No gov't money yet for beef plant

A $12 million investment by the Maritime provinces and the federal government for the regional beef plant on P.E.I. has not yet materialized, because the plant hasn't met certain conditions.

The Atlantic Beef Products plant has struggled since it opened three years ago, losing $10 million. But it is the only federally inspected plant in the Maritimes, so the governments announced on Dec. 10 they would provide money for the plant to develop a new line of beef products that would differentiate it in the market.

Two months later, the plant is still losing money and it faces a shortage of slaughter animals — and the only money it's seen is an advance on P.E.I.'s $2-million share.

"The governments know there is a transition period that's going to happen," Dean Baglole, board chair for Atlantic Beef Products, told CBC News Wednesday.

"This money is supposed to work over a three-year period and would transition the plant from a negative position to a positive position. So, we haven't seen any of that money to speak of yet."

The money presumably won't come until the plant meets conditions laid out as part of the announcement. For example, in December the plant was supposed to hire a new CEO and restructure the board of directors. That still hasn't happened.

The plant was also to develop a marketing plan for differentiated beef products.

Opposition leader Olive Crane said differentiated meat products, such as organic or antibiotic-free, are the same market the NOFG hog plant in Charlottetown was trying to develop when the P.E.I. government recalled a loan last month, sending the plant into receivership.

Crane said that has created a chill in the livestock industry, making farmers think twice about carrying on.

"The confidence is not there, that they'll invest all that money, only to find out in a year's time the government's not in that business either," she said.

Agriculture Minister Neil Leclair said the situation at the hog plant was different, but those niche markets will be crucial for hog farmers as well.

"Certainly our pork industry will be the same, when it moves forward it will have to look at those markets," said LeClair.

The challenges facing the beef industry are much the same as those facing the hog industry. With the regional hog plant now in receivership and its future uncertain, and now with promised government money for the beef plant not yet delivered, there is increasing concern the beef industry could be heading in the same direction.