Agriculture and Forestry Minister Mitch Murphy today announced the department is providing a financial contribution of $50,000 in support of the new Prince Edward Island Cow/Calf Co-operative. The Prince Edward Island Cattlemen's Association has provided a further $25,000. The funds will be used to establish an "assurance fund" to reduce initial capital investments by producers and to encourage new entrants who may have limited equity. The interest generated from the fund will cover administrative expenses for the Co-operative. A loan of one million dollars has been extended to the Co-operative by Farm Credit Canada.
"These funds will help reduce the costs for cow/calf operators and hopefully encourage new entrants to the Island's growing beef industry," said Mr. Murphy. "The expansion of the beef industry is key to the continued success of the Atlantic Tender Beef Classic program and the requirements of the new beef plant in Prince Edward Island that will be processing product for the program."
Mr. Murphy said that support for the Cow/Calf Co-operative could result in a 10 percent increase in production in the coming year.
Jamie Whalen, President of the Co-operative, said the funds will help producers retain young heifers and purchase new breeding stock with a lower capital investment. "It will help us to improve the overall quality of the province's beef herds and increase the number of cattle marketed each year," he said. "I am pleased that the provincial government has once again provided support for the beef industry."
The Department of Agriculture and Forestry also provides financial support for the Prince Edward Island Feeder Loan Co-operative.
Prince Edward Island accounts for more than 80 percent of the supply of cattle for the Atlantic Tender Beef Classic program. "There is major potential for the expansion of the beef industry in this province, and we will continue to work with producers, packers and retailers to improve the number and quality of beef marketed in coming years," said Mr. Murphy.