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The board of directors for North West Terminal Ltd. (NWT), a farmer-owned grain elevator in Unity, Saskatchewan, has announced the decision to idle its facility due to ongoing financial challenges. The terminal has ceased all grain purchases and cancelled its elevator license with the Canadian Grain Commission as of September 18, 2024.
NWT cited “significant headwinds in the grain industry” that have led to negative margins for several years, with expectations that these challenges will persist into 2025. As a result, the company has decided to suspend operations at its inland terminal indefinitely, until market conditions improve or a buyer is found for the elevator.
The Unity terminal, one of Western Canada’s largest grain-handling facilities, has a storage capacity of 2.3 million bushels and a 150-car rail siding with access to both CN and CPKC’s rail networks. Despite the elevator closure, operations at NWT’s distillation facility, located at the same site, will continue.
“This is a necessary step during turbulent times,” said NWT President Brad Sperle, who farms near Unity. “We believe idling the elevator and focusing on the distillery business is in the best interests of NWT and its stakeholders while we undergo a strategic review.”
NWT has enlisted FTI Capital Advisors Canada to assist in determining the company's next steps. The goal is to explore options that serve the best interests of NWT’s approximately 1,000 shareholders, most of whom are area farmers.
The company has faced ongoing financial difficulties, reporting a comprehensive loss of $10.1 million for the fiscal year ending October 31, 2023, and additional losses exceeding $3 million in the first half of its current fiscal year.
Earlier this year, NWT temporarily laid off nine of its 29 employees, with the intent to rehire them before the harvest season. However, with the grain elevator now idled indefinitely, the future of these positions remains uncertain.
In addition to its grain operations, NWT holds minority ownership stakes in Alliance Seed Corp. in Winnipeg and Alliance Grain Terminal at the Port of Vancouver, adding to its diversified portfolio within the agricultural sector. However, the Unity facility’s closure marks a significant shift for the company as it navigates these challenging times.