Harvest isn’t likely to hit high gear in Western Canada for another six to eight weeks, but farm groups are already anticipating potential difficulties moving what could be a gigantic crop.
Last week, Saskatchewan’s general farm group, the Agricultural Producers Association of Sask-atchewan, alerted rail companies and grain handlers that they should be prepared to handle a potentially huge harvest.
Crops across the West are off to an ideal start.
APAS president Norm Hall said his organization wants to ensure that grain companies and railways are ready once the new crop starts to come off fields.
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“We may be only 30 to 60 days from harvesting a significantly larger than normal crop,” Hall said in a June 21 news release.
He said so far, Saskatchewan crop conditions have been rated as good to excellent in most areas of the province in the Saskatchewan Agriculture weekly crop report, and most crops in other prairie provinces are faring equally as well.
The potential for a larger than average crop across the Prairies grows each week.
Hall said producers want reassurances that the railways in particular have plans in place to mobilize staff and equipment, and that grain companies have sales programs designed to handle larger volumes.
In the 2013-14 crop year, Western Canada produced its biggest crop ever.
Railway companies struggled to move that bumper crop, blaming extreme winter conditions and high demand from other shippers in the potash and crude oil industries.
Some railways also said they were surprised by the size of the harvest.
“This led to a logistical nightmare for prairie producers, one that cost them $1.5 billion in lost revenues,” Hall said.
“We need to get it right this year.”
Railway companies responded to Hall’s message last week, saying they are communicating with grain shippers and have taken steps to ensure a smooth flow of prairie grain to export terminals and North American end users.
“CN is communicating with its grain customers to understand the requirements associated with the transportation of the coming grain crop in Western Canada,” Canadian National Railway said in a written statement.
Canadian Pacific Railway offered similar assurances, saying the company is well positioned to provide “best-in-class service to western Canadian grain shippers during the 2016-2017 crop-year.”
“The rail supply chain has returned to normal since the extraordinary crop and winter of 2013-14,” CP said in a June 24 email.
“This means there is now excess capacity in the supply chain, including thousands of rail cars in storage ready to move the latest crop.”
CP said operational changes such as the Dedicated Train Program and Open Distribution program will allow the railway and its customers to move grain more efficiently and respond more quickly.
DTP is designed to provide shippers with greater clarity and control of car supply to manage their supply chain.
Open Distribution allows shippers to input orders for four weeks, and as orders are filled, new orders can be placed.
CP also stressed that other players in the grain supply chain must operate 24-7 to reduce congestion and speed shipping times.
Part of this includes better use of available ports, like Thunder Bay, as a means to move product.
Grain shipment volumes should be maximized in the fall and early winter, when bad weather is less likely to cause shipping delays, the company said.
Jeff Wildeman, Cargill Canada’s regional manager for Saskatchewan operations, said Saskatchewan customers and Cargill staff are already making comparisons to the massive harvest in the fall of 2013.
He said lessons learned during the 2013-14 crop year have resulted in a more efficient and well managed supply chain.
“I think we learned a lot as an industry and I think we’ve gained some efficiencies as well,” Wildeman said.
“Hopefully Mother Nature co-operates with us as well. (Weather) made things especially difficult in 2013 but I think there have been lots of good improvements in the system. I’m confident that we, as an industry, can get the grain moved to port in a timely fashion.”
