Maple Leaf Foods to sell turkey growing operations

Maple Leaf Foods has entered into definitive agreements to sell the Company's commercial turkey farms to Ernald Enterprises and its breeder farms and hatchery operation to Cuddy Farms, Maple Leaf Foods announced on July 22. The transactions are expected to close by the end of July.
Maple Leaf's turkey growing operations employ more than 100 employees in southern Ontario. They include a hatchery and six breeder turkey farms that supply turkey eggs and turkey poults to domestic and international markets and six commercial farms that supply market-ready live birds to Maple Leaf's turkey processing facility in Thamesford, Ont. The terms of the transaction include a long-term supply of live birds to Maple Leaf from Ernald Enterprises. Most employees will transition to Ernald Enterprises and Cuddy Farms once the transactions close.
"Divesting our turkey growing operations will allow us to focus on, and direct capital to, growth and innovation in our valued-added turkey processing business," said Michael H. McCain, president and CEO, Maple Leaf Foods. "The transaction ensures a long-term supply of high quality turkeys at competitive prices. I'd like to thank our people who work in these operations for their dedication to our business. They are joining two organizations who are leaders in Canada's turkey growing industry." 

Butterball majority owner wants to retain company

Butterball majority owner Maxwell Farms LLC said it’s “exploring all options” following a move by Smithfield Foods Inc. subsidiary Murphy-Brown Holding LLC to buy Butterball Inc.
Maxwell Farms President Walter Pelletier said, “Our desire is to be the buyer of Butterball, which is the strongest brand in the turkey industry. We believe in the long-term business outlook of Butterball, and we are currently pursuing several opportunities that will allow us to proceed with our desire to be the buyer of Butterball.”
According to the agreement, Maxwell Farms now has the option to buy Murphy-Brown’s membership interest in Butterball or sell their membership interest, based on the price put forth by Murphy-Brown. The decision under the buy/sell action is expected to be finalized no later than September 2010 and closed by the end of the year.