The membership of Atlantic Beef Producers Co-operative Ltd. expressed strong support for a new beef processing plant called Atlantic Beef Products Inc., to be located in Albany in the Borden -Carleton area of Prince Edward Island. "This means the priority is still the same – build a plant for Maritime beef producers," said Dean Baglole, beef producer from Freetown, PEI and Chair of Atlantic Beef Producers Co-operative Ltd., a new beef producer co-operative incorporated last December 13. "The plan is on track to offer Class A shares for sale and start building a new plant. We are now ready to move forward. Everything is in place for a plant, and it is now up to the producer to purchase shares."
There was strong representation with 73 percent of the membership attending the first business meeting of Atlantic Beef Producers Co-operative Ltd. on April 10. The beef producer members from the three Maritime Provinces asked to start sales of Class A shares as soon as possible. Sales of these shares will allow and require the beef producer member to market one animal per share each year to a brand plant. The minimum number of shares a producer can buy is 20 and the maximum is 2,600. Sales are expected to be completed by May 30, 2003. Strong sales of these shares will ensure the plant will be built.
The producers were presented with an innovative plan to start the marketing phase of the processing beef before building a plant. The plan calls for buying cattle, contract processing and selling beef on a small scale beginning this summer. It was enthusiastically welcomed by the members as "smart," "a great way to get experience" and "better to learn the marketing in small steps." That allows the plant, Atlantic Beef Products Inc, which was incorporated January 2003, to develop and implement marketing and to grow as the plant construction begins.
In the fall of 2002 the site for the plant was selected and prepared along with road access. Now that the equity position has been secured, the design phase will begin with construction planned to start in the fall of 2003. The plant is expected to be operational in late 2004.
To market product in the retail market, Co-op Atlantic has signed purchase agreements to buy their award winning Atlantic Tender Beef Classic® branded beef. A foodservice buyer is expected to sign purchase agreements soon.
Atlantic Beef Producers Co-operative Ltd. represents over 160 beef producers from the three Maritime Provinces. Atlantic Beef Producers Co-operative Ltd. will have the majority of voting shares in the plant, Atlantic Beef Products Inc.