MOSSBANK, Sask. – A proposed packing plant for southwestern Saskatchewan is moving closer to reality, proponents told a Jan. 26 meeting in Mossbank.
Great West Beef and Bison Inc., which would kill mature cattle, dairy steers and heifers, finished cattle and bison could be under construction in Swift Current, Sask., later this year, said spokesperson Jim Parsons.
“I’d be just elated if we were to begin in June,” he said.
The plant, designed to slaughter 200 head per day, would take about 16 months to build and cost about $20 million. It would be built to European Union standards, employ between 150 and 175 people and be easily expanded by adding a second shift.
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Parsons told the meeting that producers and First Nations investors would own at least 75 percent of the plant.
“We need you to make it work,” he said.
By the time the meeting was over, several people had their chequebooks out and were contributing $200 deposits for supply contracts.
Parsons said the group wants to raise $10 million more than the construction costs to help pay for over-runs and two years’ worth of operating funds.
Before the Mossbank meeting, 210 producers had placed deposits totalling $42,000 to indicate their support for the project.
Other seed money has come from rural municipalities, nine southwestern Saskatchewan credit unions, Southwest Community Futures and the Federation of Saskatchewan Indian Nations.
As well, the project has obtained grants from a number of government programs.
Parsons said there is also $11 million available from a federal government equity program for shareholders, the provincial government meat processing investment rebate and the ability to hook up to Swift Current’s water and waste system.
However, Great West needs interim financing. The group wants to set up a meeting with deputy premier and rural development minister Clay Serby to see if the province can provide help to get the project started.
A meeting date has not yet been set.
Producer money that has been collected so far is sitting in trust until the project goes ahead. If it doesn’t, the money will be refunded.
Parsons said if the financial plan is secured he expects more producers to come on board.
Producer ownership will come about through the supply contracts. There will likely also be non-voting shares for investors who don’t want to or can’t supply animals to the plant.
Meanwhile, Parsons said he expected a deal to be reached this week with a landowner just east of Swift Current for land on which to build the plant.
