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CFD makes deal with South Korea

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    CFD makes deal with South Korea

    Canadian Group Strikes Beef Deal With South Korea




    WINNIPEG, MB, Apr 19, 2005 (Resource News International via COMTEX) -- Canada Farm Direct (CFD) has struck a deal with an Asian company to supply Canadian beef to South Korea, according to a release from the group.

    The agreement calls for 20 containers of Canadian beef a week. Each 20 metric ton container will be delivered by airfreight, the release said.

    As a result, approximately 1,600 metric tons of beef will be supplied each month, representing about 7,000 head of cattle, the group said.

    South Korea will be an excellent customer for offal, which has a limited market in North America.

    However, the deal is subject to the opening of the South Korean border for Canadian beef, the release said, adding that all indications point to a resumption of trade in the near future.

    The signing of the formal contract between Canada Farm Direct and the Asian company is expected in June.

    "As borders around the world open to Canadian beef, we will be ready to do business," said Dale Mather, President and CEO of Canada Farm Direct. "The South Korean deal is good news for Canada Farm Direct and it's also good news for beef producers across Canada."

    The discovery of BSE on an Alberta farm in May of 2003, resulted in many countries blocking the importation of Canadian beef.

    When Canada Farm Direct concludes its current share offering, it will acquire one of Canada's top beef slaughter and processing companies. Currently, about $17 million of the $30 million minimum offering has been committed.

    Canada Farm Direct (CFD) is a producer driven initiative intended to get Canadian meat products directly to the public. Thus cutting out monopoly's created by the federally controlled meat packing industry and retail giants.

    The concept was developed in response to the devastating results of the North American BSE problem and the resulting International border closings to Canadian and US live cattle producers.

    The initiative provides for the purchase of one of Canada's four major packing plants, complete with an existing work force, and brand names. Domestic permits and licenses are in place as well as the necessary international permits and licenses, in countries such as the UK, USA, China, and Japan.

    #2
    Excuse me for being pessimistic, but is this guy for real?
    He owns no plant, he has slightly over half of the capital he thinks he needs to buy a "major" packer, Korea has not indicated in any way it is opening the border to Canadian imports....and he signs a contract!
    I suspect we can chalk this one up to good old razzle dazzle, or trying to dupe the investors into thinking everything is just peachy? I seriously doubt this plan will ever happen, or am I completely wrong here?

    Comment


      #3
      All kinds of possibilities cowman. One that I think of right away is that Neilsen Bros (Xcel) is part of this scheme. We all know by now that this is the company that Canada Farm Direct is preparing to buy. Of course the price tag is astronomical considering the times and the circumstances.

      Therefore Xcel is working hard to solidify the contract, using CBEF money to make the deal with Mathers and crew work. May actually be a deal with Korea on this one, but it is not something Canada Farm Direct has done on their own.

      Might be the only chance for Canadian ownership left. Big C sees some good in the Canada farm direct plan and has shown some support.A bit hard to justify the wages these two have given themselves but HAY, capitalist society after all.

      Comment

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