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I am pleased to report that the Board's
strong 'culture of involvement' continued
this past year. Through continual
communication with management and
active participation in Board and
Committees meetings and strategy
sessions, our Board remains openly and
actively engaged in the present and future
of our Company.
We count as a major accomplishment our
involvement in the complex and
fundamental transformation of our protein
business that commenced in 2007.
Oversight of this significant change
initiative was likely our largest and most
important contribution last year. By the
end of 2009, we expect refocusing this
business will step change our earnings
and reduce the impact of the high
Canadian dollar and commodity markets
on our protein business. Management is
doing an exceptional job of leading this
process with precision. The Board's role
as we implement the required changes
is as important now as when the strategy was being formed. We receive detailed
briefings at every Board meeting on
progress and challenges to ensure that
initiatives are sufficiently resourced, that
issues are resolved, and that we are
meeting critical timelines.
Last year we approved a 52% increase
in capital investments, which will increase
the Company's competitive positioning,
drive innovation and fuel growth in new
geographic markets and product
categories. With the sale of non-core
businesses over the past year we have
a stronger balance sheet than ever before.
Management's execution of the sale
of the animal nutrition business and
non-core hog production operations has
been exceptional. Although we paid down
debt in 2007, we plan to redeploy some
of this capital to support acquisitions
down the road that support our global
growth in value-added bakery and protein.
The fact that Maple Leaf was able to
achieve steady earnings growth in
2007 - in the face of unprecedented food
inflation and major change initiatives - speaks volumes to the correctness
of our strategies, careful execution, and
the dedication and skill of our thousands
of people who live and breathe this
business. On behalf of all shareholders,
thank you to our 23,000 employees, and to
our directors for your diligence, insights,
and passion to see our company grow and
prosper. 2008 will be another year of major
change, drawing on the experience in
business transformation that the Board
brings to the process. We are well on
track to achieve what shareholders want - a stronger more profitable company
with exciting growth opportunities ahead.
Sincerely,
G. Wallace F. McCain
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