Plans for an organic grain marketing co-operative in Manitoba have been delayed, but organizers still hope to begin buying and processing grain this fall.
Brad Meyers, interim chair of the co-operative, said he is waiting for the Manitoba Securities Commission to approve the prospectus.
Once approved, the co-op can begin selling shares in the venture, which will be based at a former Agricore elevator in Arden, Man.
The new generation co-operative will be devoted to buying and processing organic grain for Canadian and export markets. The elevator will store, clean and bag grain. It will also be equipped to mill flour.
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The co-op was hoping to have 300 members by Sept. 1. The chances of meeting that goal have waned because of the delays in getting the prospectus approved.
“We need some investment dollars to get this thing going,” said Meyers. “It all hinges on the commission.”
He said producer interest remains keen. Private companies have also inquired about buying organic product from the co-op.
Meyers remained confident.
“We’re not disheartened at all. It’s just taking a little longer than we expected.”
Producers who invest will get first option to deliver to the elevator. The elevator will be able to bag smaller, retail quantities of grain as well as commercial volumes for export.
The plan is to tear down one of two annexes at the elevator and add a new building that will house grain cleaning and bagging equipment as well as a grist mill. Screenings will be made into poultry and livestock feed. Meyers said construction of the new building may now be delayed until next year.
Development of the elevator into an organic grain marketer is expected to cost about $650,000.
For producers, the venture would alleviate the time spent marketing organic grain on their own. It could also add further value to their crops.
“Everyone I’ve talked to can’t wait for it to get going,” said Kaye Wolstenholme, a grower from Rivers, Man. “The sooner, the better.”
The venture may compete with existing organic processors and marketers in Western Canada. However, the head of one of those rival companies is enthusiastic about the entry of another player.
“I think it’s a great idea, and I think it will help serve the local farmers well,” said Neil Strayer, president of Growers International Organic Sales Inc.
“Whether we do it or someone else does it, I’m all for it.”
Strayer said organic crops have moved beyond a cottage industry. Canada has become a leader as a producer and exporter. The main challenge to newcomers is building markets, said Strayer.
“It’s probably the single most daunting challenge for any business, but particularly in the international grain sphere.”
Retail demand for organic food continues to climb, according to Donna Youngdal, organic marketing manager for the Canadian Wheat Board.
“At this point, demand exceeds supply in international markets, so the premiums are still high.”
She said Canada could face competition from China, the United States, Australia and Eastern Europe. She regards the venture at Arden as a good initiative, provided its proponents go slowly, and build the business by not only securing markets but securing a reliable supply of organic grain from producers.
“We do need more marketers involved. An organic elevator at Arden is good news.”
There were 200 certified organic growers in Manitoba last year.
