Zeghers Seed has licences revoked, could owe farmers
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Hey there, time traveller!
This article was published 03/04/2024 (892 days ago), so information in it may no longer be current.
Producers across the Prairies could be owed money from a seed company that had its licences revoked late last month.
On March 25, the Canadian Grain Commission (CGC) revoked the licences of Zeghers Seed Inc., a grain company that held a grain dealer licence and a primary elevator licence in Holland, Man., situated 110 kilometres southeast of Brandon.
Rémi Gosselin, head of communications with the CGC, said Zeghers Seed could owe grain farmers in parts of Manitoba, Saskatchewan and Alberta money for grain deliveries.
The company’s licences were revoked because its security was set to expire on March 31 and it had not provided the CGC with replacement security, Gosselin told the Sun in an interview.
“Companies are required by the Canada Grain Act to obtain a licence … to operate as a grain company and provide security to the CGC in the form of a bond, a letter of credit or payable insurance,” Gosselin said.
In the event that a licensed grain company doesn’t pay grain farmers what they’re owed, the program uses the company’s security to pay them if their claim is found eligible, he added.
“The CGC is working to reach Canadian grain farmers to let them know that, if they’re affected, they may be eligible for compensation through our Safeguards for Grain Farmers Program,” Gosselin said.
Any grain farmers in Canada Zeghers Seed owes money to are encouraged to call the CGC or contact the commission through its website. It could take several months for claims to go through, Gosselin said.
The Sun made multiple attempts to reach Zeghers Seed, but did not receive a reply. The seed company’s website is currently under construction, but its landing page says that it sets a “high standard in order to ensure our customers receive the best quality product we can provide.”
Farmers should make sure that any company they deal with is financially sound, said Pam de Rocquigny, chief executive officer of Manitoba Crop Alliance.
“If they have questions, they should directly contact the CGC … in terms of any licensing or security questions that farmers might have in respect to any grain purchaser in the province,” she said.
Although de Rocquigny didn’t have any details on which farmers might be owned money from Zeghers Seed, she hopes things will work out for any producers that are currently being affected, she said.
“It’s an extremely unfortunate situation, and hopefully if there is any money owed, farmers are able to be compensated for that.”
» mleybourne@brandonsun.com
» X: @miraleybourne