Wednesday, 11 December 2013

More Jobs Lost in the Area. Kellogg's to Close London Facility

Too little, too late?  A day after Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario, was in London to launch a $200 million program designed to stimulate investment in Ontario manufacturing, Kellogg's announced it will shutter it's cereal making facility. Approximately 500 workers including 110 Unionized positions making between $28-30 per hour will be lost forever.

With labour and energy costs, corporations are just moving production facilities to other global areas.  Production expectations at the London plant are dropping down to 54 million kg's down from 104 million kg's in 2005.  Consumers are shifting their tastes from mass produced high sugar cereals to lucrative organic and natural breakfast ones.

Corn flakes were invented by Dr. John Harvey Kellogg and his brother Will Keith Kellogg by accident in 1894.  The roosters name on the box of Corn Flakes is Cornelius (Corny) Rooster.  Dr. Kellogg was the superintendent of the Battle Creek Sanitarium in Michigan and one of his patients was C.W. Post.  After suffering his second nervous breakdown he went to the Sanitarium and was inspired by Dr. Kellogg's breakfast food.  In 1895 he founded the Postum Cereal Company.  His first breakfast cereal went to market in 1897 and was named Grape Nuts!

Kellogg's plant in London was purchased in 1924 and now produces 27 kinds of cereals.

According to the Globe and Mail, Ontario has lost 33,000 factory jobs in the last 12 months.  Kraft Foods Group Inc's Oakville factory and the Lance Canada Ltd bakery in Cambridge has also announced layoffs coming up.  The Lance Canada Bakery will lose 130 jobs.  These are tough times for factory workers.

How this will affect area farmers remains unknown.  With 54 million kilograms of food production gone will there be less demand for local crops?  Already hit with high input prices and continued food processing plant closures farmers could end up with crops in the fields with no place to sell them or not worth the cost to harvest.

Our favorite recipe for Corn Flakes are Peanut Butter Corn Flake Crunch Bars.  We use the peanut butter from our local Picards Peanuts because we just find it tastes better.  The recipe can be found here and winter's a great time to get the kids to help when it's too cold to go outside.





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