Thank you, Mr. Chair, for inviting the Canadian Canola Growers Association to speak about your study in response to the state of Canada's supply chains. I'm joined today by my colleague, Steve Pratte, senior manager, transportation and biofuel policy. He will be sharing my opening comments to you.
CCGA is a national association governed by a farmer board of directors, and it represents Canada's 43,000 canola farmers.
Canada typically produces 20 million tonnes of canola a year and exports 90% of that canola in three forms: raw seed, canola oil and canola meal. These products are exported to more than 50 countries around the world and in 2021 were valued at $13.7 billion. Canada is the world's largest producer and exporter of canola. Our industry supports 207,000 Canadian jobs and contributes $29.9 billion to the Canadian economy annually.
Canola travels, on average, 1,500 kilometres from the farm to be in an export position. There is no alternative to rail for long-distance transport of our products across the continent.
Farmers strive to maximize both the quantity and the quality of their production each year. Once it is harvested, they sell their canola into the commercial system based on their specific marketing plan, with the overall goal of capturing the highest possible prices at any given time in our dynamic global commodity market.
Transportation of grain is one of several commercial elements that directly affect the price offered to farmers. When issues arise in the supply chain, the price farmers receive for their crop, their grain, can drop, at times even going below where global commodity levels are. In periods of prolonged rail disruptions, the worst-case scenario is that space in grain elevators becomes full and grain companies stop accepting or buying grain from farmers. This can occur even when a farmer has an existing contract for delivery, potentially straining their ability to have cash flow for their operations.
Today's grain supply chain is predicated on having the right grain in the right place at the right time. There are a lot of moving parts in this complex system.
I'll now turn it over to Steve, Mr. Chair.