Rancher's Choice Beef Co-op falls through

[15444]

CBC Manitoba reported late this afternoon that the Rancher's Choice Beef Co-op deal to by the Best Buy hog plant in Winnipeg has fallen through. The Co-op fell short of the $3.5 million needed to buy the plant when it only collected $700,000.00
The group is now looking at other smaller plants that may be economically feasible to purchase and re-vamp.

A sad day for Manitoba and Northwest Ontario producers.

[rusty1]

15444 - Are you from Manitoba? If so how much influence or integration does the beef industry between MB and the Rainy River district have?

[15444]

No, I am proudly born and raised in the Rainy River District. I would say that the Rainy River District has little to marginal influence and heavy integration in the Manitoba beef industry. At last census, I think there was about 336 producers in the District and the number of cattle fluctuates between 23,000 to 30,000 head with the increase being due to feeder cattle being kept and brought in from Manitoba.

Before the border closed, cattle were being trucked through Minnesota and going to either Winnipeg Livestock or Grunthal Auction Mart. Trade went both ways and there would be trucks coming back with Manitoba stocker cattle. Trucks now go north to Kenora and then straight west to Winnipeg. I don't know if there are any guys still selling at Grunthal (Although some of the local guys sure liked Grunthal, so I would guess that the odd one still sells there). Regardless, through Kenora it is about a 5 1/2 to 6 hour drive from RR District to Winnipeg, compared to the 3 1/2 to 4 hour route through Minnesota...so it is one brutally long haul for some guys. As well, the west half (or the agriculture portion) of the district and northern Minnesota is geographically identical to Eastern Manitoba, so going through Minnesota makes for a pretty smooth, but still long, haul. Coming through Kenora is a pain because of the hills and curves associated with the Canadian Shield.

Most of the purebred guys and some commercial guys, buy their bulls and some replacements from Manitoba. Our local Hereford association works particularly close with the Manitoba association, as many of us are good friends with those breeders in Manitoba.

[grassfarmer]

So would this not be an opportunity for Government to step up to the plate and help create the extra killing capacity they have finally realised we need? What was the point of both Ralph Klein and Paul Martin statring at the Stampede that we need extra capacity yet coming forward with no plans?

[Cedar]

15444: Do you have a link to further info on this? I can't seem to find anyting at CBC Manitoba's website.

Grassfarmer: Very good point! And listening to Martin speaking from the Stampede, it sounded like he was "right ticked-off" and ready for action!!! ....or was that just a bunch of bs threats for our friends south of the line? I'm still waiting for him to put his money where his mouth is! Not that I know a whole lot about the Rancher's Choice Co-Op, but, from what I understand, our hard-working directors have everything all lined up... hence Martin doesn't need a plan of any sort!!!! They have the personnel all lined up, from management to workers to customers...all we need is the money!!!! Looks like we're short about 2.8 mil...just a wee, itty-bitty, teensy-weensy spit in the bucket for the feds, who have all kinds of cash, not only in the form of loans, but outright grants...for all kinds of other businesses. So....why not us?????? After all, who were the idiots that ok'd the feeding of ground up cattle to cattle to begin with....should the feds not be held responsible for that mistake to some degree?? I just don't get it! If he wants to "win the west", helping out this cull plant would be a great place to start. After all, here in Manitoba, we have suffered the most, I believe, because of our severe lack of slaughter capacity. Almost seems, when I stop and really think about things, like they are deliberately trying to "finish us off" for some reason...what other explanation could there possibly be for this ridiculous lack of support?

[kato]

We sent our cheque into the Rancher's Co-op. The biggest problem was that they were trying to raise money by getting it from the very people who had no money.

I know lots of guys who sent what they could, but just don't have any more to spare. We would have loved to send a bigger cheque, but face it the money's just not there.

It's like canvassing homeless people for cash to build a shelter. It just isn't going to work.

We need more help, and now's the government's chance to put it's money where it's mouth is.

[15444]

Ceder:

I heard the announcement on the news on CBC news @ 6, but never did find it on their site either. I am thinking that it just wasn't a big enough issue to worry about a great deal? And yes, I too was thinking that this would be a great time for Martin to step up to the plate and support us, rather then just a bunch of rhetoric at the Stampede.

[cakadu]

Remember that Paul Celucci - the US ambassador to Canda - was also in attendance at this Stampede soiree.

I think that you'll be hard pressed to see the government put money into infrastructure like that. Remember the old "Lambco" plant in Innisfail? I'm sure there were others like it.

Personally, I'm not sure if you want the government money for the plants because along with the money comes all sorts of responsibilities and mandates that MUST be followed. There might not be enough flexibility to deal with an ever-changing situation. I undersand the sentiment of wanting the government money to go for something worthwhile instead of something that isn't. Sometimes though you have to be careful what you wish for.

Are there things that can be learned from the lack of success on this plant that might be of some benefit to the other proposed plants? Sometimes things don't work when we want them to - it doesn't mean that it can't work at some point in the future.

Maybe these guys can re-group and try again. A new day and a new strategy may just go a long way.

[cakadu]

It may also help to find out what the selling features for each group were. For example, you wouldn't use the same sales pitch for investors that you would producers. Investors aren't really worried about what benefits will accrue to producers, they want to know what's in it for them. Same goes for producers and whatever end customers you might have.

We are in a "what's in it for me" society, so you need to find answers for each of the parties that you want to involve.