by SUSAN MANN
Kellogg Canada’s grain buying will stay the same despite a planned cut to jobs at its London cereal manufacturing plant.
The company announced it’s cutting 110 full time unionized workers Jan. 1, 2014. The plant currently has 500 unionized workers.
Kris Charles, Kellogg spokesperson, says by email the London plant “plans to operate a more consistent production schedule. We don’t expect any changes to our ingredient purchases.”
The company uses “a variety of grains grown across Canada,” Charles says, but wouldn’t specify what it buys nor how much. “Other details of our supply chain are confidential,” he writes.
The impact of the job cuts on farmers isn’t known. Meghan Burke, spokesperson for Grain Farmers of Ontario, says the organization doesn’t have a comment.
Bob Martin, president of Local 154G of the Bakery, Confectionery, Tobacco Workers and Grain Millers Union, couldn’t be reached for comment. BF
Comments
This should be viewed as a prelude to something bigger to come.Great column in the K-W record on how NAFTA and the high Canadian/low Mexican dollar have combined to put Food Processing in this Country on the ropes.Kraft Foods canning plants,Bick's Pickles, and now Heinz.You have to think all employees at kellogg's are nervous.
It really is stupid for farmers and farm groups to fall all over themselves trying to promote food security, or even local food, when we don't have economically-viable processing operations.
Therefore, what's the big deal about growing food in Canada if it doesn't make economic sense to process it here?
Stephen Thompson, Clinton ON
Local food legislation in this Province is not driven by farmers, its being demanded by the urban population.
Somewhere along the line Canadians will have to choose/vote to having our own Food industry or just being the 51st State!
If shutting down a plant like Heinz,unemploying all those people and cutting off those Ontario Tomato farmers actually meant cheaper ketchup on store shelves some consumers might not even bat an eye..but it won't! .. and that is the sad part about it, its lose,lose lose!
If you mean by urban demand, those consumers who regularly drive to the US to buy dairy and poultry products, I don't think so.
If you mean by urban demand, those consumers who come from other countries, particularly from Asia, who, if one takes the time to walk through, for example, a supermarket in Toronto's Chinese district, will readily see that these consumers don't give a rat's patooie about local food, nor should they - once again, I don't think so.
If you mean by urban demand those consumers who are trying to juggle careers, children, and all the things children do, and who, as a result just want food, and don't care where it comes from, as long as it's on the shelf when they want it, I, once again, don't think so.
If you mean by urban demand, the demand from so-called foodies who want the best, and will readily buy olives from a certain area of somewhere not in Canada, just because they're "the best", I don't think so again.
Local food is a just another bad idea which appeals to misguided souls who don't represent a significant segment of the marketplace, and who typically don't buy, or eat, much food of any sort, type, or kind, regardless of where it comes from.
Stephen Thompson, Clinton ON
It's about the jobs stupid . Look at all the jobs it going to create . It's about the jobs that will be happening in gov to have some new department make up useless policies , rules and regs . It's about the jobs .
Job !
The jobs mantra is always proffered by people advocating protectionist measures, and they constantly forget that protectionist measures are, by definition, always net-negative for jobs and economic activity. For example, the "drag costs" of administering any such program are always net negative, unless you're one of the administrators.
Any regulation(s) to enhance the use of local food takes away from the principles that comparative advantage and trade are better for both the economy and public policy.
Stephen Thompson, Clinton ON
Right now your "net negative" and your "drag costs" meant absolutely zippo to the people losing their jobs at Heinz or the farmers who lost their contracts for tomatoes or to the Fuel,Equipment and fertilizer dealers in that area.What ever those growers switch to in the future it will never bring in the same value as a tomato crop did.
Ontario has lost millions,maybe even billions in lost Economic revenue with that plant closing and for what?.. so we can import the same thing from California ?Your economic principles are riduculous!
To an economist, the three eternal verities are death, taxes, and poorly-educated people, especially from the farm community, offering impaired judgements about economic principles they don't understand.
Heinz is responsible to its shareholders, not its suppliers, and not its employees - Heinz, like any other business, allocates its assets to where it maximizes value to its shareholders, and that's the way it should be.
In addition, Heinz is not the only manufacturer of what it produces, and there's no reason why somebody else can't enter this market and do a better job for their employees, their suppliers, and their customers.
Those people who "depend" on Heinz also ignored one very-basic business principle which is to not overly-rely on any business sector where there is only one buyer - it doesn't matter whether it was Heinz in Leamington, or solar panels with only one buyer of electricity, or even supply management with only one buyer of product at the farm gate, it's foolish to become that dependent on having only one buyer for what you produce, because without that one buyer, things can, and do, implode quickly.
Stephen Thiompson, Clinton ON
It will more than likely spell higher prices for Heinz Ketchup because all things here cost more than they do south of the border just like my equipment parts . It well could be made here and shipped south and sold cheaper to the USA consumer but not here .
You may very well be right,there has been an inbalance for years and its growing.It goes hand-in-hand with why we ship meat products to the US below $4.00Kg and import almost the same meat back at close to $7.00Kg...NAFTA was only a free trade deal for ONE country!
I will agree but lets take a step back and really get to the root of the problem . We are a have not province in what is rapidly turning into a has been country .
Local food is just what all the road side stands want to see so they can make cash money and not claim it . Too many have for years watched the Mennonite community with their stand at the road or at the market . Not knowing how much work is actually being done back on the farm . So many are selling purchased goods and trying to put them off as home grown . Yes home grown by some one just not themselves .
Processing is usually done in factories which are owned by big companies who get courted all the time to pack up and relocate under a new sweet heart deal with cheap taxes , cheap hydro and other incentives .
We here in Ontario will be allowed to farm the land for a while longer before we are regulated and told how we are going to do it . And it will happen ! The province controls 87 % of the land in the province already but is hell bent on telling us what we can and will do on the property we as individual land owners control . They can't wait to tell us what and how we are going to do things like species at risk , trails and natural habitat . How two faced can you be to tell us we must do more for habitat and then tear down habitat for eagles to put up wind turbines for greed energy , then give us money through EFP for species protection and habitat formation !
We will turn into a small bedroom province with Toronto calling all the shots , making un informed decisions with vote for me written all over it and screw logic and sound business . We need this province to be run as a business , by people with morals and ethics that can be trusted and counted on . The liberals make the mayor of Toronto look like a saint . I guess we need Rob Ford as Premier !! Surely he could do no worse and might even be entertaining and fun to hang out with !!
Hey Wynne can you say the writing is on the wall ? Wait till our next hydro increase in February and see how many more jobs are lost to south of the border or even Quebec because of cheaper hydro rates .
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