The Dauphin plant?

[cowman]

Over on the commodities board Jman seems to suggest this plant isn't doing very well? Is this correct? How close are they to production or are they up and running already?
I believe the NDP government put some serious money into this plant? If it fails the taxpayers of Manitoba will lose that money. How about all the farmers who plunked down their cash?
Maybe Klein wasn't so dumb after all by insisting Alberta was staying out of the packing business? Maybe the ABP directors were right when they refused to support these "political ventures"?
I hear the new gen co-op is in trouble at Pincher Creek? How about the plant at Spruce Grove...are they going to be able to cut it?
When I suggested these new producer plants might turn out to be dismal failures I was roasted on here for being a pessimist and out of touch with modern realities? Well I guess time will tell?

[Willowcreek]

Kind of hard for a little newcomer to compete with multinational corporations that have their grips on the worldwide markets and worldwide politics....

I haven't heard anything of Dauphin- in fact I have heard little of any of the new Canadian plants...

I hope they make it- but I too have had a pessimistic outlook for their futures... If they compete against Cargil and/or Tyson they will not continue to exist...

[wd40]

It's because of people like you cowman with so much to say about so little that aren't willing to risk a dollar back into the industry from which he has take out so much, that these initiative won't get off the ground.
If people like you would put their pocket book where their mouth is we could take back control of our industry!!

[topper]

Press Release January 13, 2006 - 1/13/2006

Ranchers Choice Beef Co-op Ltd. announced today that Dominion Construction has been selected as the General Contractor to build a new 70,000 square foot state-of-the-art “hot boning” beef slaughterhouse facility in Dauphin, Manitoba.

“Dominion is a well-respected Manitoba firm and we are pleased to collaborate with them on this important project,” said Co-op President, Ken Yakielashek. “We are also proud that we could select a Manitoba bid – keeping our construction dollars in Manitoba, hiring Manitoba people is another way in which this project can contribute to the Manitoba economy.”

Fund-raising and financing for the project must be finalized before construction can begin, planned for Spring 2006.

Contact:
Ranchers Choice Beef Co-op Ltd.
Administration Office 622-7222
Ken Yakielashek, President

[cowman]

Thank you for that information topper. How close are they too getting the equity funding in place?
wd40: If I wanted to be a packer, I'd go into the packer business? As far as putting my money where my mouth is I don't understand your reasoning? I have never supported these co-op type packers because frankly I think they will fail! Personally I'm fairly satisfied selling my "commodity" calves into a system that is very efficient. Don't misunderstand an illegal border closure to efficiency.
I'm happy with the price I got for my calves this year.

[topper]

I have my doubts if the Dauphin plant will ever get off the ground. It seems like the government pledged funding for the deal to make the beef producers happy and then started doing everything in their powers to scuttle the deal. Also I think producer support has tailed off since the partial border opening. So I guess time will tell. It sure would be nice to have another option for the old girls.

[farmers_son]

That is an interesting comment that you are happy with the price you got for your calves this year. I am sure you are and so were lots of other people. And that is part of the problem.

This week a 632 pound calf in Nebraska sells for $225 more than the same calf sold in Alberta. Why should we be happy with that? We have been hit over the head with a baseball bat for so long that it feels good now that we are only being hit over the head with a 2X4. A cow sold in Alberta brings as much as $550 less than if that same cow was sold in Omaha.

Where is the future for our industry with that kind of cash basis between Alberta and the U.S. Without fair pricing for live cattle, Canadian live cattle production will not be competitive with the United States. We cannot continue to depend upon U.S. plants on the south side of an international border to provide much needed competition for our live cattle. Our producer owned plants will be viable with the proper structure and economic environment. Bottom line, they have to be if the cattle industry in Canada is to be viable in the next decade.

[rkaiser]

Seems like simple math to me.All the new plants have to do is take some customers in the U.S. from Cargill and Tyson.

Even if the feeder can't make one red cent from that 632 pound calf, the packer (hopefully Canadian producer owned) can make $225.00 before trucking and border tax.

Could use that same math on the Omaha cow.

And what would have it cost the producer to involve himself in a program like that intended by BIG C. 3 bucks if a mandatory levy was in place, and 20 or 30 if it were voluntary. And equity in a plant on top of that.

Sorry guys, couldn't resist. Our best bet now is to find any way possible to support the plants that are making any kind of headway. Most are willing and begging to custom kill. If anyone out there has intentions of creating a market with a branded product etc. Please please, go to your local producer owned facility first and last. If Cargill under bids your kill by 5 cents or 50 bucks, the long term advantages of supporting the producer plant will help cowman's grandchildren and yours.

[rkaiser]

does anyone know the status of the proposed Value Chain plant at Fort Assiniboine ? There was a lot of hype about it a few years ago and the local county put some cash into it, but thats all I have heard about it.

[blackjack]

...i have a question...are these plants not getting it done because
...where is the labour going to come from
...to the the big boys(cargill and tyson) have the beef markets tied up with control of the govt puppets
...or is it maybe there is just not enough concern from the farm sector when 80% of live animals are finished by 20% of the producers...

...the one thing i wanted to see was one big plant that was going to be able to compete(is there not a big co-op type plant like that in the states)...from what i see the hurt never reaches deep enough because us producers expect the govt is going to write us a cheque...

[rkaiser]

There are a few producer owned packers in the U.S. that are "doing it" blackjack, and one great big one that sold out - I - owa B - eef P -roducers. Now affectionaly know as Tyson foods.

I woulod say that the labour thing, the marketing thing, and the your thoughts about 20% controlling the fat cattle market, are down the road a bit. Most of what has happened so far is stuff simply associated with time. Raising money, jumping CFIA hoops, etc. etc. There are lots of plants still moving forward (I too would love to see a list), how many can break in to the marketplace is unclear. I say that I hope like hell that they have a clear "export off the continent plan" as the Canadian and dare I say American marketplace is maxed out for North American production.

[cowman]

There are some smaller plants being built by individuals. Two in Lacombe Alberta?
The Sunterra plant at Innisfail has been killing since early summer and the Sunterra plant at Rockyview should be ready soon? The plant at Salmon arm has been buying cows since late spring, but I don't think they are really a co-op...just a small group of producers in a joint venture type of deal?
Apparently nothing happening at Pincher Creek and I think the plant at Spruce Grove is supposed to start construction this spring? Not sure about that one?
Don't hear anything more about the proposed big plant at Lethbridge?
The fact is the packing business is not all roses and you have to be pretty good to compete with a Tyson or a Cargill...if that is even possible?