Farmer Owned Grain Elevators?

[TOM4CWB]

I understand AGPRO SWP is in the process of finalising a takeover by Topher, which ADM is the majority shareholder indirectly in.

Publically "in the very near future" (January) is the time frame of this announcment.

I hear ADM is increasing its share to 25%, soon to be 45% in Agricore United.

Does this mean a merger of SWP and Agricore United in the not too distant future?

What impact will this have on oilseed crushing in western Canada?

Does this mean that destruction is being completed of the Co-operative grain marketing structure in western Canada?

[roadrunner]

Who is Topher?

[TOM4CWB]

roadrunner;

Alfred C. Toepfer International is I believe a German based trading company who is, according to my sources 50% owned by ADM and 50% Intrade. Further I am told Intrade is owned 60% by ADM.

I understand SWP has a marketing alliance with Toepfer now.

[roadrunner]

Hello Tom,

If ADM is involved would the Canadian Gov't allow that type of takeover as it would create somewhat of a monopoly in the grain industry?

[Steve]

ADM is a worldwide company and does some grain trading but is basically in food processing. So they are partners in grain handling systems to insure a good supply of grain to their mills and plants and this is not really a bad thing for producers of grain and oil seeds. They don’t have the controlling share in a lot of these companies.

[TOM4CWB]

Roadrunner,

We could hope that ADM would not have controling interest, but, if ADM invests hundreds of millions in western Canada, and bail our failing co-operatives, is it fair to expect any less?

Steve, I really hope you are right, because fear alone is one of our worst enemies, and fear of failure many times creates failure itself.

I believe it is good for grain producers to know what is happening, even if we can only do a little by maintaining our own share in these co's ourselves to help prevent monopolies from taking over...

I am sure Agpro and UGG would rather have farmer share holders, but hard times and fear from poor past performance makes these scary investments...???

[charliep]

Interesting. ADM does not seem like a good marriage to me with other suitors like Conagra more likely candidates based on needs/philosophy. How would one of the companies get around the fact that SWP "B" (the only ones that I know that trade) are non voting/have no management say?

Any rumors in the ag community about Cargill/their involvement in the western Canadian ag. industry.

[TOM4CWB]

Charlie,

Agpro/SWP deny any takeover is close, and suggest the announcment is "only good news" and not an anouncment of any takeover.

It must be tuff being a worker at Agpro/SWP to sell Ag inputs or buy grain, however in Sask maybe it is different than AB on its stability???

I see they announced the sale the Western Producer last week, this will change the "politics" of the Western Producer very likely!!!

[cowman]

Well TOM I hope it dosn't change the way the Western Producer airs its "politics"! I remember, as a boy, my fatheer opening the WP and saying "AH, lets see what the commies have to say?!! But seriously, it is an excellent paper and gives you all kinds of information and I hope they keep right on publishing the way they do now! Theres nothing wrong with getting another "slant" on what is happening in Agriculture.

[wedino]

Tom4, ..It must be tuff being a worker at Agpro/SWP to sell Ag inputs or buy grain, however in Sask maybe it is different than AB on its stability???


From the sask side - it seems to me that SWP is finally trying to compete - I find myself delivering to them, I must say its been a long time since I could. I don't think I ever said never, at least not that I can remenber.

Cheers........wedino