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New Beef Plant - PEI - Near opening

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    New Beef Plant - PEI - Near opening

    From Agexpert news letter:"Atlantic beef processing plant nearly open
    ...by Allison Finnamore
    ======

    Beef producers in Atlantic Canada are just a few months away from having a
    processing plant in their own backyard.

    Atlantic Beef Products Inc. is set to begin processing at the Prince Edward
    Island plant September 1, 2004. Plant executive member John Colwill said the
    facility, currently under construction, will be a branded beef plant eventually

    processing 500 head a week and employing 70 full-time people. The facility is
    located near the end of Confederation Bridge, which links the Island to New
    Brunswick.

    The facility is 50 per cent producer-owned by a co-operative started especially

    to open a local plant. The 160 beef producer members were required to purchase a

    minimum of 20 hooks and a maximum of 2,600. The provincial governments in
    Atlantic Canada assisted with forgivable loans, as the plant setup began shortly

    after the BSE crisis unfolded.

    The remaining half of ownership is through commission and government shares,
    Colwill explained. He gave details about the plant when N.B.'s beef producers
    met earlier this spring for their annual meeting.

    He said the plant is in response to consumer demands. "I think the consumer
    is
    at the beginning of the value chain," Colwill said. They want quality taste
    and
    product consistency. Overall, they want to purchase food grown close to home.
    "Eighty-eight per cent of Atlantic Canadians say they want to buy
    local," he
    said, adding shoppers feel buying local supports the area's agriculture industry

    resulting in fresher and safer food.

    Co-Op Atlantic will market the beef from Atlantic Beef Products Inc. under their

    Atlantic Tender Beef Classic line.

    Colwill acknowledged it will be a challenge to meet the 500 head a week goal,
    but said a quality assurance officer has been hired to help producers sell to
    the plant. He'll work with producers to develop feed programs in compliance with

    the brand structure. Eventually, the quality assurance officer will be the
    plant's buyer. A general manager and an operations manager are also already on
    staff, establishing recruitment and training programs. Equipment testing is
    scheduled to begin August 1.

    Atlantic producers are looking at a huge marketing opportunity, he said.
    "We
    are six per cent of the population. We consume eight per cent of the meat and we

    produce two per cent."

    Original plant plans didn't include the capability to deal with cull animals,
    but that was before the BSE crisis. The executive is now trying to deal with
    that issue by attempting to secure funding for a cull processing line. They're
    also working to find funds for cut line equipment for traceability from gate to

    plate and BSE testing measures for animals older than 30 months."
    Lets wish them well in getting this going and giving the east coast producers an other marketing oppotunity
    BruceC

    #2
    Hard to meet the 500 a week goal? News like this gets out and the liners will be back in action moving cattle from everywhere to this new plant. Congradulations PEI and thanks BruceC for inspiring news!

    Comment


      #3
      So if you bought your "hooks" just how much cash did you actually have to put up? And what is a "forgivable loan"? I ask this because I'm wondering what kind of deal we might get offered out here in the west.

      Comment


        #4
        While Alberta mires itself in apathy, PEI, and very soon B.C. have put plants on line.

        Majority here would rather listen to ABP and CCA promise the border opening or argue over who has the best idea to turn sod.

        The best thing that could happen in Alberta would be some movement on bricks and mortar. Nobody has the money themselves, so why not show interest in one of these checkoff ideas with bridge financing from the government and get a plant built.

        Comment


          #5
          a HOOK cost $60. we bought 60 with $1200. down remainder due june 30 2004 Total cost of $3600.
          NO ONE IS GOING TO SELL ANY ANIMALS TO THIS PLANT UNLESS THEY NOW HAVE HOOKS PURCHASED
          So if there is a shortfall in supply its up to the members to make it up

          The plant's expected opening is now looking more like sept/ oct some equipment is slow coming from europe

          The forgivable loans are province of PEI I dont have the exact details . was told there is "conditions" that apply.

          WE were so happy that the province was supporting us, and they have in every way possible.
          The federal government did put some money into the water treatment plant we will be using (at a price) but not a red cent to the plant.

          Comment


            #6
            They announced on the news yesterday that the Rancher's Choice plant in Winnipeg has 80% of the funding needed to get started.

            Anyone from the region who would like to get in on it should check it out.

            Membership is $100.00 and a hook costs $100.00. It's set up as a co-op.

            Comment


              #7
              Now I am wondering, why if PEI can do this thing for their producers, how come Alberta can't? Ralph always likes to go on and on about how well off we are and the Alberta advantage etc., so what is the problem here?
              Why have a super mega plant somewhere on the prairies when we could have a few medium sized plants for basically killing cows/bulls? I'd sure like to be able to ship my old cows 40 or 50 miles rather than 500 miles!
              And how come PEI can sell their hooks for $60(one third down!) while the cheapest we can do it out here is $100 and some quoted as high as $250?
              Maybe we need to import some boys from PEI to show us how it is done? Because obviously they can do it cheaper than we can?
              And hey good for you guys, Red Earth! Hope it is a real success story! I would think the shrink and transport costs might be costly?

              Comment


                #8
                Don't know what happened here. That shrink and transport costs was supposed to go behind the super-mega plant thing not at the end of my comments.

                Comment

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