Alberta’s largest feeder cooperative has gone into receivership and according to an order from Alberta Minister of Agriculture and Irrigation, RJ Sigurdson failed to comply with a pair of provincial regulations.
According to the order from the provincial minister the Picture Butte Feeder Cooperative was not being operated properly and failed to comply with the Feeder Associations Guarantee Act and the Feeder Associations General Regulation. These breaches included using guaranteed loan proceeds for improper purposes, accepting members ineligible for membership to a feeder association, supplying livestock and advances to ineligible members, and failing to maintain adequate sales documents. Other violations include obstructing inspections and failing to provide reasonable assistance.
Following a hearing in Edmonton at the end of February, Alvarez & Marsal Canada Inc. was appointed as the restructuring officer of the organization.
A statement posted on the organizations website reads, “On February 21, 2025, the Court of King’s Bench of Alberta granted an order whereby Alvarez & Marsal Canada Inc. was appointed receiver and manager of all Picture Butte Feeder Cooperative’s current and future assets, undertakings and properties of every nature and kind whatsoever, and wherever situate, including all proceeds thereof, pursuant to section 299 (1) of the Cooperatives Act, SA 2001, c C-28.1 and section 13 (2) of the Judicature Act, RSA 2000, c.J-2.”
Minister Sigurdson made his initial order on January 27th and roughly a month later PBFC’s application to have a restructuring officer appointed was granted. Vice-chairman of the PBFC Board of Directors Tony Ankermann said in an affidavit, having the restructuring officer put in place would help the organization make the changes needed for operational success.
The minister’s order does not allow the PBFC to have any more advances under the guaranteed loan, a decision that was reportedly made from the findings of the September 7th, 2023 to May 15th, 2024 investigation.
The PBFC was established as a feeder cooperative in 1991 and is the largest of 45 feeder associations in the province. The cooperative is set up and managed by livestock producers. The objective of the organization is to support members grow, finish, or deal with livestock or livestock products. According to Ankermann’s affidavit like other groups, the PBFC supports members acquire livestock through “providing easy access to low-interest, leveraged financing backed by a government guarantee as part of the [Feeder Associations Loan Guarantee program.”
As of the end of January, the PBFC owed lenders under the credit agreement $281,266,976. As of Aug. 31, 2024, the PBFC had a total of 227 active and inactive members.
