Federally-inspected plant

MCEC congratulates Plains Processors on Sod-Turning Ceremony

January 28, 2013 By Admin1

Winnipeg, January 28, 2012 - The Manitoba Cattle Enhancement Council congratulates Plains Processors of Carman, Manitoba for its continued progress on plans to upgrade its facility to become a federally-inspected beef plant.

“MCEC is pleased to be one of the funding partners on this project,” said Kate Butler, MCEC’s Executive Director who attended the plant’s sod-turning on Saturday. “We’re delighted to be working with other investors and lenders as the plant finalizes its plans.”

As part of its mandate to strengthen the Manitoba beef industry, MCEC announced financing of up to $920,000 for the project in 2011.

“This is a positive initiative for the producers and the economy of this province,” said Butler. “It’s a smaller plant making progress on offering access to local and export markets for Manitoba producers. Over time our goal is to help develop a diverse, sustainable number of federally-inspected beef plants here in Manitoba. Plains Processors has been working very hard to advance this project. We came to the table early with terms that are tailored to the best possible outcome for producers in this specific project.”

The Manitoba beef industry will remain at risk of trade disruptions until the province becomes home to federally-inspected plants like this one. The 2003 BSE crisis and the more recent XL Foods closure both affected Manitoba producers more severely than their peers elsewhere. Both episodes are clear warnings of what can happen if Manitoba producers don’t have good, export-capable marketing options for their animals.

“There is a significant price differential between Manitoba and Alberta for the same animals and only part of that is explained by freight and other obvious factors. We need options,” said Butler.

MCEC is committed to being a catalyst to bring federally-inspected beef plant capacity to Manitoba, which is in keeping with the agricultural policy principles outlined in the federal government’s Growing Forward strategy.

“We need continued commitment from provincial and federal governments, as well as from producers and producer organizations, to support policies that can create a stronger, more robust beef industry,” said Butler. “If we work together, we can build a very strong, profitable, export-capable industry to protect producers and build profit here at home.”

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Filed Under: cattle, Federally-inspected plant, International trade, news release, Uncategorized Tagged With: Plains Processors

Canada-China beef trade reopens

March 19, 2012 By Admin1

China has agreed to allow imports of Canadian beef again, after a nine year pause due to the 2003 BSE crisis. The deal was announced during Prime Minister Stephen Harper’s recent trade mission to China.

The beef market in China has been soaring in recent years as the country’s economy surges ahead, boosting millions of its citizens into a new middle class that desires better food and nutrition options.

“This is potentially great news for our beef industry here in Manitoba,” said MCEC vice-chair Gaylene Dutchyshen. “We recognize we have to create new beef slaughter capacity here in Manitoba and have it export products to targeted international buyers.”

Last year, MCEC took part in a trade mission to China led by CentrePort Winnipeg. There is considerable interest from mainland China to find reliable, consistent sources of high quality protein such as Manitoba beef.

“It’s too early to celebrate, but this latest trade agreement is yet another sign that things are moving in the right direction for Manitoba beef producers,” said Dutchyshen. “We have excellent beef. We have CentrePort. And we have advanced plans for new federally-inspected beef plants to come on stream in the next two years. With all these elements coming together, I’d like to think we’re close to a very positive tipping point.”

Filed Under: cattle, CentrePort, Federally-inspected plant, International trade Tagged With: Canada-China trade, cattle, Centreport, Gaylene Dutchyshen, Prime Minister Stephen Harper

Why Alberta cattle earn more than Manitoba cattle

March 16, 2012 By Admin1

Recent analysis of the prices cattle get at auction proves what Manitoba producers have known for years: Alberta producers get more for their cattle. A lot more.

That fact was recently confirmed by Canfax market analyst Brian Perillat, who told MCEC: “One of the main reasons why Manitoba’s prices are lower is because they are the furthest distance away from any federally-inspected slaughter plants.”

The analysis shows the average price differential over the first 10 months of 2011 between Alberta and Manitoba on fed steers was $10.16/100lbs. On an average fed steer of 1,300 lbs, that works out to about $130 per animal. We also know that the minimum price differential on other cattle is $50/head for transportation alone.

Click here to read more in our Winter 2012 newsletter.

Filed Under: cattle, featured post, Federally-inspected plant, Uncategorized Tagged With: Brian Perillat, Canfax, MCEC

Talking with producers: Beef and Forage Days

January 6, 2012 By Admin1

Members of the senior management team of the proposed new beef plant in Winnipeg will be meeting with cattle producers during January’s Beef and Forage Days around the province.

Beef and Forage Days are organized by the Manitoba Forage Council. Plant management will review its plans for the federally-inspected beef plant proposed for Marion Street in Winnipeg. Plans call for a facility that will be capable of accepting up to 62,500 head per year.

The sessions are a chance for producers to learn more about the plant and about on-farm protocols the plant will expect.

Beef and Forage Days schedule:

January 9 – Vita
January 10 – Interlake
January 11 – Ste. Rose du Lac
January 12 – Holland
January 13 – Teulon

Filed Under: cattle, Federally-inspected plant Tagged With: Beef and Forage Days, beef plant, cattle, MAFRI, Manitoba, Manitoba Forage Council, MCEC, Winnipeg

MCEC thanks Manitoba cattle producers for 85% support

December 6, 2011 By Admin1

As we approach the end of 2011, the Manitoba Cattle Enhancement Council thanks the large majority of Manitoba cattle producers who have not taken a refund from the MCEC investment fund.

MCEC administers an investment fund that is fed by a refundable $2 per head levy on every head of cattle sold in the province. That money is then matched by the province turning every $2 into $4. MCEC’s mandate is to use that fund to invest in projects to strengthen the Manitoba beef industry, with a special focus on bringing federally-inspected beef slaughter and processing capacity back to the province.

Fully 85 per cent, or 7,400 out of 8,700, of Manitoba’s cattle farms decided on their own against applying for a refund in 2010, according to data from MCEC.

“We talk to producers all the time and they tell us that they know the risk to our industry if we don’t get new federally-inspected beef plant capacity back in the province,” said Gaylene Dutchyshen, vice-chair of MCEC. “It’s a positive sign that so many cattle producers are voting with their wallets on this very important issue.”

Another significant reason for cattle producers to support MCEC’s initiative is that they know having a local beef plant will mean more profitability and sustainability for individual farms and the whole sector. Manitoba beef producers earn substantially less for their livestock than their Alberta counterparts. In the first 10 months of 2011, the difference was as high as $130 per fed steer (avg weight 1,300 lbs).

“When you’re looking at trading a $2 levy for the chance to earn up to $130, the math is pretty simple,” said Dutchyshen. “We pay high prices for transportation and other costs to get our animals across the country or into the US. It makes perfect sense for producers here to continue to pull together towards building a beef plant here at home.”

MCEC was born in the wake of the 2003 BSE crisis that closed the US border to Canadian beef exports. While Alberta and Ontario producers still had access to local slaughter facilities, Manitoba producers were faced with surging herds and plummeting prices.

Filed Under: cattle, featured post, Federally-inspected plant, transportation costs Tagged With: Alberta, beef producers, BSE crisis, Gaylene Dutchyshen, Manitoba Cattle Enhancement Council, MCEC, Ontario

$5+ million reasons for a MB-based beef plant

December 1, 2011 By Admin1

Alberta cattle producers get more for their animals than Manitoba producers. But how much more?

MCEC along with the management team behind the proposed new Winnipeg-based beef plant crunched the numbers and discovered that Manitoba producers are losing out on more than $5 million a year compared to their Alberta counterparts. The reason is simple: Alberta is home to federally-inspected beef plants and Manitoba is not.

The analysis shows the price differential over the first 10 months of 2011 between Alberta and Manitoba on fed steers was $10.16/100lbs. On an average fed steer of 1,300 lbs, that works out to $130 per animal.

We also know that the minimum differential on other cattle for transportation alone is $50/head.

The proposed new Winnipeg plant is expected to take 62,500 head/year.

40 % to be fed cattle: 25,000 x $130 = $3.25 million
60 % to be non-fed: 37,500 x $50 = 1.88 million
Total: $5.13 million

Manitoba has approximately 8,700 beef producers, which works out to an annual drain of $590 per producer.

What’s wrong with this picture?

The price differential is based on transportation, handling and other costs associated with getting cattle from here to Alberta. Most industry watchers predict transportation costs will only rise alongside input costs such as feed. That means the price differential will only get worse.

By investing in a local plant, MCEC is trying to level that playing field and give Manitoba producers a better chance at long term profitability and sustainability.

MCEC wants to thank Manitoba producers for their ongoing support of this important initiative.

Filed Under: cattle, featured post, Federally-inspected plant, transportation costs Tagged With: Alberta cattle, beef plant, cattle industry policy, CFIA, Manitoba cattle, MCEC, price differential

The strong case for toll processing in Manitoba

August 24, 2011 By Admin1

A small plant can target areas of the global beef market that aren’t served by those large multinationals. That’s where the toll processing concept comes in.

The St. Boniface beef plant’s business plan is based on this philosophy. It has been proven to be a profitable business model around the world though this will be the first example of it in Canada.

Read more in our summer 2011 newsletter.

Filed Under: cattle, Federally-inspected plant, Uncategorized Tagged With: beef plant, Manitoba Cattle Enhancement Council, Manitoba cattle industry, multinational beef plants, St. Boniface, Winnipeg

MCEC approves two plants for conditional funding

August 24, 2011 By Admin1

The Manitoba Cattle Enhancement Council recently announced it has approved conditional funding to help two plants become federally-inspected beef slaughtering and processing facilities. Plains Processors of Carman, Manitoba has been approved for $920,000 to convert from a provincially-inspected abattoir. Country Meat & Sausage of Blumenort, Manitoba has received conditional approval for $565,000 to upgrade its facilities to conform to Canadian Food Inspection Agency standards as well.

When complete, both projects will give Manitoba cattle producers new local options to market their animals. CFIA certification is critical because it allows beef plants to sell their products outside of Manitoba.

Filed Under: Federally-inspected plant, news release Tagged With: CFIA, Country Meat & Sausage, MCEC, Plains Processors

Summer 2011 newsletter

August 18, 2011 By Admin1

MCEC has published its latest newsletter which includes its reaction to the federal government’s decision to withdraw its funding support for a new St. Boniface beef plant. MCEC remains committed to the project alongside a major private bank and has renewed discussions with other potential investors.

Plant management will be meeting with Manitoba producers this fall to discuss plans for the plant and their expectations of producers who want to market their animals there.

What others are saying about the project

August 17, 2011 By Admin1

MCEC has received numerous letters supporting its efforts to back a toll processing model for a new beef plant in Winnipeg. We’ve included a few comments below.

In addition to these, plant management has a number of letters of intent to purchase beef from the plant from respected international buyers. They are seeking a reliable source for quality Canadian beef that meets certain specifications.

“[This plant] truly represents the opportunity to bring a much needed new business model to the Canadian beef industry … It represents an opportunity to break out from the prevailing commodity based strategies and structures that limit the capturing of new value and the distribution of this value back to producers.” – Jerry Bouma, Toma & Bouma Management Consultants.

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