Lakeside Packers will soon take another step in the effort to reduce the oversupply of Canadian cattle.

The chief executive of Tyson Foods, which owns Lakeside, has announced that the Alberta plant plans to begin increasing its beef slaughter capacity in mid-June. The change is the result of a $17 million plant expansion project, which has been underway since last fall. The Lakeside plant has been operating at maximum capacity for much of the past year and a half because of record-large Canadian cattle supplies.

"Our investment in this project will help address the backlog of cattle caused by the continued closure of the U.S. border," said John Tyson, chairman and chief executive officer of Tyson Foods. "It also reflects our long-term commitment to the Alberta beef industry, which we fully expect to rebound from the market challenges of the past two years."

The plant's capital investment has involved expanding the plant's beef carcass coolers and streamlining parts of the beef slaughter operation. The changes will increase Lakeside's beef slaughter capacity from approximately 3,800 cattle per day to 4,700. While some aspects of the project will not be finished until fall, enough have been completed that plant officials expect to begin gradually ramping up production next month.

Source: Company Release