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| Industry | Agriculture |
|---|---|
| Founded | 1923 |
| Defunct | 1998 |
| Fate | Merged |
| Successor | Agricore, Agricore United, Viterra |
| Headquarters | Alberta, Canada |
| Products | Grain buying |
The Alberta Wheat Pool was the first of Canada's wheat farmer co-operatives in 1923.
| | |
| Industry | Agriculture |
|---|---|
| Founded | 1923 |
| Defunct | 1998 |
| Fate | Merged |
| Successor | Agricore, Agricore United, Viterra |
| Headquarters | Alberta, Canada |
| Products | Grain buying |
The Alberta Wheat Pool was the first of Canada's wheat farmer co-operatives in 1923.
In 1923, the United Farmers of Alberta met with then Attorney General John Edward Brownlee to consider setting up a Wheat Pool just in Alberta. On the advice of Aaron Sapiro, a California lawyer they created a non-share, non-profit organization responsible solely for selling wheat for the best advantage. It was set up as a one-man, one-vote organization, with a 5-year contract required to deliver 100% of his commercial wheat to the Pool.
United Grain Growers grain company and the Alberta Pacific Elevator [1] company agreed to accept Pool deliveries in their facilities. Other elevator owners quickly agreed to accept Pool wheat when they realized the pricing power the farmers had created.
The Pool purchased the grain produced by its members at a provisional or initial price. The pool then sold the grain, and if there was a surplus in the account at the end of the year, it was distributed to its members at a pro-rated basis. Everyone who was a member of the Pool received the same price. Initially 26,000 farmers joined the Pool, with hundreds of shipping points.
The Alberta Wheat Pool started making direct sales to flour milling companies and even exported grain directly. Direct sales accounted for over 60% of the total in the first year. They had to use the services of the Winnipeg Grain Exchange, despite objections from the farmers, in order to reduce risk which would in turn satisfy the banks that financed the venture.
After the first year, the Pool began to deduct 2¢ per imperial bushel for purchase/building of Pool-owned elevators. This levy system was to be used often in the Pool's history. Considering that wheat sold at the time for over $1.00 per bushel, this was a low percentage cost. With this income, the Pool accumulated a $200,000 reserve. Shortly thereafter, Saskatchewan and Manitoba created Wheat Pools of their own.
The Pools grew in numbers and political power. In 1928 the combined Alberta, Saskatchewan and Manitoba Wheat Pools were among the biggest business concerns in Canada with a cash turnover of $323 million. The Pool attempted to purchase United Grain Growers Ltd., but the attempt failed. Instead, the Wheat Pool began to build more elevators and terminals. By the late 1960s the Wheat Pool had 567 elevators.
In 1925 wheat prices rose to $2.17 then dropped down to $1.36. Fearing market collusion to lower prices, the Pool began to buy wheat futures – 3 million imperial bushels (110,000 m3) worth. This had the effect of raising prices to $1.69, possibly preventing the feared 'bear raid'. As a result, the Pool was extremely profitable. The Pool did so again in 1929 and again in 1930. The first was profitable, but in 1930 (in part due to the stock market collapse in 1929) there were major losses when wheat prices fell under $0.20. The losses far exceeded the profits in 1925 and in 1929 combined, and government loans were necessary to stay solvent. The loans took 17 years to pay off. In order to obtain the government loans, the Pools had to give up overseas direct sales. This caused anger among members and harsh accusations were delivered.
Nevertheless, the pool continued to grow quickly in members, wheat capacity and popularity. In 1935, a Canadian Grain Board (now the Canadian Wheat Board) was created by the government as an alternative to pooling. The board had the ability to set a minimum price for wheat, which initially was 87.5¢ per bushel.
By 1937, a worldwide poor harvest that had not affected Canada had turned the market around. Prices were well above $1 and the Canadian Wheat Board made a profit for the government. This was short lived when, in 1938, the world harvest was good and prices fell again to 60¢, creating huge losses.
During World War II, the Canadian government gave away tons of food as gifts to allies in desperate need for the war effort. Many regions in Europe could not produce food, driving up demand. Price controls helped keep the price down, but it slowly rose from 56¢ in 1940 to $1.55 in 1945.
The government issued a guarantee that wheat prices would remain above $1.00 a bushel until 1950. This was understood as part of several considerations given to the farmers in exchange for the low prices forced on them during a period when demand would normally have raised the price significantly.
Alberta Wheat pool continued to thrive and established itself as a world grain trader, supplier of crop input supplies and began to diversify. As production of grain increased and competition decreased the number of competitors, Alberta Wheat Pool elevators came to dominate the rural Alberta landscape.
In 1998 Alberta Wheat Pool and Manitoba Pool Elevators merged to form Agricore Cooperative Limited. In 2001, United Grain Growers combined its business operations with Agricore Cooperative Ltd. and carried on business as Agricore United, a publicly traded company, no longer a farmer-owned cooperative. In 2007, Agricore United was taken over by the Saskatchewan Wheat Pool, another publicly traded company. The merged corporation was renamed Viterra.
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John Edward Brownlee, was the fifth Premier of Alberta, Canada, serving from 1925 until 1934. Born in Port Ryerse, Ontario, he studied history and political science at the University of Toronto's Victoria College before moving west to Calgary to become a lawyer. His clients included the United Farmers of Alberta (UFA); through his connection with that lobby group, he was involved in founding the United Grain Growers (UGG).
A grain elevator is an agrarian facility complex designed to stockpile or store grain. In grain trade, the term "grain elevator" also describes a tower containing a bucket elevator or a pneumatic conveyor, which scoops up grain from a lower level and deposits it in a silo or other storage facility.
The Canadian Wheat Board was a marketing board for wheat and barley in Western Canada. Established by the Parliament of Canada on 5 July 1935, its operation was governed by the Canadian Wheat Board Act as a mandatory producer marketing system for wheat and barley in Alberta, Saskatchewan, Manitoba, and a small part of British Columbia. It was illegal for any farmer in areas under the CWB's jurisdiction to sell their wheat and barley through any other channel than the CWB. Although often called a monopoly, it was actually a monopsony since it was the only buyer of wheat and barley. It was a marketing agency acting on behalf of Western Canadian farmers, passing all profits from its operation back to farmers. Its market power over wheat and barley marketing was referred to as the "Single Desk".
Agricore United was a farmer-directed agribusiness in Canada. It supplied crop nutrition and crop protection products, and offered grain handling and marketing services. It was created on November 1, 2001 by the merger of Agricore and United Grain Growers. It was headquartered in Winnipeg, Manitoba. Its shares were publicly traded on the Toronto Stock Exchange (TSX) under the symbol "AU" until June 15, 2007, when it was taken over by the Saskatchewan Wheat Pool. Agri-business giant Archer Daniels Midland (ADM) had a 28% stake in the company at the time of the takeover.
An agricultural cooperative, also known as a farmers' co-op, is a cooperative in which farmers pool their resources in certain areas of activity.
The Saskatchewan Wheat Pool was a grain handling, agri-food processing and marketing company based in Regina, Saskatchewan. The Pool created a network of marketing alliances in North America and internationally which made it the largest agricultural grain handling operation in the province of Saskatchewan. Before becoming Viterra, SWP had operated 276 retail outlets and more than 100 grain handling and marketing centres. The Saskatchewan Wheat Pool operated under the name of AgPro in the prairie provinces of Manitoba and Alberta. Begun as a co-operative in the 1920s, the company became a publicly traded corporation in the 1990s. After the 2007 takeover of its competitor, Winnipeg-based Agricore United, the Pool name was retired. The merged company operated under the name Viterra until 2013, when it was acquired by Glencore International.
The United Grain Growers, or UGG, was a Canadian grain farmers' cooperative for grain storage and distribution that operated between 1917 and 2001.
Viterra began as a Canadian grain handling business, the nation's largest grain handler, with its historic formative roots in prairie grain-handling cooperatives, among them the iconic Saskatchewan Wheat Pool. Viterra Inc grew into a global agri-business with operations in Canada, the United States, Australia, New Zealand and China. Viterra operated three distinct, inter-related businesses: Grain Handling & Marketing, Agri-Products and Processing, enabling it to generate earnings at various points on the food production chain from field to the table. Following its $6.1-billion acquisition by Glencore International, on 1 January 2013 Viterra was merged with Glencore purchaser, 8115222 Canada Inc., headquartered in Rotterdam, the Netherlands.
A wheat pool is a co-operative that markets grain on behalf of its farmer-members.
Richardson International Limited is a privately held Canadian agricultural and food industry company headquartered in Winnipeg, Manitoba. The company is one of several companies that are owned by James Richardson & Sons Limited. The company is a worldwide handler and merchandiser of all major Canadian-grown grains and oilseeds and a vertically-integrated processor and manufacturer of oats and canola-based products. Richardson has over 2,500 employees across Canada, the U.S. and U.K. Richardson International is a subsidiary of James Richardson & Sons, Limited, established in 1857.
The Warner elevator row is a group of four historic wood-cribbed grain elevators standing in a row from south to north alongside the Canadian Pacific Railway line from Great Falls, Montana to Lethbridge, Alberta at the east entrance of the village of Warner, Alberta, Canada. At one time, the row had at least seven elevators.
Charles William Gibbings (1916-2009) was born on a farm near Rosetown, Saskatchewan, Canada on August 10, 1916. After earning a BSc in Agriculture at the University of Saskatchewan, Gibbings taught at the University's School of Agriculture and conducted youth training programs across the province, both while continuing to farm.
Manitoba Pool Elevators was a grain trade company founded in 1924. It became a subsidiary of the Saskatchewan Wheat Pool until November 1932, when the Pool declared bankruptcy. In 1998 Alberta Wheat Pool and Manitoba Pool Elevators merged to form Agricore Cooperative Limited. In 2001, United Grain Growers combined its business operations with Agricore Cooperative Ltd. and carried on business as Agricore United, a publicly traded company, no longer a farmer-owned cooperative. In 2007, Agricore United was taken over by the Saskatchewan Wheat Pool, another publicly traded company. The merged corporation was renamed Viterra.
The Manitoba Grain Growers' Association (MGGA) was a farmer's association that was active in Manitoba, Canada in the first two decades of the 20th century. It provided a voice for farmers in their struggle with grain dealers and the railways, and was influential in obtaining favorable legislation. The MGGA supported the Grain Growers' Grain Company, a cooperative of prairie farmers, and its organ the Grain Growers' Guide. At first it remained neutral politically, but in 1920 it restructured as the United Farmers of Manitoba in preparation for becoming a political party.
The Saskatchewan Grain Growers' Association (SGGA) was a farmer's association that was active in Saskatchewan, Canada in the early 20th century. It was a successor to the Territorial Grain Growers' Association, and was formed in 1906 after Saskatchewan became a province. It provided a voice for farmers in their struggle with grain dealers and the railways, and was influential in obtaining favorable legislation. The association initially resisted calls to create a farmer-owned marketing company. Later it did support formation of the Saskatchewan Co-operative Elevator Company. The SGGA helped the Saskatchewan Wheat Pool, a cooperative marketing organization, to become established in 1924. In 1926 the SGGA merged with the more radical Farmers' Union of Canada, which had earlier split from the SGGA, to create the United Farmers of Canada,
Edward Alexander Partridge was a Canadian teacher, farmer, agrarian radical, businessman and author. He was born in Ontario but moved to Saskatchewan where he taught and then became a farmer. He was active in the Territorial Grain Growers' Association (TGGA), founded in 1902, which addressed various problems with the Western Canada grain market. He founded the cooperative Grain Growers' Grain Company, the predecessor of the United Grain Growers, and the Grain Growers' Guide, a widely distributed weekly paper. His "Partridge Plan" was a broad and visionary proposal for addressing a wide range of farmers' issues, eliminating many abuses caused by the near-monopoly of grain elevator companies, and resulted in important reforms by the provincial governments. Patridge was named a National Historic Person in 2018.
The Grain Growers' Grain Company (GGGC) was a farmers' cooperative founded in the prairie provinces of western Canada in 1906. The GGGC met strong resistance from existing grain dealers. It was forced off the Winnipeg Grain Exchange and almost failed. With help from the Manitoba government it regained its seat on the exchange, and soon had a profitable grain trading business. The company founded the Grain Growers' Guide, which became the most popular farmer's newspaper in the region. In 1912 the GGGC began operating inland and terminal grain elevators, and in 1913 moved into the farm supply business. The GGGC was financially secure and owned or operated almost 200 elevators as well as 122 coals sheds and 145 warehouses by the time it merged with the Alberta Farmers' Co-operative Elevator Company to form the United Grain Growers in 1917.
The Saskatchewan Co-operative Elevator Company (SCEC) was a farmer-owned enterprise that provided grain storage and handling services to farmers in Saskatchewan, Canada between 1911 and 1926, when its assets were purchased by the Saskatchewan Wheat Pool.
The Alberta Farmers' Co-operative Elevator Company (AFCEC) was a farmer-owned enterprise that provided grain storage and handling services to farmers in Alberta, Canada between 1913 and 1917, when it was merged with the Manitoba-based Grain Growers' Grain Company (GGGC) to form the United Grain Growers (UGG).
