It’s a double whammy. Not only are taxpayers on the hook after federal workers walked off the job last night, but grain farmers are worried they won’t be able to get their harvest to market in time for the spring planting season, according to the Wheat Growers association..That’s because grain shipments have to be inspected before they can be loaded onto ships and sent overseas. Along with CRA tax officers, Canada Grain Commission inspectors also happen to be members of the Public Service Alliance of Canada union that walked off the job at midnight Eastern time Wednesday morning..A slowing or stoppage of grain movement from Canadian ports will have a massive impact on the entire grain industry, especially farmers, according to Wheat Growers President Gunter Jochum..“Farmers need to continue to deliver last years’ crop before spring seeding to run their businesses and purchase inputs for the 2023 crop. A stoppage would be devastating to the industry, and ultimately to consumers.”. Gunter Jochum .On Tuesday Jochum penned a letter to Agriculture Minister Marie-Claude Bibeau urging her to intervene in the event of a prolonged walkout. Specifically, the Wheat Growers are asking for an exemption from CGC inspections given 70% of grain shipments are double inspected by both the CGC and third parties, a sore point that costs farmers about $60 million per year..Longer term, it wants to move to a regulatory oversight model similar to the US, although it recognizes “that would require a legislative change,” Jochum said.. Food inflation .“Exporters need to fulfill contracts by loading vessels currently in port, to not incur late penalties and vessel or rail demurrage charges. Any disruption to the supply chain will also cause a backlog of vessels that are currently en-route to Canadian ports, adding additional penalties to the industry which will be incurred even after a strike is settled,” he wrote..“This is a cost that can’t be measured when sales are lost to competitors, but the impact to farmers, industry, and the country is devastating. In a world of “just in time” deliveries, reliability from suppliers has never been more important.”.It comes as Canada’s food inflation hits record highs. As of February, food prices were up 10.6% year-over-year, according to Statistics Canada — more than double the overall inflation rate of about 5%. That figure was down from 11.4% in January. Pasta — which is made from wheat — had the highest year-over-year increase at 23.1%.A number of factors were cited for the rise, from supply chain issues, extreme weather, the higher cost of animal feed to the carbon tax and higher gasoline prices. Toss in impacts from the pandemic and the war in Ukraine.. Food inflation .“With efficiencies paramount in any business, is it time for CGC services be moving to a regulatory oversight model like the United States?” the Wheat Growers said..“While we recognize that would require a legislative change, until then we expect government to ensure … vessel loading and movement impacts are minimized because of the strike.”
It’s a double whammy. Not only are taxpayers on the hook after federal workers walked off the job last night, but grain farmers are worried they won’t be able to get their harvest to market in time for the spring planting season, according to the Wheat Growers association..That’s because grain shipments have to be inspected before they can be loaded onto ships and sent overseas. Along with CRA tax officers, Canada Grain Commission inspectors also happen to be members of the Public Service Alliance of Canada union that walked off the job at midnight Eastern time Wednesday morning..A slowing or stoppage of grain movement from Canadian ports will have a massive impact on the entire grain industry, especially farmers, according to Wheat Growers President Gunter Jochum..“Farmers need to continue to deliver last years’ crop before spring seeding to run their businesses and purchase inputs for the 2023 crop. A stoppage would be devastating to the industry, and ultimately to consumers.”. Gunter Jochum .On Tuesday Jochum penned a letter to Agriculture Minister Marie-Claude Bibeau urging her to intervene in the event of a prolonged walkout. Specifically, the Wheat Growers are asking for an exemption from CGC inspections given 70% of grain shipments are double inspected by both the CGC and third parties, a sore point that costs farmers about $60 million per year..Longer term, it wants to move to a regulatory oversight model similar to the US, although it recognizes “that would require a legislative change,” Jochum said.. Food inflation .“Exporters need to fulfill contracts by loading vessels currently in port, to not incur late penalties and vessel or rail demurrage charges. Any disruption to the supply chain will also cause a backlog of vessels that are currently en-route to Canadian ports, adding additional penalties to the industry which will be incurred even after a strike is settled,” he wrote..“This is a cost that can’t be measured when sales are lost to competitors, but the impact to farmers, industry, and the country is devastating. In a world of “just in time” deliveries, reliability from suppliers has never been more important.”.It comes as Canada’s food inflation hits record highs. As of February, food prices were up 10.6% year-over-year, according to Statistics Canada — more than double the overall inflation rate of about 5%. That figure was down from 11.4% in January. Pasta — which is made from wheat — had the highest year-over-year increase at 23.1%.A number of factors were cited for the rise, from supply chain issues, extreme weather, the higher cost of animal feed to the carbon tax and higher gasoline prices. Toss in impacts from the pandemic and the war in Ukraine.. Food inflation .“With efficiencies paramount in any business, is it time for CGC services be moving to a regulatory oversight model like the United States?” the Wheat Growers said..“While we recognize that would require a legislative change, until then we expect government to ensure … vessel loading and movement impacts are minimized because of the strike.”
