Construction of a federally licensed cattle slaughter plant in Manitobais behind schedule, but the facility should open for business next spring.
Calvin Vaags, president and owner of Plains Processors in Carman, Man., said he initially hoped the expansion project would be complete by Christmas. Now it looks like the plant, which will have a capacity of 1,000 head per day, will be finished by March.
“I think we’re a little bit behind our original schedule. I think that’s due to some weather delays in January and then quite a bit of wind delays early in the spring,” said Vaags, who has operated a provincially licensed slaughter plant in Carman.
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Vaags and other investors held a sod turning ceremony in January at the slaughter plant site in southern Manitoba.
The federal government provided a $2.8 million loan and the Manitoba Cattle Enhancement Council (MCEC), a provincial body funded by producer checkoffs, has committed $920,000.
When completed, Plains Processors will become the only federally licensed cattle slaughter plant in Manitoba.
“Over time, our goal is to help develop a diverse, sustainable number of federally inspected beef plants here in Manitoba,” MCEC executive director Kate Butler said in a statement.
“Plains Processors has been working very hard to advance this project.”
Vaags said the plant will slaughter all sorts of livestock.
“The intent is to do various species,” he said.
“We want to service markets that aren’t being serviced that well right now. For instance, the elk producers are looking for a place to process their animals.”
He said the company plans to ramp up production slowly from the current output of 100 per day. Increasing production at a new slaughter plant can be financially challenging.
Northern Beef Packers, a beef pack-ing plant with a capacity of 1,500 head per day in South Dakota, has struggled since opening last fall. A lack of sufficient working capital to buy cattle forced the plant to lay off employees this spring. It is processing only 200 head per day.
“Even though they (Northern Beef Packers) are a relatively small plant, they’re still a little too (much) on the large side,” Vaags said.
“The capital cost to build it is much higher, and the working capital commitments are huge…. We have put together what we think is far in excess of the working capital that we need. So we think we have those issues covered.”
