CHS Canada, a unit of CHS Inc., Inver Grove Heights, Minn., and UFA Co-operative Ltd., Calgary, Alba., have announced they will form a new 50-50 joint venture, to be named Bridgeland, which is designed to serve ag producers in the Peace Country area of Alberta. They identify the area as Alberta’s number two crop-producing region and the province’s largest producer of canola.
The partners say the jv will serve UFA members and customers with a comprehensive offering of crop inputs (seed, crop chemical, and access to dry and NH3 fertilizer), agronomic expertise, and a consulting/advisory model delivered locally. The jv will be governed by a board consisting of two leaders from UFA and two from CHS.
The jv already has a new fertilizer facility under construction south of Sexsmith in the RedTail Business Park. This high-speed blending facility will provide UFA members and customers in the Peace Country area with local access to a range of dry fertilizer products. This project is expected to be completed in early 2016.
Observers see the facility as a new fertilizer hub for northern Alberta, which will better assure product availability. A grain elevator is also on site, with a UFA source quoted as saying this will allow farmers to drop off their grain and pick up fertilizer.
“The new venture brings new capabilities to both organizations and will position us more competitively in the marketplace,” said Carol Kitchen, UFA CEO. “Ultimately, this will help farmers in the Peace Country grow and prosper … This regional partnership will allow us to support agricultural investment and enhance the services we provide here.”
"CHS is always looking for partnerships that will enhance our efforts to help farmers grow their operations," said Lynden Johnson, executive vice president, CHS Country Operations. “This new venture blends the best of both organizations to strengthen what our local experts with global connections can deliver for producers in Peace Country.”
CHS has been growing its presence in Canada over the past few years. CHS CEO Carl Casale was recently quoted as saying CHS would take a look at grain handling assets of commodities trader Glencore should they become available at the right price. Swiss-based Glencore, which has been seeking to reduce debt, has indicated it might be willing to sell a minority stake in its agriculture business, which includes Viterra assets in Canada it purchased in 2012.
Founded in 1909, UFA has more than 120,000 member-owners. UFA’s network comprises more than 110 bulk fuel and Cardlock Petroleum locations and 35 Farm & Ranch Supply stores. Independent Petroleum Agents and more than 1,200 UFA employees provide products, services, and agricultural solutions to farmers, ranchers, members, and commercial customers in Alberta, British Columbia, and Saskatchewan. UFA also owns and operates Wholesale Sports Outdoor Outfitters. With 13 locations and more than 600 employees, Wholesale Sports is the largest multi-channel retailer in Western Canada dedicated to the outdoor industry.