Horticultural Co-operative goes into cold storage

The Lethbridge and Area Horticultural Co-operative (LAHC), in cooperation with its funding partners, today announced an agricultural initiative that will significantly enhance the industry in this province. The $1.2 million project will allow the LAHC to provide locally grown produce to provincial grocery stores.

On hand for the event were: Brian Tobin, Minister of Industry and Member of Parliament for Bonavista-Trinity-Conception; Tom Lush, Minister for Intergovernmental Affairs for Newfoundland and Labrador representing Beaton Tulk, Minister of Industry, Trade and Rural Development; Herb Brett, President, Discovery Regional Economic Development Board, and Doug King, Head of Produce Procurement, Dominion.

The initiative, which involves the construction of an 8,500 sq. ft. cold storage and vegetable processing facility, has received $800,530 from the Canada-Newfoundland Agreement for the Economic Development Component of the Canadian Fisheries Adjustment and Restructuring Initiative, $100,000 from the Department of Forest Resources and Agrifoods, $50,000 from the Department of Industry, Trade and Rural Development, and $10,000 from the Federation of Agrifoods. The new facility will be operational for the 2002 production year. 

"The expansion of farming activities in the Lethbridge area through this project will not only improve the quality and quantity of produce going to market in Newfoundland and Labrador, it will also increase employment opportunities in this sector over the next three years," said Minister Tobin. "The Lethbridge area farmers have shown tremendous leadership through the development of this project."

The Dominion chain of grocery stores has entered into an agreement with the LAHC for the purchase of five million pounds of summer, fall and winter vegetables valued at $1.4 million annually. According to K.C. Robertson, a co-op member, "while this commitment is significant, it represents a fraction of the total opportunity to displace vegetables imported into the province. As well, through the project, farmers will realize economies of scale through the purchase of bulk fertilizer, seed, pesticide and equipment which will make the co-operative more competitive over the long term."

"I congratulate the Discovery Regional Economic Development Board that first proposed and championed this initiative, and the Newfoundland and Labrador Federation of Co-operatives that helped organize this new co-operative," said Minister Lush. "During the Jobs and Growth consultations we received a number of submissions and suggestions to help strengthen and diversify the agrifoods industry. This initiative will help local producers regain a significant portion of the provincial market in fresh vegetables that are at present being imported from outside the province, thereby creating new jobs and wealth in rural Newfoundland and Labrador."

The Lethbridge and Area Horticultural Co-operative was formed by six local horticultural producers in and around the Bonavista Peninsula to increase their levels of efficiency and production. 

Rick Woodford, Minister of Forest Resources and Agrifoods said his department is pleased to provide funding for this very important co-operative venture. "This initiative is consistent with our department's Agrifoods Development Strategy, which highlights co-operative marketing as a key area for industry development. Our strategy also focuses on diversification, including value-added and secondary processing, which in the long term will further the objectives of the Lethbridge and Area Horticultural Co-operative."

The three-year $81.25 million Canada-Newfoundland Agreement for the Economic Development Component of the Canadian Fisheries Adjustment and Restructuring Initiative (EDC) was signed on August 16, 1999. The agreement is designed to build upon the strategic plans and priorities of the Regional Economic Development Boards to improve the long-term economic climate in regions impacted by the downturn in the groundfish industry: it is delivered federally by the Atlantic Canada Opportunities Agency and provincially by the Department of Industry, Trade and Rural Development.

Media contact:

Barry Mavin
Lethbridge and Area Horticultural Cooperative
(709) 467-4393

Heidi Bonnell
Office of the Minister of Industry
(613) 995-9001

Doug Burgess
ACOA-APECA
(709) 772-2935

Josephine Cheeseman
Department of Industry, Trade and Rural Development
(709) 729-4570

Background Information

Co-op membership includes:
Bayview Farms, Lethbridge
Operator: Peddle family

Juniper Valley Farms Ltd. Lethbridge
Operator: Terry and Charlene Brown

Miller's Farm, Burgoynes Cove
Operator: Graham Miller

Robertson's Farm Ltd., Lethbridge
Operator: K.C. Robertson

Clearview Farms Inc., Lethbridge
Operator: Moerly's

Natural Enterprises, Glovertown
Operator: Jerry Saunders

2001 11 15                              5:20 p.m.