Amid financial challenges in the sector, Sollio Agriculture is exiting the Ontario grain market.
The agri-business division of the Quebec-based Sollio Cooperative Group announced Tuesday it was making the “difficult but necessary decision” to wind down its Ontario Grain partnership, which includes six grain elevators. Sollio Agriculture (formerly La Coop fédérée) is a majority shareholder in the Ontario Grain partnership, acquiring the assets in 2018 as part of the organization’s broader national growth strategy.
“The extraordinary events of the past two years causing global economic disruption led to unexpected, significant business challenges and a volatile commodity market,” Casper Kaastra, Chief Executive Officer of Sollio Agriculture, said in a release. “Ontario Grain made this difficult but necessary decision after an exhaustive analysis of all available options.”
Before the pandemic, Sollio Agriculture achieved 10 consecutive years of growth and, despite recent challenges in some sectors of the business, remains a strong player in Canadian agriculture, the release added.
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. It plans to continue serving clients during the 2022 harvest season, at a reduced capacity. Ontario Grain’s assets will eventually be sold off.
Earlier this year, Sollio Agriculture announced it was entering a phase of consolidating its acquisitions and optimizing its assets. Through the company’s current consolidation process, it is building on its strengths by focusing on the balance of its core business activity: providing crop and livestock production products and services to farm producers across the country.
Clients with additional questions or who require additional support through the transition are encouraged to contact their Ontario Grain representative.
Source: DePutter Publishing Ltd.
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