Although they collectively lost $6.2 million when their beef-processing arm failed, members of Gencor can take comfort in knowing they pumped $50 million into Ontario’s cattle sector during the BSE crisis. “But, that said, we never like to lose money,” says the co-operative’s general manager, Brian O’Connor.
Cattle producers who bought into the venture by leasing hooks annually for $15-$17 per hook won’t get their investment back, says O’Connor.
Money that can be recouped from the sale of the bankrupt subsidiary Gencor Foods Inc.’s Kitchener plant will likely go to major creditors, such as Farm Credit Canada. Selling could take some time, O’Connor says, because offers so far are too low to accept.