Reportedly unable to raise the sales volume needed to cover costs, the Canadian Lamb Producers Co-operative is seeking bankruptcy protection.
The Western Producer newspaper on Jan. 27 quoted a recent statement in which the co-operative said it has been seeking an investor to finance its operations while production is ramped up and sales are increased to a commercially sustainable level.
Lamb products marketed under the co-op’s LAM brand were “well accepted and… generated a profit,” the newspaper quoted the co-op as saying, but sales didn’t generate enough income to pay expenses and staff.
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The co-op will remain under bankruptcy protection for 30 days, the Producer said.
Backed initially by the Saskatchewan Sheep Development Board, the co-operative was federally incorporated in 2012 as a way to market products from its members’ lambs to the retail and food-service sectors.
By mid-2014, the co-operative had about 125 members from across Western Canada — each committed to supply at least 25 lambs per year to the co-op, with a minimum three-year commitment and a $500 membership fee.
The co-op had also pledged to help members increase their flock size by providing “financial incentives” such as premium prices and participation dividends, and by providing farm extension services.
The co-operative in 2013 picked up a $1.4-million federal investment through Western Economic Diversification Canada to set up a new meat-grading system, and another $784,500 from WED in 2015 to develop an export plan.
