This can't hurt

[BFW]

NEWS RELEASE
FOR IMMEDIATE RELEASE
October 16, 2013

NORTH AMERICAN LEADING BEEF PLANT WILL SHOWCASE ALBERTA BEEF

$18 Million State-Of-The-Art Renovation Planned by Vesta Holdings for Harmony Beef Processing Facility near Calgary

CALGARY, Alberta –Alberta will soon have a new, state-of-the-art beef processing plant to showcase Alberta beef in major markets all over the world. Vesta Holdings will invest more than $18 million renovating the former Rancher’s Beef facility on the outskirts of Calgary with a firm commitment to make it not only the highest quality beef producer, but also the most safe and environmentally progressive processing plant in North America.

“Alberta beef herds possess the best genetics in North America, a fact that we intend to highlight by opening new markets for our quality products outside the United States,” said Rich Vesta, CEO of Vesta Holdings, who has a signed agreement with current owner Sunterra Farms to close the purchase Nov. 1.

Mr. Vesta brings enormous experience and deep expertise to this project. The 47-year industry veteran retired two years ago as US Beef Division President of global industry giant JBS, responsible for more than $11 billion in annual revenues. During an illustrious career, he has led operations and financial turnarounds at some of the largest and best known US beef production facilities. He has now relocated to Airdrie to lead the new effort.

The former Rancher’s Beef facility, located just north of the city near Balzac in Rocky View County, will re-open as Harmony Beef after renovations are completed in about six months. It will initially process approximately 700 cattle per day in a state-of-the-art, high technology facility. One aspect of the technology, for example, is a European water recycling capability to ensure that the plant the plant uses dramatically less water than similar-sized facilities in North America. Similar technology upgrades are planned to maximize worker and food safety, humane animal handling, and data collection.

The plant will employ more than 275 people and contribute significantly to the County tax base. It is also expected to provide a major economic boost worth tens of millions of dollars annually to the Alberta cattle industry, since it is designed to produce superior beef that can be distributed throughout the world. It will be the only plant of its size in Canada certified for distribution to the European Union.

The original plant is quite new, and so provides a high quality base on which Vesta Holdings can build. “This unique opportunity offers tremendous potential for Alberta and its cattle industry because no one could ever build a similar quality facility from scratch and make it work financially,” said Mr. Vesta.

“We aim to be the employer of choice, delivering products of the highest quality under the industry’s safest conditions while operating in the most environmentally advanced manner possible, “ added Mr. Vesta. “Ranchers - and our customers - can count on it.”

For further information, please contact:
Rich Vesta, (970) 673-5177
Rich.Vesta@vestaholdings.net
Crosbie Cotton
ccotton203@aol.com

[Happytrails]

Good news. Nice to see optimism in beef processing.

[grassfarmer]

Can't hurt but can it succeed? With dwindling cattle
numbers will the big two allow it to eat into their
supply or will they collude to run it out of business?

[rkaiser]

Yip, good news. Got your implant free cattle lined up yet BFW?

[kato]

How about promoting Canadian beef? I would hope there will be some Manitoba cattle in there somewhere.

[rkaiser]

Anyone that promotes "Alberta" beef at this level is full of shit kato. Pretty hard to stop though.

[smcgrath76]

It will be interesting to see how they
sort that claim out with CFIA or approach
the labeling issue.

[BFW]

An announcement like this and that's all you guys can come up with? All American cattle fed in Canada (of which there are precious few) have to be here 60 days to qualify as Canadian beef. Rkaiser I take by your tone you are not involved in this venture?

[grassfarmer]

Are you disappointed with our lack of enthusiasm
BFW? Remember the fractured state of the cattle
business in Canada and that the posters here are
largely cow/calf guys who don't sell fat cattle.
Probably not convinced if you feedlot guys get a
premium for selling cattle to this plant that you would
pass it on. In theory extra competition will raise the
whole fat cattle price structure - which brings me
back to my comment - do you think Cargill and JBS
will start paying more for cattle to compete or will
they collude to shut this plant down?

Nobody mentioned American cattle fed in Canada -
the point was whether they will be able to legitimately
label Alberta if it was born and raised in other
provinces.

Part of me still thinks its a spoof - come on - "Rich
Vesta" or is he another rich investor?

[BFW]

I am a little disappointed I guess Grassfarmer because I think this is long overdue for the cattle industry here in Canada. Why does it matter where the cattle come from? He can call the product what he wants as far as I am concerned as long as the cattle that are raised and fed here are processed here. From BSE to MCOOL our reliance on the exports of finished cattle from this country is largely the cause of the predicament we find ourselves in. I am excited as hell to see this plant open and really hope it succeeds. WIll it solve all the problems we have, not likely but its a good start down the right path in my opinion. Maybe you ranchers should keep a few more heifers back this year. As for "Rich Vesta" aka "rich investor", I like your sense of humor.

[smcgrath76]

BFW - I guess I am a bit in the "I will
believe it when I see it" camp. I have
invested in a plant before and lost my
$. I know the Balzac plant and toured
it when it was in operation and it is a
very good plant and was started with
seasoned management. I hope Rick Vesta
can make it go, and I am pretty sure he
will need a deep pool of $.
I have little to no faith in CFIA making
things work, and I know there are
labeling claim issues with "Alberta
Beef" and CFIA even though it has
absolutely nothing to do with beef
safety (which is actually CFIA's
mandate).
I think the current structure is going
to put upward pressure on fed prices in
AB, at least for the short term and I
will be interested to see if the pricing
of JBS and Cargill is as predatory as XL
and Cargill was.
I think if they can truly differentiate
themselves and sell/source a customized
product(s) they may survive and be a
great contributor to the industry. I
might be more excited in 24 to 36 months
from now.

[kato]

My point was why "Alberta" beef? Western Canada is full of cattle, and lots of them end up in Alberta feedlots, so why not "Canadian" beef? It would be nice to be appreciated in Manitoba, SK, and BC for the quality cattle we raise.

Ten little countries.... it's sad.

[GaryE]

i'D LIKE TO SAY THANK-YOU TO THE PRICE FAMILY FOR KEEPING THIS A BEEF PLANT. It would have been much easier to flip this into a real estate venture and take their profit. We finally have a plant of substantial size that is willing to look at markets instead of taking our basis discounted beef to the US

[rkaiser]

You suspect by my tone hey BTW? LOL

I have been learning how to keep my mouth shut a little better these days.

Pretty sure by your tone that you have a few connections however.

And honestly - all the best. Getting another player in the game at the packing plant level is definitely good for our beef and cattle industries.

Nice to see the kind of support that Cattle Feeders is giving the buyer.

[BFW]

All I can say is a hope we start to get a little competition for finished cattle here on the prairies and the opportunity to ship beef to some different markets. Not expecting this to change the world but anything will be better than shipping steers half way across the continent.