The new company plans to build a fertilizer distribution plant near Sexsmith, Alta., with storage for 5,350 tonnes
CHS Inc. is expanding its presence north of the border.
The American grain handler, energy company and farm input retailer’s Canadian subsidiary, CHS Canada, announced Oct. 14 that it has signed a letter of intent to enter a joint venture partnership with Alberta’s UFA.
The joint venture, which will operate under the name Bridgeland, will serve farmers in Alberta’s Peace River region, selling a variety of crop inputs including seed products, farm chemicals and fertilizer as well as agronomic services.
Bridgeland will operate independent of the UFA’s co-operative structure and will be governed by a board comprising two directors from UFA and two from CHS.
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Bridgeland’s first facility will be a fertilizer plant located south of Sexsmith, Alta. UFA and CHS Canada will hold an equal 50 percent ownership stake in the high-speed blending and storage facility.
A second facility at Eaglesham, Alta., that is already owned by CHS Canada will also be included in the joint venture and rebranded under the Bridgeland name, said CHS regional vice-president Tim Miller.
Miller declined to comment on future Bridgeland investments in the Peace River region.
At Sexsmith, the new fertilizer facility will have storage capacity of 5,350 tonnes and a rapid-load out system capable of loading a 45 tonne Super B in 10 minutes.
Nick Harsulla, manager of corporate communications with UFA, said CHS is expected to supply raw materials for the Sexsmith facility.
“That’s one of the major benefits of this joint venture is that CHS is going to be our key supplier of the product,” he said.
Construction of the fertilizer plant has already begun and completion is expected sometime next year, hopefully in time for spring seeding, he added.
Carol Kitchen, chief executive officer of UFA, said the venture brings new capabilities to both organizations and will position UFA more competitively in the marketplace.
“This regional partnership will allow us to support agricultural investment and enhance the services we provide here,” she said in a news release.
UFA is an Alberta-based agricultural co-operative with more than 120,000 member-owners. It operates more than 110 bulk fuel and card lock petroleum locations, 35 farm and ranch supply stores and a support office in Calgary
CHS Canada is part of CHS Inc., a global agribusiness owned by farmers, ranchers and co-operatives across the United States.
CHS Canada has been increasing its presence on the Prairies over the past few years and now has operations in more than a dozen locations, primarily in Alberta.
The company recently opened a Canadian grain trading office in Winnipeg, hoping to capitalize on new opportunities in Western Canada’s recently deregulated trade in wheat, durum and malting barley.
