Eligible producers receive 100% compensation for unpaid deliveries to Canpulse Foods Ltd. and Global Grain Canada Ltd

From: Canadian Grain Commission

The Canadian Grain Commission suspended the licences of Canpulse Foods Ltd. and Global Grain Canada Ltd. and their parent company Globeways Canada Inc. on October 31, 2020, when the 3 grain companies were unable to provide security as required under the terms of their licences. The companies were placed into receivership on November 19 and producers owed money for deliveries were able to make claims through the Canadian Grain Commission's Safeguards for Grain Farmers Program.

Following a review of individual producer claims, it was determined that there were 40 eligible claims involving Canpulse Foods Ltd. totalling over $3 million. For Global Grain Canada Ltd., there were 13 eligible claims totalling nearly $700,000.

All eligible claims were fully covered by the security posted by Canpulse Foods Ltd. and Global Grain Canada Ltd.

Quotes

"The Canadian Grain Commission is committed to ensuring producers are fairly compensated for their deliveries. Our Safeguards for Grain Farmers Program plays a key role in protecting producer rights, and we are very pleased to be able to fully compensate producers using the security held through this program."

Doug Chorney

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

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