June 27, 2008

Canada's Masterfeeds closes mill in Germany

Canadian Masterfeeds announced that it would close its feed facility in Baden, southwest Germany.

The company said that the major reasons for closure are the high cost for upgrading and the recent acquisition of Land O' Lakes Canada, which gives Masterfeeds the opportunity to consolidate locations.

In May, Masterfeeds reached an agreement to purchase Land O' Lakes Canada's Ontario feed business.

Planned consolidations will lead to the closure of Land O' Lakes facilities in Peterborough, Mitchell and Wellburn. Land O' Lakes had already closed the facility in Mitchell with Masterfeeds acquiring the lease.

Als Cleary, vice president of operations, said the cost of expanding and upgrading the facility to meet the needs of the modern feed supply business is too cost prohibitive to even consider.

Masterfeeds' Baden operation provides a full line of livestock feeds. The Baden facility has been in operation since 1952 when Masterfeeds, then a division of Maple Leaf Mills, purchased the former flax mill and modernized the operation to accommodate the new feed business.

Masterfeeds Inc. is wholly owned by Ag Processing Inc., a farmer-owned cooperative based in Omaha, Nebraska.