WINKLER, Man. – The recent rail strike cast dark clouds over the operations of most companies that ship grain.
But owners of a small sunflower seed processing company said they were able to find the proverbial silver lining. Keystone Grains competes in European markets with processors from the northern United States, who also ship through the port of Montreal.
Lloyd Thiessen, one of six partners of the company said things are getting back to normal. Keystone Grains is now loading containers with seeds, but Thiessen said it will be two weeks before ships will be loaded because of the backlog.
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The strike frustrated owners because they’ve based the young company’s reputation on quality and good, timely service. They’ve found farmers who can give them what they need and good markets for the product.
They said transportation is the only factor they can’t control, other than the weather, and it held them hostage for a few weeks. “You just realize how vulnerable you are to a certain group of people that has very little to do with agriculture,” said Thiessen.
“It’s frustrating, to say the least,” said Bruce Wiebe, another partner.
During the strike, Keystone’s plant was filled with rows of bags of dehulled seeds that would normally be moving out quickly. Thiessen said the company had orders for the seeds from European bakers, who use them in bread and other goods. Freshness is key.
Thiessen and Wiebe said the strike ended in good time. They don’t think their bottom line will be seriously affected. But the strike did throw them a few curve balls:
- Cash flow will remain tight for another six weeks until product gets to market.
- About 40,000 pounds of seeds were stuck in Montreal for a few weeks. Usually, it takes them about three weeks to get from Winkler to Europe. They have a shelf-life of about two months. Thiessen said the seed has left the port, but he’s not sure how it’s faring.
- The company had to stop deliveries from farmers during the strike, throwing off their schedule and cash flow temporarily.
“They’ve got crops to plant,” said Wiebe, adding that farmers were sympathetic. “They want to get their bins empty and they don’t want to be hauling once they’re seeding.”
Thiessen said the plant continued to work 24 hours a day through the strike, a pace it has kept up since October. No one was laid off.
Profile of Keystone Grain
Type of business: sunflower seed processing.
Location: Winkler, Man. (about 150 km southwest of Winnipeg).
Product: 80 percent dehulled seeds for baking and edible seeds in the shell; rest is birdseed.
Markets: 75 percent of edible seeds go to
Europe; birdseed goes to Eastern Canada and U.S.
Competition: about 10 companies in the
northern U.S.; no Canadian competitors.
Acres contracted: about 10,000.
Farmers contracted with: about 100.
Employees: more than 20 full time.
Years in operation: bought two years ago by six local entrepreneurs.
