Interest is there for an abattoir to serve Southeastern Ontario meat producers, but in the end it's all about the money

Jeff Green | Jul 07, 2021

Farmers from Frontenac, L&A and Lanark County held a socially distanced open-air meeting on June 30th, in the parking lot that is shared by Food Less Traveled and the Verona Pharmacy.

They were there to hear from Tim Dowling of the National Farmer's Union, Local 316, Tracey Snow from the Lennox and Addington County Economic Development Department, and Cory Priest, who has been working to build an abattoir in the region.

Tim Dowling talked about how the lack of abattoir services is curtailing the ability of small and medium sized to bring products to a strong and growing market for local food in the region, severely limiting not only their growth but their ability to survive as well.

Tracey Snow talked about the work that has already been done to develop a business plan and a blueprint for a new facility, and all the bureaucratic hurdles that have been identified and addressed.

Cory Priest then outlined the problem that he has run up against, which is a financial one.

“What was originally a $2.5 million project, became a $3 million to $3.5 million project because of the increase in building costs from COVID and other factors,” he said.

But then he found out, a few weeks ago, that it would cost at least another million dollars to bring the three-phase power that he needed to the site on his farm that was being developed for the project. The cost has now ballooned to at least the $5 million mark.

“That was more than I could handle,” he said. “I told Tracey that I had to pull out of this, but she said we should go to the public and the farmers to see if anything could be done about the location, and/or bringing in new investors.”

“I can say that the work that has already been done, the research and the business case and the planning, is extensive. It is really the hardest part,” said Tracey Snow.

Tim Dowling asked the people at the meeting a few questions. Most of the audience had a vested interest in the project because they raise animals for meat. A number of people said they would be willing to help work on the project, and a few also indicated they would be willing to invest.

Dowling said that he has done some research into what the NFU has done in attempts at establishing co-operatively run abattoirs in the prairie provinces.

“For a number of reasons, co-ops don't work for abattoirs,” he said.

The financial model being contemplated in this case is a more standard, share-based corporate model.

“I was prepared to finance this myself. At the initial price there was a 7 to 8 year return on investment, which I could handle, but at over $5 million, it is a 12-15 year timeframe, and I can't take that on,” said Priest.

Tim Dowling asked if anyone had, or knew of, an alternate location for an abattoir, one that was available for sale and was in a location with three-phase power.

There had been speculation that the South Frontenac Township works on Road 38 north of Verona might be expendable, but Mayor Ron Vandewal, who was at the meeting, said the township is not selling the property. He also talked about a timeframe for all of the land use planning process that would be required if a location in the township was proposed for the project.

“It would take a year for the planning to be done in South Frontenac,” he said.

The location on Thorpe Farms, the farm owned by Cory Priest and his wife, Shanna, is within Loyalist township, in Lennox and Addington.

One other potential location in South Frontenac was mentioned at the meeting. Bob Leonard, who owns the Leonard quarry, just south of Hartington, said he would be willing to sell a five-acre parcel for the project.

A property near Tamworth is also being looked at, and the potential to locate on industrially zoned land in greater Napanee was also mentioned. The original location is not out of the question either, if the extra hydro costs can be financed.

Names and emails were collected as the meeting ended, amid some hope that a local abattoir can be built.

“We can get this done by the fall of 2022,” said Cory Priest, “if we have the money and the location.”