AGRI-FOOD EQUITY FUND INVESTS IN POPOWICH MILLING

Released on December 5, 1997

Agriculture and Food Minister Eric Upshall today announced the

Agri-Food Equity Fund has made an $800,000 investment in Popowich

Milling Ltd., a rapidly growing Yorkton business. The company

processes and produces a variety of oat products for both retail and

wholesale markets in Canada, U.S. and Mexico.



The investment in the company is in addition to $200,000 invested last

year and will be used towards building another processing facility on

the northern edge of Yorkton. Existing facilities will be redesigned

for organic oat milling. The expansion will increase Popowich

Milling's milling capacity to 100,000 tons of oats per year.



"Popowich Milling is a prime example of how well Saskatchewan's

value-added businesses can do in the global market," Upshall said.

"Agri-Food Equity Fund's second investment in the company signals

another significant step in the growth of this unique and prospering

company."



Terry Popowich, owner, said the company has grown briskly due in part

to the development of a flavoured instant oatmeal product line. "The

company has experienced strong growth in sales since the line was

introduced and to continue to meet the demands of the industry, it is

necessary for us to expand," Popowich said. "We are also the first

oat plant in North America to be ISO 9001 registered, which means that

our quality control has been approved and accepted throughout the

world."



In addition to the flavoured oatmeal line, Popowich Milling

(which is certified as an organic processor) produces regular and

quick flakes as well as oat flour and oat bran. The products are

distributed through major supermarket chains.



"The investment by the Agri-Food Equity Fund in Popowich Milling

helps to maintain jobs and a strong economic base for the company

in the Yorkton area," Upshall said. "Financing expansions of

businesses such as this helps move us closer to our goal of

creating a strong value-added industry in the province."



The second Popowich Milling investment is the 13th placement made

by the Agri-Food Equity Fund since its establishment in 1994.

The fund invests equity in Saskatchewan's value-added sector of

the agriculture and food industry. To date, the fund has

invested nearly $5 million in Saskatchewan value-added

businesses. This investment, plus a share of the company's

earnings, will be returned to the Agri-Food Equity Fund by

July 31, 2004. Revenues generated from investments are returned

to the fund for reinvestment in further value-added

opportunities.

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For more information, contact:



Ron Monette

Agri-Food Equity Fund

Agriculture and Food

Saskatoon

Phone: (306) 933-6146