Heartland Livestock wants to help a few good communities build feedlots.
The Saskatchewan Wheat Pool division is talking to communities in Saskatchewan and Manitoba about investing in feedlots of 5,000 to 10,000 head.
The plan has been on the drawing board for about six months. It proposes the community puts up half the money to pay for land and construction, while Heartland covers the other half of the costs.
“A lot of communities with grain farmers are looking at cost of freight and they’re looking to value adding closer to home, particularly in eastern Saskatchewan and western Manitoba,” said Stewart Stone of Heartland Livestock.
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“We’re at the very early stages. We’re working through it with communities to find some common ground that they can use to value add in their community where we can participate as well,” he said.
Heartland is considering developing six lots. Depending on sites, number of head and other considerations, community investors would have to raise between $1 and $2 million, said Stone. The communities’ contribution can be through shares, partnerships or other private means.
In addition to financing, Heartland would provide a business plan, construction and management of the feedlot.
Ripe for cattle
Past studies said Saskatchewan was ripe for a feedlot industry, but it never happened on a large scale. A University of Saskatchewan study said lack of management expertise and money to build were major factors holding back development of the industry.
Since the grain transportation subsidy was removed, analysts said this grain-rich province is a natural for feeding cattle. Poorer quality land producing grain could be reseeded to grass to expand the cow herd.
