Cargill announced that it will cease operations at its Arkona, Ontario animal feed production facility in June 2009.
Cargill’s existing dairy customer base in Michigan will continue to receive the same levels of support and service, as the company will soon be announcing a new partnership in Michigan. The Ontario feed volume produced at Arkona will be transitioned to nearby regional Cargill animal feed facilities in Woodstock, Palmerston and Strathroy, Ont.
According to Cargill officials, the fundamental economics of grain flow and transportation costs, combined with a stronger Canadian dollar and the burdensome permitting process, significantly reduced the competitiveness of the Arkona plant for shipping feed into the U.S.
“This was a very difficult decision for us,” said Charles Lapointe, general manager for Cargill Animal Nutrition’s business in Eastern Canada. “Unfortunately, our milling activities for feed exports to the U.S. are no longer sustainable. We have no choice but to discontinue feed manufacturing at our Arkona facility, as it was primarily dedicated to U.S. customers.”
“Our 14 Arkona employees have worked hard to make the business viable and provide strong support for the community,” insisted Lapointe. “We fully recognize and appreciate their unwavering commitment and years of service.”
To the extent possible, Cargill will seek to place interested, qualified employees in other positions within the company, including Cargill’s newly expanded production capacity for the manufacture of pet food, horse and mineral premix at Strathroy.
