STOUGHTON, Sask. – The discovery of BSE gave them pause, but the 147 shareholders in Stoughton Feed Processing Inc. went ahead and last week celebrated the grand opening of their new feed mill.
The $2.8 million mill will produce about 40,000 tonnes of feed per year. Its largest single customer, a hog operation, will take 270 tonnes each week. That contract was a key reason for proceeding.
“(BSE) really slowed us down,” said board chair Greg Goudy. “We had to take a second look at it.”
On faith that the market would correct itself eventually, the board proceeded with the plant.
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The shareholders are all within a 65 kilometre radius of Stoughton and two-thirds of them are farmers. They had to raise $1 million while the Weyburn and Stoughton credit unions are equity partners.
Goudy said the idea for the plant was raised in the fall of 2001.
“We looked at where the livestock industry was going. The government was really promoting hogs and cattle and we thought it would be a good fit, especially with a large hog customer so close.”
The share offering closed in March 2003 and the mill design was finalized that summer. Construction began last September, and the mill started operating in May.
There are two employees, a manager and a mill technician, and Goudy said a front office worker will be hired soon.
Manager Ryan Clark was hired away from West Central Pelleting last fall.
“It was an opportunity to start a business from the ground up,” he said.
Clark said the benefits to the community are many. Local farmers can avoid the freight and elevation charges they would incur if they sold their wheat and barley to a grain company. Stoughton is buying wheat and barley and hopes to incorporate peas into its recipe.
There are also the spinoff dollars from trucking and fuel purchases.
Clark said the mill is small but can be expanded.
“We’re not trying to feed the world here. We just want a good chunk of the local market.”
Goudy noted that one of its competitors, the Weyburn Co-op, has begun an upgrade of its facility.
