By Dori Modney

Megascale agri-food processing has benefits – and big risks

Dec 18, 2020 | 5:15 PM

CALGARY, AB. — Megascale agrifood-processing facilities are commonplace in Canada, primarily for greater efficiency and increased profitability.

Agrifood processing has certainly been using the economies-of-scale for efficiency and increased revenue.

While the mega facility concept has it`s positives, there are also negatives.

Dr. Jared Carlberg, has published a briefing paper at the University of Calgary School of Public Policy, entitled “Vulnerabilities and benefits of megascale agrifood proceessing in Canada.“

The 17-page paper looked at the pros and cons of megascale agrifood-processing and how to possibly mitigate the negatives.

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The big take-away from the paper is that beef processing plants have made the industry vulnerable to disease outbreaks, which can facilitate shutdowns similar to what happened early in the COVID-19 pandemic could.

Carlberg notes these types of incidents can easily happen again, as roughly 70 per cent of Canada`s beef production is locat in two Alberta plants.

The Cargill plant in High River has 2,000 employees and a weekly production capacity of 22,000 head, while the JBS plant in Brooks has 2,600 employees and a weekly production capacity of 22,500 head. The number of employees and each capacity make these two facilities the largest in Canada.

COVID-19 shut downs at these two plants in the spring raised concern for the beef industry, as ranchers had to put off sending animals for processing and keep them on feed – an expensive proposition.

Dr. Calberg`s study suggests solutions would be to encourage smaller scale production facilities and increase mechanization at the larger slaughterhouse. Both solutions reduce the number of workers at the facilities and would require an injection of capital.

While offering details on the future risks of megascale production, Carlberg also suggests solutions, which would take input from several levels of government and a willingness to work with producers on the solutions.

The full document on Dr. Carlberg`s study into ‘Megascale’ slaughterhouses and meat-packing plants` can be found in the link posted above.