Sarnia

Loose Sow Housing Adding To Maple Leaf Costs

Maple Leaf Foods closed it's eighth - and final - legacy facility this past quarter.

President and CEO Michael McCain calls it a major milestone for the company as part of it's prepared meats network strategy.

The company posted a net loss for the second quarter of 7 point 5 million dollars.

That compares to a loss of 39 point five million the year before.

Maple Leaf's Agribusiness Group posted adjusted operating earnings in the second quarter of 4 point 1 million dollars, down from 5 point 2 million a year ago.

The company blames that on increased operating overhead relating to the conversion of existing farms to loose sow housing.

The Agribusiness Group includes Maple Leaf's Canadian hog production operations.

It's Meat Products Group - which includes it's prepared meats and fresh pork and poultry products - saw adjusted earnings go from a loss of 15 point 6 million last year to a plus of 17 point 7 million.

The company says the group benefited from what it called normalized market conditions and lower operating costs compared to last year.

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