NEW GENERATION CO-OP MARKETS PET HEALTH PRODUCTS

Released on March 17, 2006

The New Generation Co-operative (NGC) model is allowing a group of Saskatchewan elk producers to capture a larger share of the marketing dollars for their products.

North American Natural Health Products Co-operative, also known as Norelkco, was incorporated as a NGC in December 2004. The co-op's membership consists of 50 elk producers and its goal is to develop and market nutraceutical pet products made from elk antler velvet. The company's product line is scheduled for Canadian distribution in March 2006.

"Producer-owned, value-added enterprises are a crucial addition to Saskatchewan's rural economy," Deputy Premier and Regional Economic and Co-operative Development Minister Clay Serby said. "The New Generation Co-operative model is a way for farmers to retain ownership of their product beyond the farm gate by investing in value-added business ventures. It helps producers capture production, manufacturing and marketing dollars for their products."

NGCs provide a more flexible structure for raising capital from both members and non-members, while retaining the basic principles of a co-operative. Through membership in NGCs, producers create a guaranteed market for their raw product and realize additional revenue from value-added processing.

"Gathering a group of producers with a common goal presented several marketing opportunities to us that we had never thought were out there," Norelkco founding member and Moosomin elk producer Ralph Venaas said. "If we continue with the commitment shown in the past two years, I am extremely excited about our future."

Norelkco received Co-operative Development Assistance Program (CDAP) funding from Saskatchewan Rural Development, which provides grants up to $10,000 to support the development and expansion of co-operative enterprises. The co-operative also received funding from Saskatchewan Agriculture and Food's Agricultural New Generation Co-operative Development program and the National Co-operatives Secretariat's Co-operative Development Initiative.

Norelkco will hold its first annual general meeting on March 31st, in conjunction with the Saskatchewan Elk Breeders Association annual convention in Saskatoon.

-30-

For More Information, Contact:

Scott Brown Rural Development Regina Phone: (306) 787-4031