According to Grain Growers of Canada, rail stoppages cost farmers more than $50 million a day
The Grain Growers of Canada (GGC) is raising the alarm about an unprecedented situation in which Canada’s two largest railways, CN and CPKC, have simultaneously suspended operations. This disruption, which began today, is expected to cause significant economic damage to both the grain sector and the entire Canadian economy, according to the GGC.
“This simultaneous disruption comes at the worst possible time for grain farmers – harvest time – as rail transport is critical for getting the crop to market,” GGC said in a press release.
GGC estimates that the initial impact of these work stoppages will cost grain farmers over $43 million per day in the first week alone. If the situation continues, potential losses could rise to $50 million per day in the weeks that follow.
“The complete shutdown of Canada’s two major railways represents an unprecedented crisis for the grain industry,” said Kyle Larkin, executive director of Grain Growers of Canada. “The work stoppages at CN and CPKC put our entire supply chain at risk. This disruption could not have come at a worse time, right at the start of the harvest season when our farmers rely heavily on rail transportation.”
With over 65,000 grain farmers across Canada contributing to $35 billion in exports, the rail network is critical to transporting their crops to market. With no viable alternatives to rail transportation, these delays can result in lost revenue, deterioration in grain quality, and a significant loss of confidence in the market.
“The economic consequences of this strike will extend far beyond agriculture,” said Andre Harpe, chairman of the GGC. “Consumers will face higher prices and possible shortages of grain products, while farmers will struggle with income losses.”
Already burdened by volatile commodity prices and global tensions, the agricultural sector now faces additional challenges due to strikes at CN and CPKC, resulting in higher costs and reduced competitiveness for Canadian farmers.
“Previous work stoppages have already weakened Canada’s trade relationships, and a prolonged shutdown could further damage our reputation as a reliable supplier,” Harpe warned. “International buyers could look for alternative sources for their grain, leading to market share losses for Canadian farmers and long-term economic consequences.”
The Gulf Cooperation Council urges the Federal Government and the Minister of Labor to intervene to ensure that these vital transport networks are fully operational again as soon as possible.
