Cereals Canada has officially announced its broad vision for a new $100 million facility to be built in downtown Winnipeg that would be branded as the Global Agriculture Technology Exchange (Gate.)
The national cereal grain value chain organization sees the facility serving as a hub for Canada’s grain industry, promoting the use of Canadian crops around the world.
“We are coming to an end of our lease as of 2027, and the current facility (in the Canadian Grain Commission building) just does not meet our current needs and future needs,” explains Cereals Canada CEO Dean Dias, in the interview below. “The vision of Gate came about to be a space where we can put our best foot forward, thinking about what we can do now and into the future to continue to build global demand for Canadian cereals.”
While a press release issued on Thursday did not include many details, the seven-figure preliminary cost estimate was confirmed. The $100 million price tag includes purchasing land in downtown Winnipeg and constructing a facility that meets engineering requirements to house milling equipment, says Dias. (continues below)
Watch/listen to Cereals Canada CEO Dean Dias discuss plans for the Global Agriculture Technology Exchange in downtown Winnipeg (recorded June 27, 2024):
As for the location, there have been multiple reports the preferred site is a tract east of the Fairmont Hotel in downtown Winnipeg owned by the Richardson family, whose grain company is a prominent Cereals Canada member. “That (lot) has been one of the options. There are other options as well at the table,” says Dias. “We are currently looking at what we need as a vision for Cereals Canada.”
An in-person launch event that was to take place on Thursday was postponed. Instead Cereals Canada formally announced the project via a press release.
A capital campaign will be launched in the coming months, says Dias, targeting contributions from farm groups, industry associations, agribusinesses, and individuals, as well as support from three levels of government — the City of Winnipeg, the Manitoba government, and the federal government.
In the meantime, the cereal value chain organization is facing some internal challenges among its membership, as several grain companies, including Cargill and North West Terminal, have signaled they intend to withdraw from the organization, which requires two-years notice under Cereals Canada’s bylaws.
While he says Cereals Canada does not comment on membership renewals, Dias says the withdrawal notices could mean companies are simply reassessing their participation.
“The two-year notice doesn’t mean that they will ultimately leave. It could also mean that they are just starting the review process. They provided a notice, and that in two years, they could ultimately decide to stay,” he says.
Despite the membership uncertainty, both Dias and new board chair Brett Halstead, who also represents the Saskatchewan Wheat Development Commission, say the entire Cereals board is in favour of the plan for Gate.
“The board of directors strongly supports Cereals Canada, including the vision for Gate,” says Halstead, in the news release.
“We have farmer members, we have exporters and grain handlers, we have life science companies, and processers. And everybody who’s at the board table is supportive of the Gate vision,” echoes Dias, in the interview.
The Wheat Growers Association, which is not a member of Cereals Canada, has publicly voiced opposition to the use of farmers’ money to fund the new facility.
The board of directors for Cereals Canada met in Winnipeg this week, coinciding with the group’s annual general meeting on Thursday.
Editor’s note: This article was updated as of 2pm MDT, June 27, 2024 to include quotes from and interview with Cereals Canada CEO Dean Dias.
Previous coverage:
Cereals Canada facing membership upheaval
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