Viterra selling livestock operations

Viterra Inc. (TSX:VT) is selling its North American livestock feed operations, including a feed mill in Olds and a premix facility at Ponoka.

Viterra Inc. (TSX:VT) is selling its North American livestock feed operations, including a feed mill in Olds and a premix facility at Ponoka.

The Calgary-based company, which is Canada’s biggest grain handler and has operations around the world, announced on Wednesday that it is has struck a deal with Hi-Pro Feeds LP. Hi-Pro is a newly formed entity owned by Birch Hill Equity Partners and the existing management team of Viterra’s livestock feed business.

The assets included in the sale consist of six feed mills and one pre-mix manufacturing facility in Canada, and six feed mills and a commodity blending site in the United States.

Karl Gerrand, Viterra’s chief operating officer for processing, said the North American feed business was not material to Viterra’s overall results and the sale came after a strategic view of the company’s businesses.

“We look for areas in the market where we can have a strategic influence and have a leading position in the market,” said Gerrand.

“In areas where markets are very fragmented it is very difficult for us to have that kind of position.”

Viterra president and CEO Mayo Schmidt said the move will allow the company to focus on its key grain handling and processing businesses.

Gerrand pointed to the company’s oats and pasta businesses in North America as well as its malt business in Australia as areas where it might look to expand further.

“We are pleased that Hi-Pro intends to maintain continuity for the staff and customers of the livestock feed business going forward,” said Schmidt.

Daren Kennett, CEO of Hi-Pro, confirmed that the same services and products will be offered, with the existing staff.

Financial terms of the sale were not disclosed. It’s expected to close during Viterra’s second fiscal quarter, but is subject to regulatory approvals and other conditions.

Viterra was formed by the merger of the Saskatchewan Wheat Pool and Agricore United. The company also sells fuel, fertilizers and other products to the agricultural sector.

Shares in the company closed down 16 cents at $10.09 on the Toronto Stock Exchange on Wednesday.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

(Photo by Paul Cowley/ Advocate Staff)
Mask bylaws not popular in rural areas

Red Deer and Blackfalds bylaws requiring masks in public places kick in on Monday

Red Deer RCMP say a 30-year-old man faces sexual charges against a teen. (File photo by Advocate staff)
Innisfail RCMP arrest man following ‘lengthy pursuit’

Innisfail RCMP say a “lengthy pursuit” through a rural area ended with… Continue reading

Red Deer South MLA Jason Stephan speaks in the Alberta Legislature on Wednesday in this image from his Facebook page.
Red Deer MLA Jason Stephan sounds off on socialism in anti-lockdown speech

Red Deer-South MLA Jason Stephan has applauded his government’s COVID-19 response, saying… Continue reading

A GoFundMe campaign to support a Stettler couple following a fire has raised more than $3,000. (Contributed photo)
Family pet dies in Stettler fire

GoFundMe page has raised more than $3K so far

hay
Hay’s Daze: Giraffe knows filling wishes can sometimes be a tall order

Last weekend, I had a lovely breakfast. “So what?” you may say.… Continue reading

A south view of the Ward Hunt Ice Shelf breaking apart is seen from Ward Hunt Island, Nunavut, in an Aug. 20, 2011, handout photo. The remote area in the northern reach of the Nunavut Territory, has seen ice cover shrink from over 4 metres thick in the 1950s to complete loss, according to scientists, during recent years of record warming. Scientists are urging the federal government to permanently protect a vast stretch of Canada's remotest High Arctic called the Last Ice Area. THE CANADIAN PRESS/HO-CEN/Laval University, *MANDATORY CREDIT*
Scientists urge permanent protection of Last Ice Area in Canada’s High Arctic

Tuvaijuittuq has the thickest and oldest ice in the Arctic

In this file photo, a lotto Max ticket is shown in Toronto on Monday Feb. 26, 2018. (By THE CANADIAN PRESS)
No winning ticket for Friday night’s $55 million Lotto Max jackpot

No winning ticket was sold for the $55 million jackpot in Friday… Continue reading

Canadian Olympic gymnast and National Sport School alumni Kyle Shewfelt announces his retirement in Calgary, Thursday, May 21, 2009. Calgary's board of education will close the National Sport School that has produced Olympic and Paralympic champions for 26 years. THE CANADIAN PRESS/Jeff McIntosh
Calgary’s National Sport School to close, looks to join a different school division

Calgary’s National Sport School to close, looks to join a different school division

Canada's Erica Wiebe, left, celebrates after defeating Nigeria's Blessing Onyebuchi, right on the ground, to win Gold medal in women's FS 76Kg wrestling at the Commonwealth Games on Gold Coast, Australia, Thursday, April 12, 2018. THE CANADIAN PRESS/AP-Manish Swarup
Canada’s Olympic champion wrestler Erica Wiebe eyes return to competition

Canada’s Olympic champion wrestler Erica Wiebe eyes return to competition

Louisiana-Lafayette running back Elijah Mitchell (15) is tackled by Coastal Carolina linebacker Enock Makonzo (43) and safety Cameron Mitchell (49) during the first half of an NCAA football game in Lafayette, La., Wednesday, Oct. 14, 2020. It's already been a season to remember but Canadian Enock Makonzo and the Coastal Carolina Chanticleers will chase two more firsts Saturday. THE CANADIAN PRESS/AP-Paul Kieu
Canadian Enock Makonzo, Chanticleers chase Sun Belt East regular-season crown

Canadian Enock Makonzo, Chanticleers chase Sun Belt East regular-season crown

Atlanta United's Mo Adams, right, challenges Toronto FC's Alejandro Pozuelo during first half MLS soccer action in East Hartford, Conn., Sunday, Oct. 18, 2020. Toronto FC's Alejandro Pozuelo says he finished the season with an injured leg. THE CANADIAN PRESS/AP-Jessica Hill
Toronto FC ready to refocus on future as long, hard season comes to an end

Toronto FC ready to refocus on future as long, hard season comes to an end

Federal Health Minister Patty Hajdu and Vancouver Mayor Kennedy Stewart speak to the media during a visit to the Molson Overdose Prevention Site in Vancouver's Downtown Eastside, Thursday, January 16, 2020. City councillors in Vancouver voted unanimously this week to ask federal officials for an exemption to Canada's Controlled Drugs and Substances Act, a decision advocates hope will blaze a trail for the decriminalization of small amounts of illicit drugs for personal use in other municipalities. THE CANADIAN PRESS/Jonathan Hayward
Advocates aim to shape ‘Vancouver model’ for drug decriminalization

Advocates aim to shape ‘Vancouver model’ for drug decriminalization

Most Read