RYCROFT, Alta. – When Alberta Wheat Pool decided to build its large concrete elevator in Rycroft, it never expected two more grain companies to follow suit.
“We believed if we were there first we’d get at most only one more,” said Alex Graham, pool president and director from the area.
“It’s going to be a dog fight,” said Graham, referring to the competition Alberta Pool expects from Cargill and United Grain Growers elevators in the same village.
The pool’s 32,000 tonne capacity Dunvegan elevator just opened. It is the largest of its kind in Western Canada and Rycroft was the logical site, said Graham.
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“Where else? It’s just the logical point.”
Rycroft is at the intersection of Highway 2 and 49. It’s on the main railroad going south through Grande Prairie, Jasper and out to the West Coast.
It’s west of the Burnt and Smoky rivers with long, difficult hauls up the hills. And it’s south of the Peace River.
Location was also key for Cargill to build its 19,000 tonne capacity concrete elevator.
“The Peace River is an important location for us,” said Patti Miller, communication manager for Cargill in Winnipeg.
“If someone else chooses to build there, there’s more competition for farmers in the area.”
The concrete has just been poured and the Cargill elevator should open in early 1999.
Across the tracks from the pool elevator, construction has begun on UGG’s 16,000 tonne capacity elevator scheduled for completion in April 1999.
Wayne Tyner, UGG’s regional manager for northern Alberta, also said Rycroft was the logical choice because of its good highway location, since most grain will move by truck in the future.
“There’s a bunch of branch lines that aren’t going to be there two years from now.”
Unlike some people, Tyner doesn’t feel the grain companies are overbuilding elevator space.
UGG’s elevator in Keg River in the far north closed May 28 and when its large Rycroft elevator opens, it will close elevators in Eaglesham, Wanham, Spirit River and Hines Creek.
Along with the former Fairview elevator, UGG had more than 25,000 tonnes of elevator space, almost 10,000 bushels more than the new Rycroft elevator.
Tyner said more expensive freight rates north of the Peace River will force grain to come to Rycroft. It costs farmers $29.51/tonne to ship grain to Vancouver from Rycroft. A half an hour north at Fairview, on the north side of the Peace River, farmers pay $34.78/tonne to ship to Vancouver.
“I expect no more than one or two elevators north of the Peace River,” he said.
If three elevators aren’t enough there is a possibility of a fourth. Pioneer Grain doesn’t want to be shut out of the area, said Kent Magarrell, vice-president of corporate affairs.
“We have no site picked out and no definite plans, but who knows,” said Magarrell of Winnipeg.
“We do have plans for the Peace,” he said and Rycroft would be the logical choice. “If we did build there we would think there was room for one more.”
An official with Louis Dreyfus in Winnipeg rejected Rycroft as a future location.
Rycroft mayor Pat Sydoruk is excited with the flurry of development surrounding the village. Between 50 and 100 jobs are expected to be generated from the new elevators in the village.
Already there’s a mini-housing boom. The village office gets about 10 inquiries each day from people wanting to build new motels, laundromats, apartment buildings, gas stations and convenience stores.
“It’s going to help the economy.”
