Ranchers own?

[cowman]

In reading the announcements on this proposed trucked in plant, I noticed the Manitoba NDP government has now kicked in over 70% of the money? I believe they are now up to around $14million? For a 200/day plant?
The ag minister was telling the producers to get on board and get their money in! Now maybe I'm reading this wrong or something but does this mean that plant is going to cost $ 20 million? For a 200/day cow plant???!
I wonder how come poor old Manitoba can come up with a 70% share in a packing plant when Alberta can't seem to squeeze out hardly anything for our proposed plants?

[Willowcreek]

To my knowledge,the Livestock Industry Development Fund has several hundred applications for funding of packing plants in AB. I would hate to be the politicians that picked and chose which ones got funding in whose constituency !
I agree that these plants if they are successful have got to be industry driven. If the industry doesn't think they are important enough to support, why should the rest of the taxpayers ?

[cakadu]

To my knowledge, both the Livestock Industry Development Fund and it's crop counterpart, the Crop Industry Development Fund are comprised of industry and government employees and not any politicians.

It is also my understanding that both the funds are not for funding things that will give one group an advantage over another, but funds things that are of benefit to the industry as a whole.

That is a very good point you bring up emrald - and many urban people feel quite strongly about funding things with public dollars when the industry itself is not fully supporting the action.

I wonder what the difference in philosophy is between the other provinces and Alberta? In the past the Alberta government has funded things like this, with some of them failing. Then it becomes a matter of explaining to everyone why the money was spent in the first place. I wonder if part of it is that it is better to not fund at all and not have to explain than to fund and have to explain?

[cakadu]

The Alberta government could also help in other ways without directly funding the plants. Research and development incentives or tax incentives for these ag ventures would go a long way to help getting them off the ground. Why can't agriculture get the same sorts of incentives that sectors like oil and gas get?

[grassfarmer]

Perhaps it's the fact that Alberta is quite happy for only Cargill and Tyson to expand? Shirley McLellan and Arno Doerkson came out and said that they thought these two Corporations were the only ones whose expansion plans would come to fruition. Pathetic leadership.

[bombay_43]

Emerald, I want to comment on a statement you made.

“If the industry doesn’t think they are important enough to support, why should the rest of taxpayers?”

While I agree with you in principal, imagine for one moment a similar situation, but different sector in Canada.

What if we lower oil and gas field workers wages by 40%, (through no fault of their own of course), and then we tell them that if they wish to keep their jobs, they now have to invest their own money to build refineries! Why should taxpayers support the oil and gas sector if people within the industry don’t?

Where would taxpayers get their gas and oil, you may ask.

Same place taxpayers will get their beef and grain products if we don’t support our industry. Imported from other countries.

Notice any taxpayer inequities between these two industries?

[bombay_43]

The Beef industry in particular has received overwhelming support from people from all walks of life. At one point I felt that perhaps the Province should inject money into building packing plants, then sell them back to the industry, but that in itself would involve the politics of where the plants were built, so I am now of the view that these slaughter plants must be industry driven and owned. In the long run I am sure that will be best for the producers who decide to become involved.
There are approximately 35,000 cow/calf producers in Alberta, and each of them must be suffering due to the lack of slaughter capacity, so getting involved and ensuring that plants are built should be a positive step .

[cowman]

Emerald: Did you ever consider this: Of those 35,000 cow/calf producers, how many really give a rip if this thing is ever resolved? They are simply in it for the tax write-off? I know of several, myself?...now I'm not including myself in that mix as I still consider myself a farmer...although when i look at the bottom line....?
Farming and cattle raising in particular really has become sort of a joke? I mean who makes their income from farming, anymore? I would suggest to you, very few?
Sad but true?

[kato]

The Manitoba government didn't just 'give' the money, most of the money is a loan which they expect to have repaid.

(The Manitoba government very seldom 'gives' anything away!)

Oct 31 News story

Interlake Spectator — The Ranchers’ Choice Beef Co-op is close to realizing its goal of establishing a slaughter plant. The organization was successful in raising almost $4 million from producer and business inputs. With the provincial government’s commitment of $2.5 million in equity, and additional $7 million in loans, the proposed $16 million facility is short by about $2.5 million.
The Manitoba Government is willing to lend Ranchers’ Choice the money but with a stipulation attached. In order to assure the plant will be funded by producer dollars, a $2 check-off on cows, bulls and feeder cattle for an accumulated dollar amount of $2.5 million and /or not to exceed three years is required.
“Ranchers’ Choice is short of equity and we are assured a go-ahead if the check-off is implemented. It is limited in scope to go no longer than that and it will disappear,” says Freida Kurpan.
Currently, producers who sell cattle through the auction mart pay a fee to the Manitoba Cattle Producers’ Association (MCPA). This mandatory check-off amount can be refunded on request. The Ranchers’ Choice check-off will also be refunded on request so producers who don’t wish to participate, can get their money returned.
“We need the MCPA to support it, not administer,” said Kurpan. “All producers will benefit from it but, right now, there’s just a lack of cash from the farm.”
The auction marts would collect the fees at the source and allocate the money to Ranchers’ Choice.
The proposed facility had been criticized in the past for limiting its scope to only cull animals instead of being able to slaughter younger animals.
President David Reykdal explained that packing plants are slaughering 10 per cent cows and bulls and 90 per cent fats. The Ranchers’ Choice facility proposes that it will run a full shift of cows and bulls and a second shift of fats. Reykdal is confident this can be achieved in the new facility.
The federal government is looking at the operation and has indicated that assistance may be available under the loan loss reserve of $488 million.

[Horse]

The alta govmt already distorts the cattle market by app 100 mil$ per yr in the guise of crown leases and that is distrubitued to app 4000 lease holders and tory suporters just think how many less calves and cows there would be if the govmt just paid there people and didnt require them to own cows to get their welfare .
Should help the over supply if thats what is causing the problem.