Quote-Beginning today, Swift & Co. will suspend the second shift at two of its beef processing plants for a week in response to export restrictions placed on American beef after the discovery that a Washington state cow tested positive for bovine spongiform encephalopathy, the company said.
The move will affect approximately 2,100 workers on the afternoon shifts at the Greeley, Colo. and Grand Island, Neb. plants.
"Right now we are looking at a week," Jim Herlihy, spokesman for Swift, told Meatingplace.com. "It does provide some financial relief. We will have to evaluate as we go forward."
In January Swift let go about 270 employees, also in response to the border closure.
Besides the loss of boxed beef exports, the company said it had lost markets that paid premium prices for cuts that Americans don't value, creating a "domino effect" that puts a downward pressure on the price of wholesale domestic beef cuts.
The company also noted the impact of the continued closure of the Canadian border to live animals under 30 months to its bottom line.
"The continued closure of the U.S. border to live Canadian cattle under 30 months of age—which all available science indicates are safe for processing—is a serious blow to U.S. beef processors," John Simons, president and CEO of Swift, said in a statement.
"Our Canadian counterparts can undercut U.S. processors on price while still realizing record profits at the expense of U.S. workers."
I got this off an American discussion board...I filled them in on exactly who those Canadian counterparts are...and it's not Canadians! I received a comment that at least we were OK, we were getting 300 dollars an animal in subsidy...I filled them in on who got the subsidy too..and it wasn't Canadians! They were quite understanding. As a group, Americans really don't know what is going on here, but they are learning fast, and there are a lot more on our side than we may think.
The move will affect approximately 2,100 workers on the afternoon shifts at the Greeley, Colo. and Grand Island, Neb. plants.
"Right now we are looking at a week," Jim Herlihy, spokesman for Swift, told Meatingplace.com. "It does provide some financial relief. We will have to evaluate as we go forward."
In January Swift let go about 270 employees, also in response to the border closure.
Besides the loss of boxed beef exports, the company said it had lost markets that paid premium prices for cuts that Americans don't value, creating a "domino effect" that puts a downward pressure on the price of wholesale domestic beef cuts.
The company also noted the impact of the continued closure of the Canadian border to live animals under 30 months to its bottom line.
"The continued closure of the U.S. border to live Canadian cattle under 30 months of age—which all available science indicates are safe for processing—is a serious blow to U.S. beef processors," John Simons, president and CEO of Swift, said in a statement.
"Our Canadian counterparts can undercut U.S. processors on price while still realizing record profits at the expense of U.S. workers."
I got this off an American discussion board...I filled them in on exactly who those Canadian counterparts are...and it's not Canadians! I received a comment that at least we were OK, we were getting 300 dollars an animal in subsidy...I filled them in on who got the subsidy too..and it wasn't Canadians! They were quite understanding. As a group, Americans really don't know what is going on here, but they are learning fast, and there are a lot more on our side than we may think.
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