FarmGro Organic Foods Inc. has begun production at its $12 million flour mill and grains processing plant near Regina.

The company's goal is to become North America's largest producer of organic wheat flours, durum semolina and specialty grains.

FarmGro is located on a 15-acre site east of Regina in the RM of Sherwood, between Highways 1 and 33. It will employ 18 to 25 people and produce organic wheat flours and durum, with an initial milling capacity of close to 16,000 tonnes. It will also clean about 18,000 tonnes of organic grains and seeds annually and sell them internationally.

"FarmGro will make Saskatchewan a leader in the organic food processing industry," Crown Investments Corporation Minister John Nilson said. "The market for organic food products has grown significantly in the past few years and that trend is expected to continue. CIC is proud to be a partner in this exciting new venture."

CIC has invested $4.4 million in FarmGro through equity and a term loan. Other investors include: private Saskatchewan entrepreneurs; a Japanese company which trades in food and other products; a Czech supplier of flour milling equipment; the Saskatchewan Government Growth Fund, through one of its immigrant investor funds; a federal/provincial partnership agreement on water-based economic development; Western Economic Diversification; and the Farm Credit Corporation. FarmGro has also issued a share offering to allow organic producers and the public to invest in the company.

"We are very excited about the prospects for this company," FarmGro President and CEO Gerry Liski said. "We hope to eventually provide private labeling and branding of retail sized bags of flour, grains, seeds, organic pasta, frozen dough bakery products, soup mixes and frozen entrees. We want FarmGro to become an organic food processing village for one-stop shopping for our global customers."

"FarmGro will also help diversify our agriculture industry by encouraging more organic farming in Saskatchewan," Nilson said. "Organic production is one way in which Saskatchewan farmers can become more competitive in world markets, so having a company like FarmGro in our province will be a real boost to our producers."

Karen Schmidt
Acting Executive Director, Communications
Crown Investments Corporation
Regina
Phone: (306) 787-5889

Gerry Liski
President & CEO
FarmGro Organic Foods Inc.
Regina
Phone: (306) 751-2440