Stronger CWB Increases Competition in Grain Sector
Deal marks final step in Marketing Freedom
(firmenpresse) - WINNIPEG, MANITOBA -- (Marketwired) -- 04/15/15 -- Agriculture and Agri-Food Canada
Today Agriculture Minister Gerry Ritz announced Government of Canada approval of a deal reached between 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.
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 across the Prairies.
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.
Quick Facts
Quotes
"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. 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 result of these new investments and jobs will provide a huge economic benefit to the grain sector and Canada''s overall economy."
- Agriculture Minister Gerry Ritz
"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."
- Ian White, President and CEO, CWB
"It is a dynamic time for Canadian agriculture. As global demand for agri-products grows, consumers continue to demand the high quality grain produced by our Canadian farmers. Our vision is to establish a highly efficient coast to coast Canadian grain enterprise that provides stronger market access solutions for growers and delivers value to our stakeholders and the Canadian agriculture industry as a whole. We welcome the CWB team and farmer equity owners, and look forward to working together to build a new and dynamic company."
- Karl Gerrand, CEO, G3
Additional Links
-
-
- - Infographic
- - Infographic
-
Follow us on Twitter:
Media Information
- for this announcement is available for media use
- Images are available for media use on
Background - The Commercialization of the CWB
Marketing Freedom
CWB has been preparing for commercialization since the Marketing Freedom for Grain Farmers Act was introduced in 2011. The Act gave CWB a deadline of August 2016 to submit an application for continuance to the Minister. CWB led its own process to commercialization. CWB and its corporate advisors established a strategy and timeline for commercialization that aimed to beat that deadline. The plan was to attract investment and other resources, not only to become independent of government, but to grow as a strong competitive option in Canada''s grain sector.
CWB conducted an extensive worldwide search, engaging accounting and legal expertise to consider over 50 potential strategic investors. The successful bid offered the best price and alignment with criteria CWB set out for consideration to ensure the maximum benefit for farmers and the sector.
Modernization of the Grain Sector
Marketing Freedom is a key piece of the Government of Canada''s overall modernization of the grain sector. Two and a half years into the open market, Canadian wheat is finding new customers in Asia, Africa and South America; shipments to the U.S. are at all-time highs and wheat exports are up almost 20 percent.
Other actions include:
Contacts:
Jeff English
Director of Communications
Office of the Honourable Gerry Ritz
613-773-1059
Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-773-7972
1-866-345-7972
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 15.04.2015 - 09:16 Uhr
Sprache: Deutsch
News-ID 1351615
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
WINNIPEG, MANITOBA
Phone:
Kategorie:
Government & Administration
Anmerkungen:
Diese Pressemitteilung wurde bisher 198 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Stronger CWB Increases Competition in Grain Sector
"
steht unter der journalistisch-redaktionellen Verantwortung von
Agriculture and Agri-Food Canada (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
