Company touts processing to cattlemen

Since the closing of the U.S. border to shipments of live Canadian cattle, farmers here—and across the country—have been faced with the prospect of seeing their herds increase in size yet decrease in value.
Animals (such as cull cows) that normally would have been sent to slaughter now are being carried over the winter because the price they fetch doesn’t cover the costs of shipping.
Consequently, the push to build an abattoir in the district has been gaining momentum. As of yet, though, no consensus has been reached on whether to build a facility to provincial standards or the more expensive federal ones.
But at the spring convention of the Rainy River Soil and Crop Association last Friday in Barwick, an alternative was presented from a southern Ontario processor.
Mark Ishoy, managing director of Gencor Foods Inc., made a presentation on behalf of the Kitchener-based abattoir that may provide at least a temporary solution to the current glut of cattle on the market.
Ishoy noted the problem is not solely a result of the closed U.S. border. He said pre-existing treaties have exacerbated the situation.
“The WTO [World Trade Organization] dictates that Canada must import 76,000 metric tonnes of beef every year,” he explained. “And that is just the non-NAFTA obligation.”
Of that amount, 36,000 tonnes were needed just to meet the demands of domestic processors even before BSE.
Ishoy noted the idea of a district abattoir is not unique. Other facilities have been—or will be—built in other parts of the country, but the trend still is toward processing more animals through fewer facilities.
Ishoy told those on hand that Gencor Foods Inc., a wholly-owned subsidiary of Gencor, has been slaughtering and packing 100,000 animals every year in its 40,000 sq. ft. facility.
Two-thirds are dairy cows, and roughly 50 percent of the product is in the form of grinding meat.
To date, 23,379 hooks have been leased to 1,875 producers who have generated proceeds in the order of $3.3 million.
Ishoy suggested even though the plant is so far away, it could make sense for district producers to consider shipping their livestock down to Kitchener, as well.
He is willing to lease hooks at a cost of $27/year, which enables measure of the amount of rainfall, Agricorp has set up 435 special weather stations across the province, including nine in the district.
Policy holders must go to the station nearest to their fields, take a reading, and record the date. If the amount of rain falls short of 80 percent, a claim can be filed at the end of the month.
To apply for the policy or for more information, contact Agricorp district rep Reg Kaus at 852-3967.
The deadline for applying to the program this year is May 1.