I am writing to you on behalf of the Saskatchewan Wheat Development Commission (Sask Wheat) to raise our concerns with the impending Grain Workers Union (GWU) strike at the Port of Vancouver, which would stop all shipments of bulk grain.
Sask Wheat represents approximately 24,000 Saskatchewan wheat and winter cereals producers for whom timely, responsive, and efficient supply chains are fundamental to their competitiveness and profitability. Saskatchewan produces almost half of the non-durum wheat and 80 percent of the durum grown in Canada annually, the majority of which is moved by rail to ocean ports and then to export markets.
The Port of Vancouver is critical to Canada’s grain supply chain, as 70 percent of western Canadian grain shipments are exported through Vancouver. Data from the Canadian Grain Commission shows that these terminals receive approximately 100,000 metric tonnes of grain per day, resulting in $35 million in lost export potential per day if a work stoppage occurs.
A work stoppage at terminal elevators would further congest the grain handling and transportation system across western Canada, which is still recovering from the dual rail work stoppage in August. Another work stoppage would prolong the recovery period even further, at a critical time for grain shipments as we near the end of the harvest period. If grain companies are unable to ship grain to terminal elevators, in-country elevators will inevitably fill-up which will impact farmers’ ability to deliver grain, negatively impacting cash flow on farms. This will have a significant impact on farmers as many depend on fall movement of grain as bills for this year’s crop come due and expenses begin to accrue for next year’s crop.
Furthermore, the potential of another work stoppage in our grain handling and transportation system will further damage Canada’s reputation as a reliable supplier of high-quality grain to international markets with future repercussions for sales and our global competitiveness. Sask Wheat encourages the Government of Canada to utilize all available tools to ensure the parties come to an agreement as soon as possible to prevent further damage toproducers and the Canadian economy.