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Westco/Olymel Submits Proposal to Nadeau


February 5, 2010
By Westco/Olymel Joint Press Release

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January 31, 2009 – Following the Ministerial Order forcing New Brunswick producers to process their live chicken at Nadeau Maple Lodge, Westco has submitted a business proposal to Nadeau that will temporarily provide for the processing of its New Brunswick chicken at Nadeau Maple Lodge's plant in Saint-François-de-Madawaska.

January 31, 2009 – Following the Ministerial Order forcing New Brunswick producers to process their live chicken at Nadeau Maple Lodge, Westco has submitted a business proposal to Nadeau that will temporarily provide for the processing of its New Brunswick chicken at Nadeau Maple Lodge's plant in Saint-François-de-Madawaska.

Westco continues to consider the New Brunswick
government's decision to be invalid and unconstitutional, and is
exploring all available options against it. However, in the meantime,
Westco's proposal would provide for the processing of its chickens at
Nadeau's abattoir in Saint-François as long as the Ministerial Order is
in effect on the understanding that the chicken processed under this
agreement would be returned to Westco to be marketed under its Sunnymel
partnership.

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The Westco proposal would thereby enable Minister Ouellette to meet
the main objectives of the Order, which is to maintain employment
levels in chicken processing in New Brunswick.


So-called "contract-kill" arrangements like Westco's proposal are common practice in the chicken industry and Nadeau Maple Lodge
has indeed already taken part in such agreements in the past. The terms
of Westco's proposal to have its chickens processed at Nadeau Maple Lodge echo this practice and Nadeau should, therefore, have no problems accepting them.


"We are proposing a "contract-kill" contract that will enable Nadeau to
keep processing jobs at its Saint-François plant and even surpass its
historical volumes. We have attempted several times since the summer of
2009 to enter into an agreement with Nadeau Maple Lodge
to find a temporary solution until our new abattoir is built. However,
they have always refused our proposals as a whole, even though these
proposals would have allowed them to continue to process Westco
chickens. We hope that, this time, Nadeau Maple Lodge will be open and ready to enable us to comply with the Ministerial Order", said Westco CEO Thomas Soucy.


Westco informed Minister Ouellette of its proposal. Westco added that
the Minister might be required to intervene if Nadeau refuses the
reasonable and standard conditions outlined by Westco in its offer and
which would allow it to implement the government's decision.