizer production
and farming. Lakeside currently employs 2,300 Team Members and currently has the capacity to slaughter and process 4,700 cattle
per day. The commodity boxed beef produced by the plant is primarily sold to customers in Canada and the U.S. XL Foods plans to continue operating the Lakeside
facility after the sale is completed. "We
believe the Lakeside plant and cattle feeding operation will complement our other beef operations in Alberta and Saskatchewan,"
said Brian Nilsson, co-chief executive officer of XL Foods Inc. and Nilsson Bros. Inc. "In addition, it will
help strengthen our ability to meet the needs of our North American customer base." XL is part of the Nilsson Bros. Group, a Canadian
cattle feeding and marketing company. Nilsson Bros. entered in the meatpacking business in the late 1990's with the purchase
of Edmonton Meat Packing and XL Foods. The business currently includes packing plants in Edmonton and Calgary, Alberta; Moose
Jaw, Saskatchewan; Omaha, Nebraska and Nampa, Idaho. "We
intend to make the transition of ownership as smooth as possible," said Nilsson. "At the appropriate time, this
will include informational meetings with members of the Lakeside staff." About Tyson Foods Tyson Foods, Inc. (NYSE:TSN), founded in 1935 with headquarters in Springdale, Arkansas,
is the world's largest processor and marketer of chicken, beef, and pork, the second-largest food production company in
the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products
and is the recognized market leader in the retail and foodservice markets it serves. Tyson provides products and service to
customers throughout the United States and more than 80 countries. The company has approximately 104,000 Team Members employed
at more than 300 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct
and Team Member Bill of Rights, Tyson strives to operate with integrity and trust and is committed to creating value for its
shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and
serve as stewards of the animals, land and environment entrusted to it. The Tyson Foods, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3224 About XL Foods XL Foods Inc. is the largest Canadian owned
and operated beef processor in Canada. It is part of the Nilsson Bros. Group of companies, which are a diverse agri-business
that is involved in all facets of beef and cattle production, marketing and processing. XL Foods Inc. operates facilities
in Alberta, Saskatchewan, Nebraska and Idaho. For more information, please visit www.xlfoods.com. June 5, 2008 Mandatory traceability and the development of a new Alberta Livestock and Meat Agency, are
key to implementing this new strategy. The government will invest $56 million this year to create the agency, which will report
directly to the Minister of Agriculture and Rural Development. Included in that amount is $40 million that will be redirected
from the ministry’s existing budget. The Alberta Livestock and Meat Agency will support the livestock industry with
a focus on directing funds, resources and programs towards strategic priorities. The Alberta Livestock and Meat
Strategy outlines eight priority initiatives developed to achieve significant change in the industry. These changes will
redirect resources to key priorities, revitalize the livestock industry, enhance the value chain and refocus efforts to achieve
a sustainable and competitive livestock industry. To assist in stabilizing the industry during the first phase of this
transformation, producers will receive $150 million in immediate funding. An additional $150 million will be available in
January 2009 once certain conditions have been met. This second payment will be issued only after age verification and premise
identification practices have been adopted and verified for each individual producer. “Government will work closely
with the livestock industry throughout this transformation process,” said Groeneveld. “Producers who are unable
or unwilling to transform their business by meeting these new verification and identification conditions may need to consider
ways to exit the industry. It is vital that producers believe in the sustainable future of this industry.” The
challenges facing the livestock industry include persistent labour shortages, restricted access to foreign markets, packing
plants operating significantly under-capacity, lack of a shared strategic vision, lack of product differentiation, overdependence
on the U.S. market, lack of an integrated federal-provincial government policy framework, and increasing environmental impacts.
Mandatory traceability and the development of a new Alberta Livestock
and Meat Agency, are key to implementing this new strategy. The government will invest $56 million this year to create the
agency, which will report directly to the Minister of Agriculture and Rural Development. Included in that amount is $40 million
that will be redirected from the ministry’s existing budget. The Alberta Livestock and Meat Agency will support the
livestock industry with a focus on directing funds, resources and programs towards strategic priorities. The Alberta
Livestock and Meat Strategy outlines eight priority initiatives developed to achieve significant change in the industry.
These changes will redirect resources to key priorities, revitalize the livestock industry, enhance the value chain and refocus
efforts to achieve a sustainable and competitive livestock industry. To assist in stabilizing the industry during the
first phase of this transformation, producers will receive $150 million in immediate funding. An additional $150 million will
be available in January 2009 once certain conditions have been met. This second payment will be issued only after age verification
and premise identification practices have been adopted and verified for each individual producer. “Government
will work closely with the livestock industry throughout this transformation process,” said Groeneveld. “Producers
who are unable or unwilling to transform their business by meeting these new verification and identification conditions may
need to consider ways to exit the industry. It is vital that producers believe in the sustainable future of this industry.” The
challenges facing the livestock industry include persistent labour shortages, restricted access to foreign markets, packing
plants operating significantly under-capacity, lack of a shared strategic vision, lack of product differentiation, overdependence
on the U.S. market, lack of an integrated federal-provincial government policy framework, and increasing environmental impacts.
Our Mission Our mission is to further promote the interests of our organization and our members to the community. We strive to make a difference by educating the public and expanding our reach. |
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BC Association of Cattle Feeders * 800 15355 24th Ave., Ste 495 * White Rock, BC * Canada * V4A 2H9
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