Cargill said Wednesday it will hire an outside company to handle transportation of the beef it produces at Guelph, Ont., one of its two big Canadian beef-packing plants.

The decision is expected to help the U.S. agrifood firm's Winnipeg-based Canadian arm deal with escalating transportation costs in Eastern Canada's highly competitive retail market, the company said in a statement.

Spokeswoman Brigitte Burgoyne said the move affects transportation within three to four hours of Toronto. International freight is already handled outside the company.

About 50 unionized and non-union employees will lose their jobs with Cargill.

The change does not affect Cargill's southern Alberta beef plant at High River, which competes with the XL Foods plant at Brooks, about 180 km east. -- Reuters