Winnipeg-based Sollio Agriculture has announced that Ontario Grain LP, a grain partnership in which Sollio holds a majority stake, has decided to exit the grain market and wind down activities in Ontario. The decision will initiate the sale of six operating elevators at Shetland, Staples, Talbotville, Princeton, Becher, and Palmerston.
“The extraordinary events of the past two years causing global economic disruption led to unexpected, significant business challenges and a volatile commodity market,” said Casper Kaastra, CEO of Sollio Agriculture. “Ontario Grain made this difficult but necessary decision after an exhaustive analysis of all available options.”
Sollio, formerly known as La Coop fédérée before a major rebranding in early 2020 (GM Feb. 29, 2020), acquired the Ontario Grain partnership’s assets in 2018 as part of a broader growth strategy. Earlier this year, however, Sollio announced it was entering a phase of consolidating its acquisitions and optimizing its assets.
Sollio said this consolidation process will allow it to focus on its remaining core business activities in crop and livestock production. According to its website, the company’s crop production business is the largest supplier of seeds and fertilizer to farmers in Quebec and eastern Ontario.
Sollio said Ontario Grain intends to honor all existing contracts and to fulfill its obligations to farm customers, employees, and business partners for an orderly transition. It also plans to continue serving clients during the 2022 harvest season, although at a reduced capacity.