If Alberta Wheat Pool officials had a crystal ball, they wouldn’t rely on its predictions.
The Canadian grain industry is changing at an unprecedented rate and the co-operative’s executive refuses to guess what the future holds or who they may count as allies.
In plain-talking speeches at the pool’s annual meeting, president Alex Graham and chief executive officer Gordon Cummings said the organization is actively seeking partnerships and alliances to help it remain viable.
“We’re going to have a very different future. Our challenge as a co-operative is to look at that and say ‘how do we function effectively,’ “said Cummings.
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Powerful competition
Dramatic changes anticipated may include a world without the Canadian Wheat Board against mighty competition from international grain giants like ConAgra, Archer Daniels Midland and Cargill.
“Probably we’ll see the emergence of two to four major players in the grain industry in North America. This will greatly impact Alberta Pool,” said Cummings.
Neither Graham or Cummings offered a prediction as to who the pool’s future allies might be.
“We all know we are dealing in an environment of uncertainty so we have to be opportunistic,” Cummings later told reporters.
As for a prairie pool merger, Graham said the pools work together in some areas but there is growing competition among them. How far they will go as allies depends on farmer members, said Graham.
Farmers must decide the style of co-operative structure they want since Saskatchewan Wheat Pool is not a traditional co-operative any more, he said.
Further, farmers are questioning pool officials about the potential of investing too heavily in Western Canada when the Alberta and Saskatchewan pools go head-to-head for business in the same communities, building newer and bigger concrete facilities.
“You can overbuild that way just as easily as we did the old wooden elevators,” said Graham.
