Alta., U.S. ag co-ops partner on fertilizer plant

The Canadian arm of U.S. farm, fuel and agrifood co-op CHS is moving to expand its stake in Alberta’s ag input retail market, this time partnering with one of Canada’s top ag co-ops.

CHS Canada and Alberta’s UFA announced a partnership deal Wednesday for a seed and crop input retail operation, plus agronomic and advisory services, in the province’s Peace region.

The partnership will start with a new fertilizer plant already being built at the RedTail Business Park south of Sexsmith, about 20 km north of Grande Prairie.

The plant, with a high-speed blending facility, is expected to be complete early next year and to provide UFA members and customers in the Peace region with “local access to a range of dry fertilizer products,” the two co-ops said.

The UFA/CHS joint venture will operate as an “independent organization” under the name Bridgeland, to be governed by a board with two representatives each from UFA and CHS.

“The new venture brings new capabilities to both organizations and will position us more competitively in the marketplace,” UFA CEO Carol Kitchen said in a release. “Ultimately this will help farmers in the Peace Country grow and prosper.”

Partnering with Minnesota-based CHS in the Peace region “will allow us to support agricultural investment and enhance the services we provide here.”

“CHS is always looking for partnerships that will enhance our efforts to help farmers grow their operations,” Lynden Johnson, executive vice-president for CHS Country Operations, said in the same release.

“This new venture blends the best of both organizations to strengthen what our local experts with global connections can deliver for producers in Peace Country.”

CHS Country Operations first entered the Alberta ag retail market in 2012, buying DynAgra’s four Alberta retail outlets, now branded “CHS Dynagra.”

CHS in 2014 also took over four former Viterra ag retail stores, three Agrium CPS stores and three Viterra anhydrous outlets in Alberta.

Last year’s sale was part of a divestiture of Viterra and Agrium assets, required by the federal Competition Bureau following Agrium’s 2013 purchase of Viterra’s ag retail business. — AGCanada.com Network