Sunday , June 26 2022

It's no chicken: Michael McCain applied some $ 700m on the future of his company, but it is one of the few


The establishment of the Canadian business is not part of its cash easily.

Ask Mark Carney, the former governor of the Bank of Canada, which chided executives in 2012 to protect surrender & # 39; "dead money", tail made drastic post-crisis disconnect between corporate profits in & # 39; sigh and sluggish investment in business. The question remains & # 39 ;; Statistics Canada reported 30 & # 39; November that corporate profits after tax increased by & # 39; 4% in the third quarter to a record & # 39; $ 325 billion, while business investment declined for the first time since 2016.

So word that McCain has been decreasing almost $ 700 million to build a new chicken plant, there was big news. But it was not, really. Perhaps a decade or more to see Silicon Valley spend billions & # 39; dollars on firms never heard reduced our senses? Apply on something as massive as food prosaika, f & # 39; normal place like London, Ont., Simply makes the heart go back to the age of the smartphone.

Another explanation: with our qrajtux Gretzky.

This week featured a lot of & # 39; to see Puck, whereas politicians and unionists have pledged to fight the decision & # 39; General Motors Co. to close its plant in & # 39; Oshawa. The decision was predictable, since the consumers & # 39; American & # 39; On a like light trucks and electric cars and Oshawa to build either.

If we focus on where the puck went, we had our eyes on Maple Leaf Foods Inc., led by chief executive Michael McCain, who is starting to take advantage of dramatic changes in the world food market. A recent report Citibank concluded that demand for nutrition will increase by & # 39; about 70 percent over the next three decades, and that "business as usual" will lead to ecological disasters and human health.

B & # 39; difference from automaking, Canada has a natural advantage in the production of sustainable food because we have lots of & # 39; tirriga water to the crops & # 39; booming thanks to longer growing seasons. But without further investment, that advantage will be rejected. Maple Leaf is an example of & # 39; what it would take to become a world leader in & # 39; brutally competitive competition dominated by American and European companies.

"We are stewards of & # 39; this business, both as managers and shareholders," McCain, the square Group the billionaire family & # 39; makers of frozen French fry from Florenceville, N.B., which led to a Maple Leaf since 1999, told me during a telephone interview on 28 & # 39; in November.

"The supply chain that we have today in our trade in poultry, which is endemic throughout the entire supply chain in Canada, I think it is low and inefficient scale", continued. "It & # 39; 50 to 60 years, or more at & # 39; some cases, and use the latest technologies. We know that while a category of & # 39; gains for us today, is not safe in term. "

They want the sound & # 39; those words in & # 39; Ottawa.

Stephen Papers, the governor of the central bank from 2013, taken before us the of early Canadian business power in his office, forcing occasional tweaks to the story & # 39; its economic recovery by business investment and exports remained surprisingly weak. It was only earlier this year the Bank of Canada expressed confidence that businesses were taking the family as the main drivers of growth.

anecdotal evidence such as the announcement of the Maple Leaf will delete isting of & # 39; StatCan The latest survey a & # 39; economy. The report suggests that the spirits & # 39; animals that the central bank spied were ripening, whereas negotiations on trade agreements updated & # 39; North America & # 39; On warmly and transport congestion caused by the oil price decline. Economic growth slowed to an annual rate of & # 39; two percent in the third quarter by almost three percent in the quarter & # 39; before, because the boom in business investment picked up the momentum generated by record levels & # 39; unemployment.

During the Department of Finance, Bill Morneau, the minister, spent much of the current fiscal year to convince people who had not made a terrible mistake by ignoring the corporate tax cuts US in budget & # 39; his February. the – International Monetary Fund, The – Organization for Cooperation and Economic Development, And virtually all of Canadian business lobby said that little was being done to correct many issues & # 39; competitiveness. Morneau finally responded earlier this month with & # 39; a Budget update promises to waive some $ 14 billion in revenue by reducing taxes on purchases & # 39; re capital, promises impressive push & # 39; deregulation, And allocate about $ 1 billion for measures aimed at linking business with & # 39; Asia, Europe and Latin America.

McCain is a member of – Table Agri-Food, One six expert committees the Trudeau government assembled in 2017 to provide advice on how Canada can & # 39; & # 39 leads in; each of their respective fields. The boss & # 39; Maple Leaf, fourth & # 39; the largest processor of food from the last year's revenue, notes that the refusal of & # 39; Morneau who could carry & # 39; led to some good policy.

The food industry worldwide is a scale game. He brutally competitive

Michael McCain, CEO, Maple Leaf Foods

The topic "general" advice of the food committee, "was the need in Canada to invest in productivity, scale and competitiveness".

"The food industry worldwide is a scale game. It is brutally competitive," he added. "I am pleased to say that in the last economic update, I think the Government of Canada, Mr. Morneau, actually answered with & # 39; very effective way for those matters under tremendous pressure for some sort of & # 39; fiscal response to what happened in the United States. "

Conservatives back aggressively partisan County & # 39; Carleton, N.B. can & # 39; refute the praises & # 39; McCain updating of & # 39; Morneau: The McCains are said to Liberals, and the finance minister is married to the cousin & # 39; Michael. (Disclosure: Michael McCain and I grew up on the same Western patch & # 39; New Brunswick, is on covering overlooking Firenzeville and St. John River, me on swampy farm in the outskirts of & # 39; neighboring village.) to combat that kind of & # 39; discussion, the head of & # 39; Maple Leaf should only indicate the share price of his company, which has doubled since he took nearly 20 years ago. He knows something about business.

The specifications for the planned facility & # 39; London & # 39; Maple Leaf are the result of & # 39; of & # 39 world tour; Meat plants & # 39; the latest technology. Will encourage more chicken b & # 39; relatively less number. It will also be formed to deal with chickens & # 39; human way, minimize the risks to food security and reduce b & # 39; significantly the actual environmental impact of processing livestock. The last set of & # 39; considerations are at least as important for the future & # 39; Maple Leaf as thick & # 39; the cost of production.

"I've business account & # 39; all meals of my life", said McCain. "When listening & # 39; activists around the world say that the food industry is one of the & # 39 systems, producing more non-performing on the planet and need to get & # 39; is manufactured, it is & # 39; harm ". "I want to be part of the climate change solution, not part of the problem. That is why we are committed to it."

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