The national industry association that represents the Canadian cereal grains value chain is navigating some internal upheaval, as multiple grain company members have notified the organization of their intent to withdraw their membership in Cereals Canada.
Cereals Canada’s members — which include provincial grain producer organizations from across Canada, grain exporters, crop input companies, millers, and other customers of Canadian wheat and barley — are required to provide two-years notice before withdrawal.
While many details remain within the confines of Cereals Canada’s head office and boardroom, RealAgriculture has learned that Cargill submitted its withdrawal letter prior to a June 1, 2024 renewal deadline. The company said it will remain a committed participant in Cereals Canada over the next two years, and that it plans to reassess its membership before the two year notice period expires.
Smaller Saskatchewan-based grain handler North West Terminal has already withdrawn, citing the need to reduce its expenses.
Multiple industry sources say other companies have also signalled their intent to withdraw from Cereals Canada for various reasons. RealAgriculture has contacted these companies, and is awaiting further confirmation before naming them.
The following grain companies are listed as members on the Cereals Canada website, as of June 25:
- AgroHall
- Cargill (confirmed having given withdrawal notice)
- G3 Canada
- North West Terminal (confirmed leaving)
- Parrish and Heimbecker
- Richardson
- Viterra (awaiting approval of acquisition by Bunge)
Headquartered at Winnipeg, the cereals industry group was established following the end of the Canadian Wheat Board’s single desk in 2012. In 2020, the organization merged with the Canadian International Grains Institute (or Cigi), which has provided technical expertise to customers of Canadian grain and market promotion since 1972.
Cereals Canada itself has indicated it will not comment on membership renewals out of respect for the privacy of its members.
The Cereals board of directors is meeting in Winnipeg this week ahead of the organization’s annual general meeting on Thursday, June 27.
Cereals Canada staff had planned to also launch a campaign on Thursday to raise awareness and millions of dollars in funding for a new multi-purpose facility in downtown Winnipeg that would serve as a grain industry hub for research, technical support and market development called the “Global Agriculture Technology Exchange” or GATE. However, industry stakeholders were notified late last week that the launch had been postponed due to “unforeseen scheduling conflicts” involving several key people. No new date was given for a rescheduled GATE announcement.
In the meantime, the Wheat Growers Association, which is not a member of Cereals Canada, says it is opposed to the proposed plan for a new facility.
“Make no mistake, there is a softening within the agricultural industry now and wasting money on an unneeded shiny new building does not benefit farmers or the grain industry,” says Wheat Growers president and Manitoba farmer Gunter Jochum, in a June 25 news release.
The Wheat Growers say discussions about a new building should be put on hold until Cereals’ membership uncertainty is sorted out and the organization has conducted a transparent review of its future role and direction.
Cereals Canada members (listed online as of June 25, 2024):
- AgroHall
- Alberta Grains
- Atlantic Grains Council
- BASF
- Bayer
- B.C. Grain Producers Association
- Bimbo Canada
- Canadian National Millers Association
- Cargill
- Corteva
- G3 Canada
- Producteurs de Grains du Quebec
- Grain Farmers of Ontario
- Manitoba Crop Alliance
- North West Terminal
- Parrish and Heimbecker
- Richardson
- SaskBarley Development Commission
- SaskWheat Development Commission
- Syngenta
- Viterra
- Warburtons
Stay tuned for further updates.
Related:
Poll: What should a “Grains Centre of Excellence” do?
