Ranchers Meats

[cowman]

In the last issue of the Western Producer they have an article on this plant west of Edmonton.
Apparently about 1,000 farmers invested $1 million dollars, which wasn't enough to get it going, so they sought some outside investors. They state 20 "ranchers" put up $16 million and two or three other investors put in between one and two million each.
Now I wonder who the 20 "ranchers" were and who the other two or three investors were? I am assuming the original farmers who put in the million would be privy to that information?
The article also stated that very soon they would be selling an additional share offering. I assume that would be open to anyone? Not too sure just how this thing is set up? Is it still a producer co-op or is it now a private company?

[farmers_son]

See: http://www.agcanada.com/custompages/stories_story.aspx?mid=31&id=498

http://www.sprucegroveexaminer.com/news_ex/news02.html

The slaughter plant’s investors now include Ranchers Own (a new gen coop) , Border Beef, which is a group of eastern Alberta and western Saskatchewan farmers, a group of approximately 20 ranchers who each kicked in about $500,000, and a handful of investors who contributed in the $1-2 million range. There are also plans to have a second share offering in the co-operative, likely towards the end of September.

Rancher’s Own Meat Processors is a new-generation co-op that is providing a way for cattle producers to invest in a new 800-head-per-day cow plant (Ranchers Meats Inc.) planned for the Acheson Industrial Park just west of Edmonton. The plant, Ranchers Meat Inc., is set up as a private company that already has enough private investment to begin the construction phase on a multi-species facility. The co-op will invest in the construction phase or the value-added side of the plant’s business. The domestic mature beef market is their initial focus but plans call for developing export markets for branded cow beef in time. A spokesman says they will test carcasses for BSE if markets demand it.
The co-op was selling 6,000 membership shares at $5,000 apiece to raise $30 million from cattle producers. Each share carries the delivery right for 15 head of cows/bulls per year. Another 2,000 shares were set aside for investors. Producers short of cash can buy shares with $500 down and pay the balance over 2 years with cash or cattle receipts. The remaining financing would come from venture capitalists or financial institutions.
At press time the co-op had 600 members and a commitment from Border Beef Inc. to take a 5% share of Ranchers Meat Inc. Border Beef was formed by producer groups in Provost and Dewberry that were each trying to get a cow plant built in the Lloydminster area. Much like the Ranchers Own co-op this group wants to purchase a permanent 5,000-head allotment from the meat plant. To raise the money they are selling $1,000 membership shares and delivery contracts for $200/head.

[Willowcreek]

I hope these investors are using some of their "pocket money" and not investing farm and ranch escrow- long shot if they will ever see it again...

Forty years ago Dad and I invested $1500 (big money then) in a local packing operation- operation did run about 10 years before the big packers put them under. But noone saw a dime back- only had 10 years access for our fats and cows..

A neighbor and good friend lost around $2 million in his investments in Future Beef..

This slaughter house's future depends on how they impact the big multinationals- if it affects them, they will be put out of business.....

I wish them all the luck in the world- they will need it- they're playing with the Big Boys now.......