Wallaceburg elevator affected: Ontario Grain leaving province’s grain market

Wallaceburg elevator affected Ontario Grain leaving provinces grain market

Sollio Agriculture, the majority shareholder in the Ontario Grain partnership, says the company will wind down Ontario Grain operations, which include six operating elevators in the province. They include elevators in Wallaceburg, Florence, Staples and St. Thomas.

“During the wind down process, Ontario Grain intends to honor existing contracts and to fulfill its obligations to farm customers, employees and business partners for an orderly transition,” the company said in a news release. “It plans to continue serving customers during the 2022 harvest season, at a reduced capacity. Ontario Grain will initiate a sale process of its assets with prospective buyers.”

Based in Quebec, Sollio Agriculture acquired the assets in 2018.

The company said financial challenges in the grain sector have made the continuation of Ontario Grain unsustainable.

“The extraordinary events of the past two years causing global economic disruption led to unexpected, significant business challenges and a volatile commodity market,” said Sollio CEO Casper Kaastra. “Ontario Grain made this difficult but necessary decision after an exhaustive analysis of all available options.”

The company said that, before the pandemic, Sollio achieved 10 consecutive years of growth.

Earlier this year, Sollio announced it was entering a “phase of consolidating its acquisitions and optimizing its assets.”

Sollio Agriculture is the agri-business division of Sollio Cooperative Group, which, Kasstra noted, is marking its 100th anniversary this year.

“We’re proud of our history and the support we’ve been able to provide for farmers, our members and clients, and the communities where we operate,” he said. “To continue that vitally important function for another hundred years, we must take actions to address the ever-changing challenges we face in the agriculture industry.”

The company said customers with questions or who require support are encouraged to contact their Ontario Grain representative.

pso1