Coalition of agricultural organizations warns that a rail stoppage could disrupt supply chains, escalate food prices, and cause lasting damage to both Canadian and U.S. economies.
In an urgent plea to prevent a looming crisis, a coalition of North American agricultural organizations has called upon Canadian Prime Minister Justin Trudeau to intervene and avert a potential lockout or strike in the freight rail sector. The signatories, representing a broad spectrum of the agricultural supply chain, highlight the dire consequences that such a disruption could have on both Canadian and U.S. economies, as well as global food security.
The groups emphasize that any work stoppage affecting the Canadian National Railway Company (CN) and CPKC would have immediate and severe repercussions for agricultural producers, particularly those reliant on bulk commodities. Rail is the primary transportation mode for these industries, which ship more than 25,000 cars of agricultural products weekly. A complete halt during a strike or lockout would bring that figure down to zero, with even more significant losses expected during the harvest season.
One of the central concerns expressed by agricultural organizations is that trucking is not a viable alternative for many shippers due to the large volumes and long distances involved. The impact would be especially acute for industries such as bulk commodity exports, where timely rail service is critical. Unlike importers who can divert shipments to U.S. ports as a contingency plan, bulk agricultural exporters have no such flexibility.
The letter also warns that the fallout from a rail stoppage could ripple throughout the entire supply chain, affecting not only producers but also consumers. Higher grocery store prices in Canada are anticipated as delayed shipments and lost sales lead to increased costs that would eventually be passed on to the public. Moreover, missed shipping windows during a strike represent lost opportunities that cannot be recovered, causing lasting damage to the agricultural industry.
Further compounding the issue is the reliance of numerous agricultural facilities, such as biofuel plants, flour mills, and livestock operations, on uninterrupted rail service for their inputs. These operations have limited storage capacity and would quickly face shortages in the event of even a short-term disruption. The complexities involved in shutting down and restarting these facilities mean that any disruption could extend the impact for several weeks.
While the coalition underscores its preference for a negotiated settlement, it also urges the Canadian government to be ready to act swiftly should talks break down. The groups stress that the integrated nature of the North American supply chain makes continuous rail service essential on both sides of the border. The potential disruption is not just a Canadian problem; it is a North American issue with global implications, affecting everything from food supplies to the pricing of agricultural goods.
In addition to the direct appeal to Prime Minister Trudeau, the letter was also copied to key figures including U.S. President Joe Biden, Canada’s Labour Minister Steven MacKinnon, Transport Minister Pablo Rodriguez, Agriculture Minister Lawrence MacAulay, and their American counterparts. The signatories include prominent organizations like the American Farm Bureau Federation, the National Grain and Feed Association, and the U.S. Grains Council, underscoring the widespread concern across the agricultural sector.
The coalition’s message is clear: a rail strike or lockout would cripple agricultural supply chains at a time when global food security is already under pressure. The request for government intervention protects not just producers’ livelihoods, but also the broader North American economy and the consumers who rely on a stable and affordable food supply.
As negotiations continue, the agricultural industry waits anxiously for a resolution. The potential for a rail stoppage threatens to upend supply chains, damage economies, and jeopardize food security across the continent. The organizations involved are counting on the Canadian government to step in if necessary to prevent this crisis from unfolding.
Read the whole letter here
