30 Christmas Merry Ready to step up your compact? PACKING plant proposal


of consumers in BC have a preference for product raised in BC,” says Brand. “Retailers have a desire to source that, but we don’t have a federally inspected plant.”


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to differentiate local product from current market offerings. “We are not looking to compete with the commercial packers in Alberta. This will not be a commodity product,” says Wright. “At the same time, we are in support of the individual producers who have built their own specialty brands across the province.” Brand says the plant would only need to secure 1.5% of the beef market in BC to be viable, a goal he considers quite attainable. “We really believe there is a niche here for product raised in BC and processed in a BC plant, owned by BC producers,” he says. “It’s an opportunity for your


region and we think it can work,” adds Wright. The business plan proposes


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a federally inspected plant capable of processing 500 head a week, located in a central region of the province with access to transportation infrastructure and a labour force.


There are more than enough cattle in BC to support a plant of this size. However, the key is to have animals going to the plant year-round. “A year-round supply commitment is critical to the success of the plant,” says Cowper. “If I open the door and there are no animals in there, this thing is dead.” Securing a supply may


require changes to the current cattle finishing structure in BC. The project team suggests


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creating an agreement among the various sectors of the industry. “There are a variety of ways


we can develop a plan to provide a seasonal supply,” says Wright. “There may be an opportunity to develop a supply loop where the cow- calf operator, the


COUNTRY LIFE IN BC • DECEMBER 2018 nfrom page 29


long run, hopefully, it gives higher returns.” Kamloops-area rancher


Leroy Peters enquired about how a premium calf would be compensated within the system. “Within a weekly run of the plant, there is the ability to process different grades of


“We really believe there is a niche here for product raised in BC and processed in a BC plant.”


backgrounder and the feedlot create some kind of an agreement among themselves to deliver the animals.” Ultimately, it’s the producer who stands to benefit. “It is clear to us after considering a variety of factors including the availability of calves, the availability of feed, transportation costs to Alberta, transportation costs to central BC that the primary benefactor of a plant in BC was the producer,” says Brand. “There was roughly $179 per head back to a producer in BC to harvest those cattle here.” Brand candidly added that


the kill-and-cut cost at a plant of 500 head a week is substantially more than a plant that processes 22,000 or 26,000 head a week. “So that benefit won’t necessarily go back to the producer,” says Brand. “But we think there is a way to structure this that gives the producer the security and the stability going forward. They know where their cattle are going to go and how they are going to be compensated based on cut-out values. It mitigates some risk and in the


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animals,” explains Wright. “They might run between 150 to 350 animals under the BC Beef brand, there might be 50 animals of a BC premium grade. And another 100 toll animals [where owners pay a processing fee, or "toll," and retain the cuts]." “While the majority of


production would remain in BC, over time there will be some cuts such as offal that will need to be exported for the best value in the market,” adds Brand. Producers will have the


final say on what form the new plant takes. “We recommend that a new generation cooperative be the model that is considered for the plant,” says Wright. “But many of the details we discussed tonight will be developed by the producers themselves.” “If you are interested and


you want to move forward, we can form a team and talk about what that structure is going to be,” says Cowper. “I often hear from ranchers that they could make money at this if it wasn’t for the middleman,” says Boon. “Well, this is your opportunity.”


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