Just Be Happy About the AGT Plant Build

This week Alliance Grain Traders (AGT) announced that they are building a durum processing plant in Regina.  This is a great story for Western Canadian growers as it creates jobs, moves more grain processing into Canada and allows for future growth of the industry.

Of course the Canadian Wheat Board rhetoric had to hijack the announcements.  Both sides of the issue made sure that they go their two bits in on why this was happening.  I have a hard time believing that this plant is going to be built just because the single desk is being terminated.  The Canadian Wheat Board Alliance claims that the plant announcement was a political stunt for a phantom plant.  Both sides are not really telling the truth and are falling victim to the usual political blah blah blah.

Instead of making this a two sided political hijacking, lets just be happy and feel fortunate that there are companies willing to make investments in processing.  This is a good story for Western Canadian durum growers no matter what your opinions are of the single desk, nothing more and nothing less.

 

Shaun Haney

Shaun grew up on a family seed farm in Southern Alberta. Haney Farms produces, conditions and retails wheat, barley, canola and corn seed. Shaun Haney is the founder of RealAgriculture.com. @shaunhaney

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2 Comments

John De Pape

By saying that this has nothing to do with the single desk is ignoring some fundamental facts. AGT even stated that without the removal of the single desk this project would not be going ahead. Are you saying that that was just so much more political rhetoric? Just follow the money – close to $500 million has been invested in canola crushing in the last decade or so. Pulse processing is also flourishing. Wheat milling? Not so much. How about malting? I personally know of three large investments that looked at Western Canada as a location option and all three chose the US because of the single desk. The Malting Industry of Canada (MIAC) has informed both the federal government and the CWB that as long as the single desk is operating, it’s members are unanimous in their position that they will not invest any capital in malting.

This is not political. This is business. When looking at investing large sums of money, where are you going to locate? Where you have full autonomy and can work closely and harmoniously with multiple suppliers, or where you must source from one seller, with poor price signals, poor response to your business needs and where experience tells you the relationship with the supplier is adversarial?

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dale heenan

congrats AGT!!! this is the investment we need!!! i have waited for this since 73. yes the first big durum spread between canada and u s.!!!

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