Investors sought for proposed beef co-op

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Published: August 8, 1996

SASKATOON – A group interested in building a producer-owned beef packing plant somewhere on the northern plains will visit Saskatchewan again.

Northern Plains Premium Beef, a developing U.S.-based co-op, was in the province late last winter as part of a three-province tour trying to drum up interest.

But organizers believe bitter cold and lack of advance work contributed to small crowds at the information meetings.

So far, only 65 Saskatchewan ranchers and cattle feeders have contributed seed money to Northern Plains. Overall, 2,800 American and Canadian producers have invested, representing 357,000 head of cattle.

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The group’s Saskatchewan director says there is more potential in his province.

“We probably didn’t have enough of the groundwork done in the province when we had our meetings in February,” said Brian Ross of Estevan.

“It just makes sense for cattle producers in Saskatchewan to get on board and think about adding some value to their bottom line by getting closer to the end consumers.”

Brenda Stefanson, of the Centre for the Study of Co-operatives at the University of Saskatchewan, said the cross-border closed membership co-op might be a new concept here, but there are several successful examples in North Dakota and Minnesota.

“It helps for Saskatchewan producers to know that there are people here who know something about these co-ops because when you have people coming up from the United States trying to sell you something, you wonder where they’re coming from,” she said.

Investment in the co-op would give the right to deliver cattle to the new plant. Proponents say the facility will take only the best cattle and establish itself as a consistent supplier of premium beef.

Northern Plains is studying the viability of buying the closed beef packing plant in Brandon, Man., as well as building a new plant in the northern plains or Canadian prairies.

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