Cargill plans to expand its crop retail reach further into southeastern Saskatchewan by buying up the remaining half of one of its joint ventures in the region.
The Canadian arm of the U.S. agrifood firm said Thursday it will buy up crop input retailer Precision Ag for an undisclosed sum, taking up the 50 per cent it doesn’t already hold.
Based at Griffin, about 30 km east of Weyburn, Precision Ag operates outlets at Griffin, Odessa, Carlyle and Carnduff. Set up in 1994, the company has operated as a joint venture with Cargill since 1999.
Read Also
Dryness poised to threaten Saskatchewan crops
Crops in Saskatchewan are developing in opposite directions, the province’s latest crop report said. Growing conditions in the province vary, with some areas receiving enough rain while other locations are experiencing crop stress due to hot, dry conditions.
Cargill said the business will continue to operate as Precision Ag with “no changes for its 23 employees or at its four locations.” The company’s current leadership will also remain in place for the next three years “to ensure a seamless transition of the business.”
“As we thought about our most strategic succession plan, we quickly agreed that selling to Cargill was the best decision given our shared values and interest in providing quality crop input services to farmers throughout Western Canada,” Precision Ag general manager Jay Gerry said in Cargill’s release.
Precision Ag sells pedigreed seed, fertilizer and crop protection products, as well as short-line equipment and feed products, to a customer base which it said represents about 600,000 acres.
The move will also further expand Cargill’s geographic reach in southern Saskatchewan ag retail. The company otherwise has three Cargill-branded crop retail facilities in that province south of the Trans-Canada Highway, all in the south-central Regina/Moose Jaw area.
Cargill is “strategically positioned to advance Precision Ag’s business model in such dynamic market conditions,” regional commercial leader Blaine Duncan said in the same release. “We’re honoured the Precision Ag leadership team turned to Cargill to lead the next chapter of this business.” — Glacier FarmMedia Network
