Maple Leaf Foods plans to increase the profitability of its Meat Products and Agribusiness operations ("the Protein Value Chain" or "Value Chain") by focusing its growth in the value added fresh and processed meats and meals businesses.
To achieve its objective, the company will focus its strategy on growing its value added fresh and further processed meat and meals businesses. Through integrating its fresh and valued added further processed operations, the company’s go
The company will align its value chain operations to support this strategy. All other components, including the feed, hog production and primary processing operations, will be sized to support its value added fresh and further processed meat businesses.
"We have defined a strategy that goes well beyond addressing currency challenges and provides significant value creation opportunities for Maple Leaf and our shareholders," says Michael McCain, president and chief executive officer. "The result will be a simpler, more focused and profitable meat and bakery company, with significantly less exposure to foreign currency fluctuations and commodity markets. We will build off our considerable strengths in the higher margin, fresh and further processed meats and meals markets through innovation, investment, and acquisitions."
The reorganization will result in Maple Leaf reducing the number of hogs it produces or manages, while transitioning to 100 percent ownership of fewer barns. The new mandate of the fresh meat operations will be to focus on producing raw material products that meet the needs and specifications of the company's value added protein businesses.
In its animal nutrition business, Maple Leaf will retain only those feed mills necessary to support its restructured pork production operations. Maple Leaf hasn’t decided the future of its rendering operations.
Source: Maple Leaf Foods news release