DynAgra, CHS Inc. alliance | The deal will allow DynAgra to expand its product line and access new markets
An American company that bills itself as the largest farmer-owned co-operative in the United States has taken another step into the western Canadian marketplace.
CHS Inc. announced last week that it has reached a partnership agreement with DynAgra Corp., an independent farm retailer based at Beiseker, Alta.
Officials from CHS and DynAgra were unavailable to provide details but both companies confirmed that DynAgra will become the first Canadian company to join CHS’s North American network of farm service and ag retail centres.
CHS owns or has affiliations with roughly 70 farm service centres in 15 American states.
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Those centres offer agricultural inputs, farm supplies, energy products, risk management products and farm business solutions to roughly 50,000 farmers and ranchers.
The centres also source nearly 600 million bushels of grain annually and supply about two million tonnes of crop nutrients each year.
The alliance with CHS will allow DynAgra to offer new products to its farm customers and access new markets, the Alberta retailer said in a news release.
“In our research to take DynAgra … to the next level, we decided that a global company was needed to propel our customers into international markets,” stated DynAgra president and chief executive officer Bruce Schmaltz.
“After substantial analysis, we decided CHS has what it takes to open up world markets for our customers while bringing a competitive presence to the retail crop input market.”
DynAgra will operate under a new name, CHS DynAgra, but customers can expect a smooth transition, including continuity of staffing at all DynAgra locations, the company said.
DynAgra has ag retail outlets in Beiseker, Carseland, Standard and Rolling Hills, Alta.
For CHS Inc., the move into Alberta is the latest step aimed at increasing the company’s presence in Western Canada.
CHS already has significant grain handling assets in northern U.S. states. Its trade is focused heavily on spring wheat and durum, crops traditionally marketed in Canada by the CWB.
The company opened a grain trading office in Winnipeg in late 2011.
Rick Dusek, vice-president of grain marketing for CHS, recently told The Western Producer that his company plans to investigate opportunities in Western Canada’s recently deregulated grain market.
“We have customers that are asking us to supply (wheat and durum) not only out of the U.S. but out of the entire North American market, including Canada, with these changes to the wheat board,” Dusek said.
“We see this as an opportunity to go in, build some relationships … and develop a supply chain out of Canada to complement our other supply chains out of the U.S. and even in some instances, out of the Black Sea and South America as well.”
John McEnroe, executive vice-president of CHS Inc., called the agreement with DynAgra a good match for both companies.
“Part of our commitment to helping our farmer-owners grow their businesses included expanding our reach geographically, and Canada provides the opportunities to do just that,” he said.
The deal between DynAgra and CHS is expected to be finalized in late September.
