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On January 1, 2006, cull cattle producers acquired Levinoff-Colbex enterprises, the largest cull cattle slaughter and processing facility in eastern Canada. Before acquiring the business, producers set up a fund for the development of cull cattle marketing. Beginning in December 2004, a levy of $20 was deducted from the sale of each cull animal marketed in order to raise the $6 million needed for the producers' investment in the project. The levy was discontinued on November 30, 2007, when the target was reached.
In March 2008, following a consultation tour on financing the business, a majority of cull cattle producers voted in favour of a contribution of $53.86 per cull animal in order to inject some $30 million into the facility. The objective allow to improve the plant's equity and working capital. The entreprise who was created in 1950 currently employs 300 employees. Levinoff-Colbex, slaughters and processes approximately 150,000 cull cattle per year. In 2008, Levinoff-Colbex generated annual sales of $139 million. Through this acquisition, producers are assured of optimizing the price for their cull cattle while recovering part of the profits from the slaughter and processing activities in the medium term.
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Business partnerships In recent years, the FPBQ has developed various business partnerships in sectors strategic to cattle production. These collective business investments represent one of the pillars of an innovative marketing strategy. Through their concrete commitment, producers secure the sale of their products and maintain competitiveness between buyers. Their close involvement improves cattle marketing and enhances producers' net income. It all started with Réseau Encans Québec (REQ), created in April 2002. The Réseau is the outcome of an equal partnership between the FPBQ and a group of auction owners, Groupe STM. Fed cattle producers also acquired the Z. Billette slaughterhouse, which they collectively owned until it closed in 2007. In 2006, cull cattle producers acquired the Levinoff-Colbex S.E.C slaughter and processing facility. These acquisitions were carried out after many information and consultation tours with producers and were all approved by the Régie des marchés agricoles et alimentaires du Québec.
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The Governance
Legal Structure
The Board comprises the following persons:
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Mr. Serge Michel (external) |
Chairman |
