Edmonton, Alberta - February 10, 2011 - One of Alberta's largest beef processors will increase its value-added production capacity while reducing the size of its environmental footprint thanks to two Growing Forward grants, approved through the Alberta Livestock and Meat Agency (ALMA).

The grants, totaling $1.6 million, will be distributed over two years and will allow XL Foods to upgrade its Brooks facility by installing state-of-the-art technology that will enable the plant to double its per-day capacity for ground beef.

"The Government of Canada is committed to supporting innovation to help strengthen the sustainability and competitiveness of the red meat processing industry," said LaVar Payne, Member of Parliament for Medicine Hat, on behalf of federal Agriculture Minister Gerry Ritz. "Today's investment in the XL Foods facility will benefit the beef industry and all Canadians by increasing our capacity to meet market demands for Canadian beef products."

"The improvements made at the XL Foods facility in Brooks will benefit producers by increasing the plant's overall production capacity," said Jack Hayden, Minister of Alberta Agriculture and Rural Development. "Initiatives such as this are important in helping to further strengthen Alberta's beef industry while reducing the impact that the agriculture industry has on the environment."

"XL appreciates the contribution and support ALMA has provided through the Growing Forward program for our plant competitiveness initiatives," comments Brian Nilsson, Co-CEO of XL Foods Inc. "This grant will assist us in maintaining our competitiveness as we adapt to the global marketplace."

"One of the agency's goals is to enhance the competitiveness of Alberta's meat and livestock industry," says Gordon Cove, President and CEO of ALMA. "The XL grant will move us towards that goal as this first-rate facility helps ensure Canada continues to compete in world markets."

XL Foods Inc. is the largest Canadian-owned and operated beef processor in Canada. It is part of the Nilsson Bros. Group of companies, which are a diverse agri-business that is involved in all facets of beef and cattle production, marketing and processing. XL Foods Inc. operates facilities in Alberta, Saskatchewan, Nebraska and Idaho. For more information, please visit www.xlfoods.com.

Growing Forward is a federal-provincial-territorial initiative that better positions the agriculture industry for success. The national vision is "a profitable and innovative agriculture, agri-food and agri-products industry that seizes opportunities in responding to market demands, and contributes to the health and well-being of Canadians".

The agency contributes ideas, information and investment as it works with industry partners to achieve a sustainable, profitable and internationally respected livestock and meat industry. For more information on ALMA, visit www.alma.alberta.ca.

For more information, media may contact:

Media Relations Agriculture and Agri-Food Canada Ottawa, Ontario 613-773-7972 1-866-345-7972

Meagan Murdoch Press Secretary The Office of the Honourable Gerry Ritz 613-773-1059

Nicole Paradis-Clancy Communications Officer Alberta Livestock and Meat Agency 780-638-1932 or 780-884-9425 (cell)

BACKGROUNDER

How will the XL Brooks facility reduce its environmental footprint?
The installation of new technology into two areas within the plant will allow XL Foods to reuse the water supply, reduce wastewater and recycle salt. This includes the addition of a brine crystallizer to recover and reuse a large portion of the salt used to process hides. The plant will use pure water, as the byproduct of the system, for local irrigation.

How will XL Foods increase its value-added production capacity at the upgraded facility?
An upgrade to the trim sorting and ground beef lines will allow XL Foods to provide higher quality beef trim to value-added manufacturers, doubling the capacity for producing ground beef.

What is ALMA's role in the Growing Forward initiative?
Through the Growing Forward initiative, $9 million in funding has been allocated for two programs for the 2010-11 fiscal year: $7 million for the Agri-Business Automation and Lean Manufacturing Program and $2 million for the Agri-Business and Product Development Program. The Alberta Livestock and Meat Agency (ALMA) is responsible for the administration and delivery of these programs.

Agri-Business Automation and Lean Manufacturing Program
The Agri-Business Automation and Lean Manufacturing Program stimulates new investment and capital expansion to enhance Alberta's ability to supply agriculture and agri-food products. The program helps improve the productivity of producers and processors through cost reductions and/or increases in operational efficiencies. The program encourages the adoption of best practices, new technologies and state-of-the-art processes that improve food safety, food quality and increase value and market access.

Agri-Business and Product Development Program
The Agri-Business and Product Development Program stimulates new investment in value-added food and agri-product processing sectors. This program targets agri-food processing companies and producers with innovative, market-driven opportunities to commercialize a product, create a healthy or healthier product or expand their business.

Growing Forward
Growing Forward is a federal-provincial-territorial initiative that better positions the agriculture industry for success. The national vision is "a profitable and innovative agriculture, agri-food and agri-products industry that seizes opportunities in responding to market demands, and contributes to the health and well-being of Canadians".

Together, the governments of Canada and Alberta are investing $273 million over five years (2009-2013) for flexible and innovative programs for Alberta's agriculture industry. Alberta's Growing Forward goal is a stronger value-chain that thinks locally and grows globally.

There are 23 programs organized into 12 areas:

• Bio-Security
• Energy Efficiency
• Food Safety
• Lean Manufacturing and Automation
• Product and Market Development
• Traceability
• Business Management Skills and Tools
• Entrepreneur Development
• Leadership
• Livestock Welfare
• Stewardship Plans
• Water Management

Alberta is also responsible for Growing Forward's Business Risk Management programs delivered by Agriculture Financial Service Corporation.

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