Another load of unlicensed wheat has turned up in Canada’s grain export
pipeline.
And again it has happened in east-central Saskatchewan.
Two truckloads of wheat delivered to the Pioneer Grain Co. elevator at
Norquay, Sask., last month were found to be heavily contaminated with
unlicensed American wheat varieties.
A Pioneer official said approximately 70 percent of the load consisted
of the unlicensed American varieties Oxen and 2375.
Regulations require that the wheat, which had been purchased as top
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grade red spring, be downgraded to feed.
Bill Mooney, a Pioneer vice-president, said the wheat was delivered to
the elevator by farmers who don’t normally do business with the
company. The elevator manager was suspicious and so binned the wheat
separately and had it tested.
Mooney said the company wants to see the producers involved held
accountable for financial losses arising from the incident.
“We’ve informed the farmers that the product delivered to the elevator
is contaminated and have asked the Canadian Wheat Board to follow up
with them directly,” he said. “It will be an ongoing discussion.”
He said the delivery of unlicensed wheat into the export system is a
serious issue and everyone in the industry, from regulators to grain
companies to farmers, must work together to maintain the integrity of
the system.
“The first thing that needs to be done is to get people in the industry
together to determine the extent of the problem and come up with a
solution that protects the grain handling system, the farmers and the
pool accounts,” he said.
The Norquay incident marks the second time in the last few months that
unlicensed wheat has made its way into the grain delivery system in
east-central Saskatchewan.
Earlier this spring, some 60 rail cars shipped out of an Agricore
United elevator at Canora, Sask., were found on arrival at Thunder Bay
and Montreal to be contaminated with Oxen. The wheat was downgraded,
costing the grain company hundreds of thousands of dollars.
Mooney said that has prompted grain companies in the area to keep a
close eye on what’s being delivered.
“Everyone’s antenna has been up in the area around Yorkton, Canora and
Kamsack to be aware of it,” he said.
The Canora incident prompted the CWB to organize a public meeting in
the Saskatchewan resort village of Good Spirit Lake.
About 80 farmers and grain industry officials gathered on a sweltering
afternoon in late July to listen to representatives from the board and
the Canadian Grain Commission talk about the issue.
The message they heard was clear: unlicensed varieties that are
visually indistinguishable from licensed varieties must be kept out of
the grain export system.
They said the consequences of an inferior quality variety finding its
way to an overseas customer’s mill or bakery could be disastrous. Even
the threat of something like that could undermine confidence in
Canada’s quality control system, a system they said gives Canadian
wheat a competitive edge in foreign markets.
“Our competitors are watching this issue and you can believe they’re
telling customers Canada is having problems with its system,” said Norm
Woodbeck, acting chief grain commission inspector.
It is legal to grow unlicensed varieties, but they must be identified
at the time of delivery and can be sold only as feed wheat.
However, not every farmer in the crowd was concerned about the issue.
Arnold Christopherson of Springside told the meeting he has a simple
solution.
“Why not just throw it all in a pot and sell it?” he said.
He wasn’t impressed by all the talk about keeping lower quality wheat
out of the export system to protect the consistency and high quality of
Canadian wheat exports.
In fact, he said in an interview later, he doesn’t think Canadian wheat
is all it’s cracked up to be.
“They always say our wheat in Canada is so much superior to the
American wheat,” he said. “Well I’ve eaten toast and sandwiches and
whatever down in the States and it’s been good.”
Warren Kaeding, a seed grower from Churchbridge, said that kind of
comment reflects anger and frustration felt by many farmers over
drought, low prices and U.S. subsidies.
He said it’s not surprising that farmers are growing the unlicensed
U.S. varieties, which carry with them a 10 or 15 percent yield
advantage over their Canadian cousins.
“There are a lot of economic pressures on farmers and they’re looking
for every nickel they can get,” he said.
Kaeding would like to see an affidavit system that provides
traceability and imposes “significant” penalties on anyone who breaks
the rules.
CGC commissioner Chris Hamblin said there is general agreement that an
affidavit system, accompanied by a list of acceptable varieties, will
likely replace the current system of visual identification, but it
won’t happen soon.
“I think we’re moving towards it, but I hesitate to say when it’s
coming,” she said, adding it could take several years to work out the
logistics and costs.
