Thursday, August 27, 2015

Report: Canada’s grain transport system unpredictable

A recent report for the Ag Transport Coalition found that Canada’s reputation as a consistent and reliable grain supplier was affected by a lack of timeliness and predictability in delivery.
The 2014-15 Railway Performance Measurement Report said the “weekly supply of railcars is highly variable and timeliness of delivery was an issue.”
Shippers demanded 400,895 train cars, of which the Canadian National Railway and Canadian Pacific Railway supplied 377,448 – 94 percent. Weekly demand averaged 7,710 cars, while the average weekly shortfall was 3,894 cars.
In May 2015, U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) called for improvements in Canada’s treatment of U.S. wheat classes, as the U.S. is routinely Canada’s top wheat export market.
And, in April 2015, the government of Canada approved a deal between the Canadian Wheat Board (CWB) and G3 Global Grain Group, which ensures CWB becomes a fully private and global competitor in the Canadian grain sector. With this deal, the government has fully delivered on its commitment to marketing freedom by increasing marketing choice for Western Canadian grain farmers.
A study released in January 2014 found that corn is the number one commodity moving north from the United States to Canada at 1.05 million metric tons (MT) per year. Average soybean exports to Canada are 245,000 MT while wheat exports are 69,000 MT.

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