Beef Co-Op Falls Short Again;
Backers Mull Another Approach

FARGO, N.D. —(AP)— With the Northern Plains Premium Beef Cooperative on the verge of dissolving, farmers and ranchers in the Dakotas are discussing strategy for another try at establishing a producer-owned beef processing plant.

"Maybe the third time's the charm," said Keith DeHaan, chief executive officer of the co-op.

Northern Plains has made two attempts in the past five years to start a beef plant. The first goal was to sell 250,000 shares to build two processing plants in the upper Midwest. Less than half that amount was pledged by ranchers, and organizers scaled back the venture to one slaughterhouse in Belle Fourche, S.D.

Another equity drive was held, but the co-op fell significantly short of its goal in July. The board of directors decided to give producers 60 days to make the plan work. The final deadline was Tuesday.

The cooperative's goal is to sell between 101,000 and 130,000 shares, each costing $100, to build the processing plant. DeHaan estimated the total investment will be "probably under 50 percent."

Northern Plains' board passed a resolution of dissolution in August. If the co-op doesn't get the rancher investment it needs, members will vote whether to dissolve on Oct. 1 in Mandan.

DeHaan said ag leaders in the Dakotas are prepared to resurrect the project if that happens. He said a nine-member committee has been formed to orchestrate the post-dissolution effort. He declined to say who the members are, saying only that they were representatives of Farmers Union, Farm Bureau and cattle-producing organizations.

Thoughts about how to proceed are mixed among the more than 300 co-op members, DeHaan said. Some think Northern Plains should continue to push forward.

"Another school of thought is that we have to let everything die down, clean the slate and go on with some new energy and new money," he said.

The North Dakota Agricultural Products Utilization Commission, which provides money to developers of North Dakota farm products, has given thousands of dollars to the co-op.

Chairman Kevin Pifer said he still sees potential in the concept, despite the poor timing of equity drives during a slump in the ranch economy.

Bill Patrie, a North Dakota Rural Electric Cooperative official who is advising the co-op, agreed but said it's time the co-op started over.

"It's hard to let go, but letting go is the thing to do," he said. "It allows a rebirth, a resurrection.

"I think to some extent the reason the dissolution is necessary is to recognize that the folks who brought Northern Plains into reality can't carry it anymore."