Construction of the proposed multi-species packing plant near Qu’Appelle, Sask., is expected to be under way by April.
The two Irish businesspeople behind DMB Food Processors (Canada) Inc. were in Regina last month meeting with construction companies and their Saskatchewan counterpart to finalize the $65 million facility.
Benny Bennett said locals concerned about not seeing activity at the construction site, announced last October, can rest easy.
“It’s a large facility. It’s not just going to pop out of the ground,” he said during a Jan. 19 interview.
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Construction is expected to take 18 months. The plant will cover 5.2 acres and contain lines to process 4,000 cattle and 9,000 hogs each week. The processing side will produce $300 million worth of value-added products such as meatballs and pizza toppings.
Among the details being finalized is how the company will test for BSE. Bennett, a veterinarian, proposes testing in line with what is done in Europe. The plant will operate to European standards.
He wants to use a rapid test, which he said provides results in just 31/2 hours and is accurate.
“It doesn’t interfere with processing. We are in discussion with companies already who have this technology.”
Bennett and Dara O’Broin, both of Dublin, said they would be prepared to test every animal that goes through the plant if that’s what consumers demand. They do expect to slaughter cows, and testing a higher number of animals would make the cost more reasonable.
Meanwhile DMB has already started to get its name out in the Canadian wholesale meat products business.
Andre Lizee of A.L. Management Group in Regina said inquiries have come from Quebec and Alberta about building duplicate plants, although there are no immediate plans to do so.
“Obviously the recipe is correct,” he said.
Lizee said his business advisory company is getting 80 to 100 calls a day from producers wondering how they can participate. The proponents are now looking at a new generation co-operative or some other way to include farmers.
“The shareholders are unified in their position that they can add value by adding producers,” Lizee said.
Bennett added that would give the plant a more stable supply and offer more benefits to producers.
Bradley Thomas, the Saskatchewan investor who farms in the province’s northwest, said farmers would have to change their thinking somewhat.
“They will have to change calving time to level out the peaks and valleys,” he said.
But O’Broin noted that producers would also have to raise their cattle to the plant’s specifications.
“We’ll need to dictate how that animal is raised,” he said. “Producers will get a premium for raising to that specification.”
Lizee said producers could also participate in the profit beyond the farmgate.
The plant will employ about 350 people and 15 of them will be food science graduates working on developing new products.
Bennett said DMB hopes to stop the live hog trade from Saskatchewan to the United States by adding value. Again, the hogs would have to be raised to the company’s specifications.
All the investors praised the Saskatchewan government and crown corporations for their assistance as the project developed.
“That’s something that doesn’t get mentioned much,” said Thomas.
Lizee also said on his trips to Europe he found officials there were aware of the Saskatchewan campaign to attract agricultural investment, particularly in the value-added sector.
