G.S. Dunn Ltd. is investing approximately $30 million to expand its 22-acre mustard milling facility, aided by a $3.1 million Agri-Processing Investment Tax Credit from the Alberta government.

The facility brings in mustard seed from farmers, packages it for sale and sends it to 110 countries.

“The Alberta tax credit allowed us to add the milling operation to our facility where it did not exist before,” David Shields, plant manager for G.S. Dunn’s Bow Island operations, said in a video announcing the investment.

“Now, we are able to mill our products here in Alberta, closer to the source where it is growing. The process was very smooth. Working with the government, it helped us navigate some of the regulatory aspects of it. It helped us with our increase in the workforce and the ability to accommodate the staff here, with our infrastructure.”

The project has created 34 new jobs, and the expansion will also increase the facility’s purchasing power of raw mustard seed from $13 million to $44 million, with all seed coming from 300 rotated producers in southern Alberta and Saskatchewan.

The Bow Island expansion is the second phase of G.S. Dunn’s value-added mustard milling project. Since its initial expansion into Alberta, the company has increased capacity by more than 200 per cent. The current phase has increased processing capacity by approximately 70 per cent compared to pre-expansion levels.

The APITC program provides a 12 per cent non-refundable, non-transferable tax credit when businesses invest $10 million or more in a project to build or expand a value-added agri-processing facility in Alberta.

The program is open to any food manufacturers and bioprocessors that add value to commodities such as grain or meat or turn agricultural byproducts into new consumer or industrial goods. Up to $175 million in tax credits is available for each project.

G.S. Dunn has more than 150 years of experience and provides more than 250 value-added milled mustard products, making it the largest supplier in the world.

The company was set up by the British businessman of the same name, who opened his first Canadian mustard mill at Hamilton in 1867. Its Prairie seed procurement and cleaning operation was set up at the former Spitz sunflower seed plant at Bow Island in 2019.

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Bunge’s 2024 profit fell short of expectations after weak oilseed processing margins slashed fourth-quarter earnings in its core agribusiness segment.

The company said processing would remain under pressure in 2025 due to weak margins and a challenging economic environment, with global trade tensions and biofuel policy uncertainty creating headwinds for crop traders.

“We definitely are in an environment that has less visibility than the normal with the trade disruptions, some of the uncertainty around U.S. biofuels,” said CEO Greg Heckman.

Bunge shares were down 5.2 per cent midmorning.

The struggles come as Bunge is working to close a deal to acquire grain handler Viterra, a merger that would create an agribusiness powerhouse closer in size to peers Archer-Daniels-Midland and Cargill. Bunge said regulatory approvals for the deal were in the late stages.

The company has seen profits erode as a global glut of staple crops like soybeans and corn dragged prices to four-year lows last year, whittling down margins.

ADM on Tuesday posted its lowest fourth-quarter profit in six years and said it was slashing costs and cutting jobs, joining Cargill in tightening its belt.

Bunge’s agribusiness segment, its largest, saw adjusted profit fall 43 per cednt, with processing sub-segment profit down nearly 60 per cent from a year earlier on lower oilseed crushing results in North and South America and Europe.

Refined and specialty oils unit’s adjusted profit dropped 25 per cent due in part to U.S. biofuel policy uncertainty.

Bunge forecast adjusted earnings of $7.75 per share in 2025, down from $9.19 per share in 2024 and missing analysts’ expectations of $8.71. The 2025 guidance did not include its pending Viterra acquisition.

Adjusted fourth-quarter profit fell to $2.13 per share from $3.70 a year earlier, below the consensus analyst estimates of $2.24, according to data compiled by LSEG.

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A May 7 news release on the GFI website says the company cannot service its outstanding debts.

“The wind-down is a result of recent macro-economic events, which have caused GFI to experience challenges in purchasing adequate supplies of raw material inputs for its processing assets, which has resulted, and is expected to continue to, result in a material decline in the company’s sales and gross profit until new raw material supply becomes available from the fall 2024 Canadian harvest,” the release says.

“Management and the board of directors have determined that these challenges will make it near impossible for (GFI) to continue to operate and service its debts, leaving no other option than to wind down its operations.”

Less than a year ago, in June 2023, Corporate Knights named GFI one of the Future 50 Fastest Growing Sustainable Companies in Canada.

“GFI’s selection for this prestigious list is a testament to its commitment to supplying premium, sustainable plant-based protein food and ingredients,” said a GFI announcement about the Fastest Growing award.

“The company’s mission centres around providing healthy and sustainably produced plant-based food and ingredients, utilizing regenerative crops that enrich the soil and employing local processing methods with minimal emissions and water usage.”

GFI has headquarters in Toronto and has several facilities in Saskatchewan, including elevators in Zealandia and Lajord. It purchased peas, lentils, chickpeas and other high protein crops from farmers.

In a financial statement released in February, GFI says it has four lines of business — Core Ingredients, Value-Added Ingredients, Plant-Based Pet Food Ingredients and Downstream Products — and ships to 37 countries around the world.

While operating, GFI manufactured pea and lentil flours, pea protein, pasta made from lentils and its own brand of pulse-rich pet food.

From April 1 to December 31, 2023, GFI had revenues of $76.1 million, a decline of 18 per cent from the same period in 2022.

A May 8 company news release said GFI has received letters from its secured lenders demanding immediate and full payment of the “outstanding debt balances of $14,987,992 and $6,844,973.”

Another GFI release from early May said: “The company will be working with its lenders to sell its assets in an orderly fashion,”.

This story will be updated when more information is available.

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“The danger here might be that the sector might not live up to its potential,” said Nicholas Renzetti, research associate with Smart Property Institute, the group that wrote the report in partnership with the Future Skills Centre.

And that potential is enormous. Protein Industries Canada believes the plant-based protein sector could be contributing $25 billion annually to Canada’s gross domestic product by 2035.

“Manitoba alone wants to grow its protein sector by attracting $1.5 billion in investment and creating 1,550 jobs by 2025,” stated the report.

Major investments have already been made in the two prairie provinces.

Roquette opened the world’s largest pea processing plant in Portage la Prairie, Man., in 2021.

Cargill and Viterra have announced plans to build canola crushing facilities in Regina that will be operational by 2024.

Federated Co-operatives Ltd. and AGT Food and Ingredients are building a $2 billion canola crushing and biodiesel plant in the same city that will be completed by 2027.

Burcon NutraScience Corporation’s pilot protein ingredient plant in Winnipeg received funding in 2023.

But a survey of companies working in that space revealed that there are some significant hurdles to overcome for those plants to be successful.

“People are concerned that the persistent labour challenges might lead to a situation where the sector continues along but doesn’t expand to its full potential,” said Renzetti.

The case of Merit Functional Foods offers a cautionary tale along those lines, according to the report.

There were “sky-high expectations” when the company opened its 94,000 sq. foot processing plant in Winnipeg in 2021.

Two years later the firm declared bankruptcy despite receiving $116.5 million in federal and provincial funding.

“The company’s lack of success was attributed to factors ranging from the high costs of inputs to labour shortages to delays in new product development,” stated the report.

A survey by the Canadian Federation for Independent Businesses found that 63 percent of agri-food companies could not hire all the staff they needed.

“There is a lack of visibility and perceived attractiveness for food and beverage manufacturing careers,” stated the report.

Renzetti said that is odd given that it is the largest manufacturing sector in the country measured by employment and the second largest measured by sales.

It doesn’t help that wages paid in the food manufacturing sector are typically much lower than in competing sectors such as potash mining and oil and gas extraction.

Average pay in the food manufacturing sector was $21.20 per hour in 2020 compared to an average manufacturing wage of $30.36 per hour.

Another hurdle is that many food production facilities are in rural areas, which means there is a smaller talent pool to draw on and it is harder to convince newcomers to Canada to settle in those areas.

“We do think these are solvable challenges,” said Renzetti.

The first step is to create increased awareness of food manufacturing jobs starting at the educational institutes.

People training in information technology, engineering and data analysis might not be aware of these jobs.

One idea is to work with institutes to create job internships or to get them teaching specific technical skills unique to food manufacturing jobs.

Food manufacturers need to make better use of existing immigration programs, such as the Provincial Nominee Program, which he called a “standout” program.

The industry should also lobby hard to get plant-based protein manufacturing on the list of eligible industries for the federal Agri-Food Pilot program.

There needs to be better co-ordination and sharing of labour market data between provinces and with the federal government.

And there should be a wholistic approach to job creation that places an emphasis on quality-of-life aspects, such as providing adequate transportation, housing and child-care facilities to accompany the new job.

—Sean Pratt writes for the Western Producer from Saskatchewan.

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Agriculture minister Lawrence MacAulay was in Ingleside, Ont., at the Lactalis Canada cheese plant to make the Feb. 5 announcement. The projects are through the six-year, $397.5-million Supply Management Processing Investment Fund, which is part of Ottawa’s commitment to help sectors that lost market share due to trade agreements.

The funding is available to dairy, egg and poultry processors to buy and install automated equipment and technology so they can boost capacity and be more productive. Examples include milk pasteurizers, ultrafiltration systems, robotics for packaging systems and new machines to grade, set and break eggs. The projects also address environmental challenges and labour shortages.

Lactalis will receive more than $3.4 million for automated cheese processing and packaging equipment. The government said the upgrades will help modernize the plant, reduce waste and improve productivity and the company has already invested $11 million in the project.

The fund provides non-repayable investments that support up to 50 percent of eligible project costs for small and medium-sized processors and up to 25 percent for large companies with 500 employees or more.

While much of the investment is in the East where supply managed industries are more common, several western Canadian companies are also receiving money.

In Alberta, Crystal Springs Cheese at Coal Hurst will get $544,100 to install a two-phase milk ultrafiltration system. Jenner Colony Farming Co. in Jenner will get $43,600 to upgrade its refrigeration system and install new processing equipment in its poultry operation.

Sun works Farm at Armenia will automate poultry slaughtering, cutting and deboning with a $160,000 investment, and Tiras Dairies from Camrose will get $121,900 for an automated yogurt line.

Several large investments in British Columbia of $5 million each will see Golden Valley Foods in Abbotsford install a fully automatic egg grading system, Punjab Milk Foods in Surrey install an automated state-of-the-art processing line for its paneer cheese and Vitalus Nutrition of Abbotsford put in an automated powder handling and packaging system in its dairy processing facility.

Ridgecrest Dairies at Mission will use its $227,600 to install a walk-in cooler extension and new automated processing equipment such as a cheese press, cutter and vacuum packaging, while Rossdown Natural Foods at Abbotsford will get $1.5 million for automated poultry processing equipment.

In Saskatchewan, Star Egg in Saskatoon is set to receive $5 million to modernize and automate packaging and install new equipment for in-house egg processing.

Processor associations welcomed the announcements.

Mathieu Frigon, president of the Dairy Processors Association of Canada, said the fund is valuable because it leverages increased investments.

Similarly, Mark Hubert, president of the Canadian Poultry and Egg Processors Council, said numerous processors have been able to make important investments.

“New investments in equipment and technology will facilitate companies’ efforts to increase productivity and efficiency and enable Canadian poultry and egg processors to undertake valuable and leading-edge modernization projects,” he said.

MacAulay said he will always stand up for Canada’s supply management system.

“With this funding, dairy, poultry and egg processors will be able to modernize their operations so they can continue providing Canadians families with high-quality products while supporting small, rural communities across the country,” he said in a news release.

—Karen Briere writes for the Western Producer from Saskatchewan.

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First some background: a few weeks ago we got a note from the Canadian Grain Commission about its Harvest Sample program for 2023, in which the CGC called attention to its Grain Research Laboratory’s research projects, which rely in part on samples from the program. One of the featured projects, led by Dr. Ning Wang of the lab’s pulse crops team, used pea samples submitted via the program to study pea protein concentrates.

The study looked at how different pea varieties and protein levels could contribute to chemical composition of those pea concentrates in plant-based products such as meat alternatives.

Yellow peas received from across the West via the Harvest Sample program between 2015 and 2020 showed annual mean crude protein content ranging from 221 to 233 grams per kg of dry matter; in the individual samples, crude protein content ranged from 163 to 305 g/kg.

“While the overall average crude protein content did not vary greatly from year to year, the large variation in crude protein among individual samples within a year suggested that environmental conditions, agronomic practices and genetic factors may impact this range,” Wang wrote.

The peas were dehulled and milled into flour, which then goes through a process called air classification. The flour passes through a spiral air stream, in which the fine protein concentrate is separated from the more-coarse starch concentrate.

It’s possible to recover those proteins instead using what’s called “wet extraction,” but some processors are more interested in the air classification process because it uses less energy, water and chemicals.

It’s already known that air classification is less efficient when the peas have relatively high crude fibre and fat content, so this study instead looked at how peas’ crude protein content affected the outcome.

The researchers found the protein separation efficiency (PSE) using air classification was “significantly higher” from milled pea flours with lower crude protein levels than from those with higher crude protein levels.

The researchers said that may be because the pea flours with lower crude protein showed larger-sized starch granules compared to flours with higher crude protein levels. In turn, larger starch granules are denser and less likely to be carried by the air stream into the fine fraction.

“Seed hardness” and “flour dispersibility” might also affect PSE, the researchers said.

By comparison, the higher-protein pea flours led to more small starch granules being concentrated into the protein fraction. And that opens up another proverbial can of worms — because even though the study shows more small starch particles in the fine protein as a result, air classification is considered to be better suited to using the higher-protein pea flour for other reasons.

The higher-protein flour makes for low oligosaccharides, overall higher protein concentration and foaming properties in the resulting protein fractions, compared to concentrates from low-protein peas.

How might all this help farmers? For a start: better processing outcomes. In the study, the protein concentrates made using air classification showed improved oil absorption capacity and oil emulsion capacity, which make them well suited to baked products or salad dressings.

Plus, Wang wrote, as we learn more about the variations between pea varieties and how growing environment affects protein and starch, this work may lead to more “appropriate sourcing” of peas — and make air classification a more efficient process to get at those sought-after proteins.

On top of that, of course, it shows submitting samples to the Harvest Sample program from across the widest possible range of regions and field conditions can be really helpful in leading researchers to findings such as these. GN

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Olymel, the meat packing arm of Quebec’s Sollio Cooperative, announced Wednesday it will permanently close its pork boning and packaging plant at Princeville, Que. effective Nov. 10, and its poultry processing plant at Paris, Ont. effective Dec. 22, affecting 301 and 93 jobs respectively.

One of two production lines from the Paris plant will be installed at the company’s processing plant at Oakville, Ont., about 75 km northeast of Paris, as part of an $8 million package of upgrades. Equipment from the Paris site will also be moved to an Olymel further processing plant at Sainte-Rosalie, Que., just east of Saint-Hyacinthe.

“The decision to close the Paris plant definitively was much thought-over, and the choice to consolidate the Paris operations with those in Oakville was taken to ensure efficiency and cost savings,” Olymel CEO Yannick Gervais said in a release Wednesday.

“This decision will prevent the projected costly investments needed to update the company’s equipment at the Paris plant, notably to eliminate noise and odour disturbances for the neighbourhood.”

The renovations at Oakville, meanwhile, are expected to add 62 processing jobs at that plant, Olymel said in a release. Employees from the Paris plant will be offered relocation to Oakville or to other Olymel poultry plants at Port Colborne and Brampton, Ont.

Further-processing work such as tumbling at the company’s Orenda Road plant at Brampton are also expected to get a boost from the upgrades at Oakville, Olymel said.

Olymel has owned the Paris, Oakville and Port Colborne plants since 2018, when it bought Ontario chicken processor Pinty’s Delicious Foods.

‘Rethink’

As for the Princeville closure, Gervais said the company had “explored various avenues” for the pork processing facility but found its operations could be handled instead at Olymel’s other pork slaughter, cutting and boning plants in Quebec, namely at St-Esprit, Yamachiche and Ange-Gardien.

A relocation plan will also be offered to the Princeville plant’s employees to shift to other fresh pork plants or “any other facility with labour needs.” The closure also affects 33 temporary foreign workers (TFWs), Olymel said, adding it plans to work with federal and provincial authorities to allow those workers to apply to relocate to other Olymel sites.

The site at Princeville, about 80 km east of Trois-Rivieres, had already been shifted from hog slaughter and cutting work to value-added processing in March last year. Olymel said Wednesday it will announce plans for disposition of that plant and land at “a later date.”

“Today more than ever, it is necessary to continue to rethink our organization in order to optimize all of our activities,” Gervais said of the Princeville closure in a separate release. “The fresh pork industry is slowly getting back on track after two years of tumult that forced us to reorganize our operations.”

The “difficult but necessary” decision to shut the Princeville plant “is part of Olymel’s desire to continue our efforts to return to profitability in the sector, for the benefit of our entire organization,” he said.

Olymel’s processing business at Princeville had also previously included a bacon facility, which burned down in 2012 and was not rebuilt.

Throughput

Olymel also said Wednesday it’s “accelerating” plans by over a year to close a distribution centre it operates at Saint-Simon, Que., about 12 km north of Sainte-Rosalie. That closure will now take effect Jan. 26, 2024.

The company said it announced in September last year it will sell its building and land at Saint-Simon to the municipality, which plans to redevelop the site for residential use.

The decision to reschedule the closure follows Olymel’s recent reductions in slaughter volumes, which led to a “decline” in throughput at the Saint-Simon site, and also considers the capacity of other Olymel distribution centres to handle those volumes.

In Sollio’s fiscal 2022, the Olymel division alone booked a loss, before income taxes, of $445.7 million for 2022, following a $71.8 million loss for 2021.

Olymel has already been in deep cost-cutting mode for about a year, including eliminating dozens of administrative and management positions last fall through attrition and layoffs and permanently closing three Quebec processing plants.

After announcing plans to reduce its total hog slaughter, Olymel said in April it will close its Vallee-Jonction, Que. slaughter plant by Dec. 22.

In May, Olymel said it will also dial back its company-owned sow herd in Western Canada, with plans to idle five sow units in Alberta and one in Saskatchewan.

That’s expected to translate to a production cut of about 200,000 market hogs per year. The resulting impact on operations at Olymel’s Red Deer, Alta. slaughter plant “will not be felt until 2024 at the earliest,” it said at the time. — Glacier FarmMedia Network

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Tasmania, an island state of Australia, is the world’s largest producer of narcotic raw material (NRM). This NRM or drug extract is used in morphine and codeine as a pain relief formulation and thebaine and oripavine for pain relief and addiction treatment products.

I initially had visions of Australians, men and women, cutting poppy heads and scraping off the brown residues, but not so. In fact, the poppy crop is harvested before maturity just after flowering and while the seed heads are still developing. The poppy straw is cut, dried and harvested, and the two tons of straw per acre is processed, yielding 2.5 to three per cent alkaloid (opiate) assay.

Tasmanians have been growing such poppies for more than 50 years on many thousands of acres. In recent years, poppy drug production has moved to mainland Australia in the states of Victoria and New South Wales.

Poppy seed is an oilseed produced by the opium poppy (Papaver somniferum). The tiny seeds, true of all poppies, have been cultivated for thousands of years as a significant food crop in central Europe and Asia.

The poppy seeds themselves are 40 to 50 per cent oil. The opium poppy, P. somniferum (French for sleeping pill), is unlike wild and other poppies in that the seed capsule stays closed. In other words, the sealed capsule remains shut and retains all of its seeds. An excellent way of harvesting all of the seeds prior to crushing the actual pods to extract the seeds.

Some trials in Canada

With controlled poppy growing permits given by the government of Canada under the Controlled Drugs and Substances Act, there have been many small-plot trials in Alberta and Manitoba over the last 30 or so years. In other words, “no licensed dealer shall cultivate, propagate or harvest opium poppy other than for scientific purposes.”

At the present time, world production of poppy seeds consists of around 80,000 tons grown for international trade. Turkey produces 35 per cent of the total but significant amounts are grown in Spain, France, Hungary, the UK and other countries.

In poppy seed trials conducted on the Prairies many years ago, yields at Morden, Man. ranged from 15 to 50 bushels an acre.

Poppy seed itself has a nutrient value of approximately 525 calories per 100 grams and is made up of primarily around 40 per cent oil and 20 per cent protein. Sprouted wheat has only 200 calories per 100 grams, pea has 81 calories and canola seed has 124 calories per 100 grams. The seed itself, unlike the pods and stems, contain little or no opiate.

In recent times, plant breeders have developed strains of the opium poppy that are high yielding and the whole plant contains very low levels of opiates. This kind of research is similar to that of hemp. Hemp has been bred so that it contains very low levels of cannabinoids. The hemp plant’s first cousin is the beer hop, which provides flavour and various soporific drugs for beer-drinking pleasure.

Although it is now legal to grow marijuana, few people bother to grow this plant. A similar situation exists with tobacco. It’s legal to grow tobacco plants in this country but I do not know of any tobacco growers despite the fact that a packet of 20 cigarettes is around $20.

As far as the legal or licit growing of opium poppies, I would think it could be a crop that can be grown well in the Prairies. Illegal drugs, such as fentanyl and heroin, result in thousands of deaths in Canada annually. Considering the newer low-opium poppies for seed and the harvest of immature poppy stems for opiates, growing poppies in Canada could be a win-win situation. In other words, poppy seed or licit drug production could become another small but significant crop for Prairie Canada.

For further information on the potential for growing licit poppies for seed or opiates look up “Regulations Amending the Narcotic Control Regulations (Opium Poppy),” June 3, 2016. It is 11 pages of reasoning why Canada should not need to grow its own poppy seed or opiate supply. This document should now be revised in view of our present climate and understanding of illegal and legal drug use.

If Canada needs help in this poppy-growing endeavour all we must do is to emulate the planting, harvesting and processing systems available in Australia. At $100 million or more annually Canada pays for poppy alkaloid, we should get growing with this opportunity for our farmers to provide an additional profitable crop as well as diversifying our crop growing rotations.

Canada presently imports around 1,200 tons of poppy seed annually, but what are the needs of the United States and other countries? Potentially, Canada could become a major grower and exporter of poppy seed as we do with mustard crops or, perhaps, we could explore its oilseed and feed or food potential for the Prairies.

The world remembers November 11 as “Poppy Day,” immortalized during the First World War in Flanders Fields (Belgium) by Lieutenant-Colonel John McCrae of Guelph, Ont. We could grow fields of red poppies alongside the blue flax and yellow canola fields in Western Canada. Those red Flanders poppies were P. rhoeas, which like the opium poppy contained alkaloids.

Remember, do not trust everything that you see or hear, since even salt looks like sugar.

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A new report — dubbed a “landmark study” by the Potato Growers of Alberta — revealed the sector drove a total contribution of $2.87 billion to Canada’s economy in 2022.

It also notes the nationwide creation of 9,390 full-time-equivalent jobs, $662 million in employment income, a $1.3 billion contribution to GDP and $87 million in tax revenue to federal and provincial governments.

“We know that our industry has grown a lot in recent years but we had no accurate assessment of its overall impact on our economy,” said James Bareman, chair of the Potato Growers, in a webinar Tuesday.

“The industry could not have grown to this scale without the goodwill and collaboration of all parties involved: growers, processors, packers, the service sector, the scientific community and governments.”

The Alberta Potato Industry – Growing Success in 2022 was completed by Serecon and Nichols Applied Management — both Edmonton-based consultants with experience in developing economic impact assessments in the ag sphere.

The firms used world-standard industry methodology — further scrutinized and approved by an independent third-party university economist — to conduct the study.

“We wanted to ensure the study was accurate and the methodology was beyond reproach,” Potato Growers executive director Terence Hochstein wrote in a release.

“That’s why we went to great lengths to ensure it was conducted in a manner that would pass rigorous external scrutiny.”

Alberta is home to two broad regions of potato growers, Darren Haarsma of Serecon said: seed and table potatoes north of Calgary and processed potato products (chips, hash browns, et cetera) in the south.

Both subsectors are doing well, he said.

“Since 2017, there’s been marked increase in acres in Alberta across all types of production,” said Haarsma.

“A noteworthy point about the Alberta industry that makes it unique in comparison to other provinces is that the average production — thanks in large part to the extensive irrigation in Alberta — is about 30 per cent higher than the rest of Canada’s average.”

— Jeff Melchior is a reporter for Alberta Farmer in Edmonton.

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The launch shows the complexities involved in replacing Packers Sanitation Services Inc. (PSSI), a firm that contracts to clean slaughterhouses. The U.S. government in February said PSSI paid US$1.5 million in penalties for employing more than 100 underage teenagers at meat plants across eight states.

The new company, JBS Sanitation, will “immediately begin the transition” to cleaning 10 JBS USA facilities, which produce beef and pork, according to a statement issued this week. JBS Sanitation will also do in-house cleaning for Pilgrim’s Pride Corp. and create “hundreds of union jobs,” the statement said.

JBS USA is the North American unit of Brazil’s JBS SA, which also owns most of Pilgrim’s Pride.

The North American unit also includes JBS’ beef slaughter and processing operations in Canada. JBS USA’s statement Wednesday referred only to U.S. plants and didn’t say whether the new sanitation company’s operations would extend north of the border.

“We fully expect JBS Sanitation to be cost competitive with other service providers,” JBS USA spokesperson Nikki Richardson said on Thursday, without providing details.

The largest U.S. meatpacking union, the United Food and Commercial Workers International, said it is working with JBS USA on in-house sanitation.

PSSI has said it has a policy against employing minors.

JBS USA previously said it terminated contracts with PSSI at “numerous” facilities, including three plants where alleged child-labour violations occurred. Third-party companies that meet employment verification standards will continue to clean some JBS USA and Pilgrim’s Pride plants, according to the statement.

Meatpacking rival Cargill also said it was cutting all ties with PSSI but the process will take months.

U.S. Agriculture Secretary Tom Vilsack sent a letter to the largest U.S. meat and chicken processing companies last month, urging them to examine their supply chains for evidence of child labour.

— Reporting for Reuters by Tom Polansek in Chicago. Includes files from Glacier FarmMedia Network staff.

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