A competitor is pleased with United Farmers of Alberta’s purchase of the AgraCity Group of companies.
Farmers Business Network thinks the deal is good news for farmers.
“The work that AgraCity did to build their portfolio of products and labels will still be available to farmers going forward,” said Breen Neeser, FBN’s general manager for Canada.“They have some really good products.”
He is happy that the AgraCity assets are staying in the hands of an established western Canadian company that has been in the agriculture business for a long time.
“They know farming,” he said.
“They’re partners with farmers.”
Neeser believes UFA was keen on expanding their footprint in Saskatchewan.
“I think that was part of the play,” he said.
He is pleased that the assets did not end up in the hands of a foreign entity.
“UFA is part of the fabric of western Canadian farming, especially Alberta and in some ways Saskatchewan now,” he said.
“I’m glad it’s in the hands of somebody who sees the business the same way.”
Five other bidders vied for the AgraCity assets during the creditor protection sale process, but FBN was not one of them.
“A lot of what AgraCity had to offer, we already have,” said Neeser.
“There wasn’t that much that we haven’t already found a way to access, so it didn’t have the same appeal to us as it did to others.”
FBN is also expanding its asset base. The company recently opened warehouses in Brandon and Grand Prairie, Alta., which will augment its other warehouse in Saskatoon.
The Brandon warehouse is almost fully stocked with product, while the Grand Prairie facility is in the process of being filled.
The company had previously been using third party providers in those two locations.
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