The Quebec-based Canadian cooperative announced the acquisition on Tuesday (April 24). However, the financial details of the sale were not disclosed.
The Winnipeg-based SNC, which is a subsidiary of US based Standard Nutrition, provides animal nutrition products and related services, said La Coop fédérée. Those activities are set to be integrated into the cooperative’s agri-business division with the goal of it becoming one of the foremost players in the Canadian industry.
La Coop fédérée is the 24th largest agri-food cooperative globally, with combined sales of $9.2bn
David Arseneau, general manager of livestock production with the cooperative, told us:
“We have the research, the supply and the nutrition expertise in the East. With this acquisition, we gain new production capacity in the West, local presence and strong nutrition expertise to serve current and future customers.”
Feed processing and grain handling
The acquisition includes feed processing and grain-handling sites and retail stores in Manitoba, a premix facility, warehouse and retail store in Alberta and stores, offices and a warehouse in Alberta and Saskatchewan.
The push into Western Canada will extend the footprint that La Coop fédérée had already developed in the region, said Arseneau.
“The agri-business division of La Coop fédérée is already present in the area, through our network of crop input retailers,” he said. “In the past decade, developing that business was done by leveraging the expertise that we already had in crop production in Québec, as well as solid supply capability, and relying on local presence and knowledge, from our partners.”
The business model that the cooperative has established supports expansion.
“With our different activities up- and down-stream this value chain, [which includes] crop inputs, grain handling and trading and livestock production, we have expertise, retail networks and supply capability that can be leveraged to expand our footprint and business.
“We are always evaluating opportunities to grow the business,” said Arseneau.
SNC, which was formed in 2004 after the amalgamation of Standard Nutrition US's Canadian operations and Manitoba based Max Pro Feeds Ltd, employs a team of animal nutrition and production specialists to provide on-farm consultation.