HAY RIVER
K'atlodeeche First Nation is looking to get back into the egg-production business.

Peter Groenen: CEO of K'atlodeeche First Nation says band is seeking to get back into the egg-production business. - NNSL file photo

Peter Groenen, the CEO of the band, described a move toward a new chicken barn on the Hay River Reserve on Aug. 10 during the First Nation's annual general assembly.

"Late last year, we received a letter from the minister of ITI (Industry, Tourism and Investment) that said that KFN had been allocated a quota of 26,292 chickens for an egg-laying operation and, if we didn't get the business plan in by the 31st of December, that quota would be taken away," said Groenen. "So we put the plan together and submitted it."

The First Nation was then told it has until January 2017 to secure finances to build a new barn.

"So that process is underway now," said Groenen, adding that consultants have prepared a second report with the information required to go to lenders.

The CEO said an application was also submitted last week to the Department of Indigenous Affairs and Northern Development to seek funds to pay a consultant to find the money required for the project.

"The total amount that this project is expected to require in investment is about $3.5 million to buy the birds, bill the barn," said Groenen. "And the location of the barn that we're working on will be on the reserve. That's part of the plan."

It is expected the funding will be a combination of government grants, loans and probably some money from the First Nation itself.

The First Nation was previously involved in the egg business in Hay River, until it sold a chicken barn in 2004.

"We didn't really want to let the opportunity go, so council was very strongly in favour of trying to put this project back on the table, and that's what we're doing," said Groenen.

Chief Roy Fabian said the First Nation had an original allocation of 26,262 chickens when the territorial government established a quota for the NWT years ago.

"They couldn't handle the smell"

Fabian said the band bought a chicken barn in Hay River in 2004 and sold it in 2006.

The chief said one of his concerns about the potential new venture is that when the First Nation previously owned a barn it wanted its people to work there but they didn't.

"They didn't want to work there because they couldn't handle the smell in the chicken barn," he said.

Many residents of Hay River also objected to the smell of the barn in the industrial area.

Fabian also recalled problems with management.

Still, he supports the possible new venture into egg production, noting there are no other economic opportunities for the First Nation right now.

Fabian said it would be a good money-maker for the band, even if band members didn't want to work there.

"It's an economic opportunity," he said. "That's the way I look at."

Fabian said the First Nation would also look for an investment partner, which would be responsible for managing the operation.

Band members expressed varying opinions about getting back into the egg business.

April Martel described the whole egg barn business as "iffy," and said there is already an egg-producing operation in Hay River.

"So why are we competing with the people in town?" she asked.

Martel also said that, since band members don't want to work at such a facility, it might be better to focus on things like education.

However, Fabian said there will be other jobs created by the project, such as for truck drivers.

Sharon Pekok said every opportunity needs to be examined.

"If we lose this quota, we may never get it back because somebody else will take it over," she said.

Groenen said the allocation of 26,292 chickens would come out of the existing chicken barn in Delancey Estates because the total quota for the NWT is 100,000 chickens and right now that is all being used at the Hay River barn.

The CEO said the business plan also incorporates a piece of equipment that takes chicken manure and dries it into pellets so it can be sold as fertilizer.

"And they don't smell anymore because they're dry," he said.

Groenen also said a possible site for a new barn would be far away from residences on the Hay River Reserve and in Hay River, and prevailing winds away blow away from those areas.

The CEO said that, once financing is in place by January 2017, the First Nation will have until January 2019 to get the business into operation.

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