Pipeline Foods Acquires North Dakota Grain Elevator
Pipeline Foods LLC, the first U.S.-based supply chain solutions company focused exclusively on non-GMO and organic food and feed, today announced it has acquired a grain elevator in Lignite, North Dakota. This is Pipeline Foods' third grain elevator purchase this year as the company continues to grow its footprint in North America.
"At Pipeline Foods, our vision is to build a more sustainable supply chain in agriculture," said Eric Jackson, CEO of Pipeline Foods. "This investment in North Dakota infrastructure, accompanied by our recent grain elevator acquisitions in Saskatchewan, will provide the first primary collection point for organic grain, and the capability to connect this grain supply with food companies and manufacturers across the U.S."
Located in northwestern North Dakota, the Lignite elevator is a 3,500 metric ton (MT) facility with dual access to the Burlington Northern Sante Fe (BNSF) and Canadian Pacific railways. Lignite will supplement Pipeline Foods' storage and origination program in Saskatchewan, which will increase efficiency and allow Pipeline Foods to grow its volume and customer base in the region. Forecasted throughput for 2018 is 25,000 MT, with increasing capacity expected after initial capital investments are made.
Pipeline Foods purchased the elevator from Cenex Harvest States (CHS), which had been operating the facility to handle malting barley. "We are pleased that Pipeline Foods can continue to benefit the Lignite community with the purchase of this facility," said CHS SunPrairie General Manager Brad Haugeberg.
"The purchase of the Lignite grain elevator by Pipeline Foods is exciting for several reasons," said Dan Folske, NDSU Extension Agent for Burke County. "The elevator at Lignite is an old facility which is too small and inefficient for conventional crops in today's market, and most similar elevators have already been closed and torn down. Transitioning that facility to handling organic grains should mean that it has a viable future for years to come, with corresponding jobs and property taxes for the city of Lignite and Burke County."
Pipeline Foods has committed $300-500MM over the next three to five years to build a better, more sustainable supply chain in agriculture. The company recently announced two grain elevator acquisitions in Canada, and is actively buying all classes of organic wheat, pulses and oats.