October 10, 2007

 

Canada's Manitoba to invest in premium beef production

 

 

The Manitoba Cattle Enhancement Council has announced its intention to invest in Natural Prairie Beef Inc., a Manitoba-based company that markets premium beef products.

 

MCEC may invest up to US$1.2 million in Natural Prairie to help it increase production and marketability.

 

Calling it a first step in a multi-phase process that will lead to developing new markets for Manitoba beef producers, Neil Van Ryssel, vice-chair of the Manitoba Cattle Enhancement Council said the investment would move the province towards increased slaughter and processing capacity.

 

The council is acting on its mandate to create programmes to enhance the cattle industry in Manitoba by providing seed capital, he said.

 

The investment would help Natural Prairie Beef toward its goal of building a vibrant export-driven premium beef enterprise, he added.

 

With the funds, Natural Prairie could enlarge its operation by expanding its consortium of Manitoba beef producers, increasing its capacity to sell more Manitoba beef and develop a strong brand for its products.

 

Natural Prairie was founded in 2004 and targets a branded niche market. Cattle are raised with minimal antibiotics and without the use of any growth hormones.

 

MCEC will receive shares in Natural Prairie Beef in exchange for its investment.

 

Natural Prairie also seeks to expand to serve premium niche markets such as the growing kosher market in the US and Canada.

 

The investment would be made in stages, because the objectives of each phase will build upon the last, said Kathleen (Kate) Butler, executive director of MCEC.

 

Once it has proven markets and supply chain in place, Natural Prairie will move to the next stage of its business plan which is to build a Manitoba plant to process the beef.

 

Future plans also call for the proposed plant to be expanded to include slaughter capacity. Natural Prairie plans to break ground on a new facility in 2008 and to have the plant completed 15-18 months after that. The new plant would enable Natural Prairie to market up to 1,250 Manitoba cattle per week or 62,500 a year).

 

MCEC was started in 2006 with a mandate to support local solutions for a long-term, viable beef industry in the province.

 

The council administers an investment pool that is funded by a $2 per head levy on all cattle sold by Manitoba producers.

 

The province would match the levy for the first three years.