A farmer co-operative that offers Canadian lamb producers premium prices for finished animals is on life support.
The Canadian Lamb Producers Co-operative issued a statement Jan. 25 confirming that it has filed for bankruptcy protection.
The co-op has been seeking an investor over the past several months that would be willing to finance its operations while production is ramped up and sales are increased to a commercially sustainable level.
In its statement to members, the co-op said lamb products marketed under its LAM brand were “well accepted and … generated a profit.”
However, the co-op was not able to generate sufficient volume to cover its fixed costs on an ongoing basis.
“We have reached the point where we no longer have the means to pay expenses and continue operations,” the co-op said.
“We therefore have no choice but to cease operations and lay off staff.”
The co-op will remain under bankruptcy protection for 30 days.
During that time, it will be granted protection from creditors and will continue to seek outside investments worth roughly $1.5 million, which would buy the organization some breathing room and allow it to continue operations while it addresses short-term cash flow issues.