MCEC congratulates Plains Processors on Sod-Turning Ceremony

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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MCEC approves two plants for conditional funding

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.

Read more in our summer 2011 newsletter here.

Summer 2011 newsletter

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.

Other stories in this edition include:

  • What others are saying about the project
  • The strong case for toll processing in Manitoba
  • What’s next for the Marion Street plant
  • Producers face another ‘lost decade’ without a plant
  • Meet the plant management
  • Centreport and Manitoba agri-business
  • Conditional funding announced for Plains Processors and Country Meat & Sausage
Click here for the MCEC Summer 2011 newsletter.