2023 PEI Grain Elevator Update

Once again, as the P.E.I farmer land preparation / tillage and, planting season is over, it is a privilege to provide you; our customers and clients with a G.E.C website update last revised and published on October 25, 2022.

The PEI Grain Elevator staff and G.E.C Directors have remained healthy, functional and productive. We continue working positively together in terms of addressing the series of business related issues and challenges both positive and negative that have been impacting our operations and yours for several years now; commencing in 2019 with COVID-19 seen as the starting point.

We appreciate the opportunity to reconfirm a functional / expanded infrastructure and provide some of our current business update information resulting from our observations, assessments and multi crop purchase, sales and marketing decisions taken from July 31, 2022 to the present.

Despite high fuel costs and occasional driver labour shortages impacting transportation and logistical related issues, we have collaborated with local and regional truckers to implement functional handling and marketing of sustainable crops produced by our growers some of whom are still battling seed potato export issues and have opted to produce grain and/or oilseed crops instead.

Hopefully as was the case in 2019 and again, in 2022 we certainly don’t want to have to contend with hurricane related weather issues in 2023/24. The increased productivity of Canadian regional crop imports has also been a challenge!

This past year our total crops handled have once again increased over last year. Over 28 % of the volume handled is barley, 1.8 % oats, 33% wheat, 3.5% milling wheat, 3.7% corn, and 30 % is soybeans. Our total volume handled has once again exceeded our 5 year average by over 13,300 metric tonnes. Lastly, while our import volume of soybean meal handled has declined, we still sell small amounts of extruded/roasted barley and soybean as required. Our other service related programming; grading, handling, drying, cleaning, storage, trucking and marketing also remain in effect.

It is also noteworthy that our exports are mostly for the regional livestock sector after we satisfy our own domestic feed requirements.
Our member based relationship with the Atlantic Grains Council who recently carried out a strategic planning initiative has re- confirmed that localized livestock, poultry and, fish production is important for Atlantic Canada to enhance our own food security. So there is market growth potential for P.E.I crop producers.

Also crop rotations and the need for cover cropping, carbon capture sequestration & food safety parameters are also enhancing the supply/value chain, and marketing importance of our G.E.C grain elevator network; in terms of supporting farmers in the appropriate handling, storage and, marketing of their crops. As well, our P.E.I surpluses don’t need to be shipped too far!

Voluntarily; growers wishing to produce food as opposed to feed have the option(s) to do so but higher freight and transportation out of region costs, varietal certifications and potential sustainability audit criteria have increased in terms of prominence and importance.

On another front, nationally; clean biofuel production is on the increase; positively impacting prices of canola, soybeans and even corn. The higher energy and volume /rotation potential of corn soybeans and canola as feed or fuel, versus cereals; despite greater fertilizer & input requirements seems to be enhancing these acreages although the fall harvest season can be a challenge?

We’ll wind up our G.E.C update by noting that we are considering innovative methodologies being researched on how to reduce electrical operational charges and some reliance on fossil fuels in order to enhance sustainability. We are also considering how to enhance our infrastructure so that we can smoothly handle, dry and store fall crops like corn and soybeans even canola; simultaneously at our facilities if production levels keep adjusting.

Unfortunately, given recent world events like climate change, war, sustainability and environmental protection, food insecurity and increasing population growth, price volatility up or down, may continue?

So once again, we at G.E.C wish all our customers the best of luck in terms of marketing your crops profitably.

We appreciate the opportunity to bid, buy, handle, store, and market your crops as our business year continues to unfold by offering competitive buying and selling prices, efficient and effective transportation and break even handling mechanisms as opposed to you as growers requiring to expand your own storage, handling and marketing systems along with volatile up or down pricing and escalating input cost risks.

We are optimistic that 2023/24 will be productive and profitable. Please reach out to our G.E.C staff if you want to have a chat and provide us your sector and operational insights. Contact information is available on our website. As well, we would appreciate an update on what crop you want to sell or buy.

Thanks again for your business and support!