The Saskatchewan government is converting its struggling meat processing facility in Melfort into a toll processing plant designed to help companies take their products to market.
Agriculture minister Mark Wartman said many companies have developed good products, often at the Food Industry Development Centre in Saskatoon, and they need to move into commercial scale production. They don’t need to build their own processing plants with toll, or custom, processing.
The province will spend $3.3 million over three years to upgrade the federally inspected Thomson Meats Ltd. plant in Melfort so that it can fill that role.
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“Thomson Meats has been struggling over the years and not being used to anywhere near its full capacity,” Wartman said.
This is an opportunity to use that capacity and help companies like Canadian Prairie Lamb and Classic Meats, he said. Approximately four to six clients are initially expected to use the plant.
“For now, this will be our primary toll processing operation,” said Wartman. “For now, this will meet our needs.”
Eventually, additional capacity could come on stream through the private sector. Wartman said the province decided to use its own facility because no private companies were stepping forward, even though the idea of toll processing had been identified as necessary for Saskatchewan food processors to move into markets.
“We seem to be the ones who are willing and able at this point to do it,” he said.
The province had a substantial investment in Thomson Meats before it become the sole owner in December 2003. It invested $4 million in 1995 to help the company expand into Asia and another $4 million in 2000 to help make value-added products.
The name of the plant will remain the same. It employs about 31 people, and the announcement secures those jobs, Wartman said.
Processors didn’t seem concerned about the location of the facility in northeastern Saskatchewan, he added. Some were already taking their business to Leduc, Alta.
Wartman also noted that Alberta spent about $21 million to establish its custom facilities, while Manitoba spent $11 million.
“We have some responsibility to provide similar levels of service where we can,” he said.
