By STEPHAN BURNETT, Weyburn Review Editor
If the building of a pasta plant was a poker game, everyone would be at the very beginnings of the game and just sitting down to the table. One thing for certain is that at this stage of the game, Mayor Don Schlosser and the City of Weyburn have been offered a seat at the table by the Prairie Pasta Producers - a seat at a game of chance which may eventually see the winning community take home a $30 to an $80 million dollar pasta plant.
The directors of the Prairie Pasta Producers met in Weyburn on Monday in council chambers at City Hall. After, the directors said their plans are to establish a durum plant worth anywhere between $30 and $80 million which will be built within a 100-mile radius of Crosby, N.D.
Mayor Don Schlosser received the group on behalf of the City of Weyburn saying he has put together a committee which will be making a formal proposal to the Prairie Pasta Producers within the next 60 days.
The chairman of the group, Dave Schnell from Lampman, said the four-American four-Canadian group is in the process of acquiring contributions for the development of a business plan and considering the possibility of hiring a CEO.
Harlan Johnson, from Crosby, N.D. spoke on behalf of the North Dakotans and Montanans on the board. Johnson said at this point, the Prairie Pasta Producers are unsure how many bushels of durum would be required to operate the plant. The durum requirements, said Johnson, would depend on the size of the plant and whether it offers milling as well as processing capabilities. However, Johnson did say a feasibility study completed in July for the Prairie Pasta Producers outlines an annual demand of 5.2 million bushels of durum.
Schnell added the group had met with Agricultural Minister Eric Upshall as well as with officers within Janice MacKinnon's economic and co-operative development office.
Fiscal and legislative overturea have been made to the group by provincial representatives, said Schnell. "They're probably going to pass what we need by June at the latest," said Schnell, of legislation expected to be introduced which may allow closed co-operatives to operate within Saskatchewan.
Weyburn MLA Judy Bradley reports the meeting with Prairie Pasta Producers, held in December was fruitful.
Although Bradley confirmed the province has offered support, she wouldn't guarentee closed-co-operative legislation would be through the legislature before June. She did mention however, the Prairie Pasta Producers would be eligible for financial assistance through co-operative programs and possibly through the Crown Investments Corporation.
The project would seem at first, to be tailor-made for MacKinnon and Upshall's office.
Prairie Pasta Producers will be an agricultural closed co-operative - currently boasting 600 members - most of whom are from Saskatchewan. The pasta plant would draw durum from Manitoba, North Dakota, Saskatchewan and Montana.
However, Johnson and Schnell agreed the United States might be more of a natural fit for the pasta plant because of their pre-existing and developed system of closed co-operatives.
In the States, "they're a lot more familiar with farm-owned (closed) co-operatives," said Schnell. Since 1990 there have been more than 100 closed-co-operatives formed south of the border, he said.
"In a closed co-operative you can deliver through the plant or source it through an elevator," added Johnson.
When asked about the viability of locating a pasta plant on the prairies and overcoming transportation difficulties, Johnson pointed out population is not a key ingredient in processing pasta. "Dakota Growers in Carrington, N.D. ship to both coasts and sell up into Canada," he said.
The 1,100-member closed-co-operative Dakota Growers plant at Carrington, N.D. is an example of the success that might be achieved through the Prairie Pasta Producers plant, said Johnson.
One aspect of change which might tip the balance of location in favour of Canada is achieving concessions from the Canadian Wheat Board.
Shnell confirmed the board has met with CWB representatives and are currently in discussions regarding the buy-back provision of the board - a buy-back provision allowing a private company to buy back wheat prior to private export.
Schnell adds the group will meet with representatives of the Canadian Wheat Board along with Saskatchewan's Agricultural minister, Eric Upshall and Manitoba's deputy premier James Downey. CWB Minister Ralph Goodale could not respond prior to deadline.
Schnell said the durum producers are aware the City of Weyburn is interested in supporting the plant but added they are currently unaware of any specific concessions the city might offer to the pasta producers.
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