Beef plant deal may be coming together

A deal to save the only federally-inspected beef processing plant in the Maritimes, located in Albany, P.E.I., may be coming together, CBC News has learned.

The details are not finalized, say senior officials in Ottawa, and an actual deal could be as much as two weeks away. Sources say the federal government, through ACOA, is prepared to put $5 million into the Atlantic Beef Products plant in Albany P.E.I., and each of the three Maritime provinces would contribute $2 million.

The provincial agriculture ministers are said to be on side with the deal, but still need to take it to their respective cabinets.

The Atlantic Beef Products plant has lost $10 million since it opened three years ago, and is still losing $250,000 a month. Almost all those losses have been covered by P.E.I. The province made its last loan, $1.5 million, to the plant in June, saying that would be its final contribution if other governments didn't come on side with support.

At the time, the plant was losing $500,000 a month. Both New Brunswick and Nova Scotia have said their support for the plant was contingent upon a sound business plan.