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News 248 views last update:6 Aug 2012

Cargill Canada to close feed mill in June

The Winnipeg-based Canadian wing of Cargill plans to close a southwestern Ontario animal feed mill in June this year due to citing costs and restrictions of the US feed market.

After closure in June 2008, US customers will be served through a "new partnership" to be announced soon in nearby Michigan. The Ontario feed volume produced at Arkona will be "transitioned" to Cargill's regional feed plants at Woodstock, Palmerston and Strathroy, Ont., the company said.

The economics of grain flow and transportation costs, combined with a stronger Canadian dollar and the "burdensome" permitting process for feed, "significantly" reduced the competitiveness of the Arkona plant for shipping feed into the US.

The Arkona mill's 14 staff will be laid off, but Cargill said it would seek to place them in other facilities, such as its Strathroy pet food, horse feed and mineral premix facility, at which the company recently expanded production capacity.

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