July 31, 2008

Beef firm Natural Prairie buys former hog plant to process premium beef

Canada-based Natural Prairie Beef Inc. has bought a former hog processing plant from Maple Leaf Foods Inc. and plans to convert it into a processing plant for premium-branded Manitoba beef.

Natural Prairie Beef, owned by cattle producers across the Canadian province of Manitoba, bought the Winnipeg plant for $1.2 million with investment funds from the Manitoba Cattle Enhancement Council.

The beef plant is expected to open by year-end and will focus on the niche market for high-end beef products. It will sell to local markets initially, but will expand to cater to consumers from North America, Asia and EU by 2010, when the plant will aim to slaughter 250 heads of cattle a day.

The Manitoba Cattle Enhancement Council, which runs an investment pool funded by levies on the cattle industry, doubled its investment in Natural Prairie to $2.4 million to advance the project.

Toronto-based Maple Leaf, Canada's largest food processor, has been selling its primary pork processing operations to focus on more value-added businesses. Its Winnipeg plant has been closed for less than one year before Natural Prairie stepped in.

Natural Prairie Beef Inc. represents 50 cattle producers from across Manitoba who raise their animals without feeding them animal by-products and using minimal antibiotics.