Manitoba farmer and businessman Andreas Boersch is heading up a new plan for a state-of-the-art $19 million flour mill north of Guelph, the Manitoba Co-operator reports.
For Boersch’s company LVB Milling, the chosen site, in the Guelph-Eramosa township on the Guelph Railway Junction, has the right combination of rail and market access, he told Co-operator reporter Lorraine Stevenson.
This site is expected to give LVB both a competitive transportation advantage and ready access to Ontario’s Golden Horseshoe, where Canada’s baking and food manufacturing industries are concentrated, Boersch said.
Boersch started LVB after selling his interest in Prairie Flour Mills, which he and his business partners built in 1997 at Elie, Man., about 40 km west of Winnipeg.
Construction at Guelph is expected to begin this winter and is expected to take approximately a year and a half to complete. When it begins operating the new mill will create 25 new jobs and at full capacity produce 400 tonnes of flour daily.
LVB said it plans to source anywhere from 20 and 30 per cent of its wheat annually from Ontario farmers, dependent upon quality. The remainder of the 160,000 to 170,000 tonnes they’ll need each year will come from Western Canada, the company said in the Co-operator’s Aug. 27 issue.
Ontario is the only place in North America where wheat acres are actually expanding, but domestic demand for wheat hasn’t kept pace with expanding acres and about two-thirds of all Ontario-grown wheat is currently exported.
Henry Van Ankum, a director with the Ontario Wheat Producers Marketing Board and Alma-area farmer, told the Co-operator that farmers in Ontario’s Welllington County area see this as a way to save as much as $30 a tonne on transportation and handling costs.