
From Wikipedia
By Laura Larsen
Few Canadians missed the news stories of grain piling up on the prairies and denunciations of the system’s failures. The Federal government’s recent announcement of financial penalties for the railways is the latest act in a long running problem facing western Canadian grain farmers: how to economically get their grain to market when long stretches of prairie and three mountain ranges stand between them and the ocean ports that export about seventy per cent of western Canada’s grain.
Economically exporting prairie grain is a complicated relationship between farmers, elevator companies, railways, and port terminals all of whom have conflicting interests which have been a wellspring of conflict since Confederation. Canada consistently produces around twenty per cent of the world’s tradable grain. While many other countries grow grain, only Argentina, Australia, the United States, and Ukraine regularly produce domestic surpluses which can be exported. Competition among these nations for their place in the international grain market is fierce. Like all bulk commodities, grain’s cost rises with transportation distance. All of western Canada’s competitors are much closer to deep water ports for their grain exports. When grain is not moving off the prairies it means unhappy customers, lost sales, and Canadian farmers who are not getting paid. Continue reading