Saskatchewan cattle producers are welcoming an Alberta company’s purchase of seven livestock marketing centres in the province.
Nilsson Bros. Inc. bought the Heartland Livestock Services auction marts, along with one in Alberta and two in Manitoba, from Saskatchewan Wheat Pool and Agricore for $32.9 million.
“This probably shows that there is some optimism in our Saskatchewan beef industry from outside,” said Brian Ross, an Estevan, Sask., rancher and second vice-president of the Saskatchewan Stock Growers Association.
“I don’t think these companies come in and buy these places to lose money.”
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He said producers are naturally hoping this deal doesn’t make it more expensive for them to sell their cattle.
Nilsson Bros. is also completing the purchase of another large auction mart in southwestern Saskatchewan.
Ross said there is no concern that the company will obtain a monopoly.
“I don’t think we’ve come close to that yet,” he said.
“There’s lots of little auction marts in the country and they’ll provide competition to these people.”
Nilsson Bros. has a 44-year presence in Alberta, with several livestock markets and other agricultural companies.
The purchase of the two Heartland facilities in Manitoba marks the company’s entrance into that province.
In Moose Jaw, Sask., the company kills 750 head a day at Western Canadian Beef Packers, which it bought from the province last year. The company also owns a packing plant in Calgary, where 1,000 head are slaughtered daily.
Co-chief executive officer Brian Nilsson told a Regina news conference that producers benefit when a company owns both types of businesses.
“We probably have been able to increase pricing because with the synergies we are actually a little more competitive at the market level against the other packers,” he said.
“I know our producers in our markets in Alberta have been really excited about the fact that we have packing plants too.”
David Nilsson, who manages the family’s livestock financing company, told a conference earlier this year that Nilsson Bros. sees a bright future in Saskatchewan’s livestock industry, especially in cattle feeding.
Ross said that optimism, along with the acquisitions announced last week, should open eyes to the potential in this province.
“Maybe it takes somebody to come in and wake us up a little bit,” he said.
