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Canadian Government Moves to Modernize Grain Act

Photo courtesy of The Official Handbook of Present Conditions and Recent Progress

Canada’s Agriculture Minister, Marie-Claude Bibeau, intends to introduce legislation to modernize the Canada Grain Act by the end of 2023.The proposed changes aim to reflect current practices in the buying, selling, delivery, and handling of grain. The legislation is expected to address the problem of duplicate grain inspection fees, which currently burden grain producers. Overseas customers often demand third-party inspections both at the time of loading in Canada and offloading in their own countries. As a result, an estimated 70% of grain leaving Canadian ports is double-inspected, leading to unnecessary costs of approximately $60 million annually for growers. The Wheat Growers Association advocates for a system similar to the U.S. where third parties provide inspection services and the government’s role is reduced to oversight. Concerns have been raised about the impact on trade with China and Japan if Canada shifts to a third-party inspection system, but the association points out that these countries regularly purchase grain from the U.S., which employs such a system

Courtesy of Chamber of Shipping