Richardson International’s decision to withdraw from the Canola Council of Canada wasn’t a surprise, considering that it’s been rumoured for a couple of months.
More surprising was that Richardson also pulled funding from Soy Canada, a group representing soybean growers, processors and exporters. The value chain organization deals with market access issues, helps co-ordinate research and supports market development.
Ron Davidson, Soy Canada executive director, said the withdrawal is worrisome but it won’t have a huge impact on the organization’s budget.
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Soy Canada’s funding model caps the contribution of a seed company, exporter or processor at $25,000.
The canola council, on the other hand, charges levies of 23 cents for every tonne of canola exported and 23 cents per tonne of canola crushed.
In 2017, canola crushers and exporters contributed about $4 million to the council’s budget. Richardson, one of the largest players in Canada’s grain industry, was likely paying levies of $750,000 to $1 million to the canola council.
Losing one funder may be manageable, but it’s not a small matter for Soy Canada, Davidson said.
“If someone decides to no longer be a member, of course it’s a concern to us,” he said. “Our objective is to ensure that what we are doing is valued by members.”
Richardson had been pushing Soy Canada, the canola council and the Flax Council of Canada to restructure their mandates and form a joint oilseed council to increase efficiency and avoid duplication.
The private firm pulled funding when the discussions reached a dead end.
Davidson said soy, canola and flax may have separate organizations but they do collaborate and co-operate on common goals.
“I think the perception that everybody is working in silos isn’t accurate,” he said. “We already do work, a lot, with other organizations.”
For instance, groups representing canola, soy, pork, wheat and beef work together through the Canadian Agri-Food Trade Alliance as part of a joint effort around international trade.
The unwillingness to form a national oilseed council may have influenced Richardson’s decision, but it probably wasn’t the biggest factor, Davidson said.
“My perception … the fact that there isn’t one organization, doing everything, isn’t the deal-breaker. It’s a matter of getting value for their investment.”
Davidson is convinced Soy Canada does provide value in a number of ways, such as promoting the Canadian brand and the advantages of Canadian soybeans to foreign buyers.
“We are, in our case, competing with some pretty big competitors out there — the United States, Argentina, Brazil,” he said. “They have very active and forceful promotional (bodies).”
