Saskatchewan Wheat Pool
Encyclopedia
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. 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 now operates under the name Viterra
.
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 became the Saskatchewan Grain Growers Association in 1906. Also established at this time was the farmers' co-operative elevator company called the Grain Growers Grain Company. From the GGGC expansion came the United Grain Growers
and the Saskatchewan Co-operative Elevator Company. In 1911 The Saskatchewan Cooperative Elevator Company was formed. The Farmers Union of Canada launched the Wheat Pool in 1924. Saskatchewan Grain Growers Association (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 get a decent price for wheat. The first president was A.J. McPhail and the first elevator
was built in Bulyea
in 1925 (in the area of Section 36, Township 16, Range 15, W of the 2nd meridian
). The Saskatchewan Cooperative Wheat Producers Ltd. bought out the Saskatchewan Cooperative Elevator Company in 1926. In 1953 The Saskatchewan Co-operative Wheat Producers Ltd. was renamed the Saskatchewan Wheat Pool.
The Wheat Pool elevators have been sentinels in many prairie towns since the early 1900s. They are the topic of several prairie landscapes and photographs. The Wheat pool calendar map or Country Elevator System calendar maps were a mainstay of many a pioneer household. These calendar maps showed 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.
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, tractor
s, and combines
revolutionized the farming industry after the industrial revolution
in and around the era of 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).
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. 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
.
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+cash offer from the Pool and an all-cash offer from JRI to form a private company; a higher, $20.50 all-cash offer from the Pool in May eventually prevailed, 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. 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. The new company was headquartered in Regina, under the name of Viterra
.
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
Regina, Saskatchewan
Regina is the capital city of the Canadian province of Saskatchewan. The city is the second-largest in the province and a cultural and commercial centre for southern Saskatchewan. It is governed by Regina City Council. Regina is the cathedral city of the Roman Catholic and Romanian Orthodox...
. 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. The Saskatchewan Wheat Pool operated under the name of AgPro in the prairie provinces of Manitoba
Manitoba
Manitoba is a Canadian prairie province with an area of . The province has over 110,000 lakes and has a largely continental climate because of its flat topography. Agriculture, mostly concentrated in the fertile southern and western parts of the province, is vital to the province's economy; other...
and Alberta
Alberta
Alberta is a province of Canada. It had an estimated population of 3.7 million in 2010 making it the most populous of Canada's three prairie provinces...
. 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
Winnipeg
Winnipeg is the capital and largest city of Manitoba, Canada, and is the primary municipality of the Winnipeg Capital Region, with more than half of Manitoba's population. It is located near the longitudinal centre of North America, at the confluence of the Red and Assiniboine Rivers .The name...
-based Agricore United
Agricore United
Agricore United was a farmer-directed agri-business 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...
, the Pool name was retired. The merged company now operates under the name Viterra
Viterra
Viterra Inc. is a leading global agri-business with extensive operations in Canada, the United States, Australia and New Zealand. With a growing international presence that includes trading and marketing offices on four continents, Viterra delivers high quality nutritious food ingredients to more...
.
Establishment and growth
United Grain Growers
United Grain Growers, or UGG, was a Canadian grain distributor. Founded in 1906 in Winnipeg, UGG was active in grain sales, crop inputs and livestock production services...
and the Saskatchewan Co-operative Elevator Company. In 1911 The Saskatchewan Cooperative Elevator Company was formed. The Farmers Union of Canada launched the Wheat Pool in 1924. Saskatchewan Grain Growers Association (SGGA) met with the United Farmers of Alberta
United Farmers of Alberta
The United Farmers of Alberta is an association of Alberta farmers that has served many different roles throughout its history as a lobby group, a political party, and as a farm-supply retail chain. Since 1934 it has primarily been an agricultural supply cooperative headquartered in Calgary...
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 get a decent price for wheat. The first president was A.J. McPhail and the first elevator
Elevator
An elevator is a type of vertical transport equipment that efficiently moves people or goods between floors of a building, vessel or other structures...
was built in Bulyea
Bulyea, Saskatchewan
-External links:...
in 1925 (in the area of Section 36, Township 16, Range 15, W of the 2nd meridian
Principal meridian
A meridian is an imaginary line on the Earth's surface from the North Pole to the South Pole that connects all locations with a given longitude. Each is half of a great circle on the Earth's surface...
). The Saskatchewan Cooperative Wheat Producers Ltd. bought out the Saskatchewan Cooperative Elevator Company in 1926. In 1953 The Saskatchewan Co-operative Wheat Producers Ltd. was renamed the Saskatchewan Wheat Pool.
The Wheat Pool elevators have been sentinels in many prairie towns since the early 1900s. They are the topic of several prairie landscapes and photographs. The Wheat pool calendar map or Country Elevator System calendar maps were a mainstay of many a pioneer household. These calendar maps showed the networking of the early CNR and CPR
Canadian Pacific Railway
The Canadian Pacific Railway , formerly also known as CP Rail between 1968 and 1996, is a historic Canadian Class I railway founded in 1881 and now operated by Canadian Pacific Railway Limited, which began operations as legal owner in a corporate restructuring in 2001...
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.
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, tractor
Tractor
A tractor is a vehicle specifically designed to deliver a high tractive effort at slow speeds, for the purposes of hauling a trailer or machinery used in agriculture or construction...
s, and combines
Combine harvester
The combine harvester, or simply combine, is a machine that harvests grain crops. The name derives from the fact that it combines three separate operations, reaping, threshing, and winnowing, into a single process. Among the crops harvested with a combine are wheat, oats, rye, barley, corn ,...
revolutionized the farming industry after the industrial revolution
Industrial Revolution
The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, transportation, and technology had a profound effect on the social, economic and cultural conditions of the times...
in and around the era of 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
Alberta Wheat Pool
The Alberta Wheat Pool was the first of Canada's wheat farmer co-operatives.-Early years: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...
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
United Grain Growers
United Grain Growers, or UGG, was a Canadian grain distributor. Founded in 1906 in Winnipeg, UGG was active in grain sales, crop inputs and livestock production services...
in 2002 to form Agricore United
Agricore United
Agricore United was a farmer-directed agri-business 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...
.
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+cash offer from the Pool and an all-cash offer from JRI to form a private company; a higher, $20.50 all-cash offer from the Pool in May eventually prevailed, 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. 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
Toronto Stock Exchange
Toronto Stock Exchange is the largest stock exchange in Canada, the third largest in North America and the seventh largest in the world by market capitalisation. Based in Canada's largest city, Toronto, it is owned by and operated as a subsidiary of the TMX Group for the trading of senior equities...
(TSX) on June 20, 2007, and the members of the senior management team for the amalgamated company were announced the next day. The new company was headquartered in Regina, under the name of Viterra
Viterra
Viterra Inc. is a leading global agri-business with extensive operations in Canada, the United States, Australia and New Zealand. With a growing international presence that includes trading and marketing offices on four continents, Viterra delivers high quality nutritious food ingredients to more...
.
See also
- Alberta Wheat PoolAlberta Wheat PoolThe Alberta Wheat Pool was the first of Canada's wheat farmer co-operatives.-Early years: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...
- Manitoba Pool Elevators
- Wheat poolWheat poolA wheat pool is a co-operative that buys grain from farmers.In Canada in 1923 and 24, three wheat pools were created. They were farmer-owned co-operatives, created to break the power of the large for-profit corporations, that had dominated the grain trade in Western Canada since the late 19th...
- Agricore UnitedAgricore UnitedAgricore United was a farmer-directed agri-business 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...
- United Grain GrowersUnited Grain GrowersUnited Grain Growers, or UGG, was a Canadian grain distributor. Founded in 1906 in Winnipeg, UGG was active in grain sales, crop inputs and livestock production services...
- Paper WheatPaper WheatPaper Wheat is a play by the 25th Street House Theatre about the hard lives of early Saskatchewan settlers and the foundation of the wheat pools and the Co-operative Commonwealth Federation in the Canadian Prairies...
- List of Canadian Heritage Wheat Varieties
Books
25 Years with the Saskatchewan Wheat Pool by Saskatchewan Wheat Pool employees' AssociationPublisher: 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
External links
- Former website (June 23, 2007 snapshot from the Internet ArchiveInternet ArchiveThe Internet Archive is a non-profit digital library with the stated mission of "universal access to all knowledge". It offers permanent storage and access to collections of digitized materials, including websites, music, moving images, and nearly 3 million public domain books. The Internet Archive...
) - Viterra corporate website
- of Saskatchewn Archives - Saskatchewan Wheat Pool: A History in PicturesSaskatchewan Wheat Pool Inc.
- Civilization.ca - Canada Hall - King Wheat -Saskatchewan Grain Elevator
- Saskatchewan Country Elevator System Maps with Index Years:1924-25, 1947-48, 1950-51, 1952-53, 1984
- Saskatchewan Wheat Pool |CBC Saskatchewan
- Semans, Saskatchewan - Always A Hometown
- Saskatchewan Agricultural Hall of Fame - Thomas Griffin Bobier
- Saskatchewan Wheat Pool - Schneider Electric in Canada
- Alberta Wheat Pool
- Pixelgrain: Mapping Transition in the Canadian Prairies
- Virtual Saskatchewan - Look! It's something vertical!
- Saskatchewan's Top News Stories: Agriculture News And Views Of The Farmers' Union Of Canada ur Elevator Policy Western Producer February 25, 1926. p.9
- Saskatchewan Settlement Experience
- Post Offices and Postmasters
- Grade Seven Social Studies: Unit Two
- Saskatchewan History 1915 - 1924
- Changing Population in Saskatchewan
- Agriculture :History Chronology
- Learning Corner
- Saskatchewan's Top News Stories: AgricultureHistory Of The Saskatchewan Grain Growers’ Movement What Farmers Of Canada Have Done Towards Entering Politics From Small Beginnings A Body With Allied Members Numbering 75,000 Built Up Score Of Farmers Who Met In Indian Head Planing Mill December 18, 1901,Have Reason To Be Proud
- http://esask.uregina.ca/entry/saskatchewan_wheat_pool.html Encyclopedia of Saskatchewan