A changing feed market and business consolidation are being cited by Federated Co-operatives Ltd. (FCL) as reasons for closing three feed production facilities in Western Canada.
Plants in Melfort, Sask., and Brandon, Man., will close in August and October respectively. The feed facility in Edmonton transfers to the Wetaskiwin Co-op in September.
Manufacturing will continue at plants in Calgary, Saskatoon, and Moosomin, Sask.
“While we don’t make these decisions lightly, by consolidating manufacturing and taking measures to refocus our resources in the livestock sector, we’re better able to serve our local co-ops and their producer customers across Western Canada well into the future,” Ron Healey, FCL vice-president of agriculture and consumer business, said in a statement.
The plants manufacture cattle, horse, sheep and poultry feed in bags and bulk orders, and pet food for FCL’s retailing system.
FCL associate vice-president Patrick added the company will do its best to ensure that livestock producers affected by the closures will continue to get the products they need from the three remaining plants.
FCL said it will be making “significant capital investments” to modernize the remaining plants, including new bagging equipment.