October 25, 2022 PEI Grain Elevator Corporation update:
Once again, it seems appropriate to update the PEI Grain Elevator Corporation website with current information resulting from our observations and assessments, as the 2022 multi – crop harvest season is winding down and the marketing & shipping season heading into 2023 is gearing up.
The P.E.I Grain Elevator staff and G.E.C Directors continue to work positively together in terms of addressing the series of business related issues and challenges; both positive and negative that have been impacting our operations of late.
C.O.V.I.D – 19 is still present but has diminished in terms of its intensity of impact on health and labour. Market price volatility and uncertainty continues but is stabilizing somewhat. Global supply / value chain issues and high operating costs of fuel and other inputs like fertilizer have continued to escalate. The Russian Ukraine war and related violence rages on. Global Food insecurity is problematic as a result and, climate / environmental impacts continue leading to uncertainty in terms of beginning and ending crop inventories and their impact on prices as well as supply and demand. G.E.C is proud to say we feel we are effectively and positively managing our way through these cumbersome and complex issues!
In that sense it is fortunate that our major Atlantic markets are regional and livestock & fisheries, or feed oriented. Out of region food export opportunities are also available for growers so choosing; that option is voluntary but positive especially with the presence of global food insecurity and Canadian; or even our regional export potential. On the other side, regional self sufficiency of food or feed crops can’t hurt either!
In so far as Canada is concerned, our Eastern and Western grain farmer colleagues enjoyed a much better year in terms of production and harvest conditions although there is still some shipping and handling uncertainty related to rail and marine freight issues. Freight is a huge issue for us down here too; given our sole reliance on trucking as opposed to marine or rail handling systems. For G.E.C, with increased volumes to market, our exports often need to be handled several times before arrival at their ultimate destination. It is arguable that our inflation rate is one of the highest in the country given the transportation restrictions we encounter. But where would we be without the trucking we can access as required?
On a more positive note, we had a very good season facilitating excellent crop growth. Yields and quality in many cases have been exceptional. The winter and spring feed and food wheat, barley and, oat crops were harvested successfully with excellent yields reported. These crops continue to support the potato industry by providing excellent input potential for sustainable crop rotations and cover crop opportunities. Fortunately, potato producers have enjoyed excellent growing and reasonable harvest conditions as well. Soybean yield and quality has also rebounded from previous years. The corn crop acreage has been increasing with a focus on silage, high moisture and dry corn.
And then Hurricane Fiona hit which we never saw coming! It has led to tip to tip multi sector and public infrastructure damage, tree loss and field interference, power outages, transportation interruption, delays and equipment re-allocations. Despite a successful harvest season for many crops as reported earlier, corn producers are encountering harvest and quality challenges, the like of which has never been seen before. This has supply, price and quality implications for livestock producers as well.
Overall, G.E.C has handled & marketed crop volumes that have exceeded our five year average. Hurricane Fiona has caused damage to our infrastructure similar to other sectors and, has necessitated significant repairs to our facilities. Our sector expansion and capital additions are once again 100 % operational and operating efficiently. Trucking accessibility is rebounding as the harvest of potatoes, cereals and vegetable crops winds down.
Our organization is committed to maintaining a break even operation in order to optimize returns to growers while working with our stakeholders to maintain functional facilities. So your business with G.E.C is greatly appreciated and we look forward to offering attractive and timely purchase prices to our growers utilizing on farm storage and, optimizing market opportunities as they evolve throughout the remainder of the marketing year. General Manager Neil Campbell and his staff will be pleased to address any questions you may have and assist in the profitable marketing of your crops. It is acknowledged that there are multiple marketing and selling/buying opportunities in our region. But our massive infrastructure and related support mechanisms are seen as modern, effective and, efficient. We hope you agree!
This website has our staff’s easily accessible contact information. Grower dialogue is valued as we appreciate grower incites and advice in addition to any business related questions. So, please reach out as required. Thanks for once again (?) for checking out our website!