Canola Growers: How Virtex Works

More about how the Virtex Grain Exchange works.

  • The company sold quotas in 40-tonne annual increments, which cost $2,000 to start and is increasing in value as they start attaining their business plan goals. Each quota is good for 20 years.
  • More than 120 farmers purchased quotas. Some producers purchased multiple quotas.
  • The entire available quota has been sold; however as market demand goes up, a new round of quotas, for which there is currently a waiting list, may be available for sale to producers.
  • Crush capacity at the plant is estimated at 40,000 metric ton annually.
  • Producers will be paid at the point of delivery and prices will be based on ICE Future Canada, zero basis.
  • Fifty percent of the annual net income from the plant will also be divided among quota-holders, according to their portion of the quota and subject to certain caps. Additional profits are paid out as dividends to shareholders, which include farmers and non-farmers.

<< See the full story, “Banding Together: Canola Growers and Virtex Farm Foods”