Canadian agriculture coalition seeks to improve supply chain, cut costs

Southern Alberta Newspapers Photo Submitted by Laura Balanko-Dickson

By Laura Balanko-Dickson

A Canadian prairie agriculture coalition between the Arctic Gateway Group and Genesis Fertilizers aims to cut fertilizer import and export costs, improve the supply chain and expand market reach. While much of the details of the deal remain to be worked out between the groups, they want to establish mutually beneficial import and export relationships for the foreseeable future. 

“Genesis Fertilizers and [Arctic Gateway Group] will cooperate to source and import phosphate and ammonium sulphate supply from international vendors as feedstock for the products to be produced at Genesis Fertilizers’ proposed 1,128 MTPA nitrogen fertilizers facility to be built at Belle Plaine, Saskatchewan,” reads a release. “The parties seek to distribute such supply domestically through facilities at the Port of Churchill and the planned SuperCenter distribution network of Genesis Fertilizers. Currently, this feedstock is brought into Canada from the United States by other importers.”

Moreover, Jason Mann, President and Chief Executive Officer of Genesis Fertilizers, thinks this agreement might “reduce transportation costs and improve supply chains for both domestic and international markets.”

“This new collaboration with [Arctic Gateway Group] is a significant step forward for Genesis Fertilizers and is made possible by the substantial work AGG has done to strengthen the efficiency and reliability of the Hudson Bay Railway and grow the capabilities of the Port of Churchill,” said Mann in the release. “With AGG’s reliable port and rail infrastructure, along with the shorter route to world markets offered by Canada’s Arctic Trade Corridor, we can reduce transportation costs and improve supply chains for both domestic and international markets.”

Similarly, this agreement has Chris Avery, Chief Executive Officer of Arctic Gateway Group, wanting to diversify trade routes across Canada.

“This collaboration with Genesis Fertilizers speaks to the value AGG can provide to Western Canada’s agricultural and resource industries, which we need more than ever given trade uncertainty with the United States,” said Avery. “Working together, we can diversify western Canadian trade routes via the shorter route AGG provides to world markets, and continue to step up and serve Canadian businesses and families with northern import and export optionality.”

Furthermore, this agreement aims to make operations more efficient for both groups.

“By collaborating on best practices for storage, shipping, distribution, and supply chain management, [Arctic Gateway Group] aims to create operational efficiencies that will benefit both organizations,” reads the release. “This collaboration is expected to increase shipping and rail traffic, optimize the use of AGG’s rebuilt infrastructure, and establish a strong new relationship with a key player in the Canadian fertilizer industry. Both companies are also committed to increasing jobs and training for Indigenous and northern communities through this increased economic activity.

“Genesis Fertilizers seeks to leverage AGG’s port and rail infrastructure to efficiently link its fertilizer products to key markets, reducing lead times and costs. By tapping into new and emerging markets that AGG’s network provides access to, Genesis Fertilizers aims to enhance the growth potential for the plant’s production. The collaboration with AGG will also foster timely delivery and optimized supply chains for fertilizer distribution to both domestic and international markets.”

According to the release, this might also benefit farmers, northern, and Indigenous communities via strengthening Canada’s agricultural sector.

“This collaboration underscores the benefits of farm producers partnering with northern communities and Indigenous groups to strengthen Canada’s agricultural resilience,” reads the release. “By fostering these relationships, producers can contribute to a more stable and sustainable food supply chain, ensuring long-term benefits for all Canadians.”