WINNIPEG – Competition to handle Manitoba’s shrinking pile of grain will only increase.
So management at Manitoba Pool Elevators says it’s important to close inefficient elevators soon and make investments in crucial competitive areas.
The company announced last week it will build high output elevators in Letellier, Binscarth and Gilbert Plains, all to be in operation by early 1998.
The Letellier elevator will have a 16,000 tonne capacity. Officials said its position close to the border will give the company access to the Burlington Northern railway and large processors in the United States.
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At the company’s annual meeting two weeks ago, president Charlie Swanson told delegates the pool must have the right mix of elevators in the country because huge companies like Archer Daniels Midland and ConAgra are expanding in Canada.
Chief executive officer Greg Arason said Manitoba Pool also has to try to compete with AgPro Grain. Delegates said AgPro’s Winnipeg terminals have been undercutting other grain companies lately.
“Plainly speaking, a local country elevator without (blending and high output) capability has a difficult time,” Arason said.
Looking for best offer
Operations manager Dennis Hunter told delegates farmers will haul grain to where they get the best deal and Manitoba Pool has to be able to compete.
He noted AgPro isn’t paying the same premiums for grain in Saskatchewan.
“I don’t know what they’re doing,” he said, speculating the company might be incurring losses to get its foot in Manitoba’s door.
Arason told delegates bigger elevators make the company more efficient and allow it to take advantage of freight incentives.
