Cargill
© BloombergSignage is displayed outside the Cargill Inc. meat plant in Chambly, Quebec, Canada.
Cargill Inc. is shifting beef production to other facilities after halting operations at a Canadian plant due to a weeklong strike at the facility.

Beef processing at Cargill's Dunlop plant in Guelph, Ontario was halted after about 1,000 workers took to the picket lines on May 27. The plant has capacity to process 1,500 head of cattle per day. The workers rejected a proposal that the US meatpacker said would have raised wages by 9.3% in the first year of a four-year agreement.

"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," a Cargill spokesperson said.

The Ontario plant suspension comes as profit margins of North American beef producers have been under pressure due to a shortage of slaughter-weight cattle.