There was a big, concrete shadow from the West looming over discussion about the future of grain handling on the Prairies at Manitoba Pool Elevators’ annual meeting.
As huge transnational companies pour foundations for inland terminals in the province, and traditional Canadian competitors build their strategies, only one name came up again and again during three days of discussion.
Agpro Grain, owned by Saskatchewan Wheat Pool, has been luring Manitoba farmers away from their co-operative with attractive incentives, bases and trucking premiums.
And even in the rosy light of a year with record earnings, Manitoba Pool delegates are viewing Agpro’s planned aggressive building program in southwest Manitoba with some consternation.
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Delegates asked how companies jointly owned by the pools will deal with their owners competing with each other, rather than co-operating on provincial turfs.
Richard Lemoing, who farms near Basswood, will soon be able to buy Westco fertilizer from his local Manitoba Pool service centre, a new Agpro outlet near Brandon, or from the local co-op dealer.
“You’re going to be supplying competitors at the same time with personnel,” said Lemoing to Douglas Cooper, head of Westco.
“Have you worked out how you are going to accommodate all of this?”
Cooper said Westco is reorganizing so staff are dedicated to customers, rather than a province, to make sure retail information is kept confidential
“But I can see that’s going to cause some frictions and some problems locally at some of the markets,” he said.
“We as the wholesale supplier can’t really do much about that, other than make sure everybody’s treated fairly and consistently.”
Marvin Schauf, vice-president of Saskatchewan Wheat Pool, faced questions at the meeting about his company’s intentions.
“I hesitate to bring up a feud between sister pools, but right in my own back yard almost is the potential of a new Agpro terminal, which is not going over well by faithful pool members,” said Glen Franklin, who farms near Deloraine.
“I guess we’d be keenly interested in why such a facility, and why it would be placed where it is, and what might be your reasoning?” Franklin asked Schauf.
Sask Pool needs to work in all three provinces to gain freight advantages and market arbitrage, Schauf replied.
“I think that what you and Alberta attempted to do with United Grain Growers was full recognition of the same issue,” said Schauf.
“It’s difficult to be able to give people the best deals that they need if you’re locked into one province.”
Schauf said he would welcome eventual amalgamation of the three prairie pools.
“I guess I want to see it happen: I think that that’s really where our future lies,” he told delegates.
