ARLINGTON, Va., Aug. 22, 2024 — As contract negotiations between labor unions and Canadian railroads have reached an impasse, a shutdown of the Canadian National (CN) and Canadian Pacific Kansas City (CPKC) Railway systems in Canada has taken effect today, bringing North American agricultural supply chains to a standstill. National Grain and Feed Association (NGFA) President and CEO Mike Seyfert issued the following statement:
“NGFA, representing member companies in both the U.S. and Canada, urgently calls on Prime Minister Justin Trudeau and Canadian government leaders to take immediate action to restore rail service. The current shutdown of major Canadian rail lines is inflicting a severe shock to the North American agricultural supply chain.
“The agricultural industries of the U.S., Canada, and Mexico are inextricably linked. A shutdown to any part of the system quickly reverberates across the entire system. This supply chain depends on the freight rail services provided by CN and CPKC. Canada, as the world’s leading exporter of canola and potash fertilizer, and the third-largest exporter of wheat, plays a critical role in global agriculture and must have access to rail service to maintain that role.
“The lockout initiated ahead of a potential strike by the Teamsters Canada Rail Conference is disrupting these essential rail networks, causing shutdowns or slowdowns at facilities that rely on rail transport on both sides of the U.S./Canada border. More than 25,000 railcars of agricultural products are moved per week within Canada, with even greater volumes during the harvest season. If the lockout continues, the repercussions will be devastating for Canadian and U.S. agricultural producers and agribusinesses who depend on CPKC and CN rail service for shipments through and within Canada to support both domestic and global food security.
“Canada is the top export market for U.S. ethanol, the fourth largest for soybean meal, and fifth largest for corn and distillers dried grains (DDGs). The rail shutdown is preventing the cross-border movement of U.S. corn, DDGs and soymeal into Canada and halting shipments of U.S. spring wheat, corn and soybeans from Minnesota, North Dakota, and South Dakota to Pacific Northwest export routes that transit through Canada on the Canadian rail lines.
“We strongly urge the Canadian government to act swiftly to stop these disruptions and protect the stability of the North American agricultural economy.”
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The NGFA, established in 1896, consists of grain, feed, processing, exporting and other grain-related companies that operate facilities handling U.S. grains and oilseeds. Its membership includes grain elevators; feed and feed ingredient manufacturers; biofuels companies; grain and oilseed processors and millers; exporters; livestock and poultry integrators; and associated firms that provide goods and services to the nation’s grain, feed and processing industry. The NGFA consists of 27 affiliated State and Regional Grain and Feed Associations, is co-located and has a strategic alliance with North American Export Grain Association, and a strategic alliance with Pet Food Institute.