Wheat Board signs agreement with Cargill for grain handling services

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The Canadian Wheat Board has negotiated an agreement for grain handling services with Cargill, the first agreement with a prairie grain handler to assist the CWB with delivery access and port handling services.

"We are very pleased that Cargill, with whom we've partnered very successfully in the past, has become the first player in the Canadian grain industry to find innovative ways for us to work together," CWB president and CEO Ian White said during a March 1 announcement. "We can now move ahead to provide farmers with an exciting package of programs they can use with confidence in this new era."

Cargill's collaboration gives farmers who market through the CWB access to their 30 facilities across Western Canada, White noted, along with critical port access at Vancouver, Thunder Bay and Baie Comeau.

"We are excited about this opportunity," admitted Cargill Ltd. President Len Penner. "It allows us to present the most complete offering of wheat marketing tools to western Canadian growers. The CWB has a proven track record of managing a western Canadian wheat pool. It is only logical that farmers continue to have access to CWB pools, if that's what fits for them."

In a press release, Cargill officials stated that entering into this agreement with the CWB will better assist Western Canadian growers in moving forward with their grain marketing decisions. By offering diverse pricing options, including Cargill and CWB alternatives, farmers can fit grain marketing and risk management products to their individual requirements.

“Every grower’s needs are unique, which is why Cargill offers a broad range of grain marketing and risk management solutions,” stated Peter Rowe, vice president, Merchandising and Transportation, Cargill Limited. “The addition of the CWB’s marketing programs, including the CWB pool, expand those options even further”.

Cargill began contracting wheat for delivery after August 1, 2012 as of December 21, 2011. The company will continue to contract wheat, durum and barley for its own account as well as CWB grains according to customer preferences.

White added that CWB pools and cash contracts, including futures-based programs, as well as malting barley production contracts, will be available for farmers to sign up during March.

"We are also seeking agreements with all Prairie grain handlers to maximize farmers' delivery options," White said, noting farmers could expect other agreements to be finalized shortly. "We plan to be farmers' best marketing partner, giving them the assurance they want and the returns they need for their business."

Organizations: Cargill Limited, Canadian Wheat Board

Geographic location: Western Canada

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