The P.E.I. Grain Elevators have a storage capacity of around 27,000 mt. Grain and products are marketed throughout P.E.I. and Atlantic Canada. There is a staff of up to 20 employed depending on the stage of the annual business cycle. Every effort is made to meet or exceed the storage capacity of the system, thus ensuring that the best possible use is made of the infrastructure.

The P.E.I. Grain Elevators Corporation operates a number of grain marketing pools for producers who elect to settle for an average or "pooled return". An annual marketing and sales plan is developed on behalf of growers by Corporation management and is overseen by the Board.

In such a system the costs of storage, handling and marketing are borne by a central service agency, There is a fee charged for these services, and producers are paid a net return based on the averaged returns received on all pool grains marketed by the Corporation. Normally this return is higher than producers would otherwise receive at harvest, and is of special interest to growers who do not have access to grain handling, or storage facilities.

Interim and final payments are paid to producers if applicable throughout the marketing year, after a determination as to the amount of any applicable payment has been made by the Board of Directors. Downside price risk is borne by the grower in two ways: One through a producer hold-back and hedging plan, the other through the possibility of of an adjustment to the Standard Operating Costs made after the Pools are closed.

When applicable, the Corporation takes such steps as are necessary to hedge the inventory at the time of purchase This has included the purchase of "corn puts" from the Chicago Mercantile Exchange. By this means a primary responsibility for managing risk lies with producers as overseen by the Board of Directors, who direct the affairs of the Corporation. In 2002, the Corporation was also successful in implementing a price guarantee program; a federal program funded by Agriculture and Agri-food Canada. It sets a floor around the initial producer price below which this price cannot drop. These risk management tools are strong features of any pooling system.

Growers may elect to sell a portion of their crop directly to the Corporation at daily market prices established from time to time. There is no obligation on the part of the Corporation in this case, to pay a portion of pooled returns to growers who elect to market through this option. The crop can be marketed directly from the farm or delivered to one of three elevator locations.

In the final analysis, the costs charged to pool participants reflect the profits earned on ancillary operations, contribution margin captured through direct sales or brokerage activities plus applicable overhead charges.