TISDALE, Sask. – The Saskatchewan government supports a grassroots initiative to build a producer-owned beef slaughter and packing facility in the province, says provincial agriculture minister Mark Wartman.
Speaking at a Beef Initiative Group meeting in Tisdale on Oct. 28, Wartman told producers the initiative was on his agenda for a Nov. 3 meeting in Ottawa with federal government officials.
Spearheaded by Cam Ostercamp, a cattle producer from Blackie, Alta., BIG is seeking federal bridge financing for the plant from the federal government. A $3 per head levy on animals sold to the plant is proposed to repay the loan. The levy would be eliminated once the debt is paid.
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Saskatchewan deputy premier Clay Serby recently announced a feasibility study for the proposal, which will include a detailed business plan. Wartman said the province wants the venture to be profitable and sustainable even after the U.S. border opens to Canadian live cattle.
“In principle, the government of Saskatchewan supports the goals of the Beef Initiative Group,” Wartman said.
“The concept of a producer-owned processing facility must be examined very carefully and all due diligence must be completed.”
Ostercamp told the meeting that the response from provincial governments has been positive.
“The message from Mark Wartman and provincial governments is, ‘show us producers are on side and we’ll come to the dance.’ So we’ve proceeded to do that.”
Since June, BIG has hosted meetings across Western Canada. Ostercamp estimates he has spoken to 10,000 cattle producers and said surveys have indicated that 96 percent of them support the concept.
According to Ostercamp, the project would mark the first time in history that Canadian cattle producers recognized the post-slaughter benefits of beef exports.
He said the real problem is not BSE, but a heavy reliance on the United States as a major buyer of Canadian beef.
“We’ve come to think of the American market and the American beef packing industry as two entities that we cannot do without,” he said.
“I think we can do without them to some extent and that it would be healthy for us to invent ways to do without them.”
He said Canada needs to develop alternate export markets and can gain access by using BSE testing as a marketing tool to rebuild confidence. BIG advocates testing at whatever level an export customer demands.
“Canada must and always will be a gross exporting nation of beef. When it comes to the testing issue, if ever a country was a delegate to test to create export markets, it’s Canada because we must export 65 percent of our production.”
Wartman said the idea needs to be seriously considered.
“I think if we are able to identify and secure a market based on a buyer’s requirement for testing that, it may well be prudent to pursue that business. And I know our government would not discourage that if it leads to real market opportunities.”
Critics, including federal agriculture minister Andy Mitchell, say blanket testing isn’t necessary and sends the wrong message about the safety of Canadian beef.
“Instead of being the solution, 100 percent testing could end up putting the livestock industry in an even worse situation by reinforcing the erroneous perception that testing contributes to food safety objectives,” Mitchell said in a recent News release
news.
Wartman said it is a legitimate concern, but thinks BIG is clear in its message that it is not advocating 100 percent testing.
“What it’s really about is how do you produce for this market?” he said.
“And in some markets it’s a certain testing you have to give and if they want to buy that test then that’s what you give them. In this case, if they want you to do 100 percent testing to secure their markets for whatever their reason, you do it.”
Responding to producer questions about the cost, Ostercamp estimated the tests would add between six and eight cents per pound of carcass.
“Think not what it costs to test the beef. Think what it costs not to test,” he told the group.
“We’re taking a hit of about $500 on a culled cow and anywhere from $400 to $650 on every feed steer we deliver. The cost not to test is a lot bigger than the cost to test.”
