Federated Co-op invests $75M for new fertilizer plants in Sask., Manitoba
Federated Co-operatives Limited (FCL) will invest $75 million to build two high-throughput fertilizer terminals at Hanley, Sask., and Brandon, Man.
Construction has already begun on the facilities, which are slated to open in early 2017.
Each will receive crop nutrition products by rail from domestic and international suppliers, then store and blend them at facilities that will act as hubs.
From there, blends will be distributed to the Co-op Agro Centres and direct to farms across Western Canada.
The state-of-the-art blending and loading facilities are expected to move orders through with dizzying efficiency. Enough fertilizer to fill a super B trailer, which holds up to 45 tonnes, can be blended and loaded in 10 minutes. Many other systems blend at a rate of one Btrain per hour, said fertilizer director Dan Mulder.
“If you want to get a cup of coffee while you wait, you’ll have to get it in a takeout cup,” he said.
FCL CEO Scott Banda said the company’s movement into fertilizer central services rounds out its agriculture offerings, which already include crop supplies, seed, equipment and fuel.
“It is very tough economic conditions in many sectors but we’re very confident in the Prairies, we’re very confident in Saskatchewan and thus we’ve made this investment,” Banda said.
“These terminals will be good news for the economies of Saskatchewan and Manitoba, especially the areas surrounding these new terminals where the construction and the operation will occur,” Banda said.
Construction will involve 25 to 30 full-time equivalent positions at each location.
Agriculture Minister Lyle Stewart said agricultural production is increasing significantly in Saskatchewan, which last year saw the second-largest crop in its history and which is on track now for another strong year.
“Those crops don’t make it to supper tables and international ports without some help early on. Fertilizer is an important, crucial part of that,” Stewart said.
“We need to continue increasing production because the world needs what Saskatchewan has.”
In 2015, Saskatchewan agri-food exports hit $15.3 billion, the highest ever, Stewart said.
“That broke Saskatchewan’s agricultural growth plan target five years ahead of schedule . ... Our growth plan focuses on increasing crop production, value added revenue and establishing Saskatchewan as the world leader in bio-sciences,” Stewart said.
The Hanley terminal will be able to warehouse up to 45,000 tonnes of fertilizer and the Brandon terminal will store up to 27,500 tonnes.
The investment follows FCL’s creation last year of a fertilizer department.
At present, about half of the 120 Co-op Agro Centres across Western Canada sell fertilizer, which is expected to increase when the new terminals begin operating.