Fate of Canada's government grain sommeliers back in question after PSAC strike via financialpost
Exporters are required by law to pay for the CGC’s official quality certification before shipping Canadian grain around the world, outside of the United States.Proponents of the government inspection system believe it’s responsible for protecting the global reputation of Canadian grain exports and preserving the tens of billions of dollars in value those crops deliver to the Canadian economy annually.
Still, the crisis — or the lack of one — has revived an old debate in the grain industry. Exporters don’t believe they should be forced by law to use a government inspection service to certify their grain when private firms will do the same job for cheaper. And the fact that the system didn’t fall apart while government inspectors went on strike only underscores their point, according to grain lobbyists.
Wheat is offloaded from a combine into a grain truck on a farm near Edmonton. Proponents of the government inspection system believe it’s responsible for protecting the global reputation of Canadian grain exports.argued that forcing exporters to pay for a CGC certificate when they’ve already hired a private firm doesn’t make sense, especially since it doubles the cost for shippers and ends up shaving money off the price paid to farmers, according to Gunter Jochum, a farmer in St.
“An individual grain company can impact the reputation of the entire sector,” the University of Saskatchewan’s Gray said. “Even if it damages the reputation a little bit, they don’t have to wear that, because they’re not going to deal with that buyer again. But that buyer will be back again looking for Canadian wheat, and maybe will be more wary and bid less for it.”
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