The government of Canada has approved a deal between the Canadian Wheat Board (CWB) and G3 Global Grain Group which ensures CWB becomes a fully private and global competitor in the Canadian grain sector. With this deal, the government has fully delivered on its commitment to marketing freedom by increasing marketing choice for Western Canadian grain farmers, Canada Agriculture Minister Gerry Ritz announced.
"Our commitment to marketing freedom and increasing marketing choice has always been about giving farmers the right to sell their own grain to a buyer of their choice,” Ritz said. “The removal of the CWB monopoly attracted numerous investors wanting to expand Canada’s grain capacity and supply chain. This investment deal offers Canadian farmers access to a new global player to compete for their grain and more delivery points for farmers to sell their grain."
The deal will see the investor, a new Canadian company headquartered in Winnipeg, invest $250 million in CWB, with plans to develop a coast-to-coast grain processing and shipping network across Canada. Once fully realized, the growth associated with this deal is expected to increase Canada’s grain export capacity and add hundreds of jobs and hundreds of millions of dollars of economic growth.
"This deal will enable the CWB to continue to expand its network. CWB's investments to date translate into hundreds of millions of dollars in new investment and hundreds of jobs across Canada. It also establishes a major new player in the Canadian grain industry well into the future, and we look forward to furthering our relationships with farmers across Canada," said Ian White, president and CEO, CWB.
The stronger CWB will offer farmers the opportunity to build significant equity in a growing grain company by delivering their grain. Canadian farmers have the opportunity to financially participate in CWB through the continuation of the Farmer Equity Plan.
This deal will benefit Canada through increased competition in the Canadian grain market and significant Canadian ownership through the farmers trust.
Marketing freedom and the commercialization of CWB is part of the government’s broader modernization of Canada’s grain sector supporting the creation of jobs and economic growth for farmers and Canadians. It includes an aggressive trade and market access agenda, grain transportation and supply chain improvements and investments in science and research.