The consultant for the Prairie Pasta Producers told a crowd of farmers at an information meeting Thursday night that the time is coming to put their money where their mouth is.

John de Papp spoke to a packed audience at the Weyburn Inn about Prairie Pasta's plan to enter the pasta industry and eventually build a durum mill and pasta plant in Weyburn.

They want to start up a new generation or closed co-operative with farmer shareholders who would deliver durum to their own mill for pasta production in their own plant. But the first step is to buy market share through the purchase of an existing plant in Canada or the U.S. In order to do that, Prairie Pasta needs a cash commitment from investors.

"In the next six months we'll raise money and put it in escrow," explained de Papp. "It's time to help in our efforts when we're talking with people in the (pasta) industry. To go to them with a demonstrated commitment in bushels and dollars will get their attention."

The consultant, hired by Prairie Pasta two years ago from a well-known U.S. firm to develop a business plan, said there are four potential companies for purchase.

"Two of those companies could be strategic partners. One of them may want to buy the pasta we produce. I recognize you think we've been spinning our wheels, but we're quite excited where we are now," de Papp said.

According to Prairie Pasta's feasibility study, the key to entering the ultra-competitive pasta industry is through buying market share.

While a similar U.S. group of farmers called the Dakota Growers were able to enter the industry years ago by undercutting the competition and selling at cost, the environment has changed, said de Papp.

"You sell on price and the other guys will eat you up," he said, referring to top pasta companies Barilla, Dakota Growers and American Italian. "It's cutthroat. Without a track record you won't get acceptance from buyers."

Prairie Pasta has come under criticism from a splinter pasta group (also looking to build in Weyburn) and from skeptical farmers over their plan to buy market share.

"The biggest problem for me is you go to buy a pasta plant and the efficient ones aren't for sale," said Weyburn farmer Dan Sidloski.

"The idea of owning the product from the ground up is an advantage you would have even in an old plant," countered de Papp.

"We've also identified plants that are very new," added Prairie Pasta chairman Dave Schnell, who argues buying market share is the best plan.

"Certainly one way to enter the market is to form an alliance with an existing new generation co-op," Schnell said, referring to the new pasta group's plan. "But if you don't have anything to offer, they're going to do like any other competitor and tell you to go home."

A member of the crowd asked Schnell if he had approached the new group, Western-Pasta-Growers, to iron out their differences.

"Well, our door's always open. We think we've done a good job even though there's impatience. We're moving ahead with our escrow drive, (but) we would welcome working with anyone," he said.

The escrow drive will see investors place their money in a trust account. If they don't like the business plan Prairie Pasta comes up with, they can pull their money out, with Prairie Pasta retaining the interest off the principle.

During his presentation de Papp also talked about Prairie Pasta's problems with the Canadian Wheat Board. They have been fighting for a delivery exemption for future members of their co-op, giving them the right to bypass the CWB and sell directly to their own mill. That fight has taken longer than anticipated, adding to some farmers' impatience.

The Wheat Board argues other mills would complain if Prairie Pasta got an exemption and they didn't.

"One thing I've learned in this process is that the Wheat Board listens to the millers," said de Papp. "That shows the Wheat Board listens to its customers, not its farmers. I think the strategy for you is to become a customer. If you're talking to them as a farmer and a miller then it's hard for them to say no."

"Part of our strategy for going ahead is to gain board reform," Schnell added. "We'll continue to struggle for a pricing policy."

Part of the Prairie Pasta's presentation that grabbed the crowd's attention was a graph that showed what members of the Dakota Growers co-op received for their durum. In 1998, Canadian producers got $2.94 per bushel for durum and Americans $3 per bushel, while Dakota Growers members got $6.64 per bushel. On top of that are the profits the farmers in the co-op receive as shareholders.

"You're not growing wheat, you're growing pasta. The risk is taken away. If you own production, processing and distribution, the margin stays the same," said de Papp.

"The problem here is there is a crisis in agriculture," said Schnell. "It's pretty tough to farm like our fathers, and the next generation is hard to be found. We can't grow a raw product for less than the cost of production, unless the farmer moves up the food chain."

Escrow drive meetings are planned for Manitoba, Saskatchewan, North Dakota and Montana. Meetings in southeast Saskatchewan will be held at Weyburn, Milestone, Fillmore, Radville, Carlyle, Torquay, Estevan, Lampman and Redvers.