http://www.mercola.com/infographics/unhealthy-foods/processed-meats.htm

Nearly everyone likes sausage and eats it frequently, but the World Heath Organization says that processed meat is not healthy for it may cause colon cancer. The organization just placed the processed meat in the same category as cigarettes, asbestos and diesel fumes, which are carcinogenic for human. This result may cause the public to refuse to buy sausage in the future. It can be predicted that the selling quantity of sausage will drop seriously. Considering the Canadian situation, most of the meat suppliers are in Alberta, where is also the home of oil patch.

As we all know, oil prices at present are much lower than one year ago. The economy in Alberta has been hurt since the oil price decreased, while the recent news gives it a double whammy. According to the supply curve, the manufacture of oil has decreased because of the low price. Additionally, consumers will buy less or not purchase the unhealthy processed meat, so the suppliers should reduce the production. Companies in Alberta must reduce their cost and shrink their output by firing some employees. The unemployment rate will rise in a short period.

To decrease the loss, Alberta’s government and companies should do marketing analysis and make some strategies. For example, they should change most of the factories which produced processed meat in the past to process frozen fresh meat. Also, companies can expand the market to other countries to sell the fresh frozen meat because the oil price is low and the transportation cost is cheap. In order to expand successfully, companies should do market research on new markets. Respecting the culture and customs of new customers is important to the success of companies. The government should build a friendly relationship with foreign countries to help the companies enter new markets easily.

http://www.cbc.ca/news/health/meat-cancer-world-health-organization-1.3288355

Reference

http://www.cbc.ca/news/health/meat-cancer-world-health-organization-1.3288355

http://calgaryherald.com/news/politics/alberta-deficit-forecast-to-hit-record-5-9-billion-as-economic-outlook-weakens