Meat recall drives down cattle price at auction
Producers hope for speedy end to contaminated-meat crisis
An expanding meat recall because of E. coli contamination has led to reduced prices at auction for cattle headed to the slaughterhouse.
And news that XL Foods’ Brooks facilities, one of Alberta’s two major slaughterhouses, has stopped operations until federal officials give it the OK to reopen, is devastating for the industry, cattle buyers bidding on animals said Friday.
As a fast-talking auctioneer took bids on the animals, cattle were herded in and out of the sales ring Friday at Triple J Livestock Ltd. in Westlock, about 90 kilometres north of Edmonton.
Cattle buyer Marty Young, who bids on animals for clients and has his own small feed lot near Morinville, said the closure of the XL Foods meat processing plant linked to E. coli will cause a backlog of cattle in Alberta, driving down prices.
“We need to get (the plant) open as soon as possible,” Young said.
“If the plant can’t kill the cattle, it’s harder for the producers to move their cattle out ... and bring more back in. It’s a chain reaction.”
The price of cattle destined for the slaughterhouse is already down from a week ago, said Bill Seniuk, a buyer from Vegreville who bids on cattle at auctions for feedlots and meat packers.
“Heavy cattle that were bringing $1.24 (per pound) last week are bringing $1.20 today, which is about $30 to $40 less a head,” Seniuk said.
Prices for calves and lighter cattle have held steady because those animals won’t be ready for processing till next year, Seniuk said.
Ken Stanley, a buyer who has been running a small feedlot for 32 years west of Westlock, said his two major orders were cancelled Friday as a result of the uncertainty around the XL Foods plant shutdown.
“I just hope this blows over quickly, like by Monday.”
No illnesses have been directly linked to XL Foods Inc., Stanley noted.
Although steaks that went through the company’s Brooks processing plant later made four people in Edmonton sick, health officials haven’t determined if the meat was contaminated with E. coli before or after it emerged from the plant.
“In the meantime, it’s costing farmers billions of dollars in Canada and we don’t get it back,” Stanley said.
“It’s hard for the producers. ... What do you tell them? Just not to panic I guess.
“When we got hit with BSE (bovine spongiform encephalopathy or mad cow disease), that was a huge financial hit for the cattle industry and lots of people wanted to get out of it. Our numbers are way down and this might just speed up the process.”
Premier Alison Redford said Friday that “we have fantastic Alberta beef producers in this province. They produce an excellent quality product. Unfortunately, there is one processor who has been subject to a shutdown from the Canadian Food Inspection Agency.
“We expect them to co-operate fully with the CFIA to comply with what the CFIA is asking them to do to ensure they can get up and running.
“We will expect XL to deal with these issues to ensure we can continue to market Alberta beef producers’ product around the world.”
The XL Foods plant and Cargill Canada’s meat processing plant are the two major plants where Alberta cattle are slaughtered, said Ken Danard, a buyer based in Fort Saskatchewan who buys animals for feedlots.
The Cargill plant in the High River area employs 2,000 people and processes 4,500 head of cattle per day, the company’s website.
The XL Foods plant in Brooks has more than 2,000 employees and processes 4,000 animals a day.
A significant portion of Alberta cattle is also exported to the United States, although older animals can no longer cross the border because of restrictions put in place after the BSE crisis, Danard said.
“We will expect XL to deal with these issues” Premier Alison Redford
The Americans should be able to absorb some of the backlog of cattle caused by the XL shutdown, he said.
“Then all of a sudden logistics are an issue. You don’t just snap your fingers and have 100 trucks, but that will work itself out,” he said.
“I think we’re all in shock that they closed the plant. I do know the people involved in the plant and if there’s anything they can do to get this thing going, they will. They’re industry and business people and this is the last thing they want.”
The plant shutdown comes in the fall when many producers are trying to sell their animals, “so it’s not great timing,” said Brian Bobilek, as he gestured to the auctioneer and bid on several animals.
“Hopefully, we’ll get this straightened out,” Bobilek said.
“It’s a food concern so if things aren’t right it’s got to be stopped until things get straightened out.”