The national trade association representing Canada’s grain value chain is in internal turmoil after several grain company members notified the association of their intention to withdraw from the Canadian Grains Council.
The CGC, whose members include provincial grain grower associations across Canada, grain exporters, crop input companies, millers and other customers of Canadian wheat and barley, is required to give two years’ notice before withdrawing.
While many of the details are known only within the CGC’s headquarters and boardroom, Real Agriculture has learned that Cargill submitted its withdrawal notice ahead of the renewal deadline of June 1, 2024. The company said it committed to participating in the CGC for the next two years and will reevaluate its membership before the end of the two-year notice period.
North West Terminals, a small grain handler based in Saskatchewan, has already pulled out, citing the need to cut costs.
Multiple industry sources said other companies have also indicated they intend to exit Cereal Canada for a variety of reasons. Real Agriculture has reached out to those companies and is waiting for further confirmation before naming them.
As of June 25, the following grain companies are listed as members on the Cereals Canada website:
- Agro Hall
- Cargill (confirmed to have given notice of withdrawal)
- G3 Canada
- Northwest Terminal (Departure confirmed)
- Parrish and Heinbecker
- Richardson
- Viterra (pending acquisition approval by Bunge)
Headquartered in Winnipeg, this grain industry association was formed in 2012 following the elimination of the Canadian Wheat Board’s Single Desk. In 2020, the organization merged with the Canadian International Grains Institute (Cigi), which has provided technical expertise to Canadian grain customers and market promotion since 1972.
The Canadian Cereals Association itself said it would not comment on membership renewals out of respect for its members’ privacy.
Cereals’ board of directors is meeting in Winnipeg this week ahead of the organization’s annual general meeting on Thursday, June 27th.
Canadian Grains Council staff had planned to launch a campaign Thursday to raise awareness and millions of dollars for a new multi-purpose facility in downtown Winnipeg that would be a hub for grain industry research, technical support and market development called the “Global Agricultural Technology Exchange,” or GATE. But industry officials were informed over the weekend that the launch had been postponed due to “unforeseen scheduling conflicts” involving several key players. No new date for the rescheduled announcement of GATE was announced.
Meanwhile, the Wheat Growers Association, which is not a member of the Canadian Grain Council, opposes the proposed new facility.
“Make no mistake: the agriculture industry is in a soft spot right now, and wasting money on shiny new buildings we don’t need will not benefit our farmers or the grain industry,” Gunter Jochum, president of the Wheat Growers Association and a Manitoba farmer, said in a June 25 news release.
The Wheat Growers Association says consultation on the new building should be put on hold until uncertainty around the grain association’s membership is resolved and the association conducts a transparent review of its future role and direction.
Canadian Grain Council Members (online list as of June 25, 2024):
- Agro Hall
- Alberta Grains
- Atlantic Grains Council
- BASF
- Bayer
- BC Grain Growers Association
- Binbo Canada
- Canadian National Flour Mills Association
- Cargill
- Corteva
- G3 Canada
- Quebec Grain Growers
- Ontario Grain Farmers
- Manitoba Crops Alliance
- Northwest Terminal
- Parrish and Heinbecker
- Richardson
- Saskatchewan Barley Development Commission
- Saskatchewan Wheat Development Commission
- Syngenta
- Viterra
- Warburton
Please look forward to future updates.
Related:
