Provincial canola groups issued a public statement this afternoon in support the Canola Council of Canada.
Richardson International, one of the largest grain handlers in Canada and a company that crushes canola, announced this week that it is pulling funding from the canola council.
The withdrawal will create a big hole in the council’s budget, as Richardson paid a levy to the CCC based on volumes of canola crushed and canola exports.
In a joint statement, canola grower groups in Alberta, Saskatchewan and Manitoba, along with the Canadian Canola Growers Association, said they are fully committed to the council.
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“Every farmer and company in the canola industry benefits from the success of the Canola Council of Canada and we urge all in the value chain to play their part,” the statement said.
“The canola grower members … fully appreciate the value they receive from the Canola Council of Canada for the substantial grower dollars they contribute and will continue to work to move the organization forward.”
Richardson announced that it is also withdrawing from Soy Canada and the Flax Council of Canada. For a couple of years the private company has been pushing the three organizations to form a joint oilseed council, for the sake of cost efficiency and avoiding duplication.
“The same issues are being discussed at multiple tables by the same people,” said Jean-Marc Ruest, Richardson’s senior vice-president of corporate affairs.
The commodity groups, after many discussions, rejected the merger idea. Ruest said the smaller organizations felt they would be swallowed up by canola, while canola worried that its resources would be used to prop up the smaller crops.
Richardson has been questioning the mandate of the canola Council, such as asking why the organization has a large team of agronomists when private firms already have agronomists.
“Saying that they can do something doesn’t necessarily mean that they should be doing something,” Ruest said.
In response, the grower groups said independent agronomic advice is critical for canola producers.
“The non-sales based agronomy support that the council provides to industry is one of the reasons the canola industry in Western Canada is so resilient,” they said.
“The science-based support they provide to company agronomists and farmers will keep canola a profitable and sustainable crop on Canadian farms for years to come.”
The Canola Council of Canada is a value chain organization, representing growers, grain handlers, exporters, processors and life science companies.
— with files from Sean Pratt
robert.arnason@producer.com
