CALGARY – Towering concrete elevators are changing the prairie landscape.
In the last three years, United Grain Growers has built seven high capacity concrete elevators at a cost of about $20 million. They plan to build 25 to 30 more in the next five years.
A resolution asking the company to stop building the super elevators was defeated by delegates at the UGG annual meeting in Calgary Nov. 8-9.
Some delegates questioned whether the new elevators are profitable and wondered how they compared to traditional facilities.
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The concrete structures are able to handle substantially more grain than traditional elevators, which vary in size depending upon age and location.
UGG chief executive officer Brian Hayward said the large elevators are making money and farmers can expect to see more.
Recently, the company poured the concrete for two large facilities at Grassy Lake, Alta. and Kindersley, Sask. Each can handle 15,000 tonnes of grain with an additional 10,000 tonnes of condominium storage space.
“We have a plan. It’s not etched in granite. It’s carved in sandstone,” said Hayward.
In addition to plans for more centralized, high capacity facilities, UGG has marked some older, less profitable elevators for closure. Last year, the company closed 29 smaller, older elevators.
“As our plans currently stand, we’re looking at something in the order of 100 to 125 plants,” he said. The company now operates 224 country elevators.
Most delegates supported the high throughput elevator concept.
“What we need are more of these facilities, not less,” said Lawrence Kluthe of Morinville, Alta.
“We’ve finally adapted the system to what we’re going to be in 10 years in the future,” he said. Ceasing construction would be a 10-year setback, he added.
Must be competitive
Falher, Alta. delegate Albert Turcotte said the company must build the large elevators to hold its share of the market. At Falher, the Alberta Wheat Pool is building a high capacity elevator which could drive UGG out of his community.
“We have three old UGG elevators working at top capacity. They will not be able to compete with the pool and if UGG doesn’t get on the ball soon and build, we will lose our market share quickly,” he said.
