Keystone Agricultural Producers will host a meeting Dec. 3 in an effort to help farmers who delivered grain to Puratone before the hog production company entered creditor protection in September.
Dozens of Manitoba producers delivered grain to Puratone’s three feed mills in the province late this summer but never received payment for their grain. Farmers are owed anywhere from $30,000 to $300,000 and may never be paid for their grain because they are unsecured creditors.
In early November, Maple Leaf Foods struck a deal to buy Puratone, a company based in Niverville, Man., and the fourth largest hog producer in Canada. Maple Leaf acquired approximately 50 hog barns, three feed mills and other assets for $42 million.
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Unfortunately for the farmers who delivered grain to Puratone, the company has outstanding debts estimated at $100 million, including $86 million to three secured creditors — the Bank of Montreal, Farm Credit Canada and the Manitoba Agricultural Services Corporation (MASC).
KAP has invited all the key stakeholders to the meeting, including BMO, FCC, MASC, Puratone, Maple Leaf, the Manitoba Pork Council and the Animal Nutrition Association of Canada, a trade association that represents feed companies.
As of Nov. 23, Maple Leaf had confirmed it would attend, said Doug Chorney, KAP president.
“They (Maple Leaf) are really serious in wanting to talk about this issue. And I appreciate their commitment,” Chorney said.
Manitoba farmers and MP James Bezan, who represents Selkirk-Interlake, have said Maple Leaf should honour the outstanding debts to producers, since it now owns Puratone.
Nonetheless, Maple Leaf maintains it purchased the assets of Puratone, not the company. Therefore, under Canadian regulations, it isn’t responsible for Puratone’s liabilities.
Kyle Foster, a farmer from Arborg, will represent affected producers at the meeting. Foster, who sits on the KAP executive, delivered grain to Puratone before the company applied for protection.
“We don’t want a mob scene,” said Chorney, noting the objective of the meeting is to get the facts on the table.
“We’re not saying we don’t want farmers there. We’re trying to keep it orderly.”
