The struggle to raise money to establish a plant in Manitoba to slaughter cull cattle continues, even as one proponent admits it is a difficult time to ask producers to invest in anything.
The directors of Rancher’s Choice Beef Co-op Ltd. recently decided to extend the deadline to June 15 to raise $3.5 million. The venture would see a hog slaughter plant in Winnipeg converted to process cull cows and bulls.
Blair Olafson, a cattle producer and promoter of Rancher’s Choice, said cattle producers have endured a difficult year since the discovery last May of BSE in a downer Alberta cow.
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Cattle prices are down and producers have become burdened with more debt while trying to get through uncertain times.
While convinced that the Rancher’s Choice project has merit, Olafson said more government support could be crucial, especially a commitment from the federal government.
The Manitoba government has promised $2.5 million, provided there is a show of support from producers.
An application for investment was rejected by Farm Credit Canada.
Olafson said plant advocates recently spoke with federal agriculture minister Bob Speller and federal treasury board president Reg Alcock and were given assurances that the decision by FCC would be reviewed.
The U.S. border remains closed to exports of live Canadian cattle, and many believe it could be several years before Canadian cull cattle can again cross the border. Rancher’s Choice wants to create a market for those cattle by processing them to tap domestic markets for products like hamburger.
Olafson said the project could help prevent a situation where producers are forced to shoot and bury their cull cattle because of limited market demand.
Because of cull prices last fall, many producers held onto their herds another year, hoping that a reopening of the border for younger cattle will also raise the price for older animals. That reopening has not yet happened.
Each share in the co-op would give farmers the right to deliver one cull cow or bull to the plant annually. The goal is to have a plant that could process 250 cattle per day.
A total of $11 million is needed to buy the Winnipeg plant, convert it for cattle slaughter and processing, and cover the initial costs of operation. Proponents hope the plant could begin taking cull cattle later this year.