Saskatoon, SK – The Saskatchewan Wheat Development Commission (Sask Wheat) is calling on the Government of Canada to immediately enact binding arbitration to end the CP work stoppage.
Sask Wheat represents the wheat producers of Saskatchewan for whom timely, responsive, and efficient rail service is fundamental to their crop marketing, just as it is for the entire western Canadian grain production industry. In 2021, Saskatchewan produced almost 40 percent of the spring wheat and over 80 percent of the durum grown in Canada, the majority of which is moved by rail to ocean ports and then to export markets.
Saskatchewan wheat producers are captive to rail and often captive to a single carrier. For many producers this carrier is CP. Most Saskatchewan producers do not have the option of moving their business toward other transportation service providers during a service disruption because of distance, geography, the pattern of rail development, and the lack of additional rail capacity.
“After a year of terrible weather conditions that impacted yields, and with farmers now dealing with high input costs, stopping the transportation of grain and fertilizer is just adding insult to injury,” said Sask Wheat Chair, Brett Halstead. “Not being able to move their grain will mean that some farmers will not be able to meet their cash flow requirements to operate their businesses. The timing is particularly bad for farmers, as it will also impact the movement of fertilizer with seeding only a few weeks away.”
Without access to CP’s rail service, a major part of Western Canada’s grain marketing system will quickly come to a halt. The flow of grain through the ports and onto vessels will also be slowed as port storage is not replenished. If the rail service disruption continues, existing contractual obligations with Canada’s international grain customers will not be met and new sales will be forgone. The immediate damage will be widespread across the Canadian economy. In addition, Canada’s reputation as a reliable supplier of high-quality grain to international markets will be damaged, with future repercussions.
Saskatchewan wheat producers are depending on the Government of Canada to take decisive actions to solve the CP rail service disruption quickly.
Source : saskwheat.ca