An impassioned and lengthy debate with no clear solutions to solve the shortage of Canadian packing plants occupied delegates at the recent Alberta Beef Producers annual meeting.
The beef producers know they can sell the meat into a growing number of world markets, but processing all classes of cattle in a timely fashion is the challenge. Most agreed there has not been enough government support but disagreed on what kind of help taxpayers should provide.
“All of us would like another 1,000 processing spots per week but none of us want to pay for that to happen,” said John Kolk of Picture Butte, Alta.
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There was agreement that governments should not build or manage packing plants. Nor should direct taxpayer money go toward these facilities because that could risk a countervail duty from the Americans.
“I don’t think we want the government being in the business of building plants,” said Kevin Boone of Tomahawk at the Dec. 7-9 meeting in Calgary.
Stuart Thiessen of Strathmore agreed.
“I’m concerned that the government being in the business will discourage private industry. As we go down this path, we are further weakening ourselves,” he said.
Board executives Darcy Davis and Arno Doerksen said there is desperation in the countryside and the government has been told repeatedly that more processing capacity is needed.
“We have clearly stated to government we need initiatives in place to get these facilities going,” said Doerksen, whose term as chair is over.
“It is a frustration to all of us that this hasn’t happened as quick as we think it should.”
Some suggested Ottawa could help by easing regulations within the Canadian Food Inspection Agency and encouraging municipalities to welcome such construction.
Bob Christie of Stavely said governments must help because it is estimated a new plant would cost about $130 million and producers do not have that kind of money.
“There is a lot of consensus if new packing plant ventures are to move forward there would have to be some government involvement,” he said.
Several resolutions requested help by having the beef producers organization collect an extra $2 levy on top of the $3 mandatory checkoff on every animal sold. These were all defeated.
Brent McEwan of the Alberta Marketing Council, which oversees provincial commission and board activities, said if the beef producers decided to use check-off money for things outside the legislated plan of operation, it would require legal changes with substantial consultation over a lengthy period.
Joe Zink of Calgary said there may be problems with legal technicalities, but cattle producers need to find ways and means to get this done or Canada will continue to be held captive by the United States.
He said the organization needs to investigate how Quebec producers were able to buy a portion of the packer Levinoff Meats.
Rick Burton of Claresholm said the beef producers group could be a vehicle to collect the money and get things rolling.
“I’m a little tired of hearing all the things that marketing council won’t let us do,” he said.
