Canada’s largest grain company has increased its stake in the North American pulse crop business.
Viterra has bought Premier Pulses International Inc., a processor of peas, lentils and chickpeas in Minot, North Dakota.
The acquisition was driven by strong demand for pulses in the Middle East and Asia.
“By increasing our footprint in these crops, we are able to better serve this demand while bringing Viterra’s expertise and value to local producers,” said Bob Miller, Viterra’s senior vice-president of grain for North America.
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The purchase is in line with one of the company’s strategic goals for 2011 outlined in the 2010 annual report: expand the origination of grains, oilseeds and pulses.
Viterra chief executive officer Mayo Schmidt may have telegraphed the deal on June 9 during his discussion with reporters and investment analysts about the company’s second quarter results.
“We’re a top supplier of pulses into India and continue to penetrate the pulse market in Western Canada,” said Schmidt. “Western Canada expects to double its 3.5 million tonnes of exports of peas, lentils and chickpeas to India by 2025 and Viterra will play an important role in meeting this demand.”
Premier Pulses operates a processing plant in Minot, where locally purchased pulses are stored, processed, bagged and shipped to customers around the world. It also has a marketing office in Lewiston, Idaho.
“Premier Pulses is an excellent fit for our North American grain operations as it is located in the primary pea and lentil growing regions in the northern U.S.,” said Miller.
“Expanding our operation into Minot presents an exciting opportunity, which aligns with Viterra’s pulse merchandising growth strategy.”
