Mid Columbia Producers takes over PGG fuel business
HERMISTON, Ore. — New name. New building. Same familiar faces.
Following the dissolution of Pendleton Grain Growers last year, fellow agricultural co-op Mid Columbia Producers has arrived in Umatilla County to carry on the former PGG fuel division, setting up shop at a new location in Hermiston.
Based in Moro, Mid Columbia Producers was established in 1988 with the merger of two neighboring cooperatives. Mid Columbia purchased PGG Energy last December, which delivers gasoline and diesel to customers as well as bulk and packaged lubes.
The sale did not include PGG propane, which went instead to Morrow County Grain Growers — effectively splitting PGG Energy into two companies.
All 16 PGG Energy employees did keep their jobs, including Bryan Bailey, who spent 27 years with PGG and oversaw the entire fuel operation. Bailey now heads up the eastern fuel division for Mid Columbia from their new satellite office in Hermiston.
“It has been a very smooth transition,” Bailey said. “Customer retention has been very high.”
For years, PGG Energy was located on Southwest Dorion Avenue in Pendleton next to the main co-op offices and retail store. But that building was never included as part of the sale, which left Mid Columbia looking for a new venue.
“Initially we wanted to stay in Pendleton,” Bailey said. “But we could not find a building that suited what we needed.”
After searching around Pendleton for several weeks, Bailey said they found the perfect spot at 345 N. First Place in Hermiston, which used to house Stoneway Electric Supply. Bailey said the space is plenty big, which will allow them to expand their selection and volume.
For one thing, Bailey said Mid Columbia will introduce a multitude of new fuel suppliers, and a larger supply chain means more competitive prices.
“The fuel business is a business of pennies,” he said. “Any advantage you can get with pricing really helps with your success.”
Mid Columbia is also part of the Pacific Pride and CFN networks, providing additional options for commercial fueling.
More than anything, Bailey said the retention of employees has allowed Mid Columbia to retain PGG customers. A lot of trust goes into building those relationships, and he said farmers are pleased to see the same truck drivers making their deliveries.
“It was very comforting to our customers that the faces they saw out there are the same,” Bailey said.
Jeff Kaser, Mid Columbia manager, said the co-op has steadily built its fuel business since 2011. Mid Columbia made a big splash in 2012, purchasing Bend Oil, and Kaser said PGG Energy was another good fit.
“We want to be in markets where farmers can benefit from doing business with us,” Kaser said.
As a fellow farmer-owned co-op, Kaser said Mid Columbia also shares the same values as PGG in terms of service and community involvement.
“If we can do that, we’ll be successful,” he said.
Nobody wanted to see PGG dissolve, Bailey said, but he is pleased with the direction of the business going forward.
“(PGG) put these businesses in the hands of people who can run them and continue to grow them,” Bailey said. “To me, that’s a success story.”