The Saskatchewan Entrepreneurial Fund has invested another $1 million in a Mossbank organic processing plant.
RW Organics received $1 million in August 2006 – the first ever investment by the fund – to help finance expansion plans. The company now plans to expand again.
Owner Ron Wells said he is negotiating to acquire more elevators in another location but can’t announce a completed deal yet.
The Gravelbourg facility that the company bought last year is now operating and should be certified this month, he said. The company has also bought elevators in Kincaid.
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The new funding, in the form of a loan, will help provide additional working capital as the company stores more grain. Wells said high grain prices mean the company “is really needing more capital to roll (the grain) over.”
RW, which is certified through Pro-Cert Organic Systems, shipped more than one million bushels in 2006 and had plans to double that with its earlier acquisitions.
The company handles mostly oats and wheat but also field peas, flax seed and rye. It blends grain from several producers and ships by rail to its customers.
RW serves mainly the North American market, but growing demand is expanding that to include Europe.
Wells said he recently spent about six weeks travelling to Chicago, Las Vegas, Utah and Germany to market organic products.
