They came to feed farmers a concept.
But promoters of a proposed co-operative bison slaughter plant for Western Canada found the overflow crowd of Saskatchewan producers had already swallowed the idea of a farmer-owned processing plant.
“This is a provincial race horse first,” said North American Bison Co-op member and Manitoba producer Dick Fish at a promotional meeting, trying to calm the excited economic developers. “You people are getting site specific. Right now we’re just province specific.”
The North American Bison Co-operative is a 268 member organization that owns a slaughter plant in New Rockford, North Dakota. Last year it slaughtered 6,500 animals and expects to handle 8,000 this year.
Read Also
Agriculture ministers agree to AgriStability changes
federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
About 25 percent of the co-op’s members are Canadians, who ship their animals to the plant.
The co-op now wants to build a slaughter plant in Western Canada and is holding a series of meetings across the Prairies to gauge and try to raise interest.
Dennis Sexhus, manager of the NABC plant, was visibly surprised by the larger than expected crowd of more than 200 people.
“We in North Dakota have always had a claim to being the buffalo capital of the world … and I really do feel that we’re looking at the new bison capital of the world here in Canada, probably here in Saskatchewan,” Sexhus said.
“This is overwhelming.”
But he and other representatives of the co-op tried to steer producers away from haggling over plant location, to focus instead on how essential any plant is to the industry.
“The winner in this thing isn’t the one who gets it in his backyard,” said Sexhus. “This will provide a stable structure for the industry.”
Sexhus argued that bison producers have the opportunity to take control of the slaughter and processing industries because no large packers have moved into the bison industry. Since margins on packing and processing are generally higher than for farm production, taking control of those parts of the chain will bring farmers the most benefit.
But producers also need to realize that bison values come almost entirely from meat, and building a processing and packing industry is the best way to make sure bison are worth something.
“Our co-op is producer-owned and dedicated to maintaining the value of the slaughter market,” said Sexhus, a producer himself.
Ken Throlson, a North Dakota producer, said “we’ll never have a chance again to take control.”
Bison producers now receive about $2.38 per pound hot hanging for a grade one animal. That includes the hide and skull.
But to supply bison to the existing plant, a producer has to be a co-op member. For each share a producer buys, he receives the right and obligation to deliver one animal to the plant. Shares have been selling for about $475 (U.S.), although none are now available.
Producers also receive dividends from profits based on their patronage of the plant.
Members have had to buy a minimum of 10 shares, and no one member can own more than 10 percent of the outstanding shares.
Sexhus said the location of the prairie plant will hinge mainly on how many shares are sold locally and on local slaughter bull supplies. But the co-op also wants the new plant to be near an airport with links to Europe, since the Canadian plant will be responsible for supplying it.
Sexhus said the co-op thinks a plant could eventually be established every 800 kilometres.
The co-op has not approached securities commissions about a share offering for the Canadian plant.
When an offering is made, buyers will become members of the NABC rather than direct shareholders in the new plant.
Sexhus said he expects about 10,000 shares to be offered for not less than $475 (U.S.) each.
The location of the Canadian plant won’t be decided until after a successful share offering.
