Photo contributed by Pacific Ag
Two of the Northwest’s largest biomass and crop residue companies are joining forces.
Pacific Ag, of Hermiston, announced Thursday it has acquired Calagri after nearly two decades working side by side in the industry. Terms of the deal were not disclosed, but Pacific Ag CEO Bill Levy said it will help provide better service for growers and a more reliable stream of products for different markets.
“I think it says great things about the future of Pacific Ag and our markets,” Levy said. “There’s a lot of great opportunities out there, and we felt we could meet those opportunities better together than we could separately.”
Pacific Ag is the nation’s largest harvester of crop residue and forage — such as corn stover and wheat straw — used to make things like animal feed or tree-free paper products. Composted wheat straw is also what’s predominately used to grow commercial mushrooms for grocery stores.
But perhaps one of the biggest future markets, Levy said, is plant material as a feedstock for biofuel and biochemicals.
“We believe that’s going to be a significant part of our future,” Levy said.
Based in Ellensburg, Washington, Calagri has collaborated and even shared equipment in the past with Pacific Ag, Levy said. Now, they’ll be able to continue that work seamlessly under a single operation.
Calagri’s co-owner, Kerry Calaway, is joining Pacific Ag’s leadership team and said it is an exciting time to be joining forces.
“New markets for forage and crop residue are growing across the region and the country, and farmers are increasingly looking for ways to sustainably generate additional income per acre,” Calaway said in a statement. “Together, we will create more opportunities for farmers while providing better service to our customers.”
Levy said Pacific Ag will retain Calagri’s employees, and as a result of the transaction the company will now harvest more than 300,000 tons of forage every year across Oregon, Washington and Idaho.
“This is a significant addition for us,” Levy said. “It’s exciting, truly, to be working with them and to be one company.”
Growers interested in learning more about generating income off crop residue can contact Pacific Ag at 1-844-RESIDUE.
Contact George Plaven at email@example.com or 541-966-0825.