New Generation Elk Products Co-Operative Gets $25,000 Grant

Source: Saskatchewan Agriculture and Food

Norelkco, the North American Natural Health Products Co-operative Ltd., is getting some business plan and market development activities support in the form of a $25,000 grant from the Province of Saskatchewan.

The announcement was made recently by Saskatchewan Agriculture and Food Minister Mark Wartman at Norelkco's first annual general meeting in Saskatoon.

"We are grateful for the operational help this grant will provide," says David Altrogge, Marketing Manager for Norelkco Neutraceuticals. "It is always hard to generate that first revenue stream for a new company."

Norelkco Neutraceuticals was incorporated as a new generation co-operative in December to market human and pet health care products containing elk velvet antler and a variety of other natural ingredients. The majority of Norelkco's members are also members of the Saskatchewan Elk Breeders Association.

Norelkco is targeting a number of different markets, but its primary division is the VetPro Naturals line, which produces seven products that are sold exclusively to veterinary clinics across Canada.

What pleases Altrogge the most about the new company is that it is a homegrown solution to the challenges facing the elk industry.

“I like it when producers get together and form a company that doesn't just sell raw materials, but is also involved in producing, processing, distributing and marketing the product," he says. "Retailing is where the profits are made, and with the new generation co-op, we hope that all revenue from all the different stages will be returned to the producers. That is what is so exciting about our VetPro line.”

Saskatchewan elk producers had built a lucrative industry supplying velvet antler to the Asian traditional medicine market, but this came to an end in December 2000, when the Republic of Korea banned imports of all North American velvet antler after the discovery of Chronic Wasting Disease (CWD) in the North American farmed elk herd. Since then, the price of antler velvet has dropped from $45 per pound in 2000 to $8 per pound in 2005. Elk farms in Saskatchewan now follow a mandatory CWD surveillance program and have done extensive testing, but the Asian markets have not yet returned. Norelkco's goal is to develop new North American markets, first in pet care and then in human health supplements.

“Our product line is very unique in the sense that we had a veterinary consultant formulate our product line," says Altrogge. "All our products contain elk velvet but they also contain a variety of natural ingredients to remedy specific pet ailments. Our star product is VetPro Naturals Joint Plus, and we have high hopes for its sales potential. In addition to the velvet antler, it contains collagen 2, nettle leaf and horsetail, all of which are known to help in joint regeneration for arthritic dogs. It will be available only at veterinary clinics across Canada.”

Altroggi now plans to focus on developing the brand name and the company's image.

“We will be providing the clinics with lots of valuable information about our products. We want to convey the idea that we are a reliable company that can supply the product at a good price, and provide lots of support for vets who have questions.”

For more information, contact:

David Altrogge, Marketing Manager
Norelkco Nutraceuticals
Innovation Place
102 - 116 Research Drive
Saskatoon, Sask.
(306) 384-1888
www.norelkco.com