2018's top stories: Grain mergers

The consolidation trend for grain companies continued in 2018 with Lamont Grain Growers and Whitgro merging with larger companies.

Lamont Grain Growers officially became part of Ritzville Warehouse Co. July 1. Lamont used to have 30 producers, but is now down to 18. Members voted 93 percent in favor of the merger Feb. 1.

The move to merge had been discussed among the managers for about five years prior to the vote.

Intake for Lamont is approximately one million bushels per year.

Ritzville Warehouse Co., formed in 1893, is one of the oldest farmer-owned grain cooperatives in Washington. Its operations include 22 operating facilities in five counties.

Whitgro and Northwest Grain Growers of Walla Walla merged May 1.

Whitgro was created in 2008 by the merger of St. John and Endicott cooperatives. Both cooperatives dated back to the 1920s. Whitgro has an intake of approximately 6.5 million bushels.

Both sides expect to benefit from increased shipping flexibility. Whitgro primarily moves its grain by rail, whereas 98 percent of NWGG grain moves by barge.

The two companies have been working together for about 15 years and have had a close marketing relationship for five years. Merger discussions began two years ago.

Whitgro members in December of 2017 voted 90 percent in favor of the merger.