A disruption in rail service is in effect between Canada’s Class One railways and the Teamsters Canada Rail Conference Union.  As a result, the Canola Council of Canada says service has ground to a halt, impacting all segments in the value chain.  With farmers already harvesting some grains in parts of Canada and the U.S., the work stoppage couldn’t have come at a worse time for the grains sector.  Grain elevators and oilseed processors are reducing capacity and curbing production, resulting in delays in executing customer contracts and farmers are losing their ability to sell their commodities.  In turn, that affects their ability to cash flow their operations.

 

This will further damage the reputations of farmers in both countries as reliable suppliers and risks future exports and loss of market share to competitors.  Given the lack of progress, ag groups want Canada’s government to send both groups to binding arbitration.

 

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