The Alberta Beef Producers say Wednesday's announcement from Western Feedlots shutting down cattle operations is worrisome.

Rich Smith, Executive Director of the Alberta Beef Producers says it'll have an impact on the whole area.

"Producers that brought cattle to the feedlot, the Western Feedlot and the people who sold grain to them as well will be looking at having to take those products further, that certainly will be an impact," Smith says.

He says there's been a significant price drop for fed cattle and a lot of feedlots actually purchased cattle last fall when the price of cows and feeder cattle was still fairly high, but the prices they can get now leave little room for profit.

Smith says the cattle industry is "trade exposed" and things like the provincial carbon tax will hurt Alberta producers while others across the country and in the U.S. don't have the same costs especially in respect to the carbon levy.

"There's some concerns over the possible impacts of some of the decisions the government has made with respect to the competitiveness of our industry," he says. "The Climate Leadership Plan, the carbon levy is going to increase costs for our industry."

He says other feedlots have the capacity to take up the slack but they have to deal with the same underlying price and cost issues and may not want to buy any more cattle.