Cattle producers and the Saskatchewan auction mart that owes them money could soon be partners in a new venture.
The owners of Arcola Livestock Sales met with 78 producers earlier this month to try to “come to some kind of interim understanding,” said Bill Howe, a Regina lawyer who represents the company owners.
They want to look at forming a joint venture company to try to keep the auctions in Arcola and Alameda operating, he said.
The facilities closed after an American company failed to pay for livestock it purchased from Arcola Livestock.
Read Also
University of Saskatchewan experts helping ‘herders’ in Mongolia
The Canadian government and the University of Saskatchewan are part of a $10 million project trying to help Mongolian farmers modernize their practices.
In turn, Arcola Livestock was unable to pay producers here. More than $2 million is owing.
“We have no control over what happens in the States,” Howe said about efforts to get the money and settle the matter.
The idea of a joint venture between the producers and Arcola Livestock Sales is an attempt to find a way to repay the producers by way of shareholder dividends.
It would also keep their local facilities open.
The 78 people at the recent meeting represent most of the 118 unpaid invoices. Howe said the response was good, but a feasibility study would have to be done.
“It would take huge co-operation for it to make sense,” he said.
Rumours that the Arcola and Alameda facilities have been bought by Calgary-based Nilsson Brothers are untrue, Howe added. Meanwhile, Arcola Livestock is suing another Saskatchewan company alleging it didn’t pay the full amount for livestock purchased in Arcola on Feb. 11.
Prairie Livestock bought $900,000 worth of cattle, but paid only $530,609.95, according to the statement of claim, which is a court document containing unsubstantiated allegations filed by complainants. A statement of defence is not yet available.
The claim also names Jameson Livestock, Gilroy Cattle Company and a numbered company.
