Fertilizer Canada is raising urgent concerns about an impending labour disruption at the West Coast ports, set to begin the morning of November 4th. These ports are vital for exporting potash to overseas markets, moving over 21,000 Mt daily. A shutdown will cost the industry $9.7 million per day in lost sales revenue. Another disruption to Canada's supply chains further damages our reputation as a reliable trading partner and jeopardizes food security around the world. Disruptions also damage our trading relationships, providing an advantage to our competitors and potentially ceding market share to Russia and Belarus.
"We are once again on the brink of losing access to a critical trade corridor, and potash fertilizer will be one of the hardest hit commodities," says Karen Proud, President and CEO of Fertilizer Canada. "In August, both of Canada's railways came to a standstill, and we now face potential shutdowns at our two largest ports. We are asking both the BC Maritime Employers Association and the International Longshore and Warehouse Union Canada to come to a resolution and avoid a catastrophic shutdown."
The 2023 West Coast ports labour disruption cost the fertilizer industry over $126 million and took 13 days to resolve. In the months following the disruption, Canada lost significant market share to Russia in key markets such as Indonesia and Malaysia.
The potential West Coast ports shutdown comes at a time when the Port of Montreal is also facing labour disruptions. The Port of Montreal is an import hub for fertilizer servicing Eastern Canada.
While Fertilizer Canada respects the bargaining process, another supply chain shutdown is untenable and government-led solutions are needed to prevent future disruptions. The association urges the federal government to amend the Canada Labour Code section 87.7 to ensure the continuous movement of fertilizer products at ports during labour disputes.
The Canadian fertilizer industry relies on Canada's supply chains to move fertilizer products, which play a fundamental role in food security. Fertilizer is responsible for half of the world's current food production, and with the southern hemisphere's spring planting season approaching, timely delivery is crucial for international customers.
Canada is the world's largest producer of potash, responsible for close to 40 per cent of global production, with 95 per cent of it exported to over 75 countries. As a heavily export-driven industry, some of the biggest international buyers for Canadian fertilizer are in markets only accessible through ports.
Fertilizer Canada represents producers, manufacturers, wholesale and retail distributors of nitrogen, phosphate, potash and sulphur fertilizers. The fertilizer industry plays an essential role in Canada's economy, contributing over $42 billion annually and employing 100,400 workers throughout the supply chain. We are committed to supporting the industry through innovation, stewardship, safety and security. As the foundation of Canada's agri-food sector, we apply innovative solutions that positively impact agriculture, the economy, and the social fabric of Canadian life.
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