The federal government has announced details of a $10 million plan to help finance farmer-run projects attempting to raise capital to build new federally inspected slaughter plants.
The Canadian Co-operative Association immediately hailed it as an important support tool for farmers using the new-generation co-op model to try to build plants.
Ottawa said it would contribute half of what a farmer member invests to a maximum $20,000 federal contribution to a farmer investment of $40,000.
The maximum federal contribution to any single new or expanded slaughter plant will be $5 million.
Read Also
Petition launched over grazing lease controversy
Battle continues between the need for generation of tax revenue from irrigation and the preservation of native grasslands in southern Alberta rural municipality.
“The concept of matching half of a producer’s equity contribution in new or expanded producer-owned slaughter facilities is an imaginative way for the federal government to encourage more domestic ownership of the packing industry,” CCA executive director Carol Hunter said in an Oct. 31 statement.
“CCA is pleased to see the government use a new generation co-op model for this program, requiring producers to deliver an agreed-to number of animals to the slaughter facility over a five-year period.”
However, the federal announcement did not single out co-operative projects for eligibility to apply for federal matching funds and that drew some criticism from Hunter. She said the government should have promoted new generation co-ops as the best way to build a more Canadian packing industry.
Representatives of the two co-op proposals closest to reality – Peace Country Tender Beef in Alberta and Ranchers’ Choice in Dauphin, Man. – were not available at press time to comment on how the federal program will affect their plans and their fundraising efforts.
Hunter said the success of the federal announcement would be shown in how it helps projects.
“It now remains to be seen how well emerging co-op slaughterhouse groups across the country will be able to use the Equity Assistance Program to move their projects along,” she said. “At one time, there were 10 co-op groups planning new slaughterhouses. Financing has been a major challenge.”
