The sale of Agricore United’s Westlock, Alta., elevator to a local
producers group will save it from closure, says farmer Dave Felstad.
He is one of more than 100 Westlock area farmers, residents and
businesses who formed the new generation co-operative to buy the
elevator. He declined to say how much they paid, but said it came “for
a reasonable price.”
Westlock Terminals NGC Ltd. raised $1.25 million in less than six weeks
from the local community, including the Town of Westlock.
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“If we didn’t proceed to purchase it, it would have closed,” said
Felstad, the co-op’s interim chair. He said they chose a new generation
co-operative because drought was making it too difficult for producers
alone to come up with sufficient money.
They expect to take control of the elevator Nov. 15.
Sale of the elevator became necessary when Agricore and United Grain
Growers merged, said Tracey Bryksa of Agricore United.
The merger was subject to conditions imposed by the Competition
Tribunal that included the company divesting itself of elevators where
it had more than one in an area.
That included selling elevators in Westlock, Dauphin, Man., the Peace
River and Gaudin areas in Alberta. AU was also told to sell its
interest in a Vancouver terminal. In addition, it traded Louis Dreyfus
for two elevators in the Peace region for one in Regina.
One to two more such elevator sales will be made, said Bryksa.
“With the concentration of elevators in many of these areas, there
certainly was a fear about competition,” she said.
Bryksa said the company will continue to provide elevator services for
Westlock producers at nearby Star and Acheson.
