Farmers do better with Mat-Su meat plant in private hands

Privatization of the former state-owned Mt. McKinley Meat and Sausage slaughterhouse in Palmer last year is proving successful and is leading to rapid growth in the state’s small barley-growing and cattle ranching industries. Barley farmers in the Delta area planted 5,500 acres and harvested 239,000 bushels last year, the best production in a decade, according to newly-released U.S. Dept. of Agriculture statistics. The number of beef cattle being raised also increased by 700 animals to 5,400, USDA said. Farmers said the growth is a direct result the Mt. McKinley Meat plant being purchased by a Eagle River businessman experienced in the meat business, which has made the money-losing plant pro table. Mt. McKinley is the only USDA–certified slaughterhouse in Southcentral Alaska. Ranchers need the USDA certi cation to be able to sell their beef retail. Mt. McKinley needs more animals to meet market demand and actually imported two truckloads of cattle in 2017.

Agriculture supporters say the small industry could grow fast if even a small part of the $2 billion a year in Alaska food purchases sourced in the Lower 48 could be met by growers in the state. Farmers now sell about $12 million in locally-produced food products in the state.

HOLLAND AMERICA TO INVEST IN SKAGWAY: Holland America Group has proposed a 15-year lease with $20 million in new investment for facility improvements in Skagway to the Skagway Borough. The company’s cruise businesses, Princess Cruises, Holland America Lines and Seabourne Cruises, bring 50 percent of the annual cruise passengers to Skagway. The municipal government also signed an agreement recently with White Pass & Yukon, the lessee of extensive shoreside property in Skagway, to work on a remediation plan for contaminated soils and for an extension of the lease.

The City of Ketchikan is considering an expansion of its port facility to accommodate larger cruise ships. Two new floating dock would be installed under the plan.

SOUTHEAST SMALL CRUISES EXPAND TO PETERSBURG: Southeast Alaska’s regional small- cruise boat operations are diversifying as the cruise market grows. UnCruise Adventures, which operates seven smaller luxury-class cruise vessels in Alaska, will “home port” a 22-passenger luxury vessel in Petersburg, relocating it from Sitka. The company told Petersburg business leaders that the vessel’s local economic impact will work out to be $1,857 in total local spending per guest including vessel support, crew and passenger spending, or $613,000 for the summer season. Petersburg also just enacted a $5 per-passenger marine visitor tax.

RAVN ALASKA STARTS SERVICE TO BRISTOL BAY: Ravn Alaska began twice-daily air service to Anchorage from Dillingham and King Salmon, giving PenAir competition in the region. Ravn has also extended service to Homer another ve years with a lease extension for facilities at Homer’s airport. The carrier will pay the city of Homer $114,044 per year, or $9,501 per month, for the lease.

Homer Medical Center is adding 5,548 square feet to facilities in an expansion of primary care. New patient examination rooms, lab facilities and other improvements are included.

ALASKA STEEL FABRICATORS FEEL EFFECT OF TRUMP TARIFFS: Steel fabricators in the state are not enthused about President Trump’s 25 percent tariff in imported steel and 10 percent tariff on imported aluminum. One Fairbanks fabricator, Universal Welding and Fabricating, says local steel prices have already jumped 10 cents a pound. Universal employs 35 to 175 in its shop, with work done mainly on government contracts. One concern is the effect of the higher steel costs on new Eielson Air Force Base construction. Some Eielson contracts are already let or bid.

PREMERA BLUE CROSS WILL INVEST $50 MILLION: Premera Blue Cross Blue Shield said it will invest $50 million over the next ve years to support health insurance markets in Alaska following reductions of federal taxes in a revised tax code passed by Congress in December. Some of the money will be used for refunds to customers in the individual health insurance market, where Premera is the sole insurer in Alaska. Other funds will be spent to boost rural telemedicine and tele-psychiatry and on behavior health programs for addition and childhood trauma. The federal tax refund is a one-time event, Premera said.

CONSUMERS TO GET SOME BENEFIT OF TAX BREAK TO PRIVATE UTILITIES: Private utilities in Alaska, which include Enstar Natural Gas in Anchorage and Alaska Light & Power in Juneau will enjoy a tax break under the new tax code passed by Congress, and some of this will be passed on to consumers. The utilities are still working out the details. The Regulatory Commission of Alaska has opened a docket at the state Attorney General’s request to receive comments on the changes.

CHUGACH ELECTRIC LAUNCHES A CAMPAIGN TO SELL ML&P PURCHASE: Chugach Electric Assoc. launched a $245,000 advertising campaign to sell its proposed acquisition of Anchorage’s city-owned Municipal Light & Power. Voters are being asked to approve the sale in Anchorage’s April municipal elections. Both the city and Chugach have been conducting public forums on the deal but there is still widespread confusion among voters because of its complexities. There is side support for the idea that the Anchorage bowl area doesn’t need two electric utilities, but there are also concerns about lack of transparency over the way the sale was negotiated.

ALASKA LNG APPROVAL BY FERC NOT UNTIL 2020: The U.S. Federal Energy Regulatory Commission issued its long-awaited schedule for an Environmental Impact Statement for the big Alaska LNG Project. FERC set a Dec. 9, 1919 deadline for the document and a March 8, 2020 deadline for nal approval. This is 18 months later than was requested for the project by the state of Alaska.