Manitoba is losing its only organic elevator.
The Canadian Organic Commodity Marketing Co. in Arden, Man., is winding down operations due to a lack of capital.
“The production is out there, the markets are out there, our phone rings off the wall. We just didn’t have the financial resources to move it forward,” said elevator manager Tracey Winthrop-Meyers.
The former Agricore United facility is about 80 years old and in need of some upgrades.
When 12 organic producers and supporters purchased the plant in 2001, the idea was to bring in some additional cleaning equipment enabling the facility to process off-board grains. But that never happened, said Winthrop-Meyers.
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Instead it was forced to rely on one major U.S. customer that used the facility to clean and ship organic wheat and rye. The firm, who Winthrop-Meyers refused to name, covered the plant’s Canadian Wheat Board licensing fees in exchange for processing services. But that relationship is over.
“That customer is not doing organics any more, or is moving away from that market,” she said.
The final blow was last year’s poor quality crop. The Arden plant, which drew product from Saskatchewan and Manitoba, specialized in processing food grade crops, which have been scarce in the 2004-05 crop year.
Over the years the plant has come close to operating at its 2,800 tonne capacity a couple of times, but of late, volumes are way down.
“This year has been very quiet. We got nowhere near capacity,” she said.
Lack of adequate financing, loss of a major customer and a poor production year have put the facility in a position where it is attempting to stave off bankruptcy or receivership.
“We’re actually looking to sell the facility. We maintain that there’s a lot of potential there but it needs a little more financial backing than we’re able to give it,” said Winthrop-Meyers.
While the plant is still processing for local growers she expects the firm’s CWB licence will be “dissolving” in the near future.
The wind-down of what was once a source of pride for the organic sector provides a sobering jolt for an industry that has been clipping along.
When it was first launched in 2001 there was optimism about the elevator. The Wheat Belt Community Futures Development Corp. said it “may be the region’s ticket to a more vibrant economy,” noting that organics were expected to grow at a rate of 20-30 percent per year in Manitoba.
But for one local organic fruit, herb and vegetable grower, the demise of the Arden plant wasn’t much of a shock.
“They should have started with processing. That was my recommendation,” said Carol Ranson, who is also an organic inspector.
“I know the industry. I know there isn’t enough organic producers to support a grain elevator in the province.”
