PROVINCE SUPPORTS COMMUNITY-DEVELOPED FEEDLOT

Released on September 30, 2005

The Government of Saskatchewan commends the proponents of a new feedlot facility near Ceylon and is proud to be a partner in their efforts to grow the provincial livestock industry.

Border Line Feeders Inc., a $3.2-million project, raised more than $1.3 million of share equity from 316 shareholders. Border Line received matching grant funds totalling $55,000 from the South East Regional Economic Development Authority (REDA) through the Department of Rural Development's REDA Enhancement Fund, the federal government's Canadian Adaptation and Rural Development Saskatchewan program and Prairie Farm Rehabilitation Administration.

Although Border Line was incorporated in March of 2001, the BSE situation delayed completion of the project.

"I want to congratulate Border Line president Keith Kaufmann for persevering on this project," Deputy Premier and Rural Development Minister Clay Serby said. "The vision of a few cattle producers will become a reality with the opening of Border Line Feeders."

In response to BSE and the need to increase feeding capacity within the province, Saskatchewan Agriculture and Food developed a Feedlot Construction Loan Guarantee Program which provided the lending institutions with a 25 per cent loan guarantee for construction.

"This program facilitates growth of Saskatchewan's livestock industry by providing producers with access to a source of capital at competitive interest rates. It has helped Border Line Feeders secure debt requirements despite BSE," Serby said.

Border Line Feeders President Keith Kaufmann agreed a driving force behind the project is the need to increase feeding capacity within the province, especially since the discovery of BSE. "The packing industry is increasing in the province. We need to see more feeding of cattle being done here. The two go hand in hand," he said.

The cattle backgrounding and finishing operation will begin with 7,300 head, with plans to expand to 20,000 head within 10 years.

While Border Line Feeders will initially employ seven people, this will increase to about 20 once the operation expands. Along with employment opportunities, surrounding communities will also benefit from the economic spin-offs the feedlot will create.

For example, at 7,300 head, the operation will need up to 1.28 million bushels of barley a year, 6,000 tonnes of silage, 6,000 round straw bales, and between 5,000 and 6,000 round hay bales to be supplied by area producers.

"This project will help the province move ahead in expanding its livestock industry, as well as increasing the volume of business in local communities," Serby said. "Suppliers of fuel, maintenance, equipment, contractors, tradespersons, as well as businesses that provide manure hauling and spreading, bale and grain hauling, local food and veterinary services, will all benefit from this operation."

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For More Information, Contact:

Donna Rehirchuk Rural Development Regina Phone: (306) 787-2359