The Canadian Grain Commission (CGC) has revoked the licenses of Manitoba grain company Zeghers Seed Inc.
Zeghers Seed (also known as Zeghers Canada) held a grain dealer license and a primary elevator license in Holland, Manitoba.
The CGC requires grain companies to backstop their operations with either a bond, a letter of credit or a payables insurance policy to ensure they can pay their customers.
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“Their security was expiring on March 31st. They were unable to find a different source, and they could not provide us with replacement security,” explained CGC spokesperson Remi Gosselin. That situation ultimately led to the revocation of the Zeghers licenses.
Any Canadian grain farmers who are owed money by Zeghers Seed Inc. may be eligible for compensation through the CGC’s Safeguards for Grain Farmers Program. When a licensed grain company fails to pay grain farmers, the CGC uses the company’s security to pay them if their claim is eligible.
Farmers affected should contact the CGC immediately through its website or by calling 1-800-853-6705 or 204-984-0506.
