PGG sells fuel division to Mid Columbia Producers
Pendleton Grain Growers announced Dec. 16 it has sold its fuel division to Mid Columbia Producers, another neighboring farmer-owned cooperative based in Moro.
The deal, effective immediately, comes just two weeks after PGG dealt its propane assets to Morrow County Grain Growers. Terms were not disclosed for either transaction.
PGG is in the process of dissolving after the co-op experienced massive financial losses in recent years. Tim Hawkins, chairman of the PGG Board of Directors, said the co-op was looking for a local buyer to take on fuel services that would continue to serve the region.
“As a fellow local co-op, we feel Mid Columbia Producers is the right partner for our customers and members,” Hawkins said in a statement.
Jeff Kaser, Mid Columbia manager, said they look forward to servicing PGG fuel accounts. PGG fuel cards will continue to be honored by PGG and Mid Columbia Producers through March 31. “We are thrilled to expand the fuel offerings we currently provide, both to our existing members and to potential customers throughout the communities we serve,” Kaser said.
Friday’s sale includes all of PGG’s existing fuel inventory, trucks and operating assets. Mid Columbia is expected to retain all four PGG employees in the fuel division. As of Friday, PGG members can begin signing up to use Mid Columbia fuel cards beyond March 31.
Mid Columbia Producers formed in 1988, and operates grain elevators in Morrow, Gilliam, Wasco and Sherman counties in Oregon, and Klickitat County in Washington.
PGG’s grain division, including upcountry elevators and the McNary Terminal, also sold earlier this year to United Grain Corporation. It remains unclear how much equity will be returned to members after the co-op dissolution is finished.
Rick Jacobson, PGG general manager, was not available for comment.