The decision to close was “difficult but necessary” the company said
By Diego Flammini
Sollio Agriculture is closing six grain elevators in Ontario.
The company, which is the majority shareholder in the Ontario Grain Partnership, announced six locations will wind down operations.
The affected elevators are in Princeton, Florence, Staples, St. Thomas, Wallaceburg and Palmerston.
All signed contracts will be honoured.
“During the wind down process, Ontario Grain intends to honour all existing contracts and to fulfill its obligations to farm customers, employees and business partners for an orderly transition,” the company said in a statement. “It plans to continue serving clients during the 2022 harvest season, at a reduced capacity. Ontario Grain will initiate a sale process of its assets with prospective buyers.”
Growers would like to see the grain elevator infrastructure remain in place.
“Hopefully they find a buyer for them,” Tom Van Damme said on Twitter. “I like the competition on the market. Never good when a buyer leaves the area.”
Others, however, aren’t confident that will happen.
“I hope you are right Tom, but usually that’s not the way it works, tearing down is what happens to make sure the competition doesn’t get anything…seen it many times,” Philip Shaw responded.
Prior to the pandemic, Sollio experienced a decade of growth.
But the effects of COVID-19 on the industry have forced the company to take this action, said Casper Kaastra, CEO of Sollio.
“The extraordinary events of the past two years causing global economic disruption led to unexpected, significant business challenges and a volatile commodity market,” he said, The Stratford Beacon Herald reported. “Ontario Grain made this difficult but necessary decision after an exhaustive analysis of all available options.”
Farmers with questions are encouraged to contact their Ontario Grain representative.