A Saskatchewan farmer says he is taken aback by the tough stance Viterra is taking in enforcing contracts.
Paul Beingessner of Truax, Sask., recently received a letter from Canada’s largest grain company reminding durum growers to live up to their contractual obligations or face potential legal prosecution.
“It reminds me of the way Monsanto has aggressively defended (plant breeder’s rights) as well,” he said.
The letter, dated April 21, tells durum growers that while most of them are abiding by the rules of their AC Navigator and Commander contracts, some of them need a reminder of what they signed.
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“It is important for all growers to understand their contractual and legally binding obligations with our company,” the letter said.
Those obligations are that AC Navigator and Commander can be grown only from certified seed bought from Viterra, must be grown, harvested, binned and handled separately from other crops and no seed can be kept or held back for planting or distribution.
“Viterra is investigating instances where we are aware of breaches of the above obligations,” the letter said.
“Viterra is considering all remedies, including legal action, to enforce these rights and protect our (identity preservation) programs.”
Beingessner was taken aback by the tone of the letter.
“It struck me as interesting that they are taking such a hard line.”
Doug Wonnacott, Viterra’ senior vice-president of agri-products, said the company is protecting the integrity of a program that delivers value to growers by giving them access to varieties with superior agronomics that are preferred by many of the world’s leading pasta producers.
In an e-mail, he said failure to honour the terms of the contracts jeopardizes their viability and threatens continued investment in research into new varieties with improved agronomics, higher yield and desirable end-use traits.
“Breaching contract terms penalizes the vast majority of farmers who honour their contracts. Their investment is being put at risk by the small minority of farmers who don’t.”
Beingessner has spoken to an unnamed contact at the Canadian Wheat Board who told him Viterra believes a lot of farmers are violating the Navigator contract.
However, he doesn’t believe that warrants launching a threatening, shotgun letter campaign. It reaffirmed his decade-long stance to cease all dealings with Viterra or its predecessor, the Saskatchewan Wheat Pool.
“When I get something like that it doesn’t encourage me to want to do business with them at all.”
He wonders why the grain company is worked up about a few growers saving seed and selling the resulting crop into the regular durum pool, considering the grain won’t be competing with or undermining Viterra’s premium-priced, identity preserved durum.
“What’s lost or what’s gained if farmers are just growing it and selling it into the conventional market? It’s no skin off Viterra’s nose.”
