The United Farmers of Alberta Cooperative (UFA) has acquired all of Ceres Global Ag Corp.’s 17% stake in Canterra Seeds.
The share purchase agreement, dated July 2, 2024, is worth C$2.5 million, or approximately C$1.94, per Class A share of the Winnipeg, Manitoba-based seed company.
“Today’s announcement marks an investment in Western Canadian agriculture,” UFA president and CEO Scott Bolton said in a statement July 3. “Over the past few years, UFA has delivered strong results and built a balance sheet that will enable continued investment in Western Canadian agriculture to benefit our member-owners.”
UFA says the investment in Cantera will not affect its day-to-day operations or the seed varieties available for purchase through the agricultural cooperative’s network of 34 farm and ranch supply stores, which serve customers in Alberta, British Columbia and Saskatchewan.
“UFA is already a key partner with Cantera Seeds, and when the opportunity arose to become even more involved in our seed business, they jumped at it,” said Brent Derkach, Cantera’s president and CEO.
Canterra is owned by international agricultural cooperative Limagrain, 175 seed growers, agricultural retailers and private investors and has a seed portfolio that includes canola, grains, pulses and specialty crops for Western Canada.
“Cantera Seeds was built on close collaboration,” said Jim Wilson, chairman of the Cantera board of directors. “In addition to farmer-owned Limagrain, we are adding a corporate stakeholder that, like our company, has deep roots in the Canadian prairies and was founded on trust and exceptional customer service. We are pleased to have UFA on board.”
Bolton will replace Ceres president Jeff Wildman as the UFA representative on Cantera’s board of directors.
Ceres President and CEO Carlos Paz said the sale was “consistent with our strategy to streamline our asset size” and would “allow Ceres to continue to focus on its core businesses while improving efficiencies.”
Listed on the Toronto Stock Exchange, Ceres is headquartered in Golden Valley, Minnesota and, together with its affiliates, operates 11 grain and oilseed processing facilities in Saskatchewan, Manitoba, Ontario and Minnesota. The company also holds interests in other grain processing, port and short-line rail infrastructure in Canada and the United States.
