Cargill Inc. is adapting its beef production operations following a weeklong strike at its plant in Canada. The company has made the decision to shift production to other facilities after operations were halted at the Dunlop plant in Guelph, Ontario.

Approximately 1,000 workers participated in the strike, leading to the suspension of beef processing at the plant. The facility, with a daily capacity to process 1,500 head of cattle, faced disruptions as workers rejected a proposed agreement that would have increased wages by 9.3% in the first year of a four-year deal.

A spokesperson from Cargill mentioned, “While we navigate this labor disruption, we will shift production to other facilities within our broad supply chain footprint to minimize any disruptions to our customers.”

The temporary closure of the Ontario plant comes at a time when profit margins for North American beef producers are being squeezed due to a shortage of slaughter-weight cattle.