Saskatchewan Wheat Pool’s elevator consolidation plans have made headlines since the September announcement, and other grain companies have undertaken similar programs across the Prairies:
United Grain Growers
In 1995, UGG announced a write-down similar to that of Sask Pool’s. The company said it would close nearly 100 elevators over the next three years, putting about 100 people out of work. The 1998 annual report shows the company has 145 elevators, compared to 224 in 1994.
“I know that we have probably led the industry in the rate of closures,” president Ted Allen said last week. “That’s partly a result of our facilities being in pretty poor shape.”
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UGG sells some facilities for use as storage.
Agricore
The new co-operative, which was formed by Alberta and Manitoba wheat pools, expects to close facilities within the next 18 months as new high-throughput elevators are built. The company operates at 153 locations in Alberta, 116 in Manitoba, two in British Columbia, one in Saskatchewan and one in Montana.
Chief executive officer Gordon Cummings has said Agricore will operate at about 100 Alberta locations by mid-2000. Closures in Manitoba will also occur, but the number is unknown.
Pioneer Grain
Pioneer does not announce long-term plans for elevator closures. Assistant vice-president of corporate affairs Kent Magarrell said the company doesn’t have such a plan. Even if it did, the plan wouldn’t necessarily be released because the company is not publicly traded, he said.
The Canadian Grain Commission issues primary elevator licences. CGC statistics show Pioneer licences have dropped from 219 to 129 in the last 10 years. However, several elevators can operate under one licence.
Magarrell said the company won’t sell facilities to competitors but it has sold to farmers who use the elevators for storage and cleaning. Pioneer also donated the Wood Mountain, Sask., elevator to a heritage group when the rail line was taken out.
Cargill
Cargill elevator licences have dropped from 120 to 66 since 1987-88.
