Packing Industry Struggles Continue
Troy Marshall
Tyson announced the sale this week of its Canadian beef operations to XL Foods Inc. for $107 million in Canadian dollars. Tyson has already closed three other plants and slipped from No. 1 to No. 3 in terms of beef-slaughter capacity in the U.S. The stocks of meatpacking plants have been taking a severe hit, but Tyson stock rose on news of the sale.
Another packer in trouble appears to be Creekstone Farms. USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA) announced two weeks ago its agreement with Creekstone that prohibits the firm from buying any livestock without paying for them immediately at the time of purchase. Creekstone also had to nearly double the size of its bond nearly $4.5 million.
The Beef Blog 