A cut above
Penokean Hills Farms has been operating in Bruce Mines since 2005. It was originally established by a group of family farms to beef up the regional agricultural industry and preserve the traditional way of raising cattle. Under the leadership of owners Mike Tulloch and Chris Gordon, it has evolved into a successful wholesaling beef and pork business focused on producing a high-end local product for market. To grow the business, the company purchased a small, existing abattoir near Bruce Mines in 2015. However, it quickly realized it needed a steady supply of quality cattle and market hogs, and a new, larger facility to be sustainable.
Adopting a new approach, Penokean Hills Farms created local partnerships with those involved in every aspect of beef and pork product production from crop feeding to distribution to the consumer. Their value chain depends upon approximately 65 farmers from the Algoma, Sudbury, Manitoulin, New Liskeard and Cochrane regions who raise, feed and/or sell cattle into the program.
"Not only has the value chain been instrumental in our company's growth and success, it has been a boon to agriculture in the region," says Mike Tulloch, owner of Penokean Hills Farms. "It has also resulted in increased sales and the expansion of the region's supply chain, including feed and crop suppliers, farm equipment dealerships, food retailers, and trucking companies."
Through its value chain, Penokean Hills Farms is able to deliver a consistent, all-natural quality product while remaining good stewards of the land and animal.
Having secured a steady source of cattle and hogs for harvest, Tulloch then set his sights on a new state-of-the-art abattoir. In early 2020, he turned to the Federal Economic Development Agency for Northern Ontario (FedNor) for financial assistance to build and equip a 14,000-square-foot structure.
Penokean Hills Farms’ state-of-the-art building
The plans called for a commercial smoker, curing section and high-volume hanging and freezing facilities, as well as a meat processing plant and retail butcher shop in Bruce Mines. Construction began in March 2020; however the COVID-19 pandemic impacted the project timelines, increasing costs. Tulloch says flexibility from FedNor and an investment through East Algoma Community Futures Development Corporation was instrumental in helping the company complete the abattoir.
East Algoma CFDC is one of 24 Northern Ontario Community Futures Development Corporations funded by FedNor. It offers free business advice and workshops, as well as commercial financing to entrepreneurs and those looking to start a business in its catchment area.
"The opening of the new abattoir in 2023 has resulted in the creation of 22 new full- and part-time jobs at the facility, and those numbers continue to grow," states Shawn Heard, Executive Director, East Algoma CFDC. " Additionally, the value chain has removed the ebbs and flow of cost cycles allowing for consistent pricing for each component of the value chain, benefitting beef, hog and crop farmers in the Algoma and Manitoulin Districts who have a steady market for their products.
Learn more about FedNor's programs and the types of initiatives it funds in support of the federal Prosperity and Growth Strategy for Northern Ontario.