Thank you for the invitation to be here today. I'm joined virtually by my colleague Steve Pratte, senior manager, transportation and biofuel policy.
CCGA is a national organization representing Canada's 43,000 canola farmers on issues and policies that impact on-farm profitability. Canada produces, on average, 20 million tonnes of canola annually and exports over 90% in three forms: seed, oil and meal. These products are exported to more than 50 countries. In 2021, canola exports were worth $13.7 billion. Canada is the world's largest producer and exporter of canola, and our industry supports 207,000 Canadian jobs and contributes $29.9 billion to the Canadian economy annually.
The transportation of grain is one of several commercial elements that directly affect the prices offered to farmers. When issues arise in the supply chain, the prices farmers receive for their grain crop can drop, even at times where commodity prices may be higher in the global marketplace. In periods of prolonged rail disruptions, the worst-case scenario is that space in grain elevators becomes full and grain companies stop buying grain and accepting deliveries from farmers. This can occur even when farmers have existing contracts for delivery, potentially straining their ability to cash flow 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, and labour is the fundamental factor for success.
Now I'll turn to the specific question of what the anticipated labour shortages are in the Canadian transportation sector. As noted, the grain handling and transportation system is a complex, multi-actor logistics system that involves trucks, inland collection points, railways, port terminals and marine vessels. All are required to move canola from the Prairies, where it is grown, to the international customers, where it is wanted.
In such a complex system, in any given year, there will inevitably be incidents and events that negatively impact the fluidity and on-time execution of the supply chain. Weather, infrastructure damage and other unforeseen events are often outside the influence of our control. One element that we do, broadly speaking, have control over is labour agreements in organized work environments. In the grain sector, there has been a relatively lengthy run of labour stability with organized workplaces, namely at port terminals.
One critical element of our supply chain where we observe ongoing instability is between our class I railways and their labour. Most recently, in March 2022, we saw one Canadian class I railway approach the brink of labour action with one of its labour groups. Ultimately, a shutdown was avoided in the eleventh hour, but there are still ramifications for supply chain fluidity with even the threat of labour action. In advance of labour deadlines, the railways begin curtailing operations, sending a wave of logistical disruptions and delays back through the supply chain. In November 2019, another class I railway did have labour action that affected operations for a full week, with effects reverberating for months after.
Given the geopolitical situation in the world and the early signs of a strong 2022 harvest in Canada, several agricultural groups launched the Canada's Ready campaign this summer to raise awareness of the need to reliably get Canada's canola and other grains to customers around the world. One tenet of that was for government to establish an industry-government labour council to track the progress of the collective agreement negotiations. For example, there are 12 CN and CP rail labour agreements that will expire or have expired in 2022 alone. The recently released federal supply chain task force report clearly notes this as a strategic issue and recommends that the Minister of Labour convene such a body.
I would ask parliamentarians on this committee to consider these labour issues from the lens of our international customers and competitors. In Canada, we have enough risk to our supply chains from natural causes in any given year, and ones of our own making must be avoided. We want to produce more, grow our exports and drive our economy's growth. The labour needed to get our products from farm gate to export position is critical. Canola travels an average of 1,500 kilometres by rail from farmers' gates to tidewater.
Labour and management issues naturally reside between those parties. It is a tenuous balancing act that is enshrined in law and evolving jurisprudence. It is not our intention as a farm group to suggest a solution for these issues but rather to highlight the second- and third-order effects when railway labour issues arise.
Looking forward, we clearly see further rising demand for our agricultural products, both domestically and internationally. At the end of the day, farmers will not be able to capitalize on the opportunities from increasing demand or trade agreements without a reliable rail system that grain shippers and our global customers have confidence in.
Thank you.