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Despite closures, Canada’s food processing industry still hums

on March 12, 2014

Global News

TORONTO – Despite a number of high-profile plant closures in recent months, the food processing industry in Canada is becoming more competitive and those efforts are likely to bear fruit in the form of jobs, according to a new study.

Western University’s Ivey Business School says its study found that the most commonly cited reason for closures was that a plant was no longer competitive and, in many cases, production was being consolidated at another location.

But when new plants open, they are often larger and incorporate new technology that drives down costs, it found.

Recent high-profile food plant closures in Ontario, such as the Kellogg operation in London and the threat of closure that loomed over the Heinz plant in Leamington before it was saved by a last-minute deal, raised concerns in a province that had watched its auto and steel industries decimated by the recession.


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