Alberta Wheat Pool
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| Industry | Agriculture |
|---|---|
| Fate | Merged |
| Successor | Agricore, Agricore United, Viterra |
| Founded | 1923 |
| Defunct | 1998 |
| Headquarters | Alberta, Canada |
| Products | Grain buying |
The Alberta Wheat Pool was the first of Canada's wheat farmer co-operatives in 1923.
In 1923, the United Farmers of Alberta met with then Attorney General John Edward Brownlee to consider setting up a Wheat Pool just in Alberta. On the advice of Aaron Sapiro, a California lawyer they created a non share, non-profit organization responsible solely for selling wheat for the best advantage. It was set up as a one-man, one-vote organization, with a 5-year contract required to deliver 100% of his commercial wheat to the Pool.
United Grain Growers grain company and the Alberta Pacific Elevator company agreed to accept Pool deliveries in their facilities. Other elevator owners quickly agreed to accept Pool wheat when they realized the pricing power the farmers had created.
The Pool purchased the grain produced by its members at a provisional or initial price. The pool then sold the grain, and if there was a surplus in the account at the end of the year, it was distributed to its members at a pro-rated basis. Everyone who was a member of the Pool received the same price. Initially 26,000 farmers joined the Pool, with hundreds of shipping points.
The Alberta Wheat Pool started making direct sales to flour milling companies and even exported grain directly. Direct sales accounted for over 60% of the total in the first year. They had to use the services of the Winnipeg Grain Exchange, despite objections from the farmers, in order to reduce risk which would in turn satisfy the banks that financed the venture.
After the first year, the Pool began to deduct 2 cents per bushel for purchase/building of Pool-owned elevators. This levy system was to be used often in the Pool's history. Considering that wheat sold at the time for over $1.00 per bushel, this was a low percentage cost. With this income, the Pool accumulated a $200,000 reserve. Shortly thereafter, Saskatchewan and Manitoba created Wheat Pools of their own.
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