CWB buys 10% stake in PWT

CWB has acquired 2,394 shares or about 10 per cent of Prairie West Terminal Ltd (PWT), a farmerowned grain handling organization located in the Kindersley area of west-central Saskatchewan, the Winnipeg-based grain company announced Thursday.

Through its wholly-owned subsidiary, Mission Terminal Inc., which directly owns 500 PWT shares, CWB now owns and controls 2,894 PWT shares, or about 12 per cent of PWT.

“This investment is a great opportunity to participate in an innovative farmer-owned organization that prioritizes farmers’ interests,” said CWB president and CEO Ian White in a news release. The PWT shares were acquired by CWB by a private agreement.

CWB’s investment in PWT is part of an ongoing strategy to position CWB as a “strong and viable Canadian-focused grain company that includes farmer ownership,” the release said. CWB’s plan for farmer ownership would allow farmers to have an equity interest in CWB after privatization, allowing farmers to benefit from CWB’s business activities.

When the Harper government passed Bill C-18, which removed the Canadian Wheat Board’s monopoly over western wheat and barley sales, the remaining company, known as CWB, was given five years to prepare for privatization.

“We value farmers as owners and partners,” White said. “Both our farmer ownership plan and our investment in a farmer-oriented company like Prairie West Terminal are prime examples of that.”

CWB continues to offer a range of marketing programs to Canadian farmers, including pool contracts.