Plains Processors is planning a $13 million expansion of its beef plant in Carman, Man., which will increase the plant’s slaughter capacity to 1,000 head of cattle per week.
It will employ 80 to 100 workers when at full capacity, said owner and president Calvin Vaags.
“This is a major expansion,” said Vaags, a cattle producer from Dugald, Man. “It will be unrecognizable.”
Plains Processors now slaughters 80 cattle and 30 hogs per week. The expanded plant will primarily handle cattle, but it will also be designed to slaughter mature hogs.
The federal government announced a financial contribution of up to $2.8 million last week to help the company upgrade its facility to a federally inspected plant.
The expansion means Manitoba may soon have two federally licensed beef plants after going without any plant of that status for many years.
The federal and Manitoba governments have contributed nearly $20 million in loans and direct contributions to Keystone Processors, which is refitting a Maple Leaf Foods’ hog plant in Winnipeg.
The federal contribution to Plains Processors is part of Agriculture Canada’s Slaughter Improvement Program, a $60 million project to improve meat packing and processing facilities in Canada.
However, the Slaughter Improvement Program is a “non-entitlement program,” which means Plains Processors must repay the federal contributions over a 10-year period.
Vaags said the plant also has private investors and the Manitoba Cattle Enhancement Council is playing a role.
Construction will begin this summer, and the plant should be completed by spring 2012, Vaags said.
“It probably will take till 2014 until we get to full capacity.”
