Canadian Grain Commission compensates producers at 75% for unpaid deliveries to Global Food and Ingredients Inc.

From: Canadian Grain Commission

News release

Winnipeg, Manitoba (October 21, 2024) – Producers who were not paid for grain delivered to Global Food and Ingredients Inc. will be compensated for their eligible claims through the Canadian Grain Commission’s Safeguards for Grain Farmers Program.

Following a review of individual producer claims, the Canadian Grain Commission determined that there were 29 eligible claims totalling $2.661 million for unpaid deliveries to Global Food and Ingredients Inc. The company had $2 million in security available so individual payments will be prorated. As a result, producers will receive 75% compensation for their eligible claims. Cheques have been mailed to producers.

In addition to this compensation, the Canadian Grain Commission is working with the receiver, Richter LLP, to realize on proceeds from the sale of the company’s grain inventory. Holders of outstanding primary elevator receipts may receive a portion of these funds through the Canadian Grain Commission at a later date, once the receivership has been concluded.

Quotes

“While 100% compensation is always the goal, we are pleased to provide the maximum available compensation to eligible producers. By working closely with the receiver, we may be able to provide some additional compensation beyond the security held.”

David Hunt
Chief Commissioner, Canadian Grain Commission

Quick facts

  • The Canadian Grain Commission’s Safeguards for Grain Farmers Program regulates grain companies to mitigate the risk of payment failure to producers and to support the grain quality assurance system.

  • As a condition of licensing, licensed grain companies are required to tender security for outstanding grain liabilities to producers to the Canadian Grain Commission as a bond, letter of credit, letter of guarantee, or payables insurance. If a licensed company does not meet its payment obligations, the Canadian Grain Commission uses the company’s security to compensate eligible producers.

  • If a licensee fails to meet its obligations, producers are eligible for compensation within 90 days from the date of their grain delivery or within 30 days from the date a cash purchase ticket or cheque was issued to them. The lesser of these two time periods applies.

  • The Canadian Grain Commission fixes the amount of security to be provided by licensees on the basis of the monthly liability reports submitted by the licensee, pursuant to the Canada Grain Regulations.

Contacts

Christianne Hacault

Head of communications

Canadian Grain Commission

204-229-0128

christianne.hacault@grainscanada.gc.ca

Canadian Grain Commission

The Canadian Grain Commission is the federal agency responsible for establishing and maintaining Canada’s grain quality standards. Its programs result in shipments of grain that consistently meet contract specifications for quality, safety and quantity. The Canadian Grain Commission regulates the grain industry to protect producers’ rights and ensure the integrity of grain transactions.

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