Cargill strike threatens Canadian beef supply chain

CALGARY, ALBERTA — The Canadian Cattle Association (CCA), National Cattle Feeders’ Association (NCFA) and Beef Farmers of Ontario (BFO) issued a joint press release on June 24 urging the Cargill Dunlop facility in Guelph, Ontario, and members of UFCW Local 175 to quickly reach a labor resolution.

The groups pointed out that there were no signs of any imminent talks or negotiations that would lead to an end to the strike that began on May 27.

“Canadian beef producers depend on a strong and stable supply chain to get beef to Canadians and our global customers as efficiently as possible,” said Nathan Phinney, President of the CCA. “While we fully respect and support the collective bargaining process, we cannot ignore the impact this standoff is having on our beef industry. Both sides are urged to accelerate their negotiations to find a resolution as quickly as possible.”

CCA, NCFA and BFO represent Canada’s 60,000 beef producers, including 19,000 producers in Ontario. Canada’s beef sector relies on a robust processing industry. Beef producers in eastern Canada are feeling the impact of the strike particularly hard.

The Cargill Dunlop facility supports several regional brands and programs. The facility processes approximately 75% of Ontario’s livestock and fills 67% of the federally controlled processing capacity in Eastern Canada.

“The challenges of losing the largest beef processor in Eastern Canada cannot be underestimated,” said Craig McLaughlin, President of the BFO. “Ontario is the second largest cattle-feeding province in the country, and our members rely on the important work of our processing partners and their role in getting beef onto the plates of consumers here in Ontario and around the world. With each passing day, the impact of the Cargill Dunlop strike on our feedlot, our beef supply chain partners and our farmers’ ability to financially support their operations grows. The BFO calls on both sides to work toward an immediate resolution of this dispute.”

To mitigate the impact of the strike, beef producers in Ontario are seeking alternative facilities in Canada and the United States to process their cattle and are keeping cattle on farms for longer periods of time. Both mitigation strategies bring unique challenges and additional costs. With the strike now entering its fifth week, the beef sector has raised concerns about the sustainability of these efforts.

“The NCFA is calling on both parties to negotiate a swift solution,” said Will Lowe, NCFA board chair. “Cargill Guelph is the largest plant serving Canada’s largest beef cattle region after Alberta. This disruption is difficult for beef producers who are already facing numerous other challenges.”