October 3, 2006

 

Canadian beef Co-op shifts location of planned slaughterhouse

 

 

The Peace Country Tender Beef Co-op, a Canadian outfit, is pulling the plug on a US$4.5 million plan to build a slaughterhouse in Dawson Creek in British Columbia, citing the numerous provincial government delays as the reason for the pullout.

 

Now the group is re-grouping its forces to target rebuilding in Alberta.

 

Although the Co-op had acquired land from the City of Dawson Creek, Peacock said the provincial government had changed its regulations, mostly environmental, on slaughterhouses and packing plants. The changes meant the co-op faced months of red tape.

 

Furthermore, the co-op's loan for construction is about to be issued, meaning payments would have to start soon.

 

To remain in Dawson would have left the co-op with no income and a standing loan, said Peacock.

 

Peacock said the Canadian beef industry has never quite recovered from the 2003 mad cow crisis. Although the US is accepting Canadian beef again, input costs have sky-rocketed while beef prices remain low.

 

The slaughterhouse is essential if the livelihood of ranchers in the region were to be sustained, Peacock said.

 

This is not the first time that the location of the slaughterhouse had to be shifted. The Co-op shifted the location of the slaughterhouse to Dawson Creek from an earlier location due to the low cost offered.

 

Besides the slaughterhouse, the co-op is also building a US$1.5 million sausage plant in another city. While construction costs have gone up, the stronger Canadian dollar has also brought down equipment costs, Peacock said.

 

Pending the approvals and regulations, construction of the plant in the new location in Alberta could start in late December and take six months to a year to build.