Viterra is getting into the commercial and farm fuel market in Manitoba, Saskatchewan and Alberta.
The company will acquire 24 of Imperial Oil’s secondary fuel storage terminals on the Prairies and will deliver bulk Esso fuel to farmers, said Doug Wonnacott, Viterra’s chief operating officer for agri-products.
“It’s a long term supply agreement,” he said.
Viterra will also provide fuel to Imperial Oil commercial customers within these service areas.
“This deal does not take effect until Dec. 1,” Wonnacott said.
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“There will be an integration period that runs from Dec. 1 to Feb. 28 and through that integration period … we are going to start from the east and we are going to move west.”
Notification of service change
He said customers will get a letter providing information when Viterra takes over a site.
The company will hire 100 people to staff the terminals, he added.
“The reason that we are interested in the business … is that it capitalizes on our strong relationship with farmers. We can offer them what we think is a more competitive package with our financing.”
Farmers will be able to use the line of credit usually offered for crop input expenses to buy fuel.
The agreement will expand Viterra’s network of full-service agribusiness outlets in Western Canada.
The company was previously involved only in grain handling and marketing,agri-products and processing.
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