The failure of the Maritimes' only federally inspected beef plant could prompt a chain of events leading to serious problems for expansion of organic farming.

Dean Baglole says the loss of the beef plant would mean the end for many cattle farmers. (CBC)

Atlantic Beef Products, in Albany, P.E.I., is losing hundreds of thousands of dollars a month and the P.E.I. government has said it can only continue to fund it for a few more months. It is looking for a private investor to purchase it.

Dean Baglole, chair of the Atlantic Beef Products board, said the closure of the plant would be devastating for the Island's beef industry.

"It's the final blow for an awful lot of producers," said Baglole.

"We'll lose them completely and when it goes, that infrastructure goes. The hogs are gone basically now. What are we going to have left for agriculture on P.E.I. and in the Maritimes?"

For many people, the future of agriculture is organic, the fastest growing segment of the food business. But the collapse of the hog industry delivered the final blow with the closing of the hog plant last year, and the threat to the beef industry could leave organic farming short of a crucial component — manure.

Mark Bernard is one of P.E.I.'s largest organic farmers, growing 120 hectares of grains and soybean. Bernard said livestock is central to any successful organic farming industry.

"It's a valuable input and managed properly, can yield really nice crops," he said.

Liberal agriculture critic and Malpeque MP Wayne Easter is also paying attention. He said if the plant is allowed to go, it will lead to serious problems for mixed farming in the province.