Sask. agriculture producers bracing for supply chain effects from B.C. floods

SASKATOON -

Saskatchewan agriculture producers say they're expecting to feel the affects of the B.C. floods with railways lines being impacted.

Agriculture Producers Association of Saskatchewan (APAS) vice president Bill Prybylski says the distribution hasn't been felt yet by producers, but it’s one they're bracing for.

“Certainly the longer the rail line is shutdown the more profound the impact will be.”

Prybylski says the biggest issue will be availability and cost of consumer goods. The process for producers has them loading a grain elevator onto rail cars that head to the west coast. After arriving at the Port of Vancouver, the grain is shipped out across the world.

“The delays in getting the grains on the rails to the port just backs up the whole system right from farmgate all the way up to the ships.”

Transportation Canada tells CTV News it’s aware of the on-going rail line issues and is working with Canadian National Railway and Canadian Pacific Railway to “reduce the risk of serious accidents while protecting public safety.”

“We are actively engaged and working with the Province of B.C., along with port, terminal, railway and trucking sectors, to provide any support required in response to the damages caused by flooding in BC and are collaborating to ensure the movement of essential goods, including food and other critical supplies,” it said in an email to CTV News.

Kevin Hursh is a producer and farm commentator and says many producers in the province will be feeling the affects of a distributed railway.

“It’s our understanding talking to contacts in the grain industry that both railways have been severed at more than one point,” said Hursh.

“Most observers believe that this is something that is likely to be out of service for at least a couple of weeks.”

This year was one of the worst years for producers due to the drought experienced throughout the summer. Husch says if there was a year for this to happen, this year was better than some.

“It’s not like we have a big crop to move or that we were already behind in grain shipments,” said Hursh.

However the more prolonged the railway lines are shut down, the more profound the impact is on producers. When ships become delayed from leaving the Port of Vancouver, it becomes costly.

“There is the obligation to the customer where you have an export sales contract and to deliver within a certain window and if you’re now delivering outside that window you could pay contract extensions penalties and in a worst case scenario you would default on a contract,” said director of Western Grain Elevator Association, Wade Sobkowich.

Hursh says he thinks it will be a couple of weeks before the lines are up and running again.

“This is a big segment, of the Canadian economy or the Saskatchewan economy in particular that is going to be affected in one way or another.”