Beef firm buys former hog plant

 

By PAUL TURENNE, SUN MEDIA

Winnipeg Sun - Canada

July 30, 2008

 

Out with the pigs, in with the cows.

 

Less than a year after Maple Leaf Foods closed up shop on its pig processing plant at 663 Marion St., a Manitoba-based beef company is moving in.

 

Natural Prairie Beef announced yesterday it has purchased the plant and intends to open it for production of a full range of beef products this fall.

 

The company plans to use the 60,000-sq.-ft. facility to process 250 to 300 heads a day of hormone-free, kosher and conventionally raised beef cattle, and begin getting the meat on the market before the end of the year.

 

Company president Kelly Penner said there is a great cost advantage in not having to ship cattle out of province for slaughter and processing.

 

"The plan is to keep these doors open for Manitoba cattle producers. We might draw some from eastern Saskatchewan and northwestern Ontario, but it will be Manitoba first, believe me," Penner said.

 

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

 

The company currently sends its cattle to a much smaller slaughterhouse to serve its fledgling market, but once it starts processing in-house, Penner expects the business will grow significantly.

 

The plant will employ 15 to 20 people when it opens this fall and could house up to 80 employees when it ramps up production in 2010. All employees will be new hires, Penner said.

 

Maple Leaf closed the plant last October when it added a second shift at its Brandon facility, forcing 145 workers to either transfer or find new jobs.

 

Natural Prairie Beef took possession of the decades-old building July 11 after buying it for $1.2 million -- money it received as an investment from the Manitoba Cattle Enhancement Council.

 

The MCEC administers an investment pool funded by a $2 per head levy charged on all cattle sold in Manitoba. The council's mandate is to invest in projects that increase domestic slaughter capacity.

 

Kate Butler, executive director of the MCEC, said buying the old plant was ideal not only because it's had many upgrades and is in a good location, but because much of the licences from its days as a pork-processing facility are transferable.

 

"We are planning public consultations this fall though," she said. "We want to be good corporate citizens."

 

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