Ceres to buy Sask. elevator

A Minneapolis-based company that owns the Northgate Grain Terminal near Northgate, Sask., is expanding its footprint on the Canadian Prairies.

Ceres Global Ag Corp., has announced that it has reached a deal to acquire another Saskatchewan grain elevator near Ridgedale, Sask., not far from Nipawin.

The Ridgedale facility, known as Nicklen Siding, is currently owned by Cargill.

Cargill still sources grain through the elevator but local growers who spoke on the condition of anonymity said its throughput capacity is “underutlilized.”

In a July 23 news release, Ceres said the deal to acquire the facility from Cargill is expected to close on Aug. 31, subject to customary conditions.

Under the terms of the agreement, Ceres would assume responsibility for Cargill’s existing grain contracts at the elevator.

Current staff would be retained and grain throughput would be expanded, with a focus on locally produced oats destined for American mills.

Growers in northeastern Saskatchewan are well known for producing high quality milling oats.

“With the acquisition of the Nicklen Siding elevator, we take another meaningful step in our broader strategy to increase core product origination directly from growers in important regions,”said Ceres president and chief executive officer Robert Day.

“The northern Saskatchewan region is critical for Ceres due to the highly efficient grower community, its product mix and competitive access to our terminal assets and customers.”

Ceres Global Ag and its affiliated companies operate 13 grain handling facilities across Saskatchewan, Manitoba, Ontario and Minnesota.

Together, the locations have an aggregate grain and oilseed storage capacity of about 30.8 million bushels.

Ceres also owns a 25 percent interest in Stewart Southern Railway Inc., a short-line railway located in southeastern Saskatchewan, and a 17 percent interest in Canterra Seed Holdings Ltd, a Canadian-based seed development company.

Total storage capacity at the Nicklen Siding facility is 13,100 tonnes, according to Canadian Grain Commission statistics.

 

brian.cross@producer.com

 

 

 

 

 

 

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