The Rainy River District Regional Abattoir Inc. committee has revamped its guidelines in order to make memberships financially feasible and to gain supply commitments in order to build an abattoir in the area.
“It seemed there were a number of smaller producers who would like to support the abattoir, but were finding it financially difficult,” RRDRAI president Steve Loshaw explained.
Initially, to become of member of the organization, a $500 membership fee was required, as well as a commitment of a $2,000 loan at zero percent interest.
However, Loshaw said since the $2,000 didn’t equally represent each producer’s use of the facility, they made a change to allow financial commitments on a per animal basis.
The non-transferable lifetime fee of $500 is still required and, following payment, members are eligible to purchase one animal commitment at $100 for each committed animal.
“One animal commitment is equivalent to one large animal or three smaller ones, like hogs, goats, or sheep,” Loshaw noted, adding these can be purchased up to a maximum of 20 commitments.
“Twenty commitments would allow that producer to take more animals at member cost,” he explained. “So if someone has 20 animals, that’s $2,000. If someone has 30 animals, it’s $2,000.
“And they’ll still get the other 10 at member cost.”
Non-members will be able to use the facility, as well, but at an increased rate (the fee has not been determined yet). Loshaw also said they will not receive priority reservations nor will they be entitled to voting rights.
He added the animal commitments are only refundable after five years of committed deliveries.
This change in membership requirements allows the RRDRAI to receive the necessary supply commitments and continue to acquire funds in a more equitable manner.
“Consequently, we have already added a dozen new members and potentially have at least another dozen indicating an interest in purchasing a membership,” Loshaw enthused.
“We are nearing our commitment goal at this time and we are optimistic we will be moving ahead.”
For the last few weeks, a sub-committee—consisting of Loshaw, RRDRAI vice-president Trish Neilson, and volunteers Wayne Flatt, Bernie Zimmerman, and Colin Neilson—has been exploring the supply commitment issue and contacting members to gain a minimum supply of 1,000 animals annually for the next five years.
“Our consultant [Mallot Creek Strategies Inc.] is stressing the need for animal commitment before we go any further,” Loshaw remarked.
“The reason for that is there are a number of faltering facilities throughout the country who are having difficulty because they didn’t have proper commitment agreements.”
In addition to the animal commitments, Loshaw noted the RRDRAI still will require public money to help offset the cost of the facility. Their proposals are in for additional FedNor and NOHFC funding.
“We are also asking those members who are able to commit up to a $2,000 loan with zero interest,” he said. “We’re still continuing with that, but it’s not a requirement.”
And they are offering an investment opportunity of three percent return.
In the near future, the RRDRAI will be finalizing an agreement with Paul and Susan Peters, owners of Sunrise Meat and Sausage in Barwick, who are the interested operators of the proposed abattoir.
The facility is being planned to be built and operated to provincial standards, capable of conversion to federal standards, to be operated under provincial license, owned by the RRDRAI, a not-for-profit corporation, and operated under a lease arrangement with Sunrise Meat and Sausage.
The proposed site is on land adjacent to Sunrise Meat and Sausage, subject to severance and environmental approvals.
Their Ministry of the Environment application will be submitted, which can take several months for final approval before they can commence operations.
Loshaw said they still anticipate completion of construction by next summer.
An informational meeting will be held in the very near future.
Fort Frances Times
Local News from Across the Rainy River District
