Agilyx Ord Shs AGXXF

RE:RE:RE:Pea protein

[Aggirl7]

I agree with when2buy - the addition of two new, large pulse processing plants in the market could be positive for the farmers, but not for existing pulse players such as AGT and Simpson. Processors could have to pay farmers more for crops in order to secure high quality supply. While there's always some room for acreage shift, of course, the biggest trend we are seeing in the Prairies is an increase in soybean acres not pulses.

The plant location of Verdient makes sense as it's within spitting distance of several key pulses growing regions. The Roquette future plant in Portage la Prairie is a little stranger to me, just given Manitoba isn't a key pea producer - it'll be collecting supply from Saskatchewan and Alberta. Overall, nice to see such large investments in the Cdn ag industry!