Maple Leaf Foods bullish about Q4 results as new poultry plant comes online

CANADA- Canadian consumer packaged meats company, Maple Leaf Foods has completed construction of its new poultry plant and is set to start production on schedule in Q4 2022.

The plant based in London, Ontario, has already started equipment testing and is in the process of new hiring new staff.

“As we get closer to commercial production, we know we are well on our way toward realizing the benefits and returns on this US$772 million strategic investment,” comments Michael McCain, CEO.

The company expects the plant to generate approximately US$100 million annually of incremental adjusted EBITDA on a run-rate basis once production is fully ramped up around the end of 2023, McCain details.

According to the firm, chicken continues to be the most popular and fastest-growing meat protein in Canada and there is a “particularly high” demand for halal chicken products and those that have not been given antibiotics.

Maple Leaf Foods offers these items under a variety of national labels, including Maple Leaf Prime and Mina.

Curtis Frank, president, and COO remarked that their investment in food safety, environmental, and animal care technologies will allow them to efficiently deliver a premium mix of value-added poultry products.

He noted that the products will meet the steadily growing consumer demand, while also strengthening Canada’s food system and advancing its vision to be the most sustainable protein company on earth.

The USDA is also leading new initiatives to foster just and competitive meat and poultry markets as part of the agency's participation in the President's Competition Council.

The US Poultry market has seen tremendous attention recently, with the US Department of Agriculture (USDA) providing US$21.9 million further in financing to the Meat and Poultry Inspection Readiness Grant Program.

This has raised the total amount of funding to US$54.6 million, benefiting poultry producers throughout the country.

The funding is intended to help strengthen and develop new market opportunities for meat and poultry processors throughout the US.

“The Meat and Poultry Inspection Readiness Grants will help meat and poultry processors make necessary facility improvements, expand their businesses, and strengthen the nation’s food supply chain,” remarks Secretary of Agriculture Tom Vilsack.

“These grants are one part of USDA’s Meat and Poultry Supply Chain initiatives and will contribute to our efforts to transform our food system.”

The USDA is also leading new initiatives to foster just and competitive meat and poultry markets as part of the agency’s participation in the President’s Competition Council.

A US$15 million Agricultural Competition Challenge is one of these initiatives, and it aims to increase cooperation with State Attorneys General (AG) on the enforcement of competition rules, such as those that prohibit price-fixing.

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