RED DEER – The folks behind Canada Gold Beef remain optimistic they are on the right track, despite problems finding a packer to work with the source-verified beef program.
Launched in February 2008, the program is designed to sell beef so that everyone from the cow-calf producer to the packer works together to share costs and profits.
Chief executive officer Frank Goetz said 20,000 head are on feed, but negotiations continue to find a packer.
He said Alberta’s two major packers have told Canada Gold that they realize there are opportunities but aren’t sure if they agree with the concept.
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Goetz said the company is disappointed with the small number of producers who have signed up but understands the wait-and-see attitude, considering past ventures have not worked out.
Producers also say requirements for complete source verification and detailed health and feed certificates are too complicated, he told the Alberta Beef Industry Council annual convention in Red Deer Feb. 18.
“Producers ask, ‘what is in it for me?’ “
The company has tried to sell the concept on the basis of improved information-sharing along the food chain as well as a chance at profit sharing for a specialized, branded product.
“You are getting some benefit from all elements of the chain instead of just your own,” he said.
The company is developing a pilot project to sell meat domestically and encouraging producers to provide the kind of information needed to set the product apart from average, commodity beef.
“We have had a few issues with getting the right information,” he said.
“It is very important we get age verification or source verification.”
He said some producers have not wanted to provide source verification, which is a critical part of an international branded program.
The company has spent the last eight months developing its business and marketing plans. It has sold $1 million worth of shares and formed a board of directors that is a cross section of producers, bankers and food processors.
