“P&H has been a great equity partner and a strong supporter of seed genetics in Canada, and we thank them for their many contributions to Alliance and the industry,” said Shane Paterson, director of trading and transportation at Paterson in a news release.

Winnipeg-based Alliance Seed began in 2009 as a joint venture between Paterson Grain (a division of Paterson GlobalFoods), Parrish and Heimbecker, Weyburn Inland Terminal of Weyburn, Sask.; North West Terminal (NWT) of Unity, Sask.; Prairie West Terminal of Plenty, Sask.; and Great Sandhills Terminal at Leader, Sask.

With the recent sale, North West Terminal and Paterson are the two remaining shareholders.

“The joint venture, established in 2009, has proven to be mutually beneficial, creating synergies
that have contributed to the success of all shareholders. P&H looks forward to continuing on as a
channel partner with Alliance.” said Anthony Kulbacki, president of P&H’s grain division.

Alliance operations will not change as a result of this transaction, the news release said.

—Geralyn Wichers is associate digital editor of AGCanada.com. She writes from southeastern Manitoba.

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“All of the members of the Western Grain Elevator Association are doing everything in their power to keep the grain supply chain functioning” during the COVID-19 coronavirus pandemic, Wade Sobkowich said Tuesday.

“That means we’ll continue to take farmer deliveries, but there will be some differences when the farmer delivers to the country elevators in how he or she interacts with the elevator staff.”

When you arrive at the elevator to deliver grain, you may be asked to stay inside your vehicle if you’re feeling ill or if you’ve been in contact with someone who is sick. Some elevators might ask you to stay inside your vehicle, regardless of how you’re feeling.

Either way, farmers should avoid entering the receiving office, said Sobkowich. Many elevators are operating with a skeleton crew right now and others have put procedures in place to ensure workers maintain the proper distance from each other.

“That keeps employees at safe distances from each other, and it also allows workers to be kept in the wings in case somebody falls ill and they need to be replaced by another worker who is trained and skilled at that particular function,” he said.

Any load receipts, he said, would be brought out to the truck.

“Those types of procedures are being implemented throughout the grain supply chain in order to keep people safe and to keep grain flowing,” said Sobkowich, adding each elevator’s protocols might differ slightly.

“Each company is taking a look at it and trying to implement procedures, but it’s fluid. It’s evolving over time as we learn more and as circumstances change.”

Parrish and Heimbecker, for example, said last week it would be “limiting the amount of customers at our location(s)” and asking farmers making deliveries to remain in their trucks wherever possible. Effective Monday it added a “locked-door policy” for its elevator offices.

The company’s locations are still operating, but grain cheques are now being put in the mail daily and farmers visiting P+H locations are now asked to call ahead to discuss methods to deliver grain, make payments or pick up or drop off seed or inputs.

Cargill’s Prairie grain elevators and ag retail sites are still open, but the offices at those sites are closed to walk-in traffic and farmers are asked to call ahead to co-ordinate deliveries and pickups.

Paterson Grain elevators are also still open but staff are “eliminating all but the most critical face-to-face meetings with customers,” CEO Andrew Paterson said on the company’s website.

Changes in company policy may cause delays when delivering grain, but so far things are going smoothly, Sobkowich said.

“I haven’t heard of any delays yet,” he said. “In the month of March, we’ve been moving a lot of grain trying to recover from the blockades, but that’s not to say there haven’t been delays when it comes to producer deliveries.”

That could change if supply chain workers are forced to stay at home, he added.

“If there is a place where the grain supply chain is going to start to show delays, it’s going to be workers refusing to come to work,” he said.

“The government has been making it known that it wants people to stay at home — but it needs to be clear that the grain supply chain is critical. It’s very important that the language coming out of the provincial governments and the federal government be clear that, if grain is essential, these workers need to work with these new safety protocols that are being implemented.

“We’re operating on the basis that we are essential and that, when the government tells the people to stay at home, they’re not talking about critical people in the supply chain.”

— Jennifer Blair reports for Alberta Farmer from Sylvan Lake. Includes files from Glacier FarmMedia Network staff.

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Calls to 9-1-1 started coming in at 5:48 a.m. Tuesday, according to Jason Gizen, a local volunteer firefighter and pedigreed seed grower.

Gizen lives in the house closest to the elevator and has a seed cleaning plant beside it — but the fire itself wasn’t what initially woke his family.

“My wife could hear a lot of vehicles” and then realized the phone, which had been switched off for the night, was ringing, Gizen said.

A tense day followed for residents. The village, about 140 km northwest of Swift Current, was evacuated as a precaution.

“There were some tanker cars on the (Great Sandhills Railway) rail line right beside the elevator,” Gizen said.

By early afternoon, there was nothing left of the elevator, Gizen said. His video footage shows smouldering wreckage on and around a pile of grain.

The elevator, which had a listed storage capacity of 3,320 tonnes, had held organic grain for the last couple of years, he said.

It’s too early yet to know what sparked the fire, he added.

The evacuation order was lifted by Tuesday afternoon, Gizen said as the fire was under control. “There’s nowhere it can really go right now.”

The fire also marks a loss for the community, he said, noting the site employed two people.

Current and former residents were sad to see their last elevator go. Gizen said it was “kind of a heritage site.”

Paterson’s other elevators in the area include a larger inland grain terminal at Swift Current and a small elevator at Fox Valley, about 50 km south of Prelate.

— Lisa Guenther is a field editor for Grainews and Country Guide at Livelong, Sask. Follow her at @LtoG on Twitter. For more photos and video of the Prelate fire, visit @gizen_jason on Twitter.

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The family-owned Winnipeg-based grain-handling company had hoped to begin construction this fall but meeting Alberta Environment requirements in regards to wetlands is taking longer than expected, said the company’s corporate development officer.

“It is unfortunate, but it does not change our view of the project and we continue to press on,” said Shane Paterson. “We are very bullish about the project. As far as I am concerned everything is proceeding well. I am very confident we will be able to work through these relatively minor challenges.”

Paterson Grain announced in March it wanted to build an ultra-modern 55,000-tonne grain-handling facility that could cost up to $40 million to construct. Shane Paterson and president and CEO Andrew Paterson came to Red Deer County last month to speak with Mayor Jim Wood and other county officials. Along with the environmental challenge, they discussed the intersection at Highway 587 and Range Road 12, a kilometre west of Bowden and where the grain terminal project will be accessed. Wood said Alberta Transportation, which won’t be involved in any cost-sharing agreement, has ordered the upgrade at the intersection. He said Paterson Grain and the county are now in negotiations on how much both sides will contribute to the cost, which is expected to be between $500,000 and $750,000.

“Typically in Red Deer County, development pays for itself because that is where we are at and how we do things, but I believe that intersection had problems in the past and is not the best intersection to start with,” said Wood. “Because we know that intersection is not all Paterson, what would be the appropriate contribution? We are still under negotiations.”

Shane Paterson also said the intersection shouldn’t be a stumbling block.

Wood added that he’s pleased the Paterson project is moving forward, especially since GrainsConnect Canada said in August that its Niobe grain terminal, a kilometre north of Innisfail, has been put on hold.

“There was no talk of this elevator not taking place, or anything like that. It was just normal conversations that just happen during big projects,” said Wood. “It’s very much a go.”

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“It’s more good news when it comes to choice for marketing — not that we ever want to see an overbuild situation — but I’m sure these folks have all done their homework,” said Alberta Barley chair Mike Ammeter.

“They will have an influence on the market, with more delivery options and, hopefully with it, more competition and better prices for farmers.”

On Feb. 16, the county approved a development permit for Grains­Connect Canada, a newcomer in the western Canadian grain scene, to build a 10-tower facility along Highway 2A at Niobe, just outside Innisfail. The facility, expected to cost $30 million to $40 million, will be able to process up to 35,000 tonnes of grain in 10 hours thanks to a 2,652-metre loop rail track that can hold up to 135 cars.

“We feel we already have a good presence with the local community and the growers in that community,” said Warren Stow, president of GrainsConnect Canada, whose company currently owns the two wooden grain elevators at Niobe operating under the Canada Malting Co. banner.

“There is a strong production base. We felt it was a strong location for us.”

News of GrainsConnect’s plan was followed 13 days later by Paterson Grain’s announcement that it’s building an even bigger and faster facility 15 kilometres to the south, just outside Bowden. This $25-million terminal will have storage capacity of more than 55,000 tonnes with a 3,955-metre track loop able to load up to 150 cars in seven hours, with plans to expand if the market warrants it.

• Read more: The future’s so bright, you gotta wear shades

“The last couple of years have been very productive years for agriculture in Canada — we want to be part of that growth and continue our business serving the farmers of Alberta,” said Shane Paterson, corporate development officer for Paterson Grain.

“This is part of our long-term growth plan. We’re looking to grow our footprint in Alberta, and we thought Bowden would be a nice fit. It will add capacity to an area that sometimes has issues with capacity.”

Bowden is currently served by one other elevator, a 1,200-tonne-capacity site operated by grain handler and pulse processor W.A. Grain.

Cost savings

Both terminals are expected to be ready to accept grain next year and will compete against established terminals in Olds, Lacombe, Joffre, or farther east at Equity and Trochu.

They will not only mean more competition, but also shorter hauls for some.

Ammeter has hauled most of his grain 65 kilometres to the Richardson Pioneer terminal in Olds. The run to Niobe is just half that, and he estimates he’ll shave 20 per cent off his annual transportation bill, which can run as high as $40,000.

“It is not insignificant, for sure,” said Ammeter, who farms 2,000 acres just south of Sylvan.

Alberta Wheat board director Trevor Petersen, who farms 1,200 acres just south of Red Deer, figures he’ll shorten his haul from an hour to just 20 minutes.

“It’s become a detriment for guys who have to haul farther,” he said. “It’s either hire it out or expand and buy a tractor-trailer unit so they can haul it themselves.

“Anything that’s close by is always better than further away, in my estimation.”

Paterson Grain and GrainsConnect (a joint venture between Australian-based GrainCorp and Japanese-based Zen-Noh Grain), which is planning on announcing a second Alberta terminal site in early spring, are new players in the central Alberta market.

But Ammeter sees that as a positive development.

Producers will welcome any “aggressive” pricing move by the newcomers to attract area farmers, particularly at a time when crop prices are down and margins tight, he said.

“I would expect once these plants get up and running, they have to attract a lot of business,” said Ammeter. “You can put out some premiums real quick to get the ball rolling and get some guys moving.

“If it meant another 20 cents (per bushel) in my pocket, I would be happy with that (but) that is a really tough call at this point. I am sure we will all hear about how they intend to keep these facilities full.”

Increased competition is “a good thing any time,” added Trevor Petersen.

“It will certainly affect a farmer’s bottom line if there’s more companies vying for their grain,” he said.

Grain movement

But the success of the new terminals is also dependent on the efficiency of railways to move grain to port, noted Alberta Barley vice-chair Jason Lenz, who farms north of Sylvan Lake.

The grain gridlock that followed the record harvest of 2013 hurt a lot of farmers, he said.

“Most producers lost money on not being able to ship their grain when they wanted to,” said Lenz.

The “cutting-edge” loop track technology at the two new terminals could be a game changer, he predicted.

Loop track systems allow terminals to pull a full unit train off the main line without disconnecting any cars.

“It decreases our loading times significantly,” said Shane Paterson, whose company has its own construction arm and began using the technology more than a decade ago.

“We went from facilities where it might take 24 to 48 hours to load a unit train, and with this loop track design and other innovations, we’ve got it down to about eight hours.”

It remains to be seen whether the loop track design will get grain moving faster — most backlogs came from a lack of rail cars, not slow loading — but this will be a “huge boost” to central Alberta grain producers regardless.

“I have talked to a few different grain producers in our area, and they all have smiles on their faces for sure because it just gives us more flexibility and more options to get a good price for our grain,” said Lenz.

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That’s why Paterson Grain is currently building an elevator at Daysland and poised to start construction on another near Innisfail.

“Producers in Alberta are some of the best in the world, and the land in Alberta is very productive,” said Shane Paterson, the company’s corporate development officer.

“There’s a very bright future ahead for Alberta and Canadian agriculture in general.”

And that’s especially so for central Alberta, said Red Deer farmer Trevor Petersen.

“This is God’s country, after all,” he quipped.

The post The future’s so bright, you gotta wear shades appeared first on Alberta Farmer Express.

China’s quarantine authority, AQSIQ, told Ottawa last week it would allow no more than one per cent foreign material — called dockage — in Canadian canola shipments as of April 1.

Some say the move is linked to a disagreement between the countries over potential risk for transmitting the blackleg fungus, while others say China wants to slow imports due to its large rapeseed oil stocks.

The higher standard is expected to be difficult and costly for Canadian exporters to meet.

“Companies that are placed in this hardship will think twice about supplying any of these individuals again if some of these obstacles are proven false,” PGF CEO Andrew Paterson said in an interview Wednesday.

Canadian farmers will ultimately pay for heightened risks shipping to China, Paterson said.

Grain handlers will pay them less to cover the risk of shipments potentially being rejected in China, although such discounting has not yet begun, he said.

“That’s why it’s important that the government of Canada and the regulatory bodies fight hard to make sure that these things are not accepted without a very good argument and fight.”

Paterson GlobalFoods is a private, family-owned company based in Winnipeg.

— Rod Nickel is a Reuters correspondent covering the agriculture and mining sectors from Winnipeg.

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Paterson announced Thursday it plans to build a 55,000-tonne capacity handling site at Daysland, about 40 km southeast of Camrose, to start accepting grain sometime next year.

The new unit train loading facility would be the third site in Alberta for privately-held, family-owned Paterson, which operates mainly in Manitoba and Saskatchewan.

Its other Alberta handling assets include a 57,000-tonne capacity terminal at Dunmore, just east of Medicine Hat, and its 43,000-tonne capacity Long Plain terminal outside Gleichen, about 80 km east of Calgary.

At Daysland, which is on Canadian Pacific Railway (CP) track, Paterson plans to set up a “highly efficient” loop track — a system the company says it was the first in the industry to adopt, starting at the Long Plain facility in 2011.

With the loop track system, Paterson said it “has been able to minimize train loading times, setting a new industry benchmark.”

The Daysland site will also have a dual receiving area for “efficient” truck unloading, which with the rail system is expected to offer “quick turnaround times for off-farm deliveries.”

Other grain handlers already operating in the area include Viterra, at Camrose and Killam; Cargill, at Camrose and Viking; and Providence Grain and Great Northern Grain, with sites at Viking and Killam respectively. — AGCanada.com Network

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