Canadian rail traffic is set to resume after the government stepped in to address the ongoing labor dispute.
Discussions have been going on for weeks, and shipments were stopped just yesterday after unions and rail owners failed to reach an agreement. Canada’s Labor Minister said it was his responsibility to secure peace and deliver solutions.
Krista Swanson from the National Corn Growers Association highlighted Canada’s significant role as a major destination for U.S. agricultural exports, particularly in ethanol.
“Canada is the third largest destination for U.S. agricultural exports, among those that are really concerning for corn and eggs, but also ethanol. Canada’s actually the largest export market for U.S. ethanol. Last year, 44% of our ethanol exports went to Canada. The other thing is, when we think about our grains and movement between the U.S. and Canada, about 50% of that happens by truck and about 50% by rail. But for ethanol, you know, last year, about 75% of the ethanol exports from the U.S. to Canada were by rail. So makes it all that more critical when we think about the importance of them as an export market. And then another big concern for U.S. corn is potash. You know, there’s no good time for something like this to happen, but here, as we approach harvest and come up on the fall fertilizer application season, definitely at the top of our minds right now.”
