How will Saudi Arabia’s sanctions, including a ban on Canadian grain purchases, affect G3?
The grain sector was abuzz with speculation last week given the grain company that acquired the Canadian Wheat Board’s assets in 2015 is a partnership between the state-owned Saudi Agricultural and Livestock Investment Co. (SALIC) and U.S. grain company Bunge.
The topic came up August 9 here during the Keystone Agricultural Producers’ advisory council meeting.
“Would you deliver grain (to G3)?” KAP president Bill Campbell asked farmers at the meeting. “Would you sign a contract for March delivery with a company that no longer wants to do business in Canada?”
A G3 official declined to comment on what, if any, impact Saudi Arabia’s actions will have on G3. However, he did confirm, as reported last week by Reuters, “it’s business as usual,” for the Canadian-based grain company, which is building a state-of-the art grain terminal in Vancouver and is still opening new inland terminals in Western Canada.
G3 vice-president Brett Malkoske told Reuters G3 has no plans to change or reduce its purchases of Canadian crops.
However, it’s unlikely G3 will be exporting any of that grain to Saudi Arabia.
“I’m pretty sure that it won’t be,” Cereals Canada Cam Dahl said in an interview August 8. “I think the direction not to buy from Canada is universal.”