Western Expresso

[rypinion]

Originally Posted by Treesplease

okie dokie.
Why would they be in Calgary? Isnt JRI going to lure them all to Winnipeg?

Agrium (almost all crop inputs) - Calgary

Richardson (19 elevators, attached crop input locations, some shipping terminals, and a large oat processing business) - Winnipeg

[Treesplease]

The retail portion is the question "almost all crop inputs" - depends if this includes the seed component of the business.

I don't see why Richardson would have to add positions in Winnipeg to add a bit of terminal space to their contingent of terminals and deal with a few more elevators in west central sask.

75% of Glencore income (if you include their share of xstrata) comes from metals and mining (13% Ag and 12% energy). Glencore is primarily a mining company. Coincidentally, BHP, Vale, RioTino, Mosaic, Potash corp all have offices or canadian headquarters in Sask. Glencore is a $90B company and likely has big plans far beyond grain and far beyond Saskatchewan. They aren't going to up and move the regional office somewhere because the CEO's girlfriend got a job in Calgary. We have a good shot of retaining a regional office as long as the key decision makers stay in Switzerland and aren't faced with the problem of making more money than they can possibly spend in Regina or Saskatoon.

[micheal]

Nice news that Regina will be Glencore's North American Head Office. More jobs in the future as company expands.

http://www.leaderpost.com/business/G...197/story.html

http://www.winnipegfreepress.com/bus...143609756.html

http://www.bloomberg.com/news/2012-0...te-canada.html

[rypinion]

Originally Posted by Treesplease

The retail portion is the question "almost all crop inputs" - depends if this includes the seed component of the business.

I don't see why Richardson would have to add positions in Winnipeg to add a bit of terminal space to their contingent of terminals and deal with a few more elevators in west central sask.

75% of Glencore income (if you include their share of xstrata) comes from metals and mining (13% Ag and 12% energy). Glencore is primarily a mining company. Coincidentally, BHP, Vale, RioTino, Mosaic, Potash corp all have offices or canadian headquarters in Sask. Glencore is a $90B company and likely has big plans far beyond grain and far beyond Saskatchewan. They aren't going to up and move the regional office somewhere because the CEO's girlfriend got a job in Calgary. We have a good shot of retaining a regional office as long as the key decision makers stay in Switzerland and aren't faced with the problem of making more money than they can possibly spend in Regina or Saskatoon.

19 elevators is a significant number. Extra terminals to handle the grain from those new elevators is significant. There is a lot of new grain to be moved and sold, and people are required to do those things - it's not trivial.

...But, I've tried to stay out of this since the company I worked for became involved (originally when it was just Glencore in the news I was fairly vocal on here).

[Treesplease]

Originally Posted by rypinion

19 elevators is a significant number. Extra terminals to handle the grain from those new elevators is significant. There is a lot of new grain to be moved and sold, and people are required to do those things - it's not trivial.

...But, I've tried to stay out of this since the company I worked for became involved (originally when it was just Glencore in the news I was fairly vocal on here).

I don't know jack about the grain business but since you are or used to be with JRI - help me out.
So your trading floor has to take hedge postions on 25 as opposed to 20 contracts to counter the extra grain bought at the 19 locations each day for any given commodity. Your logistics people have to arrange a few more 20 car spots for the west central area of sask - with the same rail logistics people they deal with daily anyway. Your sales people have a few thousand tonnes more canloa to sell to the same buyers (actually easier for your own crushers to source product now).
All grain companies will be devloping sales teams to deal with board grains that they never had to before - this is because of the CWB not because of Viterra.
You may deal with pulses in west central that your buyers don't have experience with and you may need a new regional manager for facilities....
I just don't see a large resource increase because of a modest expansion to existing business lines? what am I missing?

[rypinion]

Originally Posted by Treesplease

I don't know jack about the grain business but since you are or used to be with JRI - help me out.
So your trading floor has to take hedge postions on 25 as opposed to 20 contracts to counter the extra grain bought at the 19 locations each day for any given commodity. Your logistics people have to arrange a few more 20 car spots for the west central area of sask - with the same rail logistics people they deal with daily anyway. Your sales people have a few thousand tonnes more canloa to sell to the same buyers (actually easier for your own crushers to source product now).
All grain companies will be devloping sales teams to deal with board grains that they never had to before - this is because of the CWB not because of Viterra.
You may deal with pulses in west central that your buyers don't have experience with and you may need a new regional manager for facilities....
I just don't see a large resource increase because of a modest expansion to existing business lines? what am I missing?

I'm just saying that my impression is that it is more than modest.

[rypinion]

http://www.winnipegfreepress.com/bus...143609666.html

In a divvying up of assets in the immediate post-wheat-board era, Richardson International agreed to pay the new owners of Viterra, Glencore International, $900 million for 19 elevators, boosting the Winnipeg family-owned business's share of the market to 34 per cent from 25 per cent.

25% market share to 34% is a 26.5% increase in size.

[Treesplease]

Originally Posted by rypinion

http://www.winnipegfreepress.com/bus...143609666.html



25% market share to 34% is a 26.5% increase in size.

9% increase in market share - puny.

(actually its a 36% increase in size - not modest.)

[Authentic_City]

First of all, you're starting to sound like a dick. What's up with the pissing match?

Secondly, it's clear that an increase from 1 quarter to 1 third of the market is a pretty significant increase. The folks at JRI believe it's significant, and believe that this will result in positive growth for the company, including at the head office.

http://www.winnipegfreepress.com/bus...143609666.html

Both Glencore and Richardson will have about 1/3 of the market each. In the short term at least, this seems like good news for Winnipeg and Regina.

Originally Posted by Treesplease

9% increase in market share - puny.

(actually its a 36% increase in size - not modest.)

[trueviking]

its costing a billion dollars for that market share...of course its significant.

i admire treesplease's optimism that cutting a company in half and making it a regional office of a multinational will result in 5-10 jobs lost, but i think he might be in for a surprise.

this is not good news for regina....being a legitmate head office location and a subsidiary are very different.

the only good news is that the city didnt lose the company completely....

[Dougler306]

Saskatchewan still poised to lead the nation in growth according to RBC bank
Good times ahead!!!!!!! even with the loss of viterria

http://www.thestarphoenix.com/busine...982/story.html

[micheal]

Originally Posted by trueviking

its costing a billion dollars for that market share...of course its significant.

i admire treesplease's optimism that cutting a company in half and making it a regional office of a multinational will result in 5-10 jobs lost, but i think he might be in for a surprise.

this is not good news for regina....being a legitmate head office location and a subsidiary are very different.

the only good news is that the city didnt lose the company completely....

I think this is good news for regina. This is going to be the north american head office for Glencore's agricultural operations. i think thats pretty significant. As the company expands it will mean more head office jobs here. As stated in Glencore's media release, Glencore said it will consolidate its operations in regina as it looks to expand more in Canada and the U.S.

More in Glencore's company release:

http://www.glencore.com/documents/Ac...on_Release.pdf

[Treesplease]

Originally Posted by Authentic_City

First of all, you're starting to sound like a dick. What's up with the pissing match?

Secondly, it's clear that an increase from 1 quarter to 1 third of the market is a pretty significant increase. The folks at JRI believe it's significant, and believe that this will result in positive growth for the company, including at the head office.

http://www.winnipegfreepress.com/bus...143609666.html

Both Glencore and Richardson will have about 1/3 of the market each. In the short term at least, this seems like good news for Winnipeg and Regina.

Sorry for not being clearer for you - I was actually conceding that it was more than a modest expansion and correcting a math mistake.
I was having a civil discussion with rypinion and then you jump in with,
"you're starting to sound like a dick"? Did I hurt your feelings somewhere? ease up on the coffee dude!

[rypinion]

Ah yes, I did do my math wrong. 36%. I'll be even busier than I thought

[vid]

Thunder Bay might have an idled elevator come back online with this deal, if it goes through. Unions are upset, but unions are always upset.

[thefourthtower]

Ottawa most unfaithful city in Canada: Website


By Derek Abma, Postmedia News March 22, 2012 12:02 PM


Read more: http://www.canada.com/life/Ottawa+mo...#ixzz1ps3yD8ju

[trueviking]

Originally Posted by micheal

I think this is good news for regina.

personally, i dont trust multinational corporations....they will pull the plug in a heartbeat given a better opportunity....its happened here in winnipeg many times.

smaller markets have a difficult time competing no matter how good the economy is....there is way less security being a subsidiary than a true head office.

do you really believe they will run their NA operations from regina forever?....as soon as they get a foothold in the US that market will be split off....or the NA operations will be run form there instead.

[socialisthorde]

Originally Posted by thefourthtower

Ottawa most unfaithful city in Canada: Website


By Derek Abma, Postmedia News March 22, 2012 12:02 PM


Read more: http://www.canada.com/life/Ottawa+mo...#ixzz1ps3yD8ju

huh?

[Nathan]

Originally Posted by socialisthorde

huh?

It's a normal occurrence in the Regina threads...

[micheal]

Originally Posted by trueviking

personally, i dont trust multinational corporations....they will pull the plug in a heartbeat given a better opportunity....its happened here in winnipeg many times.

smaller markets have a difficult time competing no matter how good the economy is....there is way less security being a subsidiary than a true head office.

do you really believe they will run their NA operations from regina forever?....as soon as they get a foothold in the US that market will be split off....or the NA operations will be run form there instead.

i guess will have to waite and see.