WINNIPEG – Manitoba’s production of whites, navies, reds, blacks, pintos, kidneys and cranberries amounts to a lot more than a hill of beans.
And growers are happy another major Ontario processor has noticed.
Hensall District Co-operative, owned by about 4,500 Ontario farmers, recently announced it will buy dry edible beans in Manitoba through Linear Agra, a grain company in Carman, Man.
“If you’re a seller, it’s always good to have more buyers,” said Ken Tjaden, spokesperson for the Manitoba Pulse Growers Association.
“This could be fairly significant, because Linear is a fairly well-known company.”
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Analyst Brian Clancey, who watches world bean markets for STAT Publishing, said the company’s decision shows farmers are growing good quality beans, and there’s increasing confidence in the industry in the province.
“And for the grower, it means more competition from companies trying to buy his or her beans, which generally results in a better market, and over time it will usually result in higher prices to the grower,” Clancey explained.
Tjaden said there are about five buyers in the province already. Some growers also sell beans to plants in North Dakota, or make arrangements with other major Ontario companies.
The co-operative is based in Hensall, Ont., about 60 kilometres north of London.
Its operations include bean processing, fertilizer, fuel, lumber, grain handling and retail operations generating sales of about $120 million.
Bean marketing manager Gordon Pryde said it has been in the bean business for more than 50 years.
Last year, the company handled over 22,500 tonnes of edible beans and edible soybeans. A recent $5 million expansion and upgrade should enable the company to double production in the near future, Pryde said.
Increase purchase
This year, the company hopes to buy at least 2,500 tonnes from Manitoba, or about seven percent of the Manitoba crop. Pryde said he’d like to buy twice that amount in coming years.
Linear Agra is the company’s agent in the province.
Ross McKnight, president of Linear Agra, said the two companies plan to be aggressive.
For example, he said Hensall will offer free storage until June 30, 1997 with guaranteed competitive pricing until then, saving growers insurance and storage costs while allowing them to take advantage of rising markets.
When the deal was announced in late August, the company was offering $30 per 100 lb. bag on-farm.
