Food mill operator Canadian Food Inc. has announced it is shutting down its two remaining plants in Manitoba, Ontario and Saskatchewan.
The company’s chief operating officer, David Hirschfeld, said the company has been unable to keep up with the demand for the equipment.
“This is not a sustainable business model for the company,” he said.
“We have to figure out how to do that in a more sustainable way.”
The company announced in March that it would be closing two plants, with one in Prince Edward Island and one in Edmonton.
It was expecting to have about 1,600 workers in Canada by the end of this year, up from around 700 in the final quarter of last year.
The move comes as the industry is facing rising competition from new imports of dairy, meat and poultry.
Canadian Food is the second largest food mill operator in Canada, behind a Canadian food producer, the BMO Group.
It also operates three plants in the U.S., in Minnesota and Iowa.
The Canadian Food plants, which produce roughly 15,000 tonnes of food annually, produce roughly 1.5 million tonnes of feed and feed additives, including fertilizers and feed ingredients.
The shutdown comes as Canada’s government has introduced tougher food safety and feed-handling regulations.
It has also imposed restrictions on the import of some foreign foods.
Canadian Agriculture Minister Gerry Ritz said in a statement that the closures were an important step towards ensuring the safety of Canadians.
“The closures will support our efforts to develop and implement a more effective food safety program,” he added.
“Canada has a long history of producing, distributing and importing high quality food products and this will be a welcome loss of jobs and significant financial losses for Canadian families.”
The Canadian government said the move was not a result of changes in government, as it has been in the past.
Canadian food manufacturers, such as Kellogg’s, have been able to find ways to keep their operations in Canada even though they are unable to maintain production or sell products directly to consumers.
Kellogg’s also announced last week that it will close a facility in the eastern Canadian city of Oshawa, Ontario, which produces grain, as well as two other facilities in British Columbia and Saskatchewan in 2019.
The Kelloggs’ closure in Oshawa is being done because the company is unable to meet demand for grain, according to a statement.
Canadian farmers and food processors have complained that food prices have risen as demand for food has increased.