Saskatchewan Wheat Pool’s move into Alberta is drawing cheers from some farmers.
Others predict the pool’s new grain marketing centres are going to have a tough time in some locations where the market is already saturated.
“They’re welcome to come and try it but I can’t see them lasting,” said Harry Magee, who runs a grain farm near Stettler, Alta.
With Alberta Wheat Pool, United Grain Growers and some independent grain buyers in the area, the market in Trochu is taken, he said. The central Alberta town is one of 16 sites across the Prairies that will soon be home to Sask Pool’s new marketing centres.
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A UGG delegate, Magee has been hauling to the grain company’s Trochu elevator for 20 years.
Many farmers in the area were relieved the bid by Manitoba and Alberta pools to take over UGG fell through, he said.
“It looked like they wanted to reduce the competition by one less buyer and I’m all for competition.
“It never hurts to have one more, but it’s like having too many restaurants in one town … they can’t all make it.”
Magee said it would take at least a five percent price incentive for him to switch from UGG.
Ken Knievel, who runs a mixed cattle/grain farm northeast of Trochu, said Sask Pool’s expansion is great news for farmers.
“It might sharpen everyone up a bit and make the competition keener.”
Also a UGG delegate, Knievel said he’ll do some careful shopping to get the best price in town.
“I suppose I should be more loyal than I am but I’m not.
“Nowadays you’ve got to go where you make the dollar and that’s getting harder and harder because our input costs are so much more than they were 20 years ago.”
The new marketing centre will mean economic spinoffs for the community and hopefully provide jobs to keep young people in town, Knievel said.
