Federal agriculture minister Gerry Ritz has announced approval of a deal which will make the Canadian Wheat Board a fully private entity.
The deal is between the Canadian Wheat Board and G3 Global Grain Group. The latter is a Canadian company headquartered in Winnipeg, Man. that, according to a ministry news release, will be investing $250 million in CWB. There are also further plans to develop a coast-to-coast grain processing and shipping network.
"Our commitment to marketing freedom and increasing marketing choice has always been about giving farmers the right to sell their own grain to a buyer of their choice,” said Ritz, MP for Battlefords-Lloydminster, in a statement.
“The removal of the CWB monopoly attracted numerous investors wanting to expand Canada’s grain capacity and supply chain. This investment deal offers Canadian farmers access to a new global player to compete for their grain and more delivery points for farmers to sell their grain. The result of these new investments and jobs will provide a huge economic benefit to the grain sector and Canada’s overall economy."
According to the government, the expectation is the growth from this deal will increase Canada’s grain export capacity and create hundreds of jobs.
"This deal will enable the CWB to continue to expand its network,” said Ian White, president and CEO of the Canadian Wheat Board. “CWB's investments to date translate into hundreds of millions of dollars in new investment and hundreds of jobs across Canada. It also establishes a major new player in the Canadian grain industry well into the future, and we look forward to furthering our relationships with farmers across Canada."
“Our vision is to establish a highly efficient coast to coast Canadian grain enterprise that provides stronger market access solutions for growers and delivers value to our stakeholders and the Canadian agriculture industry as a whole,” said Karl Gerrand, CEO of G3. “We welcome the CWB team and farmer equity owners, and look forward to working together to build a new and dynamic company."
