The CWB is history.
The former Canadian Wheat Board has a new majority owner, a new name and a new corporate logo.
The CWB brand, which has been part of the prairie landscape since the early 1900s, will gradually be replaced over a few months.
G3 Global Grain Group announced July 31 that it has completed its investment in the former wheat board and has renamed the company G3 Canada.
The new grain company will be based in Winnipeg and will consist of former CWB assets as well as grain handling assets, previously owned by Bunge Canada.
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The new company will not include Bunge Canada’s canola crush assets, which will continue to operate as Bunge Canada.
Karl Gerrand, chief executive officer of G3 Global Grain Group, said CWB’s tri-coloured logo will be removed gradually over the coming months and replaced by G3 Canada’s new logo.
“You’ll see the changes fairly quickly on Bunge Canada’s grain assets because Bunge needs to have a good distinction between Bunge Canada, which includes the canola crush assets, and G3 Canada’s grain assets,” Gerrand said.
“But with CWB, we’re going to take a few months here. It will probably take us three months or so to do a complete rebrand, but we’re going to be very thoughtful about the transition and take it on a more measured basis.”
G3 Canada will be 50.1 percent owned by G3 Global Grain Group, a joint venture between Bunge and the Saudi Agriculture and Livestock Investment Company (SALIC).
The remaining 49.9 percent will be owned by western Canadian farmers who take advantage of a farmer equity offer, which has been in place for the past two years.
Farmers acquired a $5 equity stake in the former CWB for every tonne of grain delivered to CWB.
That farmer equity will be carried forward to the new entity.
G3 Canada Ltd. will keep the farmer equity offer in place and will also retain commercial grain handling agreements that were established by CWB, at least for the time being.
It means farmers will have the option of delivering against G3 Canada contracts by hauling grain to facilities owned by competing grain companies.
Completion of the G3-CWB deal July 30 clears the way for G3 Canada to expand its grain handling footprint across the Prairies.
Gerrand said the new company is continuing to assess the feasibility of building a new export facility at the Port of Vancouver.
It is also considering a new transfer terminal in Hamilton, Ont., which will collect Ontario grain and transfer it to another G3 facility in Trois Rivieres, Que.
The company also has plans to expand its prairie origination capabilities with new inland terminals in Saskatchewan and Alberta, Gerrand said. “Over the next four or five years, we’ve got a tremendous amount of growth opportunity and lots of projects that we’re looking at.”
Gerrand acknowledged that some producers are emotionally attached to the CWB brand and legacy.
He encouraged them to contribute to the growth of a new company that includes a significant component of farmer ownership.
“This is a great opportunity, in my view, to start something new,” he said.
G3 was chosen earlier this year as the preferred investment partner by CWB officials, who were given the task of commercializing the former wheat board and overseeing its transition from a government regulated grain trading enterprise to a fully commercial company.
“CWB is pleased to complete the initiative to commercialize,” said CWB president Ian White.
