Question Period Note: Closure of Ryding Regency Meat Packers: Impact on Slaughter Capacity

What is the government doing to support beef producers impacted by the cancellation of licenses at Ryding Regency Meat Packers facilities?

FIRST RESPONSE:

1. We understand the impact the closing of Ryding-Regency has on the beef sector.

2. Our Government has been working closely with private industry and the province to look for solutions to the loss of processing capacity.

3. We have programs through the Canadian Agricultural Partnership to help farmers manage risks beyond their control.

4. We are ready to help beef producers through our Advance Payments Program, which provides easy and fast access to low-interest cash advances in the short term.

RESPONSIVE ON SLAUGHTER CAPACITY

1. Producers are looking at other processing plants in Ontario and other provinces that may be able to absorb some processing volume.

RESPONSIVE REGARDING SUPPLY OF KOSHER BEEF IN CANADA

1. There are two other plants in Canada that are eligible to produce kosher beef, one in Ontario and one in Quebec.

2. Imports of kosher beef will continue to be required to meet demand.

The Canadian Food Inspection Agency has canceled the Safe Food for Canadians (SFC) licences of Ryding Regency Meat Packers LTD. (Est. 99), and Canadian Select Meats Inc. and The Beef Boutique LTD., (both operating under St. Ann's Foods Inc., Est. 639).

According to the Beef Farmers of Ontario (BFO) and the Canadian Cattlemen's Association (CCA), the Eastern Canadian beef industry is in a difficult situation due to insufficient slaughter capacity in Eastern Canada to handle the number of beef and dairy cattle on the market at certain times of the year. This has resulted in depressed prices, delays in cattle slaughter and lack of market security. This situation has been exacerbated by the recent suspension and ultimate cancelation of Ryding Regency Meat Packers. Additionally, Est. 99 was the only beef facility in Ontario producing Kosher products and the Jewish community has been expressing concerns because this has affected Kosher beef supply in Canada.

The tight cattle slaughter capacity in Eastern Canada during the peak fall marketing has been further impacted by the temporary closure of a Tyson plant in the United States, which resumed operations fully in early January, and halt in purchases of fed cattle at a Pennsylvania facility.

Ontario’s beef processing sector is comprised of 6 federally inspected abattoirs and approximately 98 provincially inspected abattoirs. The sector is, however, highly concentrated. In 2018, 3 federally inspected plants, Cargill Meat Solutions, St. Helens Meat Packers, and Ryding Regency Packers, processed 89% of the 687,752 cattle slaughtered in Ontario. Overall, approximately 90% were processed in federally inspected plants.

Ryding Regency’s 55,000 square foot abattoir and processing plant had the capacity to process approximately 80,000 head of cattle annually, along with 4,000 veal calves, and 4,000 lambs.

The company employed approximately 160 people between its three facilities and had annual sales revenue of over $90 million.

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