Saskatchewan Wheat Pool

Last updated

Saskatchewan Wheat Pool
IndustryAgriculture
Founded1923
Defunct2007
FateMerged with Agricore United
Successor Viterra
Headquarters2625 Victoria Avenue, Regina, Saskatchewan
Key people
Mayo Schmidt
Products Grain buying
Number of employees
4000

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. [1] 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.

Contents

Establishment and growth

Saskatchewan Wheat Pool contracts Wheat Pool Contracts.jpg
Saskatchewan Wheat Pool contracts
Grain elevator in Melville, decorated for King George VI and Queen Elizabeth for the 1939 royal tour of Canada Grain Elevator Saskatchewan Royal Visit 1939.jpg
Grain elevator in Melville, decorated for King George VI and Queen Elizabeth for the 1939 royal tour of Canada
A now-obsolete wooden grain elevator once owned by SWP in Gainsborough Gainsborough SWP Elevator 2011.jpg
A now-obsolete wooden grain elevator once owned by SWP in Gainsborough
Saskatchewan Wheat Pool logo on the Weyburn concrete terminal elevator Weyburn POOL (126040461).jpg
Saskatchewan Wheat Pool logo on the Weyburn concrete terminal elevator

Farmers, frustrated in their attempts to win a fair price for their wheat, started to look to various marketing systems between 1900 and 1920. The co-operative style of organizing farm operations was one of them. As early as 1902, farmers banded together as the Territorial Grain Growers' Association. The TGGA split into Alberta Farmers' Association and the Saskatchewan Grain Growers' Association (SGGA) in 1906. Also established at this time was the farmers' co-operative elevator company called the Grain Growers' Grain Company (GGGC), which later merged into the United Grain Growers. In 1911 the Saskatchewan Co-operative Elevator Company was formed.

The SGGA met with the United Farmers of Alberta and United Farmers of Manitoba and formed the Saskatchewan Co-operative Wheat Producers Ltd. on August 25, 1923. Informally it was known as the Saskatchewan Wheat Pool, as it collectively helped farmers to obtain a decent price for wheat. The first president was Alexander James McPhail, and the first grain elevator was built in Bulyea in 1925 (in the area of Section 36, Township 16, Range 15, W of the 2nd meridian). The Saskatchewan Co-operative Wheat Producers Ltd. bought out the Saskatchewan Co-operative Elevator Company in 1926. In 1953 The Saskatchewan Co-operative Wheat Producers Ltd. was renamed the Saskatchewan Wheat Pool.

The pool is the world's largest farm, the world's largest shipper of wheat, the Biggest Business in Canada – and it was built by the Man Behind the Plow.

W.A. Irwin, 1929 [2]

The Wheat Pool elevators have been sentinels in many prairie towns since the early 1900s. They are the topic of numerous prairie landscapes and photographs. The Wheat Pool calendar map or Country Elevator System calendar maps were a mainstay of many pioneer households. These calendar maps depicted the networking of the early CNR and CPR rail lines, the many early incorporated areas, and the locations of the grain elevators. The pictures which surround the elevator map of grain delivered by horse and wagon, early truck, and grain handling at the ports along the calendars show the evolution of the grain handling industry.

A concrete terminal built by SWP in Carnduff Carnduff Grain Terminal Viterra 2011.jpg
A concrete terminal built by SWP in Carnduff

In the early 20th century, grain elevators dotted the prairies every 6 to 10 miles (10–15 km) apart, a distance that was a good day's journey for farmer and horse with a full load. Farmers could find services available to buy and grade grain at the Saskatchewan Wheat Pool elevators. The Pool Farm Service Centers provided a place for farmers to pick up fertilizer and chemicals. Highways, trucks, tractors, and combines revolutionized the farming industry after World War II. These changes gradually led to the rail system facing deregulation and consolidation changes: many branch lines closed down, and there were increased loading quotas available to railcars for grain, specialty crops and even oilseeds. These developments led to newer and more advanced state-of-the-art grain handling systems called SWP Terminals which serve larger surrounding farming areas.

The 'crib' style wood elevator of the 1920s could handle 100 tonnes of grain per hour. The elevator pit could contain approximately 10 tonnes of grain, which would be about the load delivered by one farmer's grain truck. In comparison, the new "high-throughput" elevators constructed of slip-formed cylindrical concrete have a 418,000 bushel (11,500 tonne) capacity, whereas the condominium storage facility can contain 582,000 bushels (15,800 tonnes).

Co-operative to corporation

Sask Pool 7, Thunder Bay Saskatchewan, grain elevator, Kodachrome by Scott Williams.jpg
Sask Pool 7, Thunder Bay

In March 1996, the Saskatchewan Wheat Pool became a publicly traded company, breaking from its roots as a co-operative. While decent profits were realized in the first two years, the company incurred huge losses between 1999 and 2003 because of low commodity prices. [3] It also faced increased competition when the Alberta Wheat Pool and Manitoba Pool Elevators merged to form Agricore. The Pool lost its position as the country's top grain handler when Agricore took over United Grain Growers in 2002 to form Agricore United. [4]

In November 2006, the company launched a campaign to take over Agricore United. Winnipeg-based James Richardson International ("JRI") launched its own takeover bid at the same time. The initial and subsequent offers from the Pool involved a stock swap, with no or little cash being offered, prompting the AU Board of Directors to reject them. In February 2007, AU and JRI announced that they had negotiated a merger arrangement to form a publicly traded company to be known as "Richardson Agricore", subject to shareholder agreement.

A subsequent bidding war led to a stock and cash offer from the Pool and an all-cash offer from JRI to form a private company; [5] a higher, $20.50 all-cash offer from the Pool in May eventually prevailed, [6] with 81% of the limited voting shares being tendered to the Pool by shareholders by the end of May, including all the ADM shares. This exceeded the 75% required by the terms of AU's incorporation to change the corporate structure and, after a special shareholders' meeting in June, AU became a wholly owned subsidiary of the Saskatchewan Wheat Pool. [7] AU's CEO, Brian Hayward, resigned, as did the Board of Directors, and the Pool's CEO and Board were voted in. The Pool had Agricore United's common and preferred shares delisted from the Toronto Stock Exchange (TSX) on June 20, 2007, and the members of the senior management team for the amalgamated company were announced the next day.[ citation needed ] The new company was headquartered in Regina, under the name of Viterra. [8]

Presidents

See also

Books

25 Years with the Saskatchewan Wheat Pool by Saskatchewan Wheat Pool employees' Association Publisher: Saskatchewan Co-Operative Producers Limited Place: Regina, Saskatchewan Date published: 1949

From prairie roots: The remarkable story of Saskatchewan Wheat Pool (Hardcover) by Garry Lawrence Fairbairn Hardcover: 318 pages Publisher: HarperCollins Canada / Greystone Book (Jan 1 1984) Language: English ISBN   0-88833-127-4

Wheat Kings: Vanishing Landmarks of the Canadian Prairies (Hardcover) by Greg McDonnell Hardcover: 120 pages Publisher: Boston Mills Press (October 2, 2004) ISBN   1-55046-249-0

The Diary of Alexander James McPhail by Harold A. Innis, Alexander James McPhail Review author[s]: Harald S. Patton Canadian Journal of Economics and Political Science / Revue canadienne d'Economique et de Science politique, Vol. 7, No. 1 (Feb., 1941), pp. 122–124

Related Research Articles

<span class="mw-page-title-main">Grain elevator</span> Grain storage building

A grain elevator is a facility designed to stockpile or store grain. In the 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.

<span class="mw-page-title-main">Agricore United</span> Canadian farmer-directed agribusiness

Agricore United, Inc. 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.

<span class="mw-page-title-main">Alberta Wheat Pool</span>

The Alberta Wheat Pool was the first of Canada's wheat farmer co-operatives in 1923.

<span class="mw-page-title-main">United Grain Growers</span> Canadian farmers cooperative

The United Grain Growers, or UGG, was a Canadian grain farmers' cooperative for grain storage and distribution that operated between 1917 and 2001.

<span class="mw-page-title-main">Viterra</span> Multi-national agricultural company

Viterra Limited is a Canadian grain handling business, that began as the nation's largest grain handler, with its historic formative roots in prairie grain-handling cooperatives, among them the 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.

<span class="mw-page-title-main">Wheat pools in Canada</span>

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.

<span class="mw-page-title-main">Manitoba Pool Elevators</span> Grain agriculture cooperative

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.

<span class="mw-page-title-main">Saskatchewan Grain Growers' Association</span>

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,

The Territorial Grain Growers' Association (TGGA) was a farmer's association that was active in Western Canada at the start of the 20th century, in what was then the Northwest Territories and later became Saskatchewan and Alberta. It provided a voice for farmers in their struggle with grain dealers and the railways, and was influential in obtaining favorable legislation. After Alberta and Saskatchewan became provinces the TGGA was succeeded by the Alberta Farmers' Association and the Saskatchewan Grain Growers' Association.

<span class="mw-page-title-main">Edward Alexander Partridge</span>

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.

<i>The Grain Growers Guide</i>

The Grain Growers' Guide was a newspaper published by the Grain Growers' Grain Company (GGGC) in Western Canada for grain farmers between 1908 and 1936. It reflected the views of the grain growers' associations. In its day it had the highest circulation of any farm paper in the region.

<span class="mw-page-title-main">Grain Growers' Grain Company</span>

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.

<span class="mw-page-title-main">Saskatchewan Co-operative Elevator Company</span> Agricultural cooperative in Canada

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.

<span class="mw-page-title-main">Alberta Farmers' Co-operative Elevator Company</span>

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).

<span class="mw-page-title-main">Alexander James McPhail</span> Scottish-Canadian agricultural reformer (1883–1931)

Alexander James McPhail was a Scottish-Canadian agricultural reformer, and the first elected president of the Saskatchewan Wheat Pool. The Canadian government designated him a Person of National Historic Significance in 1971.

References

  1. 1 2 "Wheat Pool renamed Viterra". The StarPhoenix. Saskatoon: CanWest MediaWorks Publications Inc. August 31, 2007. Archived from the original on March 24, 2016.
  2. Civilization.ca - Canada Hall - King Wheat - Saskatchewan Grain Elevator
  3. Lang, Kathy (2006). "The Encyclopedia of Saskatchewan" . Retrieved August 30, 2007.
  4. "Saskatchewan Wheat Pool - CBC Saskatchewan". CBC. 2004. Archived from the original on August 19, 2007. Retrieved August 30, 2007.
  5. Pursaga, Joyanne (April 20, 2007). "JRI ups bid for Agricore United to $1.8 billion". Sun Media. Archived from the original on January 15, 2013. Retrieved January 21, 2009.{{cite web}}: CS1 maint: unfit URL (link)
  6. "Merger creates agribusiness giant". Toronto: Canadian Press. May 9, 2007. Retrieved January 21, 2009.
  7. "Agricore takeover OK'd". Reuters. June 14, 2007. Archived from the original on October 25, 2012. Retrieved January 21, 2009.
  8. "Saskpool breaks with past, becomes Viterra". Reuters. August 30, 2007. Archived from the original on February 1, 2013. Retrieved January 21, 2009.
  9. 1 2 3 4 5 6 7 8 9 "University of Saskatchewan Archives - Saskatchewan Wheat Pool".
  10. Saskatchewan Wheat Poolesask.uregina.ca Archived January 11, 2008, at the Wayback Machine