January 27, 2010

Canada government aids Quebec cattle sector

As part of Canada's economic action plan, the Canadian government will be investing in red meat sector through a loan of up to C$2.7 million (US$2.5 million) to assist Ecolait, a Quebec firm specialised in the slaughter and processing of milk-fed veal calves.

The announcement was made by Jean-Pierre Blackburn, Minister of Veterans Affairs and Minister of State (Agriculture). Through this federal support, Ecolait will be able to improve its storage capacity and upgrade its slaughterhouse plant technology. Its facilities process more than 100,000 head of veal annually, raised by more than 150 of its producer partners.

The company plays a major role in expanding market access for Canada's producers, with 50% of its products exported. This investment will also help the company to achieve major savings, which will increase the profitability of its plants including its partners.

"In this current global economy, Canada must be able to rely on a strong and profitable red meat industry," Minister Blackburn said.

Ecolait currently holds market shares of 61% in Quebec and 68% in Canada.

The Slaughter Improvement Programme, with a budget of C$50 million (US$47 million), makes federal repayable contributions available to support sound business plans aimed at reducing the costs by increasing the revenues and thus, improving the operations of meat packing and processing operations in Canada.

This is the second project announced in Quebec under Agriculture and Agri-Food Canada's Slaughter Improvement Programme. With more than C$20 billion (US$19 billion) in sales, the red meat industry is the single largest food industry employer in Canada.