Terra Grains

[agstar77]

Doesn't the adminstration wish to have us dicuss SWP 400 thousand tonne sale to terra grains?

[charliep]

I think just a technical glich. You might have to re-type your original message on this thread.

[agstar77]

Thanks. for a minute I thought Chuck was on to me. Where are they going to source that kind of tonnage and are they contracting and at what price? Does the collapse of their takeover bid mean they won't be able to source enough feed wheat?

[kamichel]

There never was a deal for SWP to supply wheat to Terragrain.

[kamichel]

400 thousand tons is one years supply of wheat to terragrain. Terragrains policy is to deal direct with farmers, no middle man, no ellevation charges and no handling charges.
http://www.terragrainfuels.com/graininfo/Terra%20Grains%20Grow%20With%20Us%20Brochure%20Jan %2024.pdf

[wedino]

I thought Terra Grain Fuels was contracting directly with farmers, but here's the announcement. Could it be that Universal Energy Group Ltd. is partially owned by SWP?

REGINA, SASKATCHEWAN--(CCNMatthews - Feb. 21, 2007) - Saskatchewan Wheat Pool Inc. (TSX:SWP - News; "Pool") confirmed it has signed a two-year supply agreement with Terra Grain Fuels Inc. ("TGF)", North America's largest wheat-based ethanol facility currently under construction at Belle Plaine, Saskatchewan.

The Regina-based ethanol company, which recently merged with Universal Energy Group Ltd., will require approximately 400,000 tonnes of feed quality wheat per year.

"This is a great opportunity for the Pool and for the bottom line of our producer customers interested in growing ethanol-friendly wheat varieties. We will be working with TGF to procure grain and provide logistical support for their supply requirements. We will also continue to look at additional ventures as the renewable fuels industry continues to flourish in Western Canada," said President and CEO Mayo Schmidt.

TGF's plant will produce 150 million litres of ethanol annually and approximately 164,000 tonnes of dried distillers' grains each year. Ethanol is a clean-burning, renewable fuel made from agricultural commodities such as wheat and corn. Distillers' grain is a co-product of wheat and corn-based ethanol used as animal feed. The plant is due for completion in late 2007.

Saskatchewan Wheat Pool Inc. is a publicly traded agribusiness headquartered in Regina, Saskatchewan. Anchored by a Prairie-wide grain handling and agri-products marketing network, the Pool channels Prairie production to end-use markets in North America and around the world. These operations are complemented by value-added businesses and strategic alliances, which allow the Pool to leverage its pivotal position between Prairie farmers and destination customers. The Pool's common shares are listed on the Toronto Stock Exchange under the symbol SWP.

Forward Looking Information

[kamichel]

Was just a meeting this morning about contracting with Terragrain and was informed that this statement by SWP is untrue and that Terragrain is seeking a public statement by SWP on this matter.

[JACKFLASH]

Anything over 100 kms.,is just not cost effective if you are trucking into a ethanol plant.For the price I hear they are offering.
That's where you bring in the SWP. They have more access to grain, and do better in truck co-ordination.

[kamichel]

Grain if often trucked 600 km into Lethbridge. I believe you are correct
they need to put more onto the table, we have up to a 50 cent per bushel haul here.
They claim that with back hauls that price can come down. I counter that with truckers are increasingly needing these back hauls in order to make money. So no decrease in my transportation. My suggestion is that Terragrain must contract with the truckers and pay the extra trucking from further distances and work with large trucking companies to get better rates as backhauls.
In other words give farmers FOB farm prices.