Air Freight News

Meatpacking shutdowns force McDonald’s Canada to import beef

The threat of meat shortages from the coronavirus pandemic is hitting the golden arches.

McDonald’s Corp.’s Canadian unit will start importing beef to supplement its needs because of limitations in supplies from the country’s plants, including Cargill’s High River facility, the company said Tuesday in an emailed statement. An outbreak of coronavirus among workers prompted a shutdown in High River, which accounts for about 40% of the Canada’s beef processing capacity.

McDonald’s is temporarily removing the Angus burger from its Canadian menus, effective immediately.

“Until Canada’s beef supply stabilizes, we will source as much Canadian beef as we can and then supplement with imported beef,” McDonald’s Canada said in the statement, noting it is procuring additional supplies from the U.S., Australia, New Zealand, Ireland, the U.K. and Uruguay.

The disruption in Canadian meat supplies comes as more food processors across North America close plants due to workers falling ill with the virus. In the U.S., about a third of the nation’s pork capacity is shut down. The breakdowns have spurred plans by President Donald Trump to order meat-processing plants to remain open.

In Canada, in addition to the problems at Cargill’s High River plant, JBS SA’s beef plant in Brooks, Alberta, is running at about half capacity.

The reductions have left thousands of cows backing up on Canadian farms and forced ranchers to put cattle on maintenance feed to help slow their growth. The “domino effect” through the food system has withered demand for cattle and means beef prices will probably rise, according to the National Farmers Union.

McDonald’s Canada plans to continue sourcing within Canada over the long term, the company said.

“We look forward to returning to sourcing 100% Canadian beef as quickly as possible,” according to the statement.

Bloomberg
Bloomberg

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© Bloomberg
The author’s opinion are not necessarily the opinions of the American Journal of Transportation (AJOT).

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