A collection of independent crop input dealers that recently changed its name could soon be adopting yet another moniker.
Grow Community of Independents became United Suppliers Canada Inc. Sept. 1 to reflect its new partnership with a large customer-owned wholesaler of crop input products headquartered in Ames, Iowa.
Grow was a network of 17 independent crop input dealers operating 75 retail outlets in Western Canada.
“We’re now part of a much larger ownership group across North America,” said Greg McDonald, general manager of crop protection and seed with United Suppliers Canada.
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United Suppliers comprises 600 agricultural retailers that operate nearly 2,800 retail locations in 22 states and provinces.
McDonald said the Canadian group is focused in the near-term on launching the United Suppliers Canada brand, but he said another name change could be coming because of recent developments with the U.S. parent company.
United Suppliers announced Oct. 8 that it has merged its crop input business with the crop input business of Land O’Lakes, one of the largest co-operatives in the United States.
The two companies will do business as Winfield US in the United States.
Winfield is Land O’Lakes’ brand of crop inputs, which posted sales of US$4.8 billion last year. United Suppliers had sales of $2.6 billion.
“I do believe at some point we will be brought into the Winfield umbrella and brand,” said McDonald.
In the meantime, the company will continue its transition into United Suppliers Canada.
“We’re just now part of something bigger that can fuel our growth and strength,” he said.
United Suppliers already had seven independent dealers operating in Western Canada at the time it joined forces with Grow, bringing the total Canadian presence to 24 dealers operating more than 90 retail outlets.
Those dealers account for 12 to 13 percent of Western Canada’s annual crop input sales.
“We plan on obviously growing our ownership over the next years to come,” said McDonald.
He said the partnership with United Suppliers gives the western Canadian dealers access to an improved line of products and services.
The company has three business units: crop nutrients, crop protection and seed and a business resources unit that offers dealers organizational development and financial services support.
“I do believe we will have the opportunity to look at new and unique products now that we’re part of a North American distribution business,” said McDonald.
He has been in contact with all the major crop input manufacturers with which his Canadian dealers want to work.
“We’re working on direct contracts with those manufacturers,” said McDonald.
“In the U.S., they are doing that already.”
Some contracts have been finalized, while others are in the negotiation phase.
“We made significant progress on bringing on multiple manufacturers for the 2016 business,” he said.
“We believe at some point in the future that we will be able to purchase directly from all the manufacturers that our owners in Canada deem are important.”
McDonald believes Canadian dealers will have even more opportunity to strengthen product lines and services and better compete against multinational retailers following the merger with Land O’Lakes, which has been doing business in the U.S. for 94 years.
“It really just allows for more opportunity when you become a bigger player,” he said.
Contact sean.pratt@producer.com
