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How the war in Ukraine and CP Rail strike is affecting B.C.’s agriculture industry

Customers of CP Rail are calling on the federal government to introduce back-to-work legislation immediately in order to end a work stoppage at the Calgary-based railway that could be detrimental to Canada's economy. Ted Chernecki reports – Mar 21, 2022

As the war in Ukraine continues, there are growing concerns about a global food security crisis.

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Some of the biggest nations are dependent on shipments of grain from countries like Ukraine and Russia, which together account for a quarter of the world’s entire wheat exports.

Fertilizer, a critical component of agriculture, has also become more expensive.

Malcolm Odermatt, president of the BC Grain Producers Association, told Global News between the war in Ukraine and the CP Rail strike, they are very concerned about the overall impact.

“We’re actually pretty fortunate up here in the north because we are mostly serviced by CN, CP doesn’t come any farther west than Edmonton,” he said.

“However, they are going to be bringing up some fertilizer from that Lethbridge area to Edmonton and that that is going to be a problem for us. Also, CN, they use one of CP’s lines to get it to port. I’m not quite sure how that’s going to work out but the big thing is for the livestock industry down in southern B.C., southern Alberta.”

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Odermatt explained that with last year’s drought conditions, Canadian grain farmers were not able to supply the grain needed to feed those animals so they started importing corn from the U.S.

He said with that transport now stopped and not enough trucks on the road to move that amount of grain, there is the possibility farmers will not be able to feed their animals.

In addition, the cost of fuel in B.C. would make transporting goods by road very expensive, Odermatt added.

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“The only alternative to moving it on rail is moving in trucks, currently with the fuel price, we’re paying well over $1.70 here, that really isn’t a feasible option,” he said. “It’s going to have to work I guess. But again, it’s just cutting more and more into the profit margin, so, very small profit margins we have already.”

More than 3,000 Canadian Pacific Rail conductors, engineers, train and yard workers represented by the Teamsters Canada Rail Conference walked off the job after both sides couldn’t reach a deal by a Sunday midnight deadline.

It is unknown when job action might end but both sides did say they are talking with federal mediators.

“Just through farm employees, we can produce over 4,000 tons of grain in a cropping year,” Odermatt said. “That’s the weight of almost 3,000 Honda Civics. But that’s impossible without the use of modern machines, machines that have to operate on diesel.

“Yes, we do want an alternative energy source, we do want to turn greener. However, right now that is our only fuel source option and with the government trying to seem like they want to terminate the use of that fuel that’s a very scary thing, because what it’s going to do is create a monopoly on the grain industry and you never want anyone to have monopoly, especially when you’re talking about something as important as your food.”

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