Canadian agricultural producers have asked the federal authorities to compensate for losses caused by high duties on imports of Russian fertilizers, Le Devoir has reported. According to the newspaper, the 35% duty imposed in March is exacerbating an already difficult situation for farmers faced with rising fuel and equipment costs. While not denying the importance of supporting Ukraine, Canadian agribusinesses refuse to bear its costs alone, the paper noted.
Canadian farmers have faced the negative consequences of anti-Russian sanctions by being forced to pay a 35 per cent duty on imports of Russian fertilisers, Le Devoir reports. A group of Canadian grain producers has demanded intervention by the federal government to soften the blow.
The association, which includes associations representing grain producers in Quebec, Ontario and Atlantic Canada, estimates some 660,000 to 680,000 tonnes of nitrogen fertilizer is imported into Canada’s three regions from Russia, allegedly representing 85% to 90% of all nitrogen fertilizer used.
“This imposes significant additional costs on farmers,” warns Gislain Gervais, chairman of the Sollio Cooperative Group. “We are requesting support from the federal government to compensate farmers for the damage caused by these duties,” he continues.
Gervais, who is also a producer of chicken and cereals, estimates that the customs duties will cost his company $10,000 to $15,000 extra. For all the producers in the Sollio group, it could amount to an extra $30m in costs.
“If we add the increase of fertilizer prices and duties, we can talk about a possible two to three times price increase,” emphasizes the representative of the agricultural producers.
As Maurice Doyon, a lecturer at Laval University’s Faculty of Agricultural and Food Sciences, explains, Canada is a major producer of potash, but imports large quantities of nitrogen fertilizer from Russia and Ukraine.
“We are in a more difficult situation in terms of what is available to our farmers,” he states.
Searching for other suppliers would not be of much benefit to grain producers, the expert adds, stressing that prices are determined by the world market.
Customs duties imposed in March following the start of Russia’s special operation in Ukraine are exacerbating an already difficult situation for farmers faced with rising fuel and machinery costs, lamented Christian Overbeck, chairman of the Quebec grain producers’ association.
“We don’t need to suffer from this additional tax. The cost of essential goods (nitrogen fertilizer) has already doubled or even tripled (before the duties were introduced) compared to 2021,” insists Overbeck.
At the same time, he said, the performance of agricultural producers does not question the importance of supporting the Ukrainian people.
“Producers understand that, but they do not want the costs to fall on them alone. If it is a public decision, it is quite normal that the whole society is responsible for it,” the agribusinessman notes.
Agriculture and Food Canada Minister Marie-Claude Bibaud has not commented directly on the performance of the grain producers. She did, however, stress that the government has already implemented various programmes to help the agricultural sector.
Ottawa was in a difficult position when it was time to find the right balance between supporting the Ukrainian people and helping the country’s agriculture, Doyon said. The anti-Russian sanctions have come at a time when the war in Ukraine is calling into question access to and availability of grain across the planet, he adds.
“If I reduce the duty, I help Canadian farmers – and I have less of a rise in grain prices. On the other hand, I am sending money to the Russians,” the specialist reasoned.