December 11, 2007

Canada injects US$12 million into ailing beef plant

Federal and provincial officials last week announced a US$12-million investment in Atlantic Beef Products, the Maritimes' only federally inspected beef processing plant.

The government of Canada, through Atlantic Canada Opportunities Agency (ACOA), is making a one-time, US$6-million investment while three Canadian provinces - Prince Edward Island (P.E.I), New Brunswick and Nova Scotia will each contribute US$2 million to the plant.

The federal government is making an investment in the future of the Maritime beef industry, said Peter MacKay, the minister responsible for the Atlantic Canada Opportunities Agency.

The money will be used to develop, market and produce a line of high-end beef products.

Darlene Sanford, president of the P.E.I. Cattle Producers Association, said with rising beef production costs, producers had been waiting to see what happened with the plant before committing. Now, they would know for certain and make a decision, she added.

The beef plant, which is in Albany, P.E.I., opened three years ago and has lost US$10 million since.

Until Sunday, P.E.I. was the only government that had invested in the plant, an amount that stands now at more than US$33 million.

In June, the P.E.I government said it would not invest further in the plant unless other governments pitched in as well.

Authorities say the outlook for the plant is improving- with losses being reduced from US$600,000 a month previously to US$100,000 a month now.