Oilseed groups lose canola processor’s corporate funding

Three Canadian commodity organizations have been hit with a significant loss of funding. Richardson International, owner of Pioneer grain elevators, has pulled, or will pull, funding from the Canola Council of Canada, Flax Council of Canada, and Soy Canada.

Spokesmen for Canada’s biggest agri-business, Richardson, said they weren’t getting their money’s worth from the $1 million annual payments. Company spokesmen say they wanted formation of one national oilseed organization, but were rebuffed. And the Winnipeg-based grain company wanted changes in mandate.

Spokesmen say Richardson, a grain exporter and canola crusher, was concerned with the amount spent on marketing and with the agronomy budget because the private sector has its own agronomists in the field.

The Flax Council has already closed the Winnipeg office from loss of funding.

Soy Canada said funding from Richardson wasn’t large but every dollar contributed from private sources is multiplied 30 times over.

Canola Canada says it will review and re-confirm its priorities and continue with Keep It Coming in 2025 marketing program.

Richardson will continue funding Cereals Canada and the Canadian International Grains Institute. Both are national organizations.

The shift from government funding support for commodity organizations to private sector partners started in the 1990s when the federal government and some provinces needed to cut deficits. The shift was accelerated in the last 12 years as the federal government still fought with spending. The funding break, one of the first ever, signals that goals of growers and processors are not always compatible, especially when one group wants better markets and prices while the other benefits most from stable prices and markets.

Ron Walter can be reached at ronjoy@sasktel.net