GrainCorp Canada announces the creation of a new, fully integrated export supply chain for Canadian grain and oilseed growers.
GrainsConnect Canada Operations Inc. is incorporated in British Columbia and will operate now grain elevators across Alberta and Saskatchewan.
Construction is expected to commence in 2016, with sites progressively opened over 2017-18. The construction and other activities of the joint venture are subject to the satisfactory completion of due diligence of the potential sites, as well as obtaining other customary regulatory and planning approvals.
The operation represents a significant new investment in Canadian grain infrastructure and is an equal partnership joint venture between two of the worldâ€™s leading agribusinesses: GrainCorp Limited, Australiaâ€™s largest agribusiness and Zen-Noh Grain Corporation, a subsidiary of major Japanese agricultural cooperative Zen-Noh (National Federation of Agricultural Cooperative Associations).
The owners will leverage their respective global networks and customer demand to ship Canadian grain to the world.
Warren Stow, GrainCorpâ€™s North American Trading Director said:
â€œToday is an exciting day for Canadian grain growers. We know they want access to global markets and exposure to the best prices. We are confident we will be able to deliver choice and competition across the supply chain. We will provide a fully integrated supply chain delivering efficiency, reliability and more markets to Canadian growers.
â€œWe will proudly be investing in local communities in Alberta and Saskatchewan. Our investment will generate construction jobs in those communities over the next few years and new permanent jobs and economic activity once complete.â€
The joint venture will build on GrainCorpâ€™s Canadian footprint, which includes the Canada Malting Company, a grain trading operation based in Calgary and additional operations at Strathmore and Bashaw. It will leverage Zen-Noh Groupâ€™s significant experience and customer relationships in exporting agricultural commodities from North America to Japan and other Asian destinations.
GrainCorp Marketingâ€™s existing Canadian office will support the joint venture to manage the origination process with Canadian grain and oilseed growers.
Discussions have commenced in relation to rail and port access for the joint venture.