Canada’s grain sector is warning that even short-term transportation disruptions can carry a heavy financial toll, with a new analysis estimating losses of up to $540 million from a single week of halted rail and port activity.
The report, commissioned by the Agriculture Transport Coalition, looks at the impact of labour disruptions during peak export periods.
It concludes that missed sales are often unrecoverable once shipments are delayed, leaving farmers and exporters to absorb the losses.
The findings were released as part of the 'Too Much on the Line' campaign urging the federal government to amend Canada’s labour relations framework to reduce the risk of future supply chain shutdowns.
“Every time grain stops moving, the consequences are immediate and unrecoverable,” said Grain Growers of Canada executive director Bruce Burrows. “Missed sales, broken contracts, and a reputation as a reliable supplier that takes years to rebuild.”
Canada’s grain industry is heavily dependent on exports, with more than 70 per cent of production shipped abroad. Of that, 94 per cent moves by rail, making the system particularly vulnerable to disruptions.
The analysis suggests financial losses can begin even before a formal work stoppage. The threat of a disruption alone can result in up to $112 million in missed sales, as buyers look elsewhere for more reliable suppliers.
The report follows the dual railway stoppage in 2024, which halted grain shipments across the country and cost the sector millions of dollars per day. Industry groups say repeated interruptions are raising concerns about Canada’s reliability in global markets.
Greg Northey with Pulse Canada says consistency is critical to maintaining international relationships.
“Canada’s customers expect reliability, and repeated disruptions put that at risk,” Northey said. “With so much on the line, this is a critical moment to ensure the right policy framework is in place.”
The coalition is calling for targeted changes, including the appointment of a special mediator to oversee negotiations and ensure progress during collective bargaining.
It also asks for expanded authority for the federal labour minister to consider economic impacts and to refer disputes to binding arbitration when necessary.
Industry leaders are encouraging Canadians to take part in the federal consultation process, saying decisions made now will have long-term implications for farmers and the broader economy.
