The Grain Growers of Canada (GGC) is sounding the alarm over an unprecedented situation where both of Canada’s major railways, CN and CPKC, have simultaneously ceased operations. This disruption, which began today, is expected to cause significant economic harm to both the grain sector and the broader Canadian economy, according to the GGC.
“This simultaneous disruption comes at the worst possible time for grain farmers—harvest season—when rail transportation is crucial for getting crops to market,” GGC emphasized in a press statement.
GGC projects that the initial impact of these work stoppages will cost grain farmers over $43 million per day in the first week alone, with potential losses increasing to $50 million daily in subsequent weeks if the situation persists.
“The complete halt of operations at Canada’s two major railways represents an unprecedented crisis for the grain industry,” said Kyle Larkin, executive director of the Grain Growers of Canada. “The work stoppages at both CN and CPKC place our entire supply chain in jeopardy. This disruption could not have come at a worse time, right at the start of harvest season when our farmers rely heavily on rail transport.”
With more than 65,000 grain farmers across Canada contributing to $35 billion in exports, the rail network is vital for moving their crops to market. The absence of viable alternatives to rail transport means that these delays could lead to lost sales, deteriorating grain quality, and a significant loss of confidence in the market.
“The economic fallout from this stoppage will extend well beyond the farm,” said Andre Harpe, chair of GGC. “Consumers may face higher prices and potential shortages of grain-based products, while farmers struggle with reduced income.”
Already under strain from fluctuating commodity prices and global tensions, the agricultural sector now faces additional challenges due to the CN and CPKC work stoppages, resulting in increased costs and decreased competitiveness for Canadian farmers.
“Previous labour disruptions have already weakened Canada’s trade relationships, and a prolonged stoppage could further damage our reputation as a dependable supplier,” Harpe warned. “International buyers might seek alternative sources for their grain, leading to lost market share for Canadian farmers and long-term economic consequences.”
GCC is urgently calling on the federal government and the labour minister to intervene to ensure that these crucial transportation networks are restored to full operation as soon as possible.
