Cattle Rack Rancher
Well-known member
Mb Govt Provides Funds To Expand Cattle Slaughter Capacity
WINNIPEG, MB, Nov 04, 2004 (Resource News International via COMTEX) -- The Provincial Government of Manitoba has agreed to provide an additional C$2 million in financial support in order to kick-start a proposed slaughter plant, a release from the government said.
"Producers have expressed much enthusiasm for the Rancher's Choice Beef Co-op Ltd. initiative. But many of them have sent a clear message they don't have the money to invest in this plant during these difficult financial times," said Rosann Wowchuk, Manitoba's Agriculture, Food and Rural Initiatives Minister said in the release. "This additional funding provides the equity needed to kick-start the project and demonstrates our continued commitment to help producers deal with the closure of the Canada-U.S. border as a result of bovine spongiform encephalopathy (BSE)."
The extra contribution which closes the equity gap in the proposal, brings the total provincial commitment to Rancher's Choice to $11.5 million for the $16 million project including a $4.5 million equity investment and $7 million in loans, the release said.
"By providing this support, we have increased the provincial contribution to the plant to 71% of the project's costs and have reduced a major financial barrier to having this initiative proceed," the minister said in the release.
Wowchuk added this commitment will allow Rancher's Choice to secure private-sector funding needed to move forward with the project.
The minister also challenged the federal government to show similar resolve in helping Manitoba producers develop a beef processing industry.
"The federal government needs to back up its words on increasing slaughter capacity with action," Wowchuk said in the release. "So far, not one cent has been committed to building plants in Manitoba that will help our producers."
The minister in the release said, now that the province has addressed financial concerns about the project, she is counting on producers to guarantee they will ship a sufficient number of their cattle that are 30 months or older to the Rancher's Choice facility.
"These cattle cannot be transformed into boxed beef for the U.S. market and it's unlikely they could be shipped to the United States even if the border is reopened," Wowchuk said in the release. "These are cattle that will be slaughtered in Canada. We want to ensure these cattle are processed here for the benefit of Manitoba and opportunities are not exported to other provinces."
Wowchuk said that developing slaughter capacity has been a focus of Manitoba's BSE strategy since the closure of the border in May 2003 and that Manitoba Agriculture, Food and Rural Initiatives will continue to pursue additional expansion of slaughter capacity in the province.
"The Canadian live cattle ban in the United States and its devastating impact on producers and their families has demonstrated the need to change the industry," Wowchuk said in the release. "We are introducing change so our producers, who raise the best beef in the world, will emerge from these tough times with an industry that can better withstand future economic challenges."
Ranchers Choice's plans call for the purchase of a former U.S. slaughter facility and to relocate the plant to an area near Dauphin, Manitoba. The U.S. plant was built in 1998 and was in operation until the BSE discovery in Alberta in May of 2003, according to information provided by Ranchers Choice.
Ranchers Choice said a construction company from Vancouver has viewed the plant and has given the co-op an estimated cost to dismantle, move and rebuild in Dauphin, with a timeframe of six months to complete.
The City and the Rural Municipality of Dauphin will provide 15 acres of land valued at C$150,000 with no municipal taxes for 3 years, as well as a sewer and water hook up to the property, Ranchers Choice said.
WINNIPEG, MB, Nov 04, 2004 (Resource News International via COMTEX) -- The Provincial Government of Manitoba has agreed to provide an additional C$2 million in financial support in order to kick-start a proposed slaughter plant, a release from the government said.
"Producers have expressed much enthusiasm for the Rancher's Choice Beef Co-op Ltd. initiative. But many of them have sent a clear message they don't have the money to invest in this plant during these difficult financial times," said Rosann Wowchuk, Manitoba's Agriculture, Food and Rural Initiatives Minister said in the release. "This additional funding provides the equity needed to kick-start the project and demonstrates our continued commitment to help producers deal with the closure of the Canada-U.S. border as a result of bovine spongiform encephalopathy (BSE)."
The extra contribution which closes the equity gap in the proposal, brings the total provincial commitment to Rancher's Choice to $11.5 million for the $16 million project including a $4.5 million equity investment and $7 million in loans, the release said.
"By providing this support, we have increased the provincial contribution to the plant to 71% of the project's costs and have reduced a major financial barrier to having this initiative proceed," the minister said in the release.
Wowchuk added this commitment will allow Rancher's Choice to secure private-sector funding needed to move forward with the project.
The minister also challenged the federal government to show similar resolve in helping Manitoba producers develop a beef processing industry.
"The federal government needs to back up its words on increasing slaughter capacity with action," Wowchuk said in the release. "So far, not one cent has been committed to building plants in Manitoba that will help our producers."
The minister in the release said, now that the province has addressed financial concerns about the project, she is counting on producers to guarantee they will ship a sufficient number of their cattle that are 30 months or older to the Rancher's Choice facility.
"These cattle cannot be transformed into boxed beef for the U.S. market and it's unlikely they could be shipped to the United States even if the border is reopened," Wowchuk said in the release. "These are cattle that will be slaughtered in Canada. We want to ensure these cattle are processed here for the benefit of Manitoba and opportunities are not exported to other provinces."
Wowchuk said that developing slaughter capacity has been a focus of Manitoba's BSE strategy since the closure of the border in May 2003 and that Manitoba Agriculture, Food and Rural Initiatives will continue to pursue additional expansion of slaughter capacity in the province.
"The Canadian live cattle ban in the United States and its devastating impact on producers and their families has demonstrated the need to change the industry," Wowchuk said in the release. "We are introducing change so our producers, who raise the best beef in the world, will emerge from these tough times with an industry that can better withstand future economic challenges."
Ranchers Choice's plans call for the purchase of a former U.S. slaughter facility and to relocate the plant to an area near Dauphin, Manitoba. The U.S. plant was built in 1998 and was in operation until the BSE discovery in Alberta in May of 2003, according to information provided by Ranchers Choice.
Ranchers Choice said a construction company from Vancouver has viewed the plant and has given the co-op an estimated cost to dismantle, move and rebuild in Dauphin, with a timeframe of six months to complete.
The City and the Rural Municipality of Dauphin will provide 15 acres of land valued at C$150,000 with no municipal taxes for 3 years, as well as a sewer and water hook up to the property, Ranchers Choice said.
