Five industry organizations have proposed amalgamation, and members will soon receive information packages
The Canadian seed sector is moving ahead with plans to explore an industry-wide amalgamation that could combine five separate seed organizations into a single entity representing the entire industry.
The proposed amalgamation, already in advanced stages of discussion, would see the Canadian Seed Growers Association (CSGA) combine with the Canadian Seed Trade Association (CSTA), the Canadian Seed Institute (CSI), the Canadian Plant Technology Agency (CPTA), and the Commercial Seed Analysts Association of Canada (CSAAC), which includes accredited analysts at seed testing labs across the country.
CSGA president Jonathan Nyborg, who grows pedigreed seed in New Brunswick, said work is continuing on a formal amalgamation proposal that will be presented this summer for ratification by his organization’s members in Winnipeg.
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The groups exploring amalgamation have hired Toronto-based consulting firm Strategy Corp. to flesh out details of how a New Seed Organization (NSO) would be structured and governed and how various groups within the new entity would be represented.
An information package outlining the amalgamation proposal — as well as the process required for ratification — is to be distributed in early 2020 to the groups involved, including the CSGA’s provincial branches and its grassroots members.
“I think we’re making good progress,” Nyborg said when asked about amalgamation efforts to date.
“We’re shooting for a July 2020 ratification vote … so we’re working on getting everything together and getting ratification packages out to our membership so they can get a detailed look at what it is we’re proposing….
“Certainly, we want all of our members to be able to get those packages in advance of the ratification vote, and it’s going to be a lot of information so folks are going to need time to read things over and digest and ask questions and provide feedback.”
If things go as planned, ratification will be sought from CSGA members during the organization’s annual general meeting July 12-15 in Winnipeg, Nyborg said.
Work aimed at exploring an industry-wide amalgamation began years ago but has been gaining momentum over the past 12 months.
Although many details of the amalgamation have yet to be ironed out, Nyborg said discussions to date have been mostly positive with the CSGA’s provincial branches expressing a desire to learn more and explore opportunities.
“We’re about half way through our branch AGM season now … and what I’ve heard so far is that the majority of our members are saying, ‘yes, you’re heading in the right direction,’ ” he said.
“That’s not to say that all of the membership is happy with it.… We certainly know that there are those out there that aren’t comfortable with it.”
Nyborg said the creation of an all-encompassing seed organization would deliver many benefits.
Most notably, it would allow all elements of the Canadian seed industry to co-ordinate their functions and work together on issues of key interest.
The ability to work in a more co-ordinated manner and speak with a unified voice on important policy issues would result in a stronger and more efficient seed industry that benefits all groups involved, he added.
The CSGA is clarifying what level of support would be needed from its provincial branches and grassroots CSGA members in order to move the proposal forward.
“We’re certainly looking at what we feel we need, coming from our (provincial) branches … (to make sure) they agree with the direction we’re heading,” Nyborg said.
In Western Canada, the CSGA’s provincial branches include the Saskatchewan Seed Growers Association (SSGA), the Alberta Seed Growers Association (ASGA) and the Manitoba Seed Growers Association (MSGA).
The CSGA is also seeking membership approval to amend its bylaws to allow for remote or distance voting privileges on resolutions presented at CSGA annual general meetings.
As it stands right now, CSGA bylaws do not allow for individual members to vote on resolutions presented at an AGM unless the members are in attendance.
Current bylaws state that 30 CSGA members in attendance at a AGM constitute a quorum.
“I am certainly of the mindset , and my board is as well, that you don’t want 30 people making a decision for 3,500 CSGA members,” Nyborg said.
The CSGA is also seeking approval from its members to look at changes to the organization’s membership and acreage fee structures.
Although supporters say amalgamation would result in greater operational efficiencies and cost savings, the organizations pursuing amalgamation have incurred extraordinary one-time costs.
Nyborg conceded that short-term costs associated with the proposal are likely fuelling apprehension among some CSGA members.
Controlling costs has been a recurring topic of discussion among CSGA board members and among members of an industry-wide oversight committee charged with steering amalgamation efforts, he added.
“We want to ensure that we don’t incur costs on folks to the point where they simply can’t afford to pay or to the point where they don’t see the value in continuing on as a seed grower.”
Dave Carey, executive director of the Canadian Seed Trade Association, said members of his organization, which include seed developers, seed retailers, seed growers and producer groups, have been generally supportive of the amalgamation concept.
Carey said any perceived risks associated with amalgamation are relatively small compared to the risks associated with maintaining the status quo.
The organizations involved have a lot more in common than they do dividing them, he added.
“I think, in the end, CSTA members will vote in favour,” Carey said.
“It’s the right thing to do on behalf of the seed industry regardless of where you are on that spectrum — whether you’re a big seed company, a seed grower, a processor or an analyst.
“Our members will have questions and concerns … but I think the CSTA has always been quite progressive in this sort of thinking, and I have every confidence that they’ll vote in favour come July 2020.”
CSTA’s membership is expected to vote on ratification in July.
If a formal amalgamation is endorsed by all of the organizations involved, a new seed organization, likely headquartered in Ottawa, could be up and running by early 2021.
