At least one crop protection company is among the group of Cereals Canada’s industry members that have submitted withdrawal notices to the national cereal grain value chain organization.
BASF Canada Agricultural Solutions filed the notice ahead of Cereals Canada’s annual general meeting on June 27th.
Several grain company members, including Cargill, have also signaled their intent to withdraw, as reported by RealAgriculture this past week. Multiple industry sources say additional grain companies have shared withdrawal notices, but these companies say they will not comment at this time. North West Terminal has already withdrawn — the Saskatchewan-based grain handler’s name disappeared from the member page on Cereals Canada’s website this week.
In an emailed statement, BASF refers to Cereals Canada’s unique requirement for members to provide a withdrawal notice two years prior to their respective withdrawal and to pay their annual membership fee during this withdrawal period. BASF would prefer to have the ability to assess its membership in Cereals Canada on an annual basis.
“BASF’s withdrawal notice is conditional based on agreeable changes being made to the Cereals Canada Membership Agreement that removes multi-year financial obligations in the circumstance a member chooses to withdraw from Cereals Canada,” the company says.
“BASF remains aligned with the Cereals Canada mandate and the value it provides the cereals industry in Canada. BASF will continue to support Cereals Canada initiatives and efforts, and during the two-year withdrawal period will participate on the board as an industry partner,” the statement continues.
BASF’s Jared Veness was one of two industry representatives elected to the board this past week.
Cereals Canada CEO Dean Dias acknowledged the organization’s unique two-year withdrawal process in a June 27th interview.
“That’s to make sure that we have financial stability as an organization,” he said.
The organization formally announced its plan last week to build the “Global Agriculture Technology Exchange” (or Gate) near its current headquarters in downtown Winnipeg, with an estimated price of $100 million. Dias said they will be launching a capital campaign — separate from annual fees paid by members — in the coming months to start raising funds for the facility, which would serve as a hub for grain research, technical support, and market development work.
Cereals Canada was established following the end of the Canadian Wheat Board’s single desk in 2012 to bring together producer commissions, grain exporters, crop input companies, and end-users of Canadian wheat and barley. In 2020, Cereals Canada merged with the Canadian International Grains Institute (or Cigi), which has provided technical support to customers and promoted Canadian grain exports since 1972.
Related:
Cereals Canada announces vision for $100 million Global Agriculture Technology Exchange
Cereals Canada facing membership upheaval
