national farmers union

SWIFT CURRENT, Sask.-Canadian Grain Commission (CGC) inspectors have again detected serious contamination in incoming grain at port. Inspectors identified hopper cars containing low-quality varieties of wheat and prevented that grain from contaminating terminal stocks or being sent to foreign buyers.

Despite the valuable contribution of CGC inspectors, they may be cut and their work centralized. Under pressure from grain companies, senior CGC officials, including Chief Commissioner Barry Senft, have proposed cutting inward inspection and other CGC services [see backgrounder]. The National Farmers Union is extremely concerned that cuts will prove extremely costly to farmers.

In late August, CGC inspectors conducting inward inspection at two Thunder Bay terminals found two hopper cars containing large percentages of Grandin wheat (33% and 50%), two more that contained 2%-4%, and 23 more that contained 1%-2%. Grandin is an unlicensed variety in Canada because of its inferior milling and baking characteristics. Grandin is a contaminant when found in milling wheat shipments. Grandin wheat is extremely difficult to distinguish from licensed varieties. By detecting Grandin, even when present in very low percentages, CGC inspectors demonstrated their high degree of training, experience, and vigilance.

"This is a perfect example of how inward inspection protects export quality. Canada enjoys a worldwide reputation as a supplier of high quality and consistent grain. This enviable reputation has allowed Canada to gain, hold, and expand markets in the face of generous European and U.S. subsidies. If we lose our quality edge, we lose sales and markets and farmers lose money," said NFU Sask. Board member Stewart Wells.

"The cuts proposed by CGC senior management are ill-conceived and damaging to farmers. Cutting inward inspection would save farmers just ¼¢/bushel. It's clear to everyone that thorough inward and outward inspections are necessary, prudent, and inexpensive investments in grain quality and customer satisfaction," said Wells.

The recent Grandin incident is just one of numerous cases of where CGC inspectors have found contamination in incoming grain. Inspectors found Grandin wheat in 16 hopper cars in mid June.

For More Information:

• Stewart Wells, NFU Sask. Board member: (306) 773-6852
  
• Darrin Qualman, Executive Secretary: (306) 652-9465

CGC Commissioners and senior management-in their January, 1999 Program Review and November 30, 1998 Governance Review-propose the following cuts and changes to CGC operations:

• Centralize inward inspection and cut staff. The CGC currently inspects grain immediately and at the terminal ("on-site") as the carload is dumped, weighed, and elevated. The CGC's Program Review recommends that it centralize inward inspection and that "[T]he Canada Grain Act should be amended to permit optional inward inspection."
  
  Under the CGC's proposal for centralized, delayed inward inspection, problem carloads may not be detected for many hours, possibly not until a day later. By that time the problem grain may have been moved and re-mixed or it may be on its way into a ship.
  
  
• Cut outward inspection staff. The CGC recommends a "flying squad" model with outward inspection crews moving from terminal to terminal where vessels are being loaded. If inward inspection is cut, we would move from two lines of defense to one. The CGC, however, recommends decreasing personnel on the single remaining line.
  
  
• Close the gap between primary and export standards. Currently, farmers delivering to country elevators are paid based on a "primary standard." Exports, however, are graded at a higher "export standard." The CGC recommends "closing the gap" and replacing "primary and export standards with a single standard to be used at all levels in the industry..."
  
  Farmers have asked: "Will closing the gap cost me money or put money in my pocket?" The CGC has not answered. When asked to speculate, CGC and CWB officials state that closing the gap may cost farmers money and will certainly alter the distribution of money between various grades of grain. The risk of increased costs to farmers is especially significant in low-quality years-those with an early frost for instance.
  
  
• Eliminate the Assistant Commissioners and move to a corporate-style governance structure. The CGC's Governance Review recommends a new governance system based on a single "full-time Chief Commissioner-CEO, with a part-time Board." Further, it recommends eliminating the four appointed Assistant Commissioners. The Minister of Agriculture appoints Assistant Commissioners, specifically to represent farmers in CGC affairs. Eliminating the Assistant Commissioner positions would sever farmers' link with, and voice in, the CGC.

The CGC's Governance and Program Reviews contain many more recommendations. Overall, they weaken the CGC's ability to discharge its dual roles of regulating the grain handling system in farmers' interests and safeguarding grain quality.

The Minister of Agriculture is currently considering the CGC's recommendations and will make a decision on changes to the agency this fall.