Team Turmoil Puts Canada’s Reputation at Risk

Op-ed first published at https://www.realagriculture.co...)

It’s hockey playoff season in Canada. The time of the year when Canadians witness what ingredients are necessary for a successful team – a group of people working hard together to compete, solving problems amongst themselves, and delivering results when the pressure is on.

It is this type of approach that is currently lacking and it’s putting the welfare of Canadians and others at risk. As representatives of Canada's largest agricultural value chains, the Canola Council of Canada, Cereals Canada, Pulse Canada and our memberships are deeply concerned about the looming threat of strike action at CN and CPKC, Canada’s two cross-continent railways. Having both national rail carriers out of service at the same time poses a significant risk, not just to our industries, but to the entire Canadian economy.

Canada's agriculture sector stands as a cornerstone of our nation's prosperity, contributing billions annually to our economy and providing livelihoods for countless Canadians. For perspective, our sectors alone exported over $34 billion in canola, cereals, and pulses to over 100 markets in 2023. The products we grow represent the most important of goods – staple crops that deliver needed food and feed domestically and to regions around the world.

Our industry accomplishes this, to a significant degree, through its reputation as a reliable supplier of quality grains and oilseeds to countries around the world. But, like a first line hockey player – keeping our reputation depends on our ability to deliver. With rail strikes looming, the timely delivery of our agricultural products to international markets hangs in the balance. When strikes happen, farmers can’t deliver their grain, shipments are delayed, contract penalties are applied, orders are cancelled, and Canada’s global competitors are more than happy to eat our lunch. Further, it can take months to clear the backlog of even short stoppages. Allowing these shipments to stop, for any length of time, is not only a threat to Canada’s economy but to global food affordability and security.

Domestically in Canada, rail service is necessary to move fertilizer, grain, ingredients, and the finished food products we buy from our stores. Canadians have already seen the impacts of food inflation and supply chain disruptions. Suffice it to say, our own consumers know that it’s never been more important that they get reliable services and supply.

It doesn’t have to be this way. It's imperative to recognize that strikes affecting the heart of our food supply are avoidable and the consequences of not doing so are far-reaching and have long-lasting impacts on the agricultural sector and the Canadian economy as a whole.

For months, our organizations and many others have advocated that the federal government utilize all tools at its disposal to prevent a strike. With so much at stake, we continue to urge them to engage in meaningful dialogue with both labour and management to find a resolution that protects the interests of all parties involved.

We’ve spoken with politicians, civil servants, and members of Canada’s shipping supply chain who have communicated they understand the gravity of the situation. If we all agree, then we must act to find a resolution that prioritizes the livelihoods of Canadians and keeps Canadian products moving.

As representatives of Canada's agricultural value chain, we call on the federal government to prioritize the interests of farmers, processors, exporters, shippers, consumers and the broader economy. We cannot afford to let preventable labour disputes derail the effort put into creating resilient supply chains that will help establish Canada’s reputation as a dependable supplier of agricultural products. The potential upcoming work stoppage is just one in a long series of disruptions that have rocked the agriculture sector and Canadian economy. Blockades, port strikes, and rail lockouts over the past several years, with others on the horizon, cumulatively impair our global reputation as a supplier of choice. This hurts farmers, consumers, and the entire value chain at a time when food security has never been more important or precarious.

Accordingly, the federal government must use all tools at its disposal to avoid a strike, and our organizations stand ready to support efforts to find a resolution that protects the interests of all Canadians.

It is incumbent on each one of us to make this case directly to those with a seat at the table. So, the next time you see your MP or Senator at the local coffee shop or community event, let them know how the rail work stoppage will impact your farm and your business. It is important they hear directly how your products destined for export or for delivery to your local store are going to be left stranded with no alternative for transport. Our organizations will continue to use all levers at our disposal to carry the same message to those who can avert this looming crisis.

Together, we must act to prevent disruptions to our supply chain and build Canada's reputation as a reliable grain shipper. If we can’t figure this out in our own home team dressing room, what chance do we have on the ice?

Chris Davison is the President & CEO of the Canola Council of Canada.

Dean Dias is the CEO of Cereals Canada.

Greg Cherewyk is the President of Pulse Canada.