Identity preservation experts say Canada has built the wrong kind of
system to properly handle segregated grain and a second separate and
distinct handling and transportation system may have to be developed.
Sally Rutherford, director general of integrated policy systems with
Agriculture Canada, told producers at Crop Production Week that
consumers are increasingly demanding to know where the food they eat
comes from.
But Canada is poorly equipped to accommodate identity preservation
because its handling and transportation system has been built around
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huge, high throughput terminal elevators and hopper cars stuffed with
grain.
Rutherford said there clearly has to be “further developments” in
elevation and transportation infrastructure to accommodate segregation
and traceability.
This identity preservation dilemma is the focus of a new, three-year
research project at the University of Saskatchewan.
Agricultural economist James Nolan is one of four researchers who will
be working on the project. He said grain companies were shortsighted in
the handling system they built.
“I do think there was some myopia in terms of this investment, which
was completely driven by a bulk system and a relatively homogeneous
commodity.”
But in fairness to those companies, the big push for grain segregation
would have been hard to forecast, said Nolan.
The genetically modified crop “revolution” that is driving consumer
demands for identity preservation emerged around the same time that
grain companies were consolidating their elevator fleets.
That said, Nolan thinks those recently destroyed wooden elevators could
have been incorporated nicely into an identity preserved handling
system.
Ed Guest, secretary manager of Western Grain Elevators Association,
said the construction of inland terminals and the subsequent demolition
of older, wooden structures was the rational response to a financial
crunch.
“This country kept saying that the system had to reduce its costs,”
said Guest.
“What was required was to move 50 million tonnes (of grain) cheaper
because farmers weren’t making it and grain companies weren’t making
it.”
Guest said some IP work is being done with products like malt barley
and Warburtons wheat. But he agrees that Canada is not well equipped to
handle identity preservation on a large scale and he is unapologetic
about that situation.
“If we can afford to sell 50 million tonnes in 10-tonne lots – great.”
But in reality, that scenario is not affordable, said Guest.
He said it is physically impossible to handle large volumes of grain in
small, segregated lots without losing money hand over fist.
Nolan agrees that bulk handling is here to stay. But he thinks one
“distinct possibility” for segregating crops like GM canola from
conventional canola is to create a second entirely separate grain
handling and transportation system.
The research project he is working on will explore the possibility of
using container cars as a method of identity preservation. Those
containers would be shipped to one port designated to handle segregated
product, such as Prince Rupert.
If identity preservation premiums are high enough, Nolan thinks this
could be a viable option.
“Given present consumer attitudes towards these kinds of foods and
these modifications, we really think the two port solution is going to
come about.”
