The company is suspending all grain purchases and letting its licence expire
A grain handler in Saskatchewan is no longer in operation.
In a Sept. 18 letter posted to its website, North West Terminal (NWT) announced it is idling its grain elevator near Unity, Sask., due to financial challenges.
NWT started what it calls a “strategic review process” last August to look at potential actions.
“Significant headwinds in the grain industry have resulted in negative margins for the grain division the past several years and are expected to continue into 2025,” the letter says. “As part of this action, NWT will be suspending all purchases of grain from producers and letting its Primary Elevator Licence expire.”
The distillery facility located at the same site on Highway 14 will remain operational.
For clarity, allowing the licence to expire is voluntary but indicates the company operated within the parameters of its licence.
A revocation would mean the Canadian Grain Commission (CGC) took the license away as an enforcement action.
The CGC's website confirms NWT’s license is no longer in effect as of Sept. 18.
Farms.com has contacted the CGC for clarification if producers may be entitled to compensation or support through its payment protection program.
NWT began operations in June 1996 with a 1.2-million-bushel inland grain terminal.
Since that time, the company has invested in infrastructure upgrades like rail car loading facilities and increased capacity.
Today, the elevator has a total storage capacity of 2.3 million bushels and a 150-car siding with access to CN and CPKC trains.
The grain elevator could come back online if the financial environment allows.
“Management expects the elevator to remain idled indefinitely until either grain industry margins improve, or part or all the elevator is sold,” the letter says.
Some farmers have taken to social media with their reactions.
David Kucher, who grows lentils, wheat, canola and flax in Sask., simply said “not cool” on X with a photo of a portion of the letter.
NWT is just the latest company to stop operating in the Prairies.
On Sept. 11, Scoular Canada from St. Jean, Man., cancelled its primary elevator licence.
Teasdale Foods in Taber, Alta., did the same on Sept. 1.
In August, Purely Canada Foods Corp had its licences revoked. The same happened to LSM Grain in July.
Following Purely Canada Foods losing its licences, the Agricultural Producers Association of Saskatchewan called for greater protections for farmers.
"The toll it takes on a farm when payments aren't made can't be overstated. Producers are left facing not only financial duress but significant emotional and mental strain," Ian Boxall, president of APAS, said in an Aug. 29 statement. "Furthermore, the revocation of licenses in key areas of our market only serves to stifle the very competition and diversification we strive for in our agricultural sector. A better approach is needed."
In total, 47 grain companies have undergone some sort of license change as of Sept. 18, the CGC’s directory says.