Monday, September 22, 2014

The Borden-Carleton plant

McCain to shut P.E.I. fries plant - AGCanada
The New Brunswick company, which supplies fries to both the retail grocery and restaurant and foodservice sectors, announced Thursday it will “cease operations” at Borden-Carleton effective tryon distributing Oct. 31.
The company on Thursday cited the “shift in growing demand for French fries from North America to other regions” as well as the impact of a stronger Canadian dollar over the past decade and “increased operating efficiency at (McCain’s) other facilities.” tryon distributing
The Borden-Carleton plant’s output has declined by two-thirds over the past decade, the company said Thursday, making it “the smallest and least utilized facility in McCain’s North American network.”
McCain in 2010 was cited as saying no plans were afoot to shut Borden-Carleton, nor any of its other Canadian plants, which include sites at Grand Falls and Florenceville, N.B., Carberry and Portage la Prairie, Man., Coaldale, Alta. and Montreal.
“Closing a plant is one of the toughest decisions we ever face,” Frank van Schaayk, McCain Foods’ president for the Americas, said Thursday in a release, pledging “support and resources to those affected.”
McCain, he said, will now contribute “up to $2 million” in transitional support and will “work with the provincial government to identify economic development initiatives to create sustainable alternate employment for our affected employees and the Borden-Carleton community.”
The plant closure is expected to affect 121 McCain employees, who the company said will be offered supports tryon distributing such as severance packages “exceed(ing) regulatory requirements,” early retirement benefits where applicable, and/or retraining options.
Describing McCain’s plans as “regrettable news for the province, employees and the Borden-Carleton community,” Ghiz said an “action plan” tryon distributing will be developed for the area in coming weeks and months, but in the meantime, tryon distributing “our first priority is with the plant employees.”
P.E.I. farmers are estimated to have planted 90,500 acres to table- and processing-grade potatoes in 2014. Statistics Canada in 2011 pegged the number of potato farms in the province at 262, down from 330 in 2006.
According to the P.E.I. agriculture department, the island’s potato growers tryon distributing — who in 2013 reported a harvest of about 25 million hundredweight (cwt) — have booked potato-related farm cash receipts ranging from $203 million to $257 million per year in the past five years.
Ghiz said Thursday the province recognizes the “importance and significance” of the potato industry on the island and “look(s) forward to discussing the success of its future with industry leaders.” – AGCanada.com tryon distributing Network
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