Saskatchewan’s general farm organization wants another look at a proposal to buy an existing packing plant and put it in producers’ hands.
The Agricultural Producers Association of Saskatchewan last week passed a resolution at its annual meeting to host information meetings about value-added opportunities that offer producer ownership and control.
Among them is the Canada Farm Direct initiative.
The proponents, Dennis Duncan and Dale Mather of Alberta, addressed the conference Dec. 2.
Their plan calls for producers to buy shares to acquire the fourth largest packing plant in Canada.
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The company needs at least $150 million – $30 million to buy the plant and the rest to expand it.
There are three different share options, including a $100,000 dividend-producing share that guarantees 850 head annual slaughter. Dividend-producing shares worth $10,000 guarantee a 50-head slaughter each year for life, and $500 shares allow producers in the queue after guarantees have been honoured.
Duncan said last week that $8 million in shares had already been sold. Eleven John Deere dealerships in Alberta and Saskatchewan are among the corporate supporters.
All money will be held in trust until the plant is acquired.
“Unless the $30 million is reached, all funds would go back to producers,” Duncan said.
He also said Saskatchewan figures prominently in the company’s plans.
APAS delegates discussed a resolution to support the initiative outright but ended up tabling it after several raised concerns. Some said they didn’t have enough information about Canada Farm Direct to be able to support it.
“What we should be doing is supporting expansion of slaughter facilities” but not one individual proposal, said Norm Hall of Wynyard.
Another said APAS should be careful, because it would not be seen positively if it supported a proposal that went under.
APAS president Terry Hildebrandt said Dec. 6 that another resolution was proposed later in the meeting because of a survey conducted among the members. It showed strong support for the idea of producer ownership in the packing industry.
He said APAS would do its due diligence first, and if merit is seen for members in Canada Farm Direct, the organization would host meetings.
“We certainly don’t want our producers to pass it up but we have to make sure there is merit,” Hildebrandt said.
He added that Saskatchewan producers need information about this national initiative so they can act if they want to buy shares.
APAS’s role in the meetings would likely be to pay for hall rental, he said.
The organization is also willing to host meetings about other opportunities like ethanol and biodiesel.
Meanwhile, Hildebrandt was acclaimed to serve a fifth term as president.
Cecilia Olver and Dave Brown were re-elected as vice-presidents.
Three new people were elected to the 12-member board of directors. Hildebrandt said all are younger farmers and he is looking forward to their input at the board table.
