At least one agrochemical company is among a group of industry members of the Canadian Grains Council that have filed a withdrawal notice with the national grain value chain organization.
BASF Canada Agricultural Solutions submitted the notice ahead of the Canadian Grains Council’s annual general meeting on June 27.
Several grain companies, including Cargill, have also indicated they intend to exit. RealAgriculture reported last weekMore grain companies have shared their withdrawal notices, according to industry sources, but the companies would not comment at this time.Northwest Terminals has already withdrawn, and the name of the Saskatchewan-based grain handler disappeared from the membership page on the Canadian Grains Council website this week.
In an emailed statement, BASF cited the Canada Grain Council’s unique requirements for membership, which include submitting a notice of withdrawal two years prior to withdrawal and paying annual membership fees during the withdrawal period. BASF would like to have the ability to evaluate the Canada Grain Council’s membership on an annual basis.
“BASF’s notice of withdrawal is contingent on agreeable changes being made to the Canada Grain Council’s membership agreement, which would result in the removal of multi-year financial obligations if members choose to withdraw from the Canada Grain Council,” the company said.
“BASF remains committed to the Canadian Grain Council’s mission and the value it provides to Canada’s grain industry. BASF will continue to support the Canadian Grain Council’s commitments and efforts and will participate on its board as an industry partner during its two-year withdrawal period,” the statement continued.
Jared Benes of BASF was one of two industry representatives. Elected to the Board of Directors This past week.
Canadian Grains Council CEO Dean Dias acknowledged the council’s unique two-year exit process. Interview on June 27th.
“This is to ensure our financial stability as an organization,” he said.
The organization is officially The plan was announced last week. The company plans to build a “Global Agricultural Technology Exchange” (GATE) near its current headquarters in downtown Winnipeg at an estimated cost of $100 million. Diaz said the company will begin a fundraising campaign in the coming months, separate from the annual dues members pay, to begin raising funds for the facility, which will be a hub for crop research, technical support and market development activities.
The Canadian Grains Council was formed in 2012 to bring together producer boards, grain exporters, crop input companies and end users of Canadian wheat and barley following the demise of the Canadian Wheat Board’s Single Desk. In 2020, the Canadian Grains Council merged with the Canadian International Grains Council (Cigi), which has provided technical support to customers and promoted Canadian grain exports since 1972.
Related:
Canadian Grains Council Announces $100 Million Global Agricultural Technology Exchange Initiative
