A report on the future of mandatory inspection and weighing of grain hasn’t done much to resolve the contentious issue.
The cost-benefit analysis by consultant Meyers Norris Penny has presented the Canadian Grain Commission with seven options for acting, including:
- Make the service optional except for producer cars.
- Eliminate service for grains shipped from country to terminal elevators owned by the same company.
- Replace mandatory inspection with collection and retention of samples for the purpose of dispute resolution.
- Implement mandatory inspection at prairie points when grain is loaded out.
Read Also
Petition launched over grazing lease controversy
Battle continues between the need for generation of tax revenue from irrigation and the preservation of native grasslands in southern Alberta rural municipality.
The commission now faces the task of doing its own analysis of the various scenarios, with an eye to selecting the most economical and efficient option.
“Our goal is to try to maintain efficient operations and make do with the limited resources we have available to us,” said Reg Gosselin, director of corporate services for the CGC.
“We’re always looking for ways to do things more efficiently.”
He said inward inspection and weighing fees provide a cost recovery level of 56 percent, down from 90 percent a few years ago, reflecting the funding crunch facing the CGC. The commission also has to keep in mind its legislated mandate of acting in the interests of producers.
Under the Canada Grain Act, every rail car arriving at a terminal or transfer elevator is subject to weighing and inspection by CGC personnel, who take samples to establish grade, dockage, moisture, protein and cleanliness.
The major grain companies and some farm groups have proposed making the monitoring optional, saying such a system would save money for everyone involved.
However, other farm groups as well as the Canadian Wheat Board and producer shippers say mandatory inspection by an independent third party is crucial in protecting the interests of grain producers and ensuring the integrity of the grain quality assurance system.
The MNP report says those groups expressed concerns they won’t receive accurate weights and grades if third party inspection becomes optional.
“The western Canadian system has been built as a system that assumes the railways and the elevators may not act in accordance with their normal commercial obligations if the CGC does not monitor 100 percent of the unload activity,” it said.
Any change to the mandatory service would require amendments to the grain act.
In addition to the internal review by the CGC, the report has also been forwarded to consultants conducting an independent review of the commission and the Canada Grain Act for the federal minister of agriculture.
Meanwhile, farmers and other interested parties have until the end of August to make comments to the commission about its June 29 announcement on kernel visual distinguishability and the restructuring of wheat classes.
That report proposed retaining KVD requirements for CW red spring and CW amber durum wheat, eliminating it for minor classes and creating a new class called CW general purpose with disease and resistance criteria but limited quality requirements.
The commission said such a system will protect markets for high quality milling wheat, while enabling the introduction of new non-milling varieties for feed and industrial uses.
The report was based on extensive consultation with industry groups, and the commission set a final deadline for comments of Aug. 31.
Gosselin said last week the response to the report has been muted, with favourable reaction from the wheat board and the pork industry, and a mixed response from plant breeders.
