VITERRA Inc. has a commercial agreement with the Canadian Wheat Board (CWB) to accept deliveries of any grain farmers commit to CWB contracts at all Viterra locations across Western Canada, the company announced on Thursday.
The agreement also includes port handling services.
In March, the CWB announced a similar deal with Cargill Ltd.
At that time, the CWB's chief executive officer, Ian White, said the Cargill agreement is likely the first of others that will be announced soon.
The partnerships are necessary so the rejigged CWB can offer farmers price-pooling options and cash contracts, now that the organization no longer has a monopoly on marketing Prairie wheat and barley. Any registered grain company can now offer contracts to market Prairie grain.
"We are very pleased to forge a new alliance with Viterra that will greatly assist the CWB in marketing farmers' grain through our pool programs," White in a statement. "Access to Viterra facilities means farmers now have a wide range of locations to deliver the grain they contract with CWB."
Fran Malecha, Viterra's chief operating officer for grain, said, "This agreement provides growers with access to the CWB pool programs for wheat, durum, and barley, and to Viterra's comprehensive logistics network across Western Canada."
Richardson International Ltd., the grain-handling division of Winnipeg firm James Richardson & Sons Ltd., is the other large Prairie grain-handling firm and is also expected to establish a similar partnership with the CWB.
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