CWB widens delivery options with Viterra deal

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Published: June 22, 2012

REGINA  — The CWB will soon have nearly all of the primary elevator points available to take delivery of contracted grain, says president Ian White.

White announced a new delivery relationship with Viterra during Canada’s Farm Progress Show in Regina June 21.

The deal means that 120 facilities will now take delivery of CWB grain. The negotiated relationship with Viterra includes port access for board grain.

The board has also reached delivery agreements with Mission Terminal, West Coast Road and Rail, Delmar Commodities, Linear Grain, Agro Source, Cargill and South West Terminal.

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White said the process took longer than many anticipated because of the complexity of the transportation, handling and delivery arrangements.

He said he didn’t feel grain companies were delaying signing the deals until they had completed their own marketing of cereals contracts to producers.

“I can say that all the grain companies have been fairly forthcoming in their negotiations … acting in good faith with us,” he said.

White said the companies are competitors, but as businesses built on handling grain and oilseeds in Western Canada, they need the volumes of grain that the CWB can deliver through its pooling systems and other contracts.

White said farmer confidence in CWB contracts is rising as more grain companies agree to receive wheat and barley from the board.

Gord Flaten of the CWB said farmers are choosing the pooling process for a large portion of their cereals because of the contract terms, such as the act of God clauses, pooling and the ability to convert contracts to cash or elect to take cash payments before a final payment is made.

“Farmers aren’t taking any risks by electing to use (CWB) contracts, and that is appealing,” he said.

White said producers need to act soon if they want to be involved in the pools. He said many of the pooling contracts are starting to fill up, and they are on a first-come basis.

He said initial payments are likely going to be above the typical 65 percent because of strong marketing by the board, government guarantees and the potential backing of other financial parties.

The board anticipates completing agreements with the remaining grain companies in the near future, he added.

Producers can plan to deliver their 2012 harvest at the following points:

Manitoba

Viterra: Agassiz, Beausejour, Binscarth, Boissevain, Fannystelle, Hargrave, Knox, Red River South, Roblin, Rosser, Souris, South Lakes, Tucker, Winnipeg

Cargill: Dauphin, Elm Creek, Elva, Morris, Oakner, Page, Swan River

Mission Terminal: Alexander

Delmar Commodities: Gladstone, Jordan, Somerset, Sperling

Linear Grain: Carman

Saskatchewan

Viterra: Alameda, Assiniboia, Booth Siding, Brada, Canora, Carnduff, Carrot River, Biggar, CMI Siding, Cupar, Davidson, Eyebrow, Fairlight, Foam Lake, Gardiner Dam, Grenfell, Gull Lake, Hodgeville, Humboldt, Ituna, Kamsack, Kelvington, Kindersley, Langenburg, Lloydminster, Luseland, Maple Creek, Melville, Melfort, Milaty, Moose Jaw, Redvers, Regina, Rosetown, Rowatt, Saskatoon, Swift Current, Tisdale, Unity, Valparaiso, Wadena, Waldron, Weyburn, White Star, Wilkie, Yellow Grass, Yorkton

Cargill: Balcarres, Clavet, Congress, Davidson, Kindersley, Moose Jaw, Nicklen Siding, North Battleford, Raymore, Rosetown, Rowatt, Yorkton

West Central Road and Rail (producer cars only): Eston, Dinsmore, Laporte, Beechy, Lucky Lake

Mission Terminal: Neville

South West Terminal: Antelope

Alberta

Viterra: Acheson, Cassils, Crossfield, Falher, Fort Macleod, Grande Prairie, Grimshaw, Hythe, High Level, Indus, Killam, Lacombe, Lavoy, Provost, Redcoat, Sexsmith, Star, Stettler, Trochu, Vermilion, Vulcan.

Cargill: Blackie, Camrose, Carseland, Edmonton, Equity, Lethbridge, McLennan, Rycroft, Vegreville, Vermilion, Viking

British Columbia

Viterra: Dawson Creek, Fort St. John

Agro Source: Dawson Creek

About the author

Michael Raine

Managing Editor, Saskatoon newsroom

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