FLOOD WATCH Quick thaw, ice jams causing trouble » Pg 3
What’s the problem? More big crops on the way » Pg 8
SERVING MANITOBA FARMERS SINCE 1925 | Vol. 72, No. 18 | $1.75 May 1, 2014 manitobacooperator.ca
Fertilizer supplies tight Rail problems this winter and two nitrogen plant breakdowns tightened N and P supplies By Allan Dawson co-operator staff
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ight fertilizer supplies might put the kibosh on some farmers’ hopes for seeding early this year, industry officials say. Poor rail service this winter and two nitrogen plan breakd ow n s h a ve c o m b i n e d t o tighten fertilizer supplies to local retailers. “Essentially we are behind where we’d like to be at this time of the year,” said Clyde Graham, senior vice-president strategies and alliances with the Canadian Fertilizer Institute. “I’m assuming our industry is doing everything it can to meet the needs of our farmer-customers.” Product will be trickling as capacity allows, but there could be localized shortages if everyone wants it at once. “If seeding does drag out to the end of May or into June there should be product arriving all the way through the season,” Steve Biggar, Richardson International’s assistant vicepresident of fertilizer and energy products said in an interview April 25. “I think the later the season goes the greater the likelihood is we’ll have enough fertilizer. If we end up mostly finished seeding by May long weekend then there just See SUPPLIES on page 6 »
Dreyfus files rail levelof-service complaint, others may follow Grain is moving but the railways are the ones deciding where it goes
A grain train being loaded near Nesbitt, Man. April 8. Grain is now moving off the Prairies but companies say some markets aren’t being served. Photo: Laura Rance By Allan Dawson co-operator staff
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ouis Dreyfus Commodities has filed a level-of-service complaint against CN Rail with the Canadian Transportation Agency (CTA). It may be one of many as other grain companies contemplate similar action in hopes of recouping losses due to poor rail service for grain this winter. Meanwhile, CN and CP Rail “have met the prescribed (grain-moving) target for each specific week,” an official with Transport Canada said in an email April 25.
Grain companies are grateful more grain is moving, but frustrated the railways are deciding which elevators will load cars and where they will be shipped. The result is domestic and American markets not being properly served, said Wade Sobkowich, executive director of the Western Grain Elevator Association. “In some cases we’re having to truck grain from Saskatchewan (elevator) locations to Alberta locations because the railways want to move from there to get quicker turnaround times to Vancouver,” Sobkowich said in an interview. It’s either that, or the grain company doesn’t get the cars, he said.
The federal government’s March 7 order-in-council requiring the railways to ship one million tonnes of grain a week doesn’t specify how much grain should move in each shipping corridor. “The focus of the order is to get and keep grain moving as quickly as possible,” a Transport Canada official wrote. “It is up to railways to plan how best to meet the targets.” The U.S. is Canada’s closest and often best-paying grain customer, but grain companies can’t fill existing sales to American customers or make new ones, Sobkowich said. See DREYFUS on page 6 »
RAILWAY PROFITS: NEVER LOOKED BETTER » PAGE 9