How truly organic.
A few months after the death of one Saskatchewan organic processing facility, a new one springs to life.
Growers in the Maymont, Sask., area have bought an old school in the village and are raising money to convert it into a small seed cleaning plant and mill.
News of the venture comes a few months after the demise of FarmGro Organic Foods Inc., a $12 million organic mill in Regina that was placed into receivership in December.
“I think there’s a need now for producers to have another outlet,” said Dale Beaudoin, president of Northwest Organic Community Mills Co-operative Ltd.
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Besides the building, the 10 investors have also bought four used cleaning machines, grain legs and dust collection equipment.
“We’re well on our way,” Beaudoin said.
The farmers, most of whom belong to chapter two of the Organic Crop Improvement Association, have already contributed $75,000 in capital and “work-in-kind.”
In an effort to have the plant operational by harvest time, they plan to unveil a share offering in the next two weeks to raise additional money.
Beaudoin said it will not be a multi-million dollar project. He estimates the final price tag will be about $500,000, which includes a substantial amount of work-in-kind for shares.
“We want to keep this as a low-debt structure so that you don’t run into any financial binds.”
The certified organic plant will be able to clean about 500,000 bushels of grain, oilseeds and pulses a year. Beaudoin said it will also make cereal flakes, multigrain mixes and flour. But the primary focus will be to help local farmers market their organic grain, which has been a problem in the area.
“Some of us organic farmers decided we have to do things ourselves rather than letting the big trading companies take our commodities,” Beaudoin said.
