The strike at Vancouver’s seven grain terminals, which began on Sept. 24, has now entered a critical phase, with significant implications for Canada’s agri-food sector.
This labour action, led by members of the Grain Workers Union Local 333, threatens to undermine not just Canada’s agricultural economy but also its standing as a reliable global food exporter.
To further complicate matters, dockworkers at the Port of Montreal have recently approved a strike mandate, signalling another potential disruption. With unions asserting their demands, the economic consequences are becoming increasingly severe.
The Grain Growers of Canada estimate that the Vancouver strike alone is costing the economy nearly $35 million in lost exports per day. This figure, now exceeding $100 million in total, underscores the critical role of these terminals, especially as more than half of Canada’s grain exports pass through Vancouver.
Canada is the world’s third-largest exporter of wheat, and with 70% of these exports moving through Vancouver, the stakes are high not only for Canadian farmers but also for global food security. Wheat, which provides 20% of the world’s calories, is central to global food systems, making this disruption a far-reaching problem.
While most Canadians support workers’ rights to strike for fair wages and improved working conditions, the broader economic impacts of these labour actions are often underappreciated. What is becoming increasingly evident is the toll these disruptions are taking on the cost of doing business in Canada. Stakeholders across the agri-food supply chain — from farm to retail — are being forced to seek alternative supply options, further escalating costs and eroding Canada’s reputation as a reliable trading partner. If the strike expands to Montreal, the country’s food supply chain could be hit from both coasts, amplifying the risks.
These disruptions come on the heels of last year’s port strikes in British Columbia and ongoing challenges with railways this year. In essence, Canada’s food supply chain is being weaponized, with both management and unions using it as leverage. This trend cannot continue if Canada is to maintain its competitiveness on the global stage. The quality of Canadian grain is likely to suffer due to these delays, damaging our export reputation further.
Canada is already struggling to uphold its standing as a consistent supplier in global markets, and these repeated labour disputes only add to the perception of instability.
The federal government has in its hands a clear solution — or at least the start of one. In October 2022, the National Supply Chain Task Force released its final report, Action, Collaboration, and Transformation, which was widely praised for its detailed assessment of vulnerabilities in the transportation system and its recommendations for improving resilience. The report highlighted the critical need to safeguard essential transportation corridors to maintain the flow of goods across the country. While the report did not explicitly declare the food supply chain an “essential service,” its recommendations clearly implied the system’s vital role in ensuring both economic stability and food security.
Yet, despite these clear warnings and recommendations, the federal government has done little to implement the necessary reforms. The roadmap exists, but Ottawa’s inaction has left Canada’s food supply chain vulnerable to exactly the kinds of shocks we are now experiencing. At a time when resilience is paramount, this failure to act threatens not only the reliability of our food supply but also Canada’s global competitiveness in agriculture.
It is time for the federal government to stop ignoring the clear signals from the market and industry experts. We cannot afford to let our food supply chain remain hostage to labour disputes, nor can we allow our agricultural sector to continue absorbing the costs of these disruptions.
The government must act now to implement the recommendations of the National Supply Chain Task Force, safeguarding Canada’s essential role in feeding the world. If not, we risk being left behind, with profound consequences for both our economy and global food security.
— Dr. Sylvain Charlebois is the Director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast.