CGC suspends pulse buyers’ licences

Suspension means Canpulse Foods and Global Grain Canada cannot buy grain from farmers or issue Canadian Grain Commission grade names

Farmers who have sold grain to Canpulse Foods or Global Grain Canada Ltd. and haven’t been paid should contact the Canadian Grain Commission.

On Oct. 31 the CGC suspended the licences of three inter-related companies, which buy pulse and special crops from prairie farmers.

“We’re asking producers to contact us immediately, if they have not been paid by these companies,” said Remi Gosselin, CGC spokesperson.

The three companies, now with suspended licences, are:

  • Canpulse, which has a primary elevator in Kindersley, Sask. It buys lentils, peas, chickpeas, flax and other special crops.
  • Global Grain Canada, located in Plum Coulee, Man., also buys pulses, mainly dry beans.
  • Globeways Canada Inc., located in Mississauga, Ont., and the parent company of the two prairie firms, has a CGC licence as a grain dealer.

“The decision was made because the companies’ security provider notified the CGC that the three companies’ coverage had terminated, effective Oct. 30,” Gosselin said.

Grain firms must provide financial security to cover “all eligible liabilities,” with a bond, letter of credit or guarantee or payables insurance, the CGC website states.

The suspension of licences means the companies cannot buy grain from farmers and cannot issue CGC grade names.

“Also, they are prohibited from selling grain stocks in store for which payments are outstanding…. Meaning cheques have not been issued,” Gosselin said.

“The three companies have 30 days to obtain alternate security coverage. If they do not, their licences will be revoked.”

Global Food and Ingredients, GFI, purchased Canpulse’s sites in Lajord, Vigro and Zealandia, Sask., last fall.

It provides toll processing for Canpulse.

“GFI will not be receiving or shipping any grain on behalf of Canpulse until such time as its licence is reinstated by the CGC,” GFI said in a statement.

“GFI is seeking clarity from CGC on how to handle unpaid and unshipped grain held at our facilities.”

Gosselin didn’t share the number of affected producers or how much the companies owe for delivered grain.

“We started a process to determine liabilities. We can’t comment on the amount of claims… until we finish the process,” he said.

“Our auditors are going to on-site at the company’s elevator sites, in the coming days.”

In the meantime, the CGC priority is making sure there is security in place, to cover grain deliveries prior to Oct. 31, so producers aren’t at risk of non-payment.

Gosselin urges affected farmers to contact the CGC as soon as possible.

“Producers have 30 days to make claims to the grain commission.”

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