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AGRI-FOOD EQUITY FUND SPURS RURAL GROWTH

Released on June 6, 2000

Agri-Food Equity Fund partnerships with rural business are driving economic

growth in Western Saskatchewan.



In 1996, Saskatchewan Agriculture and Food's Agri-Food Equity Fund (AFEF)

partnered with more than 60 Eston-area investors to help a community-based

business expand into specialty crop processing. That company - Canadian Select

Grains Limited or CSG - used the fund's $324,000 investment to help purchase,

import and install specialized equipment for processing chickpeas into a

product called "dahl" for the North American Pakistani and Indian food markets.



"Initiatives like Canadian Select Grains are what we need in Saskatchewan,"

Deputy Premier and Agriculture and Food Minister Dwain Lingenfelter said.

"They provide new markets for our farm products, create jobs and put money back

into rural Saskatchewan."



In the four years since Agri-Food Equity Fund invested in the company, CSG has

grown and prospered. Today, Canadian Select Grains boasts an expanded product

line, a seed cleaning plant, a high-tech colour sorter and lots of storage.

Its operations inject hundreds of thousands of dollars into the region's

economy every year. In fact, Canadian Select Grains has already bought back

the bulk of the shares Agri-Food Equity Fund initially purchased from the

company.



"The Government of Saskatchewan wants to encourage that kind of growth,"

Lingenfelter said. "That's why we established the Agri-Food Equity Fund six

years ago and that's why we extended its mandate and increased its funding in

this year's Provincial Budget."



AFEF's capital base expanded from $20 million to $35 million this year as a

result of budget measures. Its mandate has been extended for another three

years.



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For more information, contact:



Ron Witherspoon

Agri-Food Equity Fund

Regina

Phone: (306) 787-0816

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