Minneapolis, MN — Ceres Global Ag Corp. announced on Monday, Nov. 30, that its wholly owned subsidiary, Riverland Ag Corp. has entered into an agreement with Farmer's Co-op Grain and Seed Association, an agricultural cooperative based in Thief River Falls, MN, to form a grain merchandising joint venture to be based in Thief River Falls.
FCGS will contribute its existing grain elevator and related grain merchandising assets in Thief River Falls to the Joint Venture, with Riverland contributing cash.
The transaction is expected to close in January 2021. Following closing, the joint venture will expand to enable loading unit trains. The facility will be serviced by Canadian Pacific (CP) and FCGS will continue to operate its non-grain merchandising businesses independent of the operation of the joint venture.
"The formation of this joint venture marks a meaningful step in our broader strategy to increase core product origination directly from growers, including the area in particular" said Robert Day, Ceres president and chief executive officer. "We look forward to partnering with the hundreds of growers who make up FCGS and working closely with the CP to efficiently market growers' products and create value for our downstream customers."
"Adding storage and rail loading capabilities to our elevator in is a critical step FCGS must take in order to maintain its market competitiveness, both for today and into the future" said Darwin Klamar, FCGS board president. "With Riverland's expertise in managing railroad programs and providing destination market access, FCGS will be well positioned to serve the needs of its growers and patrons for decades to come."
"CP looks forward to servicing this high-throughput facility, which will meet our 8,500-foot High Efficiency Product standards," said Joan Hardy, CP Vice-President Sales and Marketing, Grain and Fertilizers. "We commend Riverland Ag and Farmer's Co-op Grain and Seed Association on moving this project forward, enhancing the grain handling capacity in this region."
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Through its network of commodity logistics centers and team of industry experts, Ceres merchandizes high-quality North American agricultural commodities and value-added products and provides reliable supply chain logistics services to agricultural, energy and industrial customers worldwide.
Ceres is headquartered in Minneapolis, MN and together with its wholly owned affiliates, operates 13 locations across Saskatchewan, Manitoba, Ontario, and Minnesota. These facilities have an aggregate grain and oilseed storage capacity of approximately 31 million bushels.
Ceres also has a 50% interest in Savage Riverport, LLC, a joint venture with Consolidated Grain and Barge Co., a 50% interest in Gateway Energy Terminal, an unincorporated joint venture with Steel Reef Infrastructure Corp., a 25% interest in Stewart Southern Railway Inc., a short-line railway located in southeast Saskatchewan with a range of 130 kilometers, and a 17% interest in Canterra Seed Holdings Ltd, a Canada-based seed development company.
About Farmer's Co-op Grain and Seed Association (farmerscooptrf.com)
Established in 1940, FCGS provides a broad range of agricultural products and services to producers, customers and patrons, including grain merchandising and storage, agronomy services, seed products and trucking services.
FCGS' patron base consists of over 400 growers across a 3-county area.