Natural Resources
Innovation, Trade and Rural Development
February 5, 2009

The Provincial Government announced another significant contribution to the continued growth of the province�s fur industry today with a $495,000-investment in the expansion of Viking Fur Inc. of Cavendish under the Agriculture and Agrifoods Development Fund (AADF).

"The growth of the fur farming industry, and the agriculture sector overall, is a result of the important work being done by the people involved in this industry to create economic growth and employment in rural areas," said the Honourable Kathy Dunderdale, Minister of Natural Resources and Minister Responsible for the Forestry and Agrifoods Agency. "This investment in Viking Fur is part of our commitment to assisting in the growth and diversification of the agriculture and agrifoods industry."

The Viking Fur expansion will create four to five new full-time positions, increase feed kitchen and cold storage capacity, lower the cost of feed and enhance biosecurity measures through the implementation of boot-washing stations and perimeter fencing. The total project cost is estimated at $1.5 million.

A provincial fur feed study identified insufficient capacity of feed kitchens as a significant barrier that could impact the expansion of the province�s mink farming industry. The Avalon Region does not have capacity to produce fresh/frozen ready-mix feed or sufficient cold storage to meet the needs of area farmers. This expansion at Viking Fur provides a source of locally-produced feed, reducing the transportation cost to farmers of importing feed.

"We are very excited about the continued support we have received from the Provincial Government," said Betty Tuck, general manager of Viking Fur. "This contribution will help our company reach the goals we have set for long-term sustainability."

This latest provincial funding for Viking Fur builds on a $195,000-term loan provided by the Department of Innovation, Trade and Rural Development in 2007under the Small- and Medium-Sized Enterprise (SME) Fund.

"Viking Fur has proven to be a stable enterprise and has developed a high-level of expertise within an industry that has significant potential for continued growth," said the Honourable Shawn Skinner, Minister of Innovation, Trade and Rural Development.  "The Provincial Government is committed to advancing export-based industries in rural regions of the province.  Our collective assistance in Viking Fur builds on this commitment, as well as our focus on stimulating new employment opportunities and economic growth."

The province�s fur farming sector projected $9 million in pelt sales for 2008 and employs 320 people.

"Our government continuously demonstrates its commitment to rural regions of the province, and this funding announcement will have a significant impact on the area," said the Honourable Charlene Johnson, Minister of Environment and Conservation and MHA for Trinity � Bay de Verde. "Viking Fur is a significant employer, with as many as 50 people working there during peak season. This funding will be an economic stimulus for the industry and the area. It will create several jobs and help expand upon the expertise that exists in this industry."

All mink farms in the province must register under the Environmental Assessment Act, which provides for a thorough public assessment of developments. Requirements under the act and the implementation by the operators of new environmental best management practices will result in the development and operation of farms in an environmentally-responsible manner. Viking Fur�s approval for the expansion was received in March 2007 and renewed in April 2008 for a two-year term.

The AADF targets major agriculture and agrifoods companies with a demonstrated track record in business and the capacity to raise private investment. Government made $6.8 million available in 2007-08 to stimulate and attract large-scale investment in the agriculture and agrifoods industry in Newfoundland and Labrador.

This is the fifth large-scale investment under the AADF program. High-quality cheese products and premium ice-cream are being produced in the province as a result of funding assistance under this program. A modern new egg-grading facility on Roaches Line is helping to increase the industry�s competitiveness by producing high-quality eggs at a lower cost.

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